[105th Congress Public Law 261]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ261.105]


[[Page 1919]]

 STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999

[[Page 112 STAT. 1920]]

Public Law 105-261
105th Congress

                                 An Act


 
To authorize appropriations for fiscal year 1999 for military activities 
                                 of the 
   Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe personnel strengths 
        for such fiscal year for the Armed Forces, and for other 
            purposes. <<NOTE: Oct. 17, 1998 -  [H.R. 3616]>> 

    Be it enacted by the Senate <<NOTE: Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999.>> and House of Representatives 
of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Strom 
Thurmond National Defense Authorization Act for Fiscal Year 1999''.
    (b) Findings.--Congress makes the following findings:
            (1) Senator Strom Thurmond of South Carolina first became a 
        member of the Committee on Armed Services of the United States 
        Senate on January 19, 1959. Senator Thurmond's continuous 
        service on that committee covers more than 75 percent of the 
        period of the existence of the committee, which was established 
        immediately after World War II, and more than 20 percent of the 
        period of the existence of military and naval affairs committees 
        of Congress, the original bodies of which were formed in 1816.
            (2) Senator Thurmond came to Congress and the committee as a 
        distinguished veteran of service, including combat service, in 
        the Armed Forces of the United States.
            (3) Senator Thurmond was commissioned as a reserve second 
        lieutenant of infantry in 1924. He served with great distinction 
        with the First Army in the European Theater of Operations during 
        World War II, landing in Normandy in a glider with the 82nd 
        Airborne Division on D-Day. He was transferred to the Pacific 
        Theater of Operations at the end of the war in Europe and was 
        serving in the Philippines when Japan surrendered.
            (4) Having reverted to Reserve status at the end of World 
        War II, Senator Thurmond was promoted to brigadier general in 
        the United States Army Reserve in 1954. He served as President 
        of the Reserve Officers Association beginning that same year and 
        ending in 1955. Senator Thurmond was promoted to major general 
        in the United States Army Reserve in 1959. He transferred to the 
        Retired Reserve on January 1, 1965, after 36 years of 
        commissioned service.
            (5) The distinguished character of Senator Thurmond's 
        military service has been recognized by awards of numerous 
        decorations that include the Legion of Merit, the Bronze Star 
        medal with ``V'' device, the Army Commendation Medal, the 
        Belgian

[[Page 112 STAT. 1921]]

        Cross of the Order of the Crown, and the French Croix de Guerre.
            (6) Senator Thurmond has served as chairman of the Committee 
        on Armed Services of the United States Senate since 1995 and 
        served as the ranking minority member of the committee from 1993 
        to 1995. Senator Thurmond concludes his service as chairman at 
        the end of the One Hundred Fifth Congress, but is to continue to 
        serve the committee as a member in successive Congresses.
            (7) This Act is the fortieth annual authorization bill for 
        the Department of Defense for which Senator Thurmond has taken a 
        major responsibility as a member of the Committee on Armed 
        Services of the Senate.
            (8) Senator Thurmond, as an Army officer and a legislator, 
        has made matchless contributions to the national security of the 
        United States that, in duration and in quality, are unique.
            (9) It is altogether fitting and proper that this Act, the 
        last annual authorization Act for the national defense that 
        Senator Thurmond manages in and for the United States Senate as 
        chairman of the Committee on Armed Services, be named in his 
        honor, as provided in subsection (a).

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

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for Longbow Hellfire Missile 
           program.
Sec. 112. Conditions for award of a second-source procurement contract 
           for the 
           Family of Medium Tactical Vehicles.
Sec. 113. Armored system modernization.
Sec. 114. Reactive armor tiles.
Sec. 115. Extension of authority to carry out Armament Retooling and 
           Manufacturing Support Initiative.

                        Subtitle C--Navy Programs

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

[[Page 112 STAT. 1922]]

Sec. 122. Increase in amount authorized to be excluded from cost 
           limitation for Seawolf submarine program.
Sec. 123. Multiyear procurement authority for the Department of the 
           Navy.
Sec. 124. Annual GAO review of F/A-18E/F aircraft program.

                     Subtitle D--Air Force Programs

Sec. 131. F-22 aircraft program.
Sec. 132. C-130J aircraft program.

                        Subtitle E--Other Matters

Sec. 141. Chemical stockpile emergency preparedness program.
Sec. 142. Alternative technologies for destruction of assembled chemical 
           weapons.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Management responsibility for Navy mine countermeasures 
           programs.
Sec. 212. Future aircraft carrier transition technologies.
Sec. 213. Manufacturing technology program.
Sec. 214. Sense of Congress on the Defense Science and Technology 
           Program.
Sec. 215. Next Generation Internet Program.
Sec. 216. Crusader self-propelled artillery system program.
Sec. 217. Airborne Laser Program.
Sec. 218. Enhanced Global Positioning System program.

                  Subtitle C--Ballistic Missile Defense

Sec. 231. Sense of Congress on National Missile Defense coverage.
Sec. 232. Limitation on funding for the Medium Extended Air Defense 
           System.
Sec. 233. Limitation on funding for Cooperative Ballistic Missile 
           Defense programs.
Sec. 234. Sense of Congress with respect to Ballistic Missile Defense 
           cooperation with Russia.
Sec. 235. Ballistic Missile Defense program elements.
Sec. 236. Restructuring of acquisition strategy for Theater High-
           Altitude Area 
           Defense (THAAD) system.

                        Subtitle D--Other Matters

Sec. 241. Extension of authority to carry out certain prototype 
           projects.
Sec. 242. NATO alliance ground surveillance concept definition.
Sec. 243. NATO common-funded Civil Budget.
Sec. 244. Executive agent for cooperative research program of the 
           Department of Defense and the Department of Veterans Affairs.
Sec. 245. Review of pharmacological interventions for reversing brain 
           injury.
Sec. 246. Pilot program for revitalizing the laboratories and test and 
           evaluation 
           centers of the Department of Defense.
Sec. 247. Chemical warfare defense.
Sec. 248. Landmine alternatives.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 311. Refurbishment of M1-A1 tanks.
Sec. 312. Operation of prepositioned fleet, National Training Center, 
           Fort Irwin, California.
Sec. 313. Berthing space at Norfolk Naval Shipyard, Virginia.
Sec. 314. NATO common-funded military budget.

                  Subtitle C--Environmental Provisions

Sec. 321. Settlement of claims of foreign governments for environmental 
           cleanup of overseas sites formerly used by the Department of 
           Defense.
Sec. 322. Authority to pay negotiated settlement for environmental 
           cleanup of 
           formerly used defense sites in Canada.

[[Page 112 STAT. 1923]]

Sec. 323. Removal of underground storage tanks.
Sec. 324. Report regarding polychlorinated biphenyl waste under 
           Department of 
           Defense control overseas.
Sec. 325. Modification of deadline for submittal to Congress of annual 
           reports on 
           environmental activities.
Sec. 326. Submarine solid waste control.
Sec. 327. Arctic Military Environmental Cooperation Program.
Sec. 328. Sense of Congress regarding oil spill prevention training for 
           personnel on board Navy vessels.

                Subtitle D--Information Technology Issues

Sec. 331. Additional information technology responsibilities of Chief 
           Information 
           Officers.
Sec. 332. Defense-wide electronic mall system for supply purchases.
Sec. 333. Priority funding to ensure year 2000 compliance of information 
           technology and national security systems.
Sec. 334. Evaluation of year 2000 compliance as part of training 
           exercises programs.
Sec. 335. Continuity of essential operations at risk of failure because 
           of information technology and national security systems that 
           are not year 2000 compliant.

         Subtitle E--Defense Infrastructure Support Improvement

Sec. 341. Clarification of definition of depot-level maintenance and 
           repair.
Sec. 342. Reporting and analysis requirements before change of 
           commercial and 
           industrial type functions to private sector performance.
Sec. 343. Notifications of determinations of military items as being 
           commercial items for purposes of the exception to 
           requirements regarding core logistics capabilities.
Sec. 344. Oversight of development and implementation of automated 
           identification technology.
Sec. 345. Contractor-operated civil engineering supply stores program.
Sec. 346. Conditions on expansion of functions performed under prime 
           vendor 
           contracts for depot-level maintenance and repair.
Sec. 347. Best commercial inventory practices for management of 
           secondary supply items.
Sec. 348. Personnel reductions in Army Materiel Command.
Sec. 349. Inventory management of in-transit items.
Sec. 350. Review of Defense Automated Printing Service functions.
Sec. 351. Development of plan for establishment of core logistics 
           capabilities for maintenance and repair of C-17 aircraft.

   Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 361. Continuation of management and funding of Defense Commissary 
           Agency through the Office of the Secretary of Defense.
Sec. 362. Expansion of current eligibility of Reserves for commissary 
           benefits.
Sec. 363. Costs payable to the Department of Defense and other Federal 
           agencies for services provided to the Defense Commissary 
           Agency.
Sec. 364. Collection of dishonored checks presented at commissary 
           stores.
Sec. 365. Restrictions on patron access to, and purchases in, overseas 
           commissaries and exchange stores.
Sec. 366. Repeal of requirement for Air Force to sell tobacco products 
           to enlisted personnel.
Sec. 367. Prohibition on consolidation or other organizational changes 
           of Department of Defense retail systems.
Sec. 368. Defense Commissary Agency telecommunications.
Sec. 369. Survey of commissary store patrons regarding satisfaction with 
           commissary store merchandise.

                        Subtitle G--Other Matters

Sec. 371. Eligibility requirements for attendance at Department of 
           Defense domestic dependent elementary and secondary schools.
Sec. 372. Assistance to local educational agencies that benefit 
           dependents of members of the Armed Forces and Department of 
           Defense civilian employees.
Sec. 373. Department of Defense readiness reporting system.
Sec. 374. Specific emphasis of program to investigate fraud, waste, and 
           abuse within Department of Defense.
Sec. 375. Condition for providing financial assistance for support of 
           additional duties assigned to the Army National Guard.
Sec. 376. Demonstration program to improve quality of personal property 
           shipments of members.
Sec. 377. Pilot program for acceptance and use of landing fees charged 
           for use of 
           domestic military airfields by civil aircraft.

[[Page 112 STAT. 1924]]

Sec. 378. Strategic plan for expansion of distance learning initiatives.
Sec. 379. Public availability of operating agreements between military 
           installations and financial institutions.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength levels.
Sec. 403. Date for submission of annual manpower requirements report.
Sec. 404. Additional exemption from percentage limitation on number of 
           lieutenant generals and vice admirals.
Sec. 405. Extension of authority for Chairman of the Joint Chiefs of 
           Staff to designate up to 12 general and flag officer 
           positions to be excluded from general and flag officer grade 
           limitations.
Sec. 406. Exception for Chief, National Guard Bureau, from limitation on 
           number of officers above major general.
Sec. 407. Limitation on daily average of personnel on active duty in 
           grades E-8 and E-9.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
           reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Increase in number of members in certain grades authorized to 
           serve on active duty in support of the reserves.
Sec. 415. Consolidation of strength authorizations for active status 
           Naval Reserve flag officers of the Navy Medical Department 
           Staff Corps.

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Codification of eligibility of retired officers and former 
           officers for consideration by special selection boards.
Sec. 502. Involuntary separation pay denied for officer discharged for 
           failure of 
           selection for promotion requested by the officer.
Sec. 503. Streamlined selective retention process for regular officers.
Sec. 504. Permanent applicability of limitations on years of active 
           naval service of Navy limited duty officers in grades of 
           commander and captain.
Sec. 505. Tenure of Chief of the Air Force Nurse Corps.
Sec. 506.  Grade of Air Force Assistant Surgeon General for Dental 
           Services.
Sec. 507. Review regarding allocation of Naval Reserve Officers' 
           Training Corps scholarships among participating colleges and 
           universities.

                  Subtitle B--Reserve Component Matters

Sec. 511. Use of Reserves for emergencies involving weapons of mass 
           destruction.
Sec. 512. Service required for retirement of National Guard officer in 
           higher grade.
Sec. 513. Reduced time-in-grade requirement for reserve general and flag 
           officers 
           involuntarily transferred from active status.
Sec. 514. Active status service requirement for promotion consideration 
           for Army and Air Force reserve component brigadier generals.
Sec. 515. Composition of selective early retirement boards for rear 
           admirals of the Naval Reserve and major generals of the 
           Marine Corps Reserve.
Sec. 516. Authority for temporary waiver for certain Army Reserve 
           officers of baccalaureate degree requirement for promotion of 
           reserve officers.
Sec. 517.  Furnishing of burial flags for deceased members and former 
           members of the Selected Reserve.

               Subtitle C--Military Education and Training

Sec. 521. Separate housing for male and female recruits during recruit 
           basic training.
Sec. 522. After-hours privacy for recruits during basic training.
Sec. 523. Sense of the House of Representatives relating to small unit 
           assignments by gender during recruit basic training.
Sec. 524. Extension of reporting dates for Commission on Military 
           Training and Gender-Related Issues.
Sec. 525. Improved oversight of innovative readiness training.

           Subtitle D--Decorations, Awards, and Commendations

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

[[Page 112 STAT. 1925]]

Sec. 532. Waiver of time limitations for award of certain decorations to 
           certain 
           persons.
Sec. 533. Commendation and commemoration of the Navy and Marine Corps 
           personnel who served in the United States Navy Asiatic Fleet 
           from 1910-1942.
Sec. 534. Appreciation for service during World War I and World War II 
           by members of the Navy assigned on board merchant ships as 
           the Naval Armed Guard Service.
Sec. 535. Sense of Congress regarding the heroism, sacrifice, and 
           service of the military forces of South Vietnam, other 
           nations, and indigenous groups in connection with the United 
           States Armed Forces during the Vietnam conflict.
Sec. 536. Sense of Congress regarding the heroism, sacrifice, and 
           service of former South Vietnamese commandos in connection 
           with United States Armed Forces during the Vietnam conflict.
Sec. 537. Prohibition on members of Armed Forces entering correctional 
           facilities to present decorations to persons who have 
           committed serious violent 
           felonies.

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

Sec. 541. Personnel freeze.
Sec. 542. Professional staff.
Sec. 543. Ex parte communications.
Sec. 544. Timeliness standards.
Sec. 545. Scope of correction of military records.

                           Subtitle F--Reports

Sec. 551. Report on personnel retention.
Sec. 552. Report on process for selection of members for service on 
           courts-martial.
Sec. 553. Report on prisoners transferred from United States 
           Disciplinary Barracks, Fort Leavenworth, Kansas, to Federal 
           Bureau of Prisons.
Sec. 554.  Review and report regarding the distribution of National 
           Guard full-time support among the States.

                        Subtitle G--Other Matters

Sec. 561. Two-year extension of certain force drawdown transition 
           authorities 
           relating to personnel management and benefits.
Sec. 562. Leave without pay for suspended academy cadets and midshipmen.
Sec. 563. Continued eligibility under Voluntary Separation Incentive 
           program for members who involuntarily lose membership in a 
           reserve component.
Sec. 564. Reinstatement of definition of financial institution in 
           authorities for reimbursement of defense personnel for 
           Government errors in direct deposit of pay.
Sec. 565. Increase in maximum amount for College Fund program.
Sec. 566. Central Identification Laboratory, Hawaii.
Sec. 567. Military funeral honors for veterans.
Sec. 568. Status in the Naval Reserve of cadets at the Merchant Marine 
           Academy.
Sec. 569. Repeal of restriction on civilian employment of enlisted 
           members.
Sec. 570. Transitional compensation for abused dependent children not 
           residing with the spouse or former spouse of a member 
           convicted of dependent abuse.
Sec. 571. Pilot program for treating GED and home school diploma 
           recipients as high school graduates for determinations of 
           eligibility for enlistment in the Armed Forces.
Sec. 572. Sense of Congress concerning New Parent Support Program and 
           military families.
Sec. 573. Advancement of Benjamin O. Davis, Junior, to grade of general 
           on the 
           retired list of the Air Force.
Sec. 574. Sense of the House of Representatives concerning adherence by 
           civilians in military chain of command to the standard of 
           exemplary conduct 
           required of commanding officers and others in authority in 
           the Armed Forces.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1999.
Sec. 602. Rate of pay for cadets and midshipmen at the service 
           academies.
Sec. 603. Basic allowance for housing outside the United States.
Sec. 604. Basic allowance for subsistence for reserves.

           Subtitle B--Bonuses and Special and Incentive Pays

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

[[Page 112 STAT. 1926]]

Sec. 612. Three-month extension of certain bonuses and special pay 
           authorities for nurse officer candidates, registered nurses, 
           and nurse anesthetists.
Sec. 613. Three-month extension of authorities relating to payment of 
           other bonuses and special pays.
Sec. 614. Increased hazardous duty pay for aerial flight crewmembers in 
           certain pay grades.
Sec. 615. Aviation career incentive pay and aviation officer retention 
           bonus.
Sec. 616. Diving duty special pay for divers having diving duty as a 
           nonprimary duty.
Sec. 617. Hardship duty pay.
Sec. 618. Selective reenlistment bonus eligibility for Reserve members 
           performing active Guard and Reserve duty.
Sec. 619. Repeal of 10 percent limitation on certain selective 
           reenlistment bonuses.
Sec. 620. Increase in maximum amount authorized for Army enlistment 
           bonus.
Sec. 621. Equitable treatment of Reserves eligible for special pay for 
           duty subject to hostile fire or imminent danger.
Sec. 622. Retention incentives initiative for critically short military 
           occupational specialties.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Payments for movements of household goods arranged by members.
Sec. 632. Exception to maximum weight allowance for baggage and 
           household 
           effects.
Sec. 633. Travel and transportation allowances for travel performed by 
           members in connection with rest and recuperative leave from 
           overseas stations.
Sec. 634. Storage of baggage of certain dependents.
Sec. 635. Commercial travel of Reserves at Federal supply schedule rates 
           for attendance at inactive-duty training assemblies.

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

Sec. 641. Paid-up coverage under Survivor Benefit Plan.
Sec. 642. Survivor Benefit Plan open enrollment period.
Sec. 643. Effective date of court-required former spouse Survivor 
           Benefit Plan 
           coverage effectuated through elections and deemed elections.
Sec. 644. Presentation of United States flag to members of the Armed 
           Forces upon retirement.
Sec. 645. Recovery, care, and disposition of remains of medically 
           retired member who dies during hospitalization that begins 
           while on active duty.
Sec. 646. Revision to computation of retired pay for certain members.
Sec. 647. Elimination of backlog of unpaid retired pay.

                        Subtitle E--Other Matters

Sec. 651. Definition of possessions of the United States for pay and 
           allowances 
           purposes.
Sec. 652. Accounting of advance payments.
Sec. 653. Reimbursement of rental vehicle costs when motor vehicle 
           transported at Government expense is late.
Sec. 654. Education loan repayment program for health professions 
           officers serving in Selected Reserve.
Sec. 655. Federal employees' compensation coverage for students 
           participating in certain officer candidate programs.
Sec. 656. Relationship of enlistment bonuses to eligibility to receive 
           Army college fund supplement under Montgomery GI Bill 
           Educational Assistance 
           Program.
Sec. 657. Authority to provide financial assistance for education of 
           certain defense dependents overseas.
Sec. 658. Clarifications concerning payments to certain persons captured 
           or interned by North Vietnam.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Dependents' dental program.
Sec. 702. Expansion of dependent eligibility under retiree dental 
           program.
Sec. 703. Plan for redesign of military pharmacy system.
Sec. 704. Transitional authority to provide continued health care 
           coverage for 
           certain persons unaware of loss of CHAMPUS eligibility.

                       Subtitle B--TRICARE Program

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

[[Page 112 STAT. 1927]]

Sec. 712. TRICARE prime automatic enrollments and retiree payment 
           options.
Sec. 713. System for tracking data and measuring performance in meeting 
           TRICARE access standards.
Sec. 714. Establishment of appeals process for claimcheck denials.
Sec. 715. Reviews relating to accessibility of health care under 
           TRICARE.

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

Sec. 721. Demonstration project to include certain covered beneficiaries 
           within 
           Federal Employees Health Benefits Program.
Sec. 722. TRICARE as Supplement to Medicare demonstration.
Sec. 723. Implementation of redesign of pharmacy system.
Sec. 724. Comprehensive evaluation of implementation of demonstration 
           projects and TRICARE pharmacy redesign.

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

Sec. 731. Process for waiving informed consent requirement for 
           administration of certain drugs to members of Armed Forces 
           for purposes of a particular military operation.
Sec. 732. Health benefits for abused dependents of members of the Armed 
           Forces.
Sec. 733. Provision of health care at military entrance processing 
           stations and elsewhere outside medical treatment facilities.
Sec. 734. Professional qualifications of physicians providing military 
           health care.

                        Subtitle E--Other Matters

Sec. 741. Enhanced Department of Defense Organ and Tissue Donor program.
Sec. 742. Authorization to establish a Level 1 Trauma Training Center.
Sec. 743. Authority to establish center for study of post-deployment 
           health concerns of members of the Armed Forces.
Sec. 744. Report on implementation of enrollment-based capitation for 
           funding for military medical treatment facilities.
Sec. 745. Joint Department of Defense and Department of Veterans Affairs 
           reports relating to interdepartmental cooperation in the 
           delivery of medical care.
Sec. 746. Report on research and surveillance activities regarding Lyme 
           disease and other tick-borne diseases.

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

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

Sec. 801. Limitation on use of price preference upon achievement of 
           contract goal for small and disadvantaged businesses.
Sec. 802. Distribution of assistance under the Procurement Technical 
           Assistance 
           Cooperative Agreement Program.
Sec. 803. Defense commercial pricing management improvement.
Sec. 804. Modification of senior executives covered by limitation on 
           allowability of compensation for certain contractor 
           personnel.
Sec. 805. Separate determinations of exceptional waivers of truth in 
           negotiation 
           requirements for prime contracts and subcontracts.
Sec. 806. Procurement of conventional ammunition.
Sec. 807. Para-aramid fibers and yarns.
Sec. 808. Clarification of responsibility for submission of information 
           on prices 
           previously charged for property or services offered.
Sec. 809. Amendments and study relating to procurement from firms in 
           industrial base for production of small arms.

                        Subtitle B--Other Matters

Sec. 811. Eligibility of involuntarily downgraded employee for 
           membership in an 
           acquisition corps.
Sec. 812. Time for submission of annual report relating to Buy American 
           Act.
Sec. 813. Procurement of travel services for official and unofficial 
           travel under one contract.
Sec. 814. Department of Defense purchases through other agencies.
Sec. 815. Supervision of defense acquisition university structure by 
           Under Secretary of Defense for Acquisition and Technology.
Sec. 816. Pilot programs for testing program manager performance of 
           product 
           support oversight responsibilities for life cycle of 
           acquisition programs.

[[Page 112 STAT. 1928]]

Sec. 817. Scope of protection of certain information from disclosure.
Sec. 818. Plan for rapid transition from completion of small business 
           innovation 
           research into defense acquisition programs.
Sec. 819. Five-year authority for Secretary of the Navy to exchange 
           certain items.
Sec. 820. Permanent authority for use of major range and test facility 
           installations by commercial entities.
Sec. 821. Inventory exchange authorized for certain fuel delivery 
           contract.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

       Subtitle A--Department of Defense Officers and Organization

Sec. 901. Reduction in number of Assistant Secretary of Defense 
           positions.
Sec. 902. Repeal of statutory requirement for position of Assistant 
           Secretary of 
           Defense for Command, Control, Communications, and 
           Intelligence.
Sec. 903. Independent task force on transformation and Department of 
           Defense 
           organization.
Sec. 904. Authority to expand the National Defense University.
Sec. 905. Center for Hemispheric Defense Studies.
Sec. 906. Restructuring of administration of Fisher Houses.
Sec. 907. Management reform for research, development, test, and 
           evaluation activities.

         Subtitle B--Department of Defense Financial Management

Sec. 911. Improved accounting for defense contract services.
Sec. 912. Report on Department of Defense financial management 
           improvement plan.
Sec. 913. Study of feasibility of performance of Department of Defense 
           finance and accounting functions by private sector sources or 
           other Federal sources.
Sec. 914. Limitation on reorganization and consolidation of operating 
           locations of the Defense Finance and Accounting Service.
Sec. 915. Annual report on resources allocated to support and mission 
           activities.

              Subtitle C--Joint Warfighting Experimentation

Sec. 921. Findings concerning joint warfighting experimentation.
Sec. 922. Sense of Congress concerning joint warfighting 
           experimentation.
Sec. 923. Reports on joint warfighting experimentation.

                        Subtitle D--Other Matters

Sec. 931. Further reductions in defense acquisition and support 
           workforce.
Sec. 932. Limitation on operation and support funds for the Office of 
           the Secretary of Defense.
Sec. 933. Clarification and simplification of responsibilities of 
           Inspectors General 
           regarding whistleblower protections.
Sec. 934. Repeal of requirement relating to assignment of tactical 
           airlift mission to reserve components.
Sec. 935. Consultation with Marine Corps on major decisions directly 
           concerning Marine Corps aviation.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of prior emergency supplemental appropriations 
           for fiscal year 1998.
Sec. 1004. Authorization of appropriations for Bosnia peacekeeping 
           operations for fiscal year 1999.
Sec. 1005. Partnership for Peace Information Management System.
Sec. 1006. United States contribution to NATO common-funded budgets in 
           fiscal year 1999.
Sec. 1007. Liquidity of working-capital funds.
Sec. 1008. Termination of authority to manage working-capital funds and 
           certain 
           activities through the Defense Business Operations Fund.
Sec. 1009. Clarification of authority to retain recovered costs of 
           disposals in working-capital funds.
Sec. 1010. Crediting of amounts recovered from third parties for loss or 
           damage to personal property shipped or stored at Government 
           expense.

                 Subtitle B--Naval Vessels and Shipyards

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

[[Page 112 STAT. 1929]]

Sec. 1012. Transfer of U.S.S. NEW JERSEY.
Sec. 1013. Homeporting of the U.S.S. IOWA in San Francisco, California.
Sec. 1014. Sense of Congress concerning the naming of an LPD-17 vessel.
Sec. 1015. Reports on naval surface fire-support capabilities.
Sec. 1016. Long-term charter of three vessels in support of submarine 
           rescue, escort, and towing.
Sec. 1017. Transfer of obsolete Army tugboat.

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

Sec. 1021. Department of Defense support to other agencies for counter-
           drug activities.
Sec. 1022. Department of Defense support of National Guard drug 
           interdiction and counter-drug activities.
Sec. 1023. Department of Defense counter-drug activities in transit 
           zone.

        Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1031. Repeal of unnecessary and obsolete reporting provisions.
Sec. 1032. Report regarding use of tagging system to identify 
           hydrocarbon fuels used by Department of Defense.

                Subtitle E--Armed Forces Retirement Home

Sec. 1041. Appointment of Director and Deputy Director of the Naval 
           Home.
Sec. 1042. Revision of inspection requirements relating to Armed Forces 
           Retirement Home.
Sec. 1043. Clarification of land conveyance authority, Armed Forces 
           Retirement Home.

            Subtitle F--Matters Relating to Defense Property

Sec. 1051. Plan for improved demilitarization of excess and surplus 
           defense property.
Sec. 1052. Transfer of F-4 Phantom II aircraft to foundation.

             Subtitle G--Other Department of Defense Matters

Sec. 1061. Pilot program on alternative notice of receipt of legal 
           process for garnishment of Federal pay for child support and 
           alimony.
Sec. 1062. Training of special operations forces with friendly foreign 
           forces.
Sec. 1063. Research grants competitively awarded to service academies.
Sec. 1064. Department of Defense use of frequency spectrum.
Sec. 1065. Department of Defense aviation accident investigations.
Sec. 1066. Investigation of actions relating to 174th Fighter Wing of 
           New York Air National Guard.
Sec. 1067. Program to commemorate 50th anniversary of the Korean War.
Sec. 1068. Designation of America's National Maritime Museum.
Sec. 1069. Technical and clerical amendments.

                        Subtitle H--Other Matters

Sec. 1071. Act constituting Presidential approval of vessel war risk 
           insurance 
           requested by the Secretary of Defense.
Sec. 1072. Extension and reauthorization of Defense Production Act of 
           1950.
Sec. 1073. Requirement that burial flags furnished by the Secretary of 
           Veterans 
           Affairs be wholly produced in the United States.
Sec. 1074. Sense of Congress concerning tax treatment of principal 
           residence of members of Armed Forces while away from home on 
           active duty.
Sec. 1075. Clarification of State authority to tax compensation paid to 
           certain 
           employees.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Defense Advanced Research Projects Agency experimental 
           personnel management program for technical personnel.
Sec. 1102. Maximum pay rate comparability for faculty members of the 
           United States Air Force Institute of Technology.
Sec. 1103. Authority for release to Coast Guard of drug test results of 
           civil service mariners of the Military Sealift Command.
Sec. 1104. Limitations on back pay awards.
Sec. 1105. Restoration of annual leave accumulated by civilian employees 
           at installations in the Republic of Panama to be closed 
           pursuant to the Panama Canal Treaty of 1977.
Sec. 1106. Repeal of program providing preference for employment of 
           military spouses in military child care facilities.

[[Page 112 STAT. 1930]]

Sec. 1107. Observance of certain holidays at duty posts outside the 
           United States.
Sec. 1108. Continuation of random drug testing program for certain 
           Department of Defense employees.
Sec. 1109. Department of Defense employee voluntary early retirement 
           authority.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

Sec. 1201. Findings.
Sec. 1202. Sense of Congress.
Sec. 1203. Presidential reports.
Sec. 1204. Secretary of Defense reports on operations in Bosnia and 
           Herzegovina.
Sec. 1205. Definitions.

         Subtitle B--Matters Relating to Contingency Operations

Sec. 1211. Report on involvement of Armed Forces in contingency and 
           ongoing operations.
Sec. 1212. Submission of report on objectives of a contingency operation 
           with 
           requests for funding for the operation.

             Subtitle C--Matters Relating to NATO and Europe

Sec. 1221. Limitation on United States share of costs of NATO expansion.
Sec. 1222. Report on military capabilities of an expanded NATO alliance.
Sec. 1223. Reports on the development of the European security and 
           defense 
           identity.

                        Subtitle D--Other Matters

Sec. 1231. Limitation on assignment of United States forces for certain 
           United 
           Nations purposes.
Sec. 1232. Prohibition on restriction of Armed Forces under Kyoto 
           Protocol to the United Nations Framework Convention on 
           Climate Change.
Sec. 1233. Defense burdensharing.
Sec. 1234. Transfer of excess UH-1 Huey and AH-1 Cobra helicopters to 
           foreign countries.
Sec. 1235. Transfers of naval vessels to certain foreign countries.
Sec. 1236. Repeal of landmine moratorium.
Sec. 1237. Application of authorities under the International Emergency 
           Economic Powers Act to Communist Chinese military companies.

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

Sec. 1301. Specification of Cooperative Threat Reduction Programs and 
           funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition on use of funds for specified purposes.
Sec. 1304. Limitation on use of funds for chemical weapons destruction 
           activities in Russia.
Sec. 1305. Limitation on use of funds for biological weapons 
           proliferation prevention activities in Russia.
Sec. 1306. Cooperative counter proliferation program.
Sec. 1307. Requirement to submit summary of amounts requested by project 

           category.
Sec. 1308. Report on biological weapons programs in Russia.
Sec. 1309. Report on individuals with expertise in former Soviet weapons 
           of mass destruction programs.

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

Sec. 1401. Short title.
Sec. 1402. Domestic preparedness for response to threats of terrorist 
           use of weapons of mass destruction.
Sec. 1403. Report on domestic emergency preparedness.
Sec. 1404. Threat and risk assessments.
Sec. 1405. Advisory panel to assess domestic response capabilities for 
           terrorism 
           involving weapons of mass destruction.

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

                    Subtitle A--Arms Control Matters

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

[[Page 112 STAT. 1931]]

Sec. 1502. Transmission of executive branch reports providing Congress 
           with classified summaries of arms control developments.
Sec. 1503. Report on adequacy of emergency communications capabilities 
           between United States and Russia.
Sec. 1504. Russian nonstrategic nuclear weapons.

                  Subtitle B--Satellite Export Controls

Sec. 1511. Sense of Congress.
Sec. 1512. Certification of exports of missile equipment or technology 
           to China.
Sec. 1513. Satellite controls under the United States Munitions List.
Sec. 1514. National security controls on satellite export licensing.
Sec. 1515. Report on export of satellites for launch by People's 
           Republic of China.
Sec. 1516. Related items defined.

                Subtitle C--Other Export Control Matters

Sec. 1521. Authority for export control activities of the Department of 
           Defense.
Sec. 1522. Release of export information by Department of Commerce to 
           other 
           agencies for purpose of national security assessment.
Sec. 1523. Nuclear export reporting requirement.
Sec. 1524. Execution of objection authority within the Department of 
           Defense.

                Subtitle D--Counterproliferation Matters

Sec. 1531. One-year extension of counterproliferation authorities for 
           support of 
           United Nations Special Commission on Iraq.
Sec. 1532. Sense of Congress on nuclear tests in South Asia.
Sec. 1533. Report on requirements for response to increased missile 
           threat in Asia-Pacific region.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out fiscal year 1998 
           projects.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization to accept road construction project, Marine 
           Corps Base, Camp Lejeune, North Carolina.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
           projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
           projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
Sec. 2405. Repeal of fiscal year 1997 authorization of appropriations 
           for certain 
           military housing improvement program.
Sec. 2406. Modification of authority to carry out certain fiscal year 
           1995 projects.
Sec. 2407. Modification of authority to carry out fiscal year 1990 
           project.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

[[Page 112 STAT. 1932]]

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
           acquisition projects.
Sec. 2602. Modification of authority to carry out fiscal year 1998 
           project.

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
           specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1996 
           projects.
Sec. 2703. Extension of authorization of fiscal year 1995 project.
Sec. 2704. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Architectural and engineering services and construction 
           design.
Sec. 2802. Expansion of Army overseas family housing lease authority.
Sec. 2803. Definition of ancillary supporting facilities under 
           alternative authority for acquisition and improvement of 
           military housing.
Sec. 2804. Purchase of build-to-lease family housing at Eielson Air 
           Force Base, 
           Alaska.
Sec. 2805. Report relating to improvement of housing for unaccompanied 
           members.

         Subtitle B--Real Property and Facilities Administration

Sec. 2811. Exceptions to real property transaction reporting 
           requirements for war and certain emergency and other 
           operations.
Sec. 2812. Restoration of Department of Defense lands used by another 
           Federal agency.
Sec. 2813. Outdoor recreation development on military installations for 
           disabled 
           veterans, military dependents with disabilities, and other 
           persons with disabilities.
Sec. 2814. Report on leasing and other alternative uses of nonexcess 
           military property.
Sec. 2815. Report on implementation of utility system conveyance 
           authority.

            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Applicability of property disposal laws to leases at 
           installations to be closed or realigned under base closure 
           laws.
Sec. 2822. Elimination of waiver authority regarding prohibition against 
           certain 
           conveyances of property at Naval Station, Long Beach, 
           California.
Sec. 2823. Payment of stipulated penalties assessed under CERCLA in 
           connection with McClellan Air Force Base, California.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Modification of land conveyance, Army Reserve Center, 
           Youngstown, Ohio.
Sec. 2832. Release of interests in real property, former Kennebec 
           Arsenal, Augusta, Maine.
Sec. 2833. Release, waiver, or conveyance of interests in real property, 
           former 
           Redstone Army Arsenal property, Alabama.
Sec. 2834. Conveyance of utility systems, Lone Star Army Ammunition 
           Plant, Texas.
Sec. 2835. Conveyance of water rights and related interests, Rocky 
           Mountain Arsenal, Colorado, for purposes of acquisition of 
           perpetual contracts for water.
Sec. 2836. Land conveyance, Army Reserve Center, Massena, New York.
Sec. 2837. Land conveyance, Army Reserve Center, Ogdensburg, New York.
Sec. 2838. Land conveyance, Army Reserve Center, Jamestown, Ohio.
Sec. 2839. Land conveyance, Army Reserve Center, Peoria, Illinois.
Sec. 2840. Land conveyance, Army Reserve Center, Bridgton, Maine.
Sec. 2841. Land conveyance, Fort Sheridan, Illinois.
Sec. 2842. Land conveyance, Skaneateles, New York.
Sec. 2843. Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
           Indiana.
Sec. 2844. Land conveyance, Volunteer Army Ammunition Plant, 
           Chattanooga, 
           Tennessee.
Sec. 2845. Land conveyance, Stewart Amy Sub-Post, New Windsor, New York.

                        Part II--Navy Conveyances

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

[[Page 112 STAT. 1933]]

Sec. 2852. Land exchange, Naval Reserve Readiness Center, Portland, 
           Maine.
Sec. 2853. Land conveyance, Naval and Marine Corps Reserve facility, 
           Youngstown, Ohio.
Sec. 2854. Land conveyance, Naval Air Reserve Center, Minneapolis, 
           Minnesota.

                     Part III--Air Force Conveyances

Sec. 2861. Modification of land conveyance, Eglin Air Force Base, 
           Florida.
Sec. 2862. Modification of land conveyance, Finley Air Force Station, 
           North Dakota.
Sec. 2863. Land conveyance, Lake Charles Air Force Station, Louisiana.
Sec. 2864. Land conveyance, Air Force Housing Facility, La Junta, 
           Colorado.

                        Subtitle E--Other Matters

Sec. 2871. Modification of authority relating to Department of Defense 
           Laboratory Revitalization Demonstration Program.
Sec. 2872. Repeal of prohibition on joint use of Gray Army Airfield, 
           Fort Hood, Texas, with civil aviation.
Sec. 2873. Modification of demonstration project for purchase of fire, 
           security, police, public works, and utility services from 
           local government agencies.
Sec. 2874. Designation of building containing Navy and Marine Corps 
           Reserve 
           Center, Augusta, Georgia.

               TITLE XXIX--JUNIPER BUTTE RANGE WITHDRAWAL

Sec. 2901. Short title.
Sec. 2902. Withdrawal and reservation.
Sec. 2903. Map and legal description.
Sec. 2904. Agency agreement.
Sec. 2905. Right-of-way grants.
Sec. 2906. Indian sacred sites.
Sec. 2907. Actions concerning ranching operations in withdrawn area.
Sec. 2908. Management of withdrawn and reserved lands.
Sec. 2909. Integrated natural resource management plan.
Sec. 2910. Memorandum of understanding.
Sec. 2911. Maintenance of roads.
Sec. 2912. Management of withdrawn and acquired mineral resources.
Sec. 2913. Hunting, fishing, and trapping.
Sec. 2914. Water rights.
Sec. 2915. Duration of withdrawal.
Sec. 2916. Environmental remediation of relinquished withdrawn lands or 
           upon 
           termination of withdrawal.
Sec. 2917. Delegation of authority.
Sec. 2918. Hold harmless.
Sec. 2919. Authorization of appropriations.

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

Sec. 3101. Weapons activities.
Sec. 3102. Defense environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.
Sec. 3105. Defense environmental management privatization.

                Subtitle B--Recurring General Provisions

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

    Subtitle C--Program Authorizations, Restrictions, and Limitations

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

[[Page 112 STAT. 1934]]

Sec. 3132. Support of ballistic missile defense activities of the 
           Department of 
           Defense.
Sec. 3133. Nonproliferation activities.
Sec. 3134. Licensing of certain mixed oxide fuel fabrication and 
           irradiation facilities.
Sec. 3135. Continuation of processing, treatment, and disposition of 
           legacy nuclear materials.
Sec. 3136. Authority for Department of Energy federally funded research 
           and development centers to participate in merit-based 
           technology research and development programs.
Sec. 3137. Activities of Department of Energy facilities.
Sec. 3138. Hanford overhead and service center costs.
Sec. 3139. Hanford waste tank cleanup program reforms.
Sec. 3140. Hanford Health Information Network.
Sec. 3141. Hazardous materials management and emergency response 
           training 
           program.
Sec. 3142. Support for public education in the vicinity of Los Alamos 
           National 
           Laboratory, New Mexico.
Sec. 3143. Relocation of National Atomic Museum, Albuquerque, New 
           Mexico.
Sec. 3144. Tritium production.

                        Subtitle D--Other Matters

Sec. 3151. Study and plan relating to worker and community transition 
           assistance.
Sec. 3152. Extension of authority for appointment of certain scientific, 
           engineering, and technical personnel.
Sec. 3153. Requirement for plan to modify employment system used by 
           Department of Energy in defense environmental management 
           programs.
Sec. 3154. Department of Energy nuclear materials couriers.
Sec. 3155. Increase in maximum rate of pay for scientific, engineering, 
           and technical personnel responsible for safety at defense 
           nuclear facilities.
Sec. 3156. Extension of authority of Department of Energy to pay 
           voluntary separation incentive payments.
Sec. 3157. Repeal of fiscal year 1998 statement of policy on stockpile 
           stewardship program.
Sec. 3158. Report on stockpile stewardship criteria.
Sec. 3159. Panel to assess the reliability, safety, and security of the 
           United States nuclear stockpile.
Sec. 3160. International cooperative information exchange.
Sec. 3161. Protection against inadvertent release of restricted data and 
           formerly 
           restricted data.
Sec. 3162. Sense of Congress regarding treatment of Formerly Utilized 
           Sites Remedial Action Program under a nondefense 
           discretionary budget function.
Sec. 3163. Reports relating to tritium production.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Authority to dispose of certain materials in National Defense 
           Stockpile.
Sec. 3304. Use of stockpile funds for certain environmental remediation, 
           restoration, waste management, and compliance activities.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Definitions.
Sec. 3402. Authorization of appropriations.
Sec. 3403. Disposal of Naval Petroleum Reserve Numbered 2.
Sec. 3404. Disposal of Naval Petroleum Reserve Numbered 3.
Sec. 3405. Disposal of Oil Shale Reserve Numbered 2.
Sec. 3406. Administration.

                   TITLE XXXV--PANAMA CANAL COMMISSION

Sec. 3501. Short title; references to Panama Canal Act of 1979.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.
Sec. 3505. Donations to the Commission.
Sec. 3506. Agreements for United States to provide post-transfer 
           administrative services for certain employee benefits.
Sec. 3507. Sunset of United States overseas benefits just before 
           transfer.

[[Page 112 STAT. 1935]]

Sec. 3508. Central examining office.
Sec. 3509. Liability for vessel accidents.
Sec. 3510. Panama Canal Board of Contract Appeals.
Sec. 3511. Restatement of requirement that Secretary of Defense designee 
           on 
           Panama Canal Commission supervisory board be a current 
           officer of the Department of Defense.
Sec. 3512. Technical amendments.

                  TITLE XXXVI--MARITIME ADMINISTRATION

Sec. 3601. Authorization of appropriations for fiscal year 1999.
Sec. 3602. Authority to convey National Defense Reserve Fleet vessel.
Sec. 3603. Authority to convey certain National Defense Reserve Fleet 
           vessels.
Sec. 3604. Clearinghouse for maritime information.
Sec. 3605. Conveyance of NDRF vessel ex-USS LORAIN COUNTY.

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

Sec. 3701. Authorization for additional customs personnel to monitor the 
           importation of products made with forced labor.
Sec. 3702. Reporting requirement on forced labor products destined for 
           the United States market.
Sec. 3703. Renegotiating memoranda of understanding on forced labor.

              TITLE XXXVIII--FAIR TRADE IN AUTOMOTIVE PARTS

Sec. 3801. Short title.
Sec. 3802. Definitions.
Sec. 3803. Re-establishment of initiative on automotive parts sales to 
           Japan.
Sec. 3804. Establishment of Special Advisory Committee on automotive 
           parts sales in Japanese and other Asian markets.
Sec. 3805. Expiration date.

                      TITLE XXXIX--RADIO FREE ASIA

Sec. 3901. Short title.
Sec. 3902. Authorization of appropriations for increased funding for 
           Radio Free Asia and Voice of America broadcasting to China.
Sec. 3903. Reporting requirement.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for Longbow Hellfire Missile 
           program.
Sec. 112. Conditions for award of a second-source procurement contract 
           for the 
           Family of Medium Tactical Vehicles.

[[Page 112 STAT. 1936]]

Sec. 113. Armored system modernization.
Sec. 114. Reactive armor tiles.
Sec. 115. Extension of authority to carry out Armament Retooling and 
           Manufacturing Support Initiative.

                        Subtitle C--Navy Programs

Sec. 121. CVN-77 nuclear aircraft carrier program.
Sec. 122. Increase in amount authorized to be excluded from cost 
           limitation for Seawolf submarine program.
Sec. 123. Multiyear procurement authority for the Department of the 
           Navy.
Sec. 124. Annual GAO review of F/A-18E/F aircraft program.

                     Subtitle D--Air Force Programs

Sec. 131. F-22 aircraft program.
Sec. 132. C-130J aircraft program.

                        Subtitle E--Other Matters

Sec. 141. Chemical stockpile emergency preparedness program.
Sec. 142. Alternative technologies for destruction of assembled chemical 
           weapons.

               Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement for the Army as follows:
            (1) For aircraft, $1,396,047,000.
            (2) For missiles, $1,228,229,000.
            (3) For weapons and tracked combat vehicles, $1,507,551,000.
            (4) For ammunition, $1,016,255,000.
            (5) For other procurement, $3,344,932,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 
year 1999 for procurement for the Navy as follows:
            (1) For aircraft, $7,642,200,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,223,903,000.
            (3) For shipbuilding and conversion, $6,033,480,000.
            (4) For other procurement, $4,042,975,000.

    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1999 for procurement for the Marine Corps in the amount 
of $881,896,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for procurement of ammunition for the Navy and the 
Marine Corps in the amount of $463,339,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement for the Air Force as follows:
            (1) For aircraft, $8,350,617,000.
            (2) For missiles, $2,210,640,000.
            (3) For ammunition, $383,161,000.
            (4) For other procurement, $6,950,372,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

[[Page 112 STAT. 1937]]

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement of aircraft, vehicles, communications equipment, and 
other equipment for the reserve components of the Armed Forces as 
follows:
            (1) For the Army National Guard, $10,000,000.
            (2) For the Air National Guard, $10,000,000.
            (3) For the Army Reserve, $10,000,000.
            (4) For the Naval Reserve, $10,000,000.
            (5) For the Air Force Reserve, $10,000,000.
            (6) For the Marine Corps Reserve, $10,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

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

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 1999 
the amount of $803,000,000 for--
            (1) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

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

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

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

                        Subtitle B--Army Programs

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

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

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

    The Secretary of the Army may award a second-source procurement 
contract for the production of the Family of Medium Tactical Vehicles 
only after the Secretary certifies in writing to the congressional 
defense committees--
            (1) that the total quantity of vehicles within the Family of 
        Medium Tactical Vehicles program that the Secretary will

[[Page 112 STAT. 1938]]

        require to be delivered (under all contracts) in any 12-month 
        period will be sufficient to enable the prime contractor to 
        maintain a minimum economic production level;
            (2) that the total cost to the Army of the procurements 
        under the prime and second-source contracts over the period of 
        those contracts will be the same as or lower than the amount 
        that would be the total cost of the procurements if only one 
        such contract were awarded; and
            (3) that the vehicles to be produced under those contracts 
        will be produced with common components that will be 
        interchangeable among similarly configured models.

SEC. 113. ARMORED SYSTEM MODERNIZATION.

    (a) Funding.--Of the funds appropriated pursuant to the 
authorization of appropriations in section 101(3) for M1 Abrams Tank 
Modifications--
            (1) $14,300,000 shall be obligated for procurements 
        associated with the M1A1D Applique Integration Program, of which 
        no more than $11,400,000 may be obligated before the end of the 
        30-day period beginning on the date on which the Secretary of 
        the Army submits the report required under subsection (b); and
            (2) $6,000,000 shall be obligated to develop a M1A2 risk 
        reduction program.

    (b) Report.--(1) Not later than January 31, 1999, the Secretary of 
the Army shall submit to the congressional defense committees a report 
on Army armored system modernization programs. The report shall 
include--
            (A) an assessment of the current acquisition and fielding 
        strategy of the Army for the M1 Abrams Tank and M2A3 Bradley 
        Fighting Vehicle; and
            (B) a description and assessment of alternatives to that 
        strategy, including an assessment of an alternative fielding 
        strategy that provides for placing all of the armored vehicles 
        configured in the latest variant into one heavy corps.

    (2) The assessment of each alternative acquisition and fielding 
strategy under paragraph (1)(B) shall include the following:
            (A) The relative effects of that strategy on warfighting 
        capabilities in terms of operational effectiveness and training 
        and support efficiencies, taking into consideration the joint 
        warfighting context.
            (B) How that strategy would facilitate the transition to the 
        Future Scout and Cavalry System, the Future Combat System, or 
        other armored systems for the future force structure known as 
        the Army After Next.
            (C) How that strategy fits into the context of overall 
        armored system modernization through 2020.
            (D) Budgetary implications.
            (E) Implications for the national technology and industrial 
        base.
            (F) Innovative techniques and alternatives for maintaining 
        M1A2 System Enhancement Program production.

    (3) The Secretary shall include in the report a draft of any 
legislation that may be required to execute a given alternative for M1A2 
System Enhancement Program production.
    (c) GAO Evaluation.--The Comptroller General shall review the report 
of the Secretary of the Army under subsection (b) and,

[[Page 112 STAT. 1939]]

not later than 30 days after the date on which that report is submitted 
to the congressional defense committees, shall submit to those 
committees a report providing the Comptroller General's views on the 
conclusions of the Secretary of the Army set forth in that report.

SEC. 114. REACTIVE ARMOR TILES.

    (a) Limitation.--None of the funds authorized to be appropriated 
under section 101(3) or 102(b) may be obligated for the procurement of 
reactive armor tiles until 30 days after the date on which the Secretary 
of Defense submits to the congressional defense committees the matters 
specified in subsection (d).
    (b) Exception.--The limitation in subsection (a) does not apply to 
the obligation of any funds for the procurement of armor tiles for an 
armored vehicle for which the Secretary of the Army or, in the case of 
the Marine Corps, the Secretary of the Navy, had established a 
requirement for such tiles before the date of the enactment of this Act.
    (c) Study Required.--(1) The Secretary of Defense shall contract 
with an entity independent of the Department of Defense to conduct a 
study of the operational requirements of the Army and the Marine Corps 
for reactive armor tiles for armored vehicles and to submit to the 
Secretary a report on the results of the study.
    (2) The study shall include the following:
            (A) A detailed assessment of the operational requirements of 
        the Army and the Marine Corps for reactive armor tiles for each 
        of the armored vehicles presently in use, including the 
        requirements for each vehicle in its existing configurations and 
        in configurations proposed for the vehicle.
            (B) For each armored vehicle, an analysis of the costs and 
        benefits of the procurement and installation of the tiles, 
        including a comparison of those costs and benefits with the 
        costs and benefits of any existing upgrade program for the 
        armored vehicle.

    (3) The entity carrying out the study shall request the views of the 
Secretary of the Army and the Secretary of the Navy.
    (d) Submission to Congressional Committees.--Not later than April 1, 
1999, the Secretary of Defense shall submit to the congressional defense 
committees--
            (1) the report on the study submitted to the Secretary by 
        the entity carrying out the study;
            (2) the comments of the Secretary of the Army and the 
        Secretary of the Navy on the study; and
            (3) for each vehicle for which there is a requirement for 
        reactive armor tiles, as indicated by the results of the study, 
        the Secretary's recommendations as to the number of vehicles to 
        be equipped with such tiles.

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

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

[[Page 112 STAT. 1940]]

                        Subtitle C--Navy Programs

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

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

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

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

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

    (a) Authority for Specified Navy Aircraft Programs.--Beginning with 
the fiscal year 1999 program year, the Secretary of the Navy may, in 
accordance with section 2306b of title 10, United States Code, enter 
into a multiyear procurement contract for procurement for the following 
programs:
            (1) The AV-8B aircraft program.
            (2) The T-45TS aircraft program.
            (3) The E-2C aircraft program.

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

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

    (a) Review and Report Required.--Not later than June 15 of each 
year, the Comptroller General shall review the F/A-18E/F aircraft 
program and submit to Congress a report on the results of the review. 
The Comptroller General shall submit to Congress with each such report a 
certification as to whether the Comptroller General has had access to 
sufficient information to make informed judgments on the matters covered 
by the report.
    (b) Content of Report.--The report submitted on the program each 
year shall include the following:
            (1) The extent to which engineering and manufacturing 
        development and operational test and evaluation under the 
        program are meeting the goals established for engineering and 
        manufacturing development and operational test and evaluation 
        under the program, including the performance, cost, and schedule 
        goals.
            (2) The status of modifications expected to have a 
        significant effect on the cost or performance of the F/A-18E/F 
        aircraft.

    (c) Duration of Requirement.--No report is required under this 
section after the full-rate production contract is awarded under the 
program.
    (d) Requirement to Support Annual GAO Review.--The Secretary of 
Defense and the prime contractors under the F/A-18E/F program shall 
timely provide the Comptroller General with such

[[Page 112 STAT. 1941]]

information on the program, including information on program 
performance, as the Comptroller General considers necessary to carry out 
this section.

                     Subtitle D--Air Force Programs

SEC. 131. F-22 AIRCRAFT PROGRAM.

    (a) Limitation on Advance Procurement.--(1) Amounts available for 
the Department of Defense for any fiscal year for the F-22 aircraft 
program may not be obligated for advance procurement for the six Lot II 
F-22 aircraft before the applicable date under paragraph (2) or (3).
    (2) The applicable date for the purposes of paragraph (1) is the 
date on which the Secretary of Defense submits a certification under 
subsection (b)(1) unless the Secretary submits a report under subsection 
(b)(2).
    (3) If the Secretary submits a report under subsection (b)(2), the 
applicable date for the purposes of paragraph (1) is the later of--
            (A) the date on which the Secretary of Defense submits the 
        report; or
            (B) the date on which the Director of Operational Test and 
        Evaluation submits the certification required under subsection 
        (c).

    (b) Certification by Secretary of Defense.--(1) Upon the completion 
of 433 hours of flight testing of F-22 flight test vehicles, the 
Secretary of Defense shall submit to the congressional defense 
committees a certification of the completion of that amount of flight 
testing. A certification is not required under this paragraph if the 
Secretary submits a report under paragraph (2).
    (2) If the Secretary determines that a number of hours of flight 
testing of F-22 flight test vehicles less than 433 hours provides the 
Defense Acquisition Board with a sufficient basis for deciding to 
proceed into production of Lot II F-22 aircraft, the Secretary may 
submit a report to the congressional defense committees upon the 
completion of that lesser number of hours of flight testing. A report 
under this paragraph shall contain the following:
            (A) A certification of the number of hours of flight testing 
        completed.
            (B) The reasons for the Secretary's determination that the 
        lesser number of hours is a sufficient basis for a decision by 
        the board.
            (C) A discussion of the extent to which the Secretary's 
        determination is consistent with each decision made by the 
        Defense Acquisition Board since January 1997 in the case of a 
        major aircraft acquisition program that the amount of flight 
        testing completed for the program was sufficient or not 
        sufficient to justify a decision to proceed into low-rate 
        initial production.
            (D) A determination by the Secretary that it is more 
        financially advantageous for the Department to proceed into 
        production of Lot II F-22 aircraft than to delay production 
        until completion of 433 hours of flight testing, together with 
        the reasons for that determination.

    (c) Certification by the Director of Operational Test and 
Evaluation.--Upon the completion of 183 hours of the flight

[[Page 112 STAT. 1942]]

testing of F-22 flight test vehicles provided for in the test and 
evaluation master plan for the F-22 aircraft program, as in effect on 
October 1, 1997, the Director of Operational Test and Evaluation shall 
submit to the congressional defense committees a certification of the 
completion of that flight testing.

SEC. 132. C-130J AIRCRAFT PROGRAM.

    Not later than March 1, <<NOTE: Reports.>>  1999, the Secretary of 
Defense shall review the C-130J aircraft program and submit a report on 
the program to the congressional defense committees. The report shall 
include at least the following:
            (1) A discussion of the testing planned and the testing 
        conducted under the program, including--
                    (A) the testing schedule intended at the beginning 
                of the program;
                    (B) the testing schedule as of when the testing 
                commenced; and
                    (C) an explanation of the time taken for the 
                testing.
            (2) The cost and schedule of the program, including--
                    (A) whether the Department has exercised or plans to 
                exercise contract options for fiscal years 1996, 1997, 
                1998, and 1999;
                    (B) when the Department expects the aircraft to be 
                delivered and how the delivery dates compare to the 
                delivery dates specified in the contract;
                    (C) whether the Department expects to make any 
                modification to the negotiated contract price for these 
                aircraft, and the amount and basis for any such 
                modification; and
                    (D) whether the Department expects the reported 
                delays and overruns in the development of the aircraft 
                to have any other impact on the cost, schedule, or 
                performance of the aircraft.

                        Subtitle E--Other Matters

SEC. 141. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM.

    (a) Assistance to State and Local Governments.--Section 1412 of the 
Department of Defense Authorization Act, 1986 (Public Law 99-145; 50 
U.S.C. 1521), is amended by adding at the end of subsection (c) the 
following:
    ``(4)(A) In coordination with the Secretary of the Army and in 
accordance with agreements between the Secretary of the Army and the 
Director of the Federal Emergency Management Agency, the Director shall 
carry out a program to provide assistance to State and local governments 
in developing capabilities to respond to emergencies involving risks to 
the public health or safety within their jurisdictions that are 
identified by the Secretary as being risks resulting from--
            ``(i) the storage of lethal chemical agents and munitions 
        referred to in subsection (a) at military installations in the 
        continental United States; or
            ``(ii) the destruction of such agents and munitions at 
        facilities referred to in paragraph (1)(B).

[[Page 112 STAT. 1943]]

    ``(B) No assistance may be provided under this paragraph after the 
completion of the destruction of the United States' stockpile of lethal 
chemical agents and munitions.
    ``(C) <<NOTE: Reports.>> Not later than December 15 of each year, 
the Director shall transmit a report to Congress on the activities 
carried out under this paragraph during the fiscal year preceding the 
fiscal year in which the report is submitted.''.

    (b) Program Funding.--Section 1412(f ) of such Act <<NOTE: 50 USC 
1521.>>  (51 U.S.C. 1521(f )) is amended--
            (1) by striking out ``Identification of Funds.--Funds'' and 
        inserting in lieu thereof ``Identification of Funds.--(1) 
        Funds''; and
            (2) by adding at the end the following new paragraph:

    ``(2) Amounts appropriated to the Secretary for the purpose of 
carrying out subsection (c)(4) shall be promptly made available to the 
Director of the Federal Emergency Management Agency.''.
    (c) Periodic Reports.--Section 1412(g) of such Act (50 U.S.C. 
1521(g)) is amended--
            (1) in paragraph (2)(B)--
                    (A) by striking out ``and'' at the end of clause 
                (v);
                    (B) by striking out the period at the end of clause 
                (vi) and inserting in lieu thereof ``; and''; and
                    (C) by adding at the end the following new clause:
                    ``(vii) grants to State and local governments to 
                assist those governments in carrying out functions 
                relating to emergency preparedness and response in 
                accordance with subsection (c)(3).'';
            (2) by redesignating subparagraph (B) (as amended by 
        paragraph (1)) and subparagraph (C) of paragraph (2) as 
        subparagraphs (C) and (D), respectively; and
            (3) by inserting after paragraph (2)(A) the following new 
        subparagraph (B):
            ``(B) A site-by-site description of actions taken to assist 
        State and local governments (either directly or through the 
        Federal Emergency Management Agency) in carrying out functions 
        relating to emergency preparedness and response in accordance 
        with subsection (c)(3).''.

SEC. 142. <<NOTE: 50 USC 1521 note.>>  ALTERNATIVE TECHNOLOGIES FOR 
            DESTRUCTION OF ASSEMBLED CHEMICAL WEAPONS.

    (a) Program Management.--The program manager for the Assembled 
Chemical Weapons Assessment shall continue to manage the development and 
testing (including demonstration and pilot-scale testing) of 
technologies for the destruction of lethal chemical munitions that are 
potential or demonstrated alternatives to the baseline incineration 
program. In performing such management, the program manager shall act 
independently of the program manager for Chemical Demilitarization and 
shall report to the Under Secretary of Defense for Acquisition and 
Technology.
    (b) Post-Demonstration Activities.--(1) The program manager for the 
Assembled Chemical Weapons Assessment may carry out those activities 
necessary to ensure that an alternative technology for the destruction 
of lethal chemical munitions can be implemented immediately after--
            (A) the technology has been demonstrated to be successful; 
        and

[[Page 112 STAT. 1944]]

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

    (2) To prepare for the immediate implementation of any such 
technology, the program manager may, during fiscal years 1998 and 1999, 
take the following actions:
            (A) Establish program requirements.
            (B) Prepare procurement documentation.
            (C) Develop environmental documentation.
            (D) Identify and prepare to meet public outreach and public 
        participation requirements.
            (E) Prepare to award a contract for the design, 
        construction, and operation of a pilot facility for the 
        technology to the provider team for the technology not later 
        than December 30, 1999.

    (c) Independent Evaluation.--The Under Secretary of Defense for 
Acquisition and Technology shall provide for an independent evaluation 
of the cost and schedule of the Assembled Chemical Weapons Assessment, 
which shall be performed and submitted to the Under Secretary not later 
than September 30, 1999. The evaluation shall be performed by a 
nongovernmental organization qualified to make such an evaluation.
    (d) Pilot Facilities Contracts.--(1) The Under Secretary of Defense 
for Acquisition and Technology shall determine whether to proceed with 
pilot-scale testing of a technology referred to in paragraph (2) in time 
to award a contract for the design, construction, and operation of a 
pilot facility for the technology to the provider team for the 
technology not later than December 30, 1999. If the Under Secretary 
determines to proceed with such testing, the Under Secretary shall 
(exercising the acquisition authority of the Secretary of Defense) so 
award a contract not later than such date.
    (2) Paragraph (1) applies to an alternative technology for the 
destruction of lethal chemical munitions, other than incineration, that 
the Under Secretary--
            (A) certifies in writing to Congress is--
                    (i) as safe and cost effective for disposing of 
                assembled chemical munitions as is incineration of such 
                munitions; and
                    (ii) is capable of completing the destruction of 
                such munitions on or before the later of the date by 
                which the destruction of the munitions would be 
                completed if incineration were used or the deadline date 
                for completing the destruction of the munitions under 
                the Chemical Weapons Convention; and
            (B) determines as satisfying the Federal and State 
        environmental and safety laws that are applicable to the use of 
        the technology and to the design, construction, and operation of 
        a pilot facility for use of the technology.

    (3) The Under Secretary shall consult with the National Research 
Council in making determinations and certifications for the purpose of 
paragraph (2).
    (4) In this subsection, the term ``Chemical Weapons Convention'' 
means the Convention on the Prohibition of Development, Production, 
Stockpiling and Use of Chemical Weapons and on their

[[Page 112 STAT. 1945]]

Destruction, opened for signature on January 13, 1993, together with 
related annexes and associated documents.
    (e) Plan for Pilot Program.--If the Secretary of Defense proceeds 
with a pilot program under section 152(f ) of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
214; 50 U.S.C. 1521(f )), the Secretary shall prepare a plan for the 
pilot program and shall submit to Congress a report on such plan 
(including information on the cost of, and schedule for, implementing 
the pilot program).
    (f ) Funding.--(1) Of the amount authorized to be appropriated under 
section 107, funds shall be available for the program manager for the 
Assembled Chemical Weapons Assessment for the following:
            (A) Demonstrations of alternative technologies under the 
        Assembled Chemical Weapons Assessment.
            (B) Planning and preparation to proceed from demonstration 
        of an alternative technology immediately into the development of 
        a pilot-scale facility for the technology, including planning 
        and preparation for--
                    (i) continued development of the technology leading 
                to deployment of the technology for use;
                    (ii) satisfaction of requirements for environmental 
                permits;
                    (iii) demonstration, testing, and evaluation;
                    (iv) initiation of actions to design a pilot plant;
                    (v) provision of support at the field office or 
                depot level for deployment of the technology for use; 
                and
                    (vi) educational outreach to the public to engender 
                support for the deployment.
            (C) The independent evaluation of cost and schedule required 
        under subsection (c).

    (2) Funds authorized to be appropriated under section 107(1) are 
authorized to be used for awarding contracts in accordance with 
subsection (d) and for taking any other action authorized in this 
section.
    (f ) Assembled Chemical Weapons Assessment Defined.--In this 
section, the term ``Assembled Chemical Weapons Assessment'' means the 
pilot program carried out under section 8065 of the Department of 
Defense Appropriations Act, 1997 (section 101(b) of Public Law 104-208; 
110 Stat. 3009-101; 50 U.S.C. 1521 note).

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Management responsibility for Navy mine countermeasures 
           programs.
Sec. 212. Future aircraft carrier transition technologies.
Sec. 213. Manufacturing technology program.
Sec. 214. Sense of Congress on the Defense Science and Technology 
           Program.
Sec. 215. Next Generation Internet Program.
Sec. 216. Crusader self-propelled artillery system program.
Sec. 217. Airborne Laser Program.
Sec. 218. Enhanced Global Positioning System program.

[[Page 112 STAT. 1946]]

                  Subtitle C--Ballistic Missile Defense

Sec. 231. Sense of Congress on National Missile Defense coverage.
Sec. 232. Limitation on funding for the Medium Extended Air Defense 
           System.
Sec. 233. Limitation on funding for Cooperative Ballistic Missile 
           Defense programs.
Sec. 234. Sense of Congress with respect to Ballistic Missile Defense 
           cooperation with Russia.
Sec. 235. Ballistic Missile Defense program elements.
Sec. 236. Restructuring of acquisition strategy for Theater High-
           Altitude Area 
           Defense (THAAD) system.

                        Subtitle D--Other Matters

Sec. 241. Extension of authority to carry out certain prototype 
           projects.
Sec. 242. NATO alliance ground surveillance concept definition.
Sec. 243. NATO common-funded Civil Budget.
Sec. 244. Executive agent for cooperative research program of the 
           Department of Defense and the Department of Veterans Affairs.
Sec. 245. Review of pharmacological interventions for reversing brain 
           injury.
Sec. 246. Pilot program for revitalizing the laboratories and test and 
           evaluation 
           centers of the Department of Defense.
Sec. 247. Chemical warfare defense.
Sec. 248. Landmine alternatives.

               Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $4,657,012,000.
            (2) For the Navy, $8,305,011,000.
            (3) For the Air Force, $13,918,728,000.
            (4) For Defense-wide activities, $9,127,187,000, of which--
                    (A) $249,106,000 is authorized for the activities of 
                the Director, Test and Evaluation; and
                    (B) $29,245,000 is authorized for the Director of 
                Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 1999.--Of the amounts authorized to be appropriated 
by section 201, $4,179,905,000 shall be available for basic research and 
applied research projects.
    (b) Basic Research and Applied Research Defined.--For purposes of 
this section, the term ``basic research and applied research'' means 
work funded in program elements for defense research and development 
under Department of Defense category 6.1 or 6.2.

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

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

[[Page 112 STAT. 1947]]

SEC. 212. FUTURE AIRCRAFT CARRIER TRANSITION TECHNOLOGIES.

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

SEC. 213. MANUFACTURING TECHNOLOGY PROGRAM.

    (a) Requirements Relating to Competition.--Subsection (d)(1) of 
section 2525 of title 10, United States Code, is amended--
            (1) by striking out ``(1) Competitive'' and inserting in 
        lieu thereof ``(1)(A) In accordance with the policy stated in 
        section 2374 of this title, competitive''; and
            (2) by adding at the end the following new subparagraph:

    ``(B) For each grant awarded and each contract, cooperative 
agreement, or other transaction entered into on a cost-share basis under 
the program, the ratio of contract recipient cost to Government cost 
shall be determined by competitive procedures. For a project for which 
the Government receives an offer from only one offeror, the contracting 
officer shall negotiate the ratio of contract recipient cost to 
Government cost that represents the best value to the Government.''.
    (b) Requirements Relating to Cost Share Waivers.--
Subsection (d)(2) of such section is amended--
            (1) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively;
            (2) by inserting ``(A)'' after ``(2)''; and
            (3) by adding at the end the following new subparagraphs:

    ``(B) For any grant awarded or contract, cooperative agreement, or 
other transaction entered into on a basis other than a cost-sharing 
basis because of a determination made under subparagraph (A), the 
transaction file for the project concerned must document the rationale 
for the determination.
    ``(C) The Secretary of Defense may delegate the authority to make 
determinations under subparagraph (A) only to the Under Secretary of 
Defense for Acquisition and Technology or a service acquisition 
executive, as appropriate.''.
    (c) Cost Share Goal.--Subsection (d) of such section is 
amended--
            (1) by striking out paragraph (4); and
            (2) in paragraph (3)--
                    (A) by striking out ``At least'' and inserting in 
                lieu thereof ``As a goal, at least'';
                    (B) by striking out ``shall'' and inserting in lieu 
                thereof ``should''; and
                    (C) by adding at the end the following: ``The 
                Secretary of Defense, in coordination with the 
                Secretaries of the military departments and upon 
                recommendation of the Under Secretary of Defense for 
                Acquisition and Technology, shall establish annual 
                objectives to meet such goal.''.

    (d) Additional Information To Be Included in Five-Year Plan.--
Subsection (e)(2) of such section is amended to read as follows:
    ``(2) The plan shall include the following:
            ``(A) An assessment of the effectiveness of the program.

[[Page 112 STAT. 1948]]

            ``(B) An assessment of the extent to which the costs of 
        projects are being shared by the following:
                    ``(i) Commercial enterprises in the private sector.
                    ``(ii) Department of Defense program offices, 
                including weapon system program offices.
                    ``(iii) Departments and agencies of the Federal 
                Government outside the Department of Defense.
                    ``(iv) Institutions of higher education.
                    ``(v) Other institutions not operated for profit.
                    ``(vi) Other sources.''.

SEC. 214. <<NOTE: 10 USC 2501 note.>>  SENSE OF CONGRESS ON THE DEFENSE 
            SCIENCE AND TECHNOLOGY PROGRAM.

    (a) Funding Requirements for the Defense Science and Technology 
Program Budget.--It is the sense of Congress that, for each of the 
fiscal years 2000 through 2008, it should be an objective of the 
Secretary of Defense to increase the budget for the Defense Science and 
Technology Program for the fiscal year over the budget for that program 
for the preceding fiscal year by a percent that is at least two percent 
above the rate of inflation as determined by the Office of Management 
and Budget.
    (b) Guidelines for the Defense Science and Technology Program.--
            (1) Relationship of defense science and technology program 
        to university research.--It is the sense of Congress that the 
        following should be key objectives of the Defense Science and 
        Technology Program:
                    (A) The sustainment of research capabilities in 
                scientific and engineering disciplines critical to the 
                Department of Defense.
                    (B) The education and training of the next 
                generation of scientists and engineers in disciplines 
                that are relevant to future defense systems, 
                particularly through the conduct of basic research.
                    (C) The continued support of the Defense 
                Experimental Program to Stimulate Competitive Research 
                and research programs at historically black colleges and 
                universities and minority institutions.
            (2) Relationship of the defense science and technology 
        program to commercial research and technology.--(A) It is the 
        sense of Congress that, in supporting projects within the 
        Defense Science and Technology Program, the Secretary of Defense 
        should attempt to leverage commercial research, technology, 
        products, and processes for the benefit of the Department of 
        Defense.
            (B) It is the sense of Congress that funds made available 
        for projects and programs of the Defense Science and Technology 
        Program should be used only for the benefit of the Department of 
        Defense, which includes--
                    (i) the development of technology that has only 
                military applications;
                    (ii) the development of militarily useful, 
                commercially viable technology; and
                    (iii) the adaptation of commercial technology, 
                products, or processes for military purposes.
            (3) Synergistic management of research and development.--It 
        is the sense of Congress that the Secretary of Defense

[[Page 112 STAT. 1949]]

        should have the flexibility to allocate a combination of funds 
        available for the Department of Defense for basic and applied 
        research and for advanced development to support any individual 
        project or program within the Defense Science and Technology 
        Program, but such flexibility should not change the allocation 
        of funds in any fiscal year among basic and applied research and 
        advanced development.
            (4) Management of science and technology.--It is the sense 
        of Congress that--
                    (A) management and funding for the Defense Science 
                and Technology Program for each military department 
                should receive a level of priority and leadership 
                attention equal to the level received by program 
                acquisition, and the Secretary of each military 
                department should ensure that a senior official in the 
                department holds the appropriate title and 
                responsibility to ensure effective oversight and 
                emphasis on science and technology;
                    (B) to ensure an appropriate long-term focus for 
                investments, a sufficient percentage of science and 
                technology funds should be directed toward new 
                technology areas, and annual reviews should be conducted 
                for ongoing research areas to ensure that those funded 
                initiatives are either integrated into acquisition 
                programs or discontinued when appropriate;
                    (C) the Secretary of each military department should 
                take appropriate steps to ensure that sufficient numbers 
                of officers and civilian employees in the department 
                hold advanced degrees in technical fields; and
                    (D) of particular concern, the Secretary of the Air 
                Force should take appropriate measures to ensure that 
                sufficient numbers of scientists and engineers are 
                maintained to address the technological challenges faced 
                in the areas of air, space, and information technology.

    (c) Study.--
            (1) Requirement.--The Secretary of Defense, in cooperation 
        with the National Research Council of the National Academy of 
        Sciences, shall conduct a study on the technology base of the 
        Department of Defense.
            (2) Matters covered.--The study shall--
                    (A) result in recommendations on the minimum 
                requirements for maintaining a technology base that is 
                sufficient, based on both historical developments and 
                future projections, to project superiority in air and 
                space weapons systems and in information technology;
                    (B) address the effects on national defense and 
                civilian aerospace industries and information technology 
                of reducing funding below the goal described in 
                subsection (a); and
                    (C) result in recommendations on the appropriate 
                levels of staff with baccalaureate, masters, and 
                doctorate degrees, and the optimal ratio of civilian and 
                military staff holding such degrees, to ensure that 
                science and technology functions of the Department of 
                Defense remain vital.
            (3) Report.--Not later than 120 days after the date on which 
        the study required under paragraph (1) is completed, the 
        Secretary shall submit to Congress a report on the results of 
        the study.

[[Page 112 STAT. 1950]]

    (d) Definitions.--In this section:
            (1) The term ``Defense Science and Technology Program'' 
        means basic and applied research and advanced development.
            (2) The term ``basic and applied research'' means work 
        funded in program elements for defense research and development 
        under Department of Defense category 6.1 or 6.2.
            (3) The term ``advanced development'' means work funded in 
        program elements for defense research and development under 
        Department of Defense category 6.3.

SEC. 215. NEXT GENERATION INTERNET PROGRAM.

    (a) Funding.--Of the funds authorized to be appropriated under 
section 201(4), $53,000,000 shall be available for the Next Generation 
Internet program.
    (b) Limitation.--Notwithstanding the enactment of any other 
provision of law after the date of the enactment of this Act, amounts 
may be appropriated for fiscal year 1999 for research, development, 
test, and evaluation by the Department of Defense for the Next 
Generation Internet program only pursuant to the authorization of 
appropriations under section 201(4).

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

    (a) Limitation.--Of the amount authorized to be appropriated for the 
Army pursuant to section 201(1), not more than $223,000,000 may be 
obligated for the Crusader self-propelled artillery system program until 
30 days after the date on which the Secretary of the Army submits the 
report required under subsection (b).
    (b) Requirement for Report.--The Secretary of the Army shall submit 
to the congressional defense committees a report on the Crusader self-
propelled artillery system. The report shall include the following:
            (1) An assessment of the risks associated with the current 
        Crusader program technology.
            (2) The total requirements for the Crusader system, taking 
        into consideration revisions in force structure resulting from 
        the redesign of heavy and light divisions to achieve a force 
        structure known as the Army After Next.
            (3) The potential for reducing the weight of the Crusader 
        system by as much as 50 percent.
            (4) The potential for using alternative propellants for the 
        artillery projectile for the Crusader system and the effects on 
        the overall program schedule that would result from taking the 
        actions and time necessary to develop mature technologies for 
        alternative propellants.
            (5) An analysis of the costs and benefits of delaying 
        procurement of the Crusader system to avoid affordability issues 
        associated with the current schedule and to allow for maturation 
        of weight and propellant technologies.

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

SEC. 217. AIRBORNE LASER PROGRAM.

    (a) Assessment of Technical and Operational Aspects.--The Secretary 
of Defense shall conduct an assessment of the technical and operational 
aspects of the Airborne Laser Program. In conducting the assessment, the 
Secretary shall establish an independent team of persons from outside 
the Department of Defense who are experts in relevant fields to review 
the technical

[[Page 112 STAT. 1951]]

and operational aspects of the Airborne Laser Program. The team shall 
assess the following:
            (1) Whether additional ground testing or other forms of data 
        collection should be completed before initial modification of a 
        commercial aircraft to an Airborne Laser configuration.
            (2) The adequacy of exit criteria for the program definition 
        and risk reduction phase of the Airborne Laser Program.
            (3) The adequacy of current Airborne Laser operational 
        concepts.

    (b) Report on Assessment.--Not later than March 15, 1999, the 
Secretary shall submit to Congress a report on the assessment. The 
report shall include the Secretary's findings and any recommendations 
that the Secretary considers appropriate.
    (c) Funding for Program.--Of the amount authorized to be 
appropriated under section 201(3), $235,219,000 shall be available for 
the Airborne Laser Program.
    (d) Limitation.--Of the amount made available pursuant to subsection 
(c), not more than $185,000,000 may be obligated until 30 days after the 
Secretary submits the report required by subsection (b).

SEC. 218. <<NOTE: 10 USC 2281 note.>>  ENHANCED GLOBAL POSITIONING 
            SYSTEM PROGRAM.

    (a) Policy on Priority for Development of Enhanced GPS System.--The 
development of an enhanced Global Positioning System is an urgent 
national security priority.
    (b) Development Required.--To fulfill the requirements described in 
section 279(b) of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106; 110 Stat. 243) and section 2281 of title 10, 
United States Code, the Secretary of Defense shall develop an enhanced 
Global Positioning System in accordance with the priority declared in 
subsection (a). The enhanced Global Positioning System shall include the 
following elements:
            (1) An evolved satellite system that includes increased 
        signal power and other improvements such as regional-level 
        directional signal enhancements.
            (2) Enhanced receivers and user equipment that are capable 
        of providing military users with direct access to encrypted 
        Global Positioning System signals.
            (3) To the extent funded by the Secretary of Transportation, 
        additional civil frequencies and other enhancements for civil 
        users.

    (c) Sense of Congress Regarding Funding.--It is the sense of 
Congress that--
            (1) the Secretary of Defense should ensure that the future-
        years defense program provides for sufficient funding to develop 
        and deploy an enhanced Global Positioning System in accordance 
        with the priority declared in subsection (a); and
            (2) the Secretary of Transportation should provide 
        sufficient funding to support additional civil frequencies for 
        the Global Positioning System and other enhancements of the 
        system for civil users.

    (d) Plan for Development of Enhanced Global Positioning System.--Not 
later than April 15, 1999, the Secretary of Defense shall submit to 
Congress a plan for carrying out the requirements of subsection (b).

[[Page 112 STAT. 1952]]

    (e) Delayed Effective Date for Limitation on Procurement of Systems 
Not GPS-Equipped.--Section 152(b) of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1578) is amended 
by striking out ``2000'' and inserting in lieu thereof ``2005''.
    (f ) Funding From Authorized Appropriations for Fiscal Year 1999.--
Of the amounts authorized to be appropriated under section 201(3), 
$44,000,000 shall be available to establish and carry out an enhanced 
Global Positioning System program.

                  Subtitle C--Ballistic Missile Defense

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

    It is the sense of Congress that--
            (1) any national missile defense system deployed by the 
        United States must provide effective defense against limited, 
        accidental, or unauthorized ballistic missile attack for all 50 
        States; and
            (2) the territories of the United States should be afforded 
        effective protection against ballistic missile attack.

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

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

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

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

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

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

[[Page 112 STAT. 1953]]

SEC. 235. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.

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

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

    ``(a) Program Elements Specified.--In the budget justification 
materials submitted to Congress in support of the Department of Defense 
budget for any fiscal year (as submitted with the budget of the 
President under section 1105(a) of title 31), the amount requested for 
activities of the Ballistic Missile Defense Organization shall be set 
forth in accordance with the following program elements:
            ``(1) The Patriot system.
            ``(2) The Navy Area system.
            ``(3) The Theater High-Altitude Area Defense system.
            ``(4) The Navy Theater Wide system.
            ``(5) The Medium Extended Air Defense System.
            ``(6) Joint Theater Missile Defense.
            ``(7) National Missile Defense.
            ``(8) Support Technologies.
            ``(9) Family of Systems Engineering and Integration.
            ``(10) Ballistic Missile Defense Technical Operations.
            ``(11) Threat and Countermeasures.
            ``(12) International Cooperative Programs.

    ``(b) Treatment of Major Defense Acquisition Programs.--Amounts 
requested for Theater Missile Defense and National Missile Defense major 
defense acquisition programs shall be specified in individual, dedicated 
program elements, and amounts appropriated for those programs shall be 
available only for Ballistic Missile Defense activities.
    ``(c) Management and Support.--The amount requested for each program 
element specified in subsection (a) shall include requests for the 
amounts necessary for the management and support of the programs, 
projects, and activities contained in that program element.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 222 the 
following new item:

``223. Ballistic missile defense programs: program elements.''.

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

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

    (a) Establishment of Competitive Contractor.--(1) The Secretary of 
Defense shall take appropriate steps to implement technical and price 
competition for the development and production of the interceptor 
missile for the Theater High-Altitude Area Defense (THAAD) system.
    (2) The Secretary shall take such steps as necessary to ensure that 
the prime contractor (as of the date of the enactment of this Act) for 
the THAAD system provides the cooperation needed to establish the 
technical and price competition required in subsection (a).

[[Page 112 STAT. 1954]]

    (3) The Secretary shall use the authority provided in section 
2304(c)(2) of title 10, United States Code, to expedite the 
implementation of paragraphs (1) and (2).
    (4) Of the amount made available under section 201(4) for the THAAD 
System, $29,600,000 shall be available to establish the technical and 
price competition required in paragraph (1).
    (b) Cost Sharing Arrangement.--(1) The Secretary of Defense shall 
contractually establish with the THAAD interceptor prime contractor an 
appropriate arrangement for sharing between the United States and that 
contractor the costs for flight test failures of the interceptor missile 
for the THAAD system beginning with the flight test numbered 9.
    (2) For purposes of paragraph (1), the term ``THAAD interceptor 
prime contractor'' means the firm that as of May 14, 1998, is the prime 
contractor for the interceptor missile for the Theater High-Altitude 
Area Defense system.
    (c) Engineering and Manufacturing Development Phase for Other 
Elements of the THAAD System.--The Secretary of Defense may proceed with 
the milestone approval process for the Engineering and Manufacturing 
Development phase for the Battle Management and Command, Control, and 
Communications (BM/C<SUP>3</SUP>) element of the THAAD system and for 
the Ground Based Radar (GBR) element for that system without regard to 
the stage of development of the interceptor missile for that system.
    (d) Plan for Contingency Capability.--(1) The Secretary of Defense 
shall prepare a plan that would allow for deployment of THAAD missiles 
and the other elements of the THAAD system referred to in subsection (c) 
in response to theater ballistic missile threats that evolve before 
United States military forces are equipped with the objective 
configuration of those missiles and elements.
    (2) The Secretary shall submit a report <<NOTE: Reports.>>  on the 
plan to the congressional defense committees by December 15, 1998.

    (e) Limitation on Entering Engineering and Manufacturing Development 
phase.--(1) The Secretary of Defense may not approve the commencement of 
the Engineering and Manufacturing Development phase for the interceptor 
missile for the THAAD system until there have been 3 successful tests of 
that missile.
    (2) For purposes of paragraph (1), a successful test of the 
interceptor missile of the THAAD system is a body-to-body intercept by 
that missile of a ballistic missile target.

                        Subtitle D--Other Matters

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

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

SEC. 242. NATO ALLIANCE GROUND SURVEILLANCE CONCEPT DEFINITION.

    Amounts authorized to be appropriated under section 201 are 
available for a NATO alliance ground surveillance concept definition 
that is based on the Joint Surveillance Target Attack Radar System

[[Page 112 STAT. 1955]]

(Joint STARS) Radar Technology Insertion Program (RTIP) sensor of the 
United States, as follows:
            (1) Of the amount authorized to be appropriated under 
        section 201(1), $6,400,000.
            (2) Of the amount authorized to be appropriated under 
        section 201(3), $3,500,000.

SEC. 243. NATO COMMON-FUNDED CIVIL BUDGET.

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

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

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

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

    (a) Review and Report Required.--The Assistant Secretary of Defense 
for Health Affairs shall review research on pharmacological 
interventions for reversing brain injury and, not later than March 31, 
1999, submit a report on the results of the review to Congress.
    (b) Content of Report.--The report shall include the 
following:
            (1) The potential for pharmacological interventions for 
        reversing brain injury to reduce mortality and morbidity in 
        cases of head injuries incurred in combat or resulting from 
        exposures to chemical weapons or agents.
            (2) The potential utility of such interventions for the 
        Armed Forces.
            (3) A conclusion regarding whether funding for research on 
        such interventions should be included in the budget for the 
        Department of Defense for fiscal year 2000.

SEC. 246. <<NOTE: 10 USC 2358 note.>>  PILOT PROGRAM FOR REVITALIZING 
            THE LABORATORIES AND TEST AND EVALUATION CENTERS OF THE 
            DEPARTMENT OF DEFENSE.

    (a) Pilot Program.--(1) The Secretary of Defense may carry out a 
pilot program to demonstrate improved cooperative relationships with 
universities and other private sector entities for the performance of 
research and development functions.
    (2) Under the pilot program, the Secretary of Defense shall provide 
the director of one science and technology laboratory, and the director 
of one test and evaluation center, of each military department with 
authority for the following:
            (A) To explore innovative methods for quickly, efficiently, 
        and fairly entering into cooperative relationships with 
        universities and other private sector entities with respect to 
        the performance of research and development functions.
            (B) To waive any restrictions on the demonstration and 
        implementation of such methods that are not required by law.

[[Page 112 STAT. 1956]]

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

    (3) In selecting the laboratories and centers for participation in 
the pilot program, the Secretary shall consider laboratories and centers 
where innovative management techniques have been demonstrated, 
particularly as documented under sections 1115 through 1119 of title 31, 
United States Code, relating to Government agency performance and 
results.
    (4) The Secretary may carry out the pilot program at each selected 
laboratory and center for a period of three years beginning not later 
than March 1, 1999.
    (b) Reports.--(1) Not later than March 1, 1999, the Secretary of 
Defense shall submit a report on the implementation of the pilot program 
to Congress. The report shall include the following:
            (A) Each laboratory and center selected for the pilot 
        program.
            (B) To the extent possible, a description of the innovative 
        concepts that are to be tested at each laboratory or center.
            (C) The criteria to be used for measuring the success of 
        each concept to be tested.

    (2) Promptly after the expiration of the period for participation of 
a laboratory or center in the pilot program, the Secretary of Defense 
shall submit to Congress a final report on the participation of the 
laboratory or center in the pilot program. The report shall contain the 
following:
            (A) A description of the concepts tested.
            (B) The results of the testing.
            (C) The lessons learned.
            (D) Any proposal for legislation that the Secretary 
        recommends on the basis of the experience at the laboratory or 
        center under the pilot program.

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

SEC. 247. <<NOTE: 50 USC 1522 note.>>  CHEMICAL WARFARE DEFENSE.

    (a) Review and Modification of Policies and Doctrines.--The 
Secretary of Defense shall review the policies and doctrines of the 
Department of Defense on chemical warfare defense and modify the 
policies and doctrine as appropriate to achieve the objectives set forth 
in subsection (b).
    (b) Objectives.--The objectives for the modification of policies and 
doctrines of the Department of Defense on chemical warfare defense are 
as follows:
            (1) To provide for adequate protection of personnel from any 
        exposure to a chemical warfare agent (including chronic and low-
        level exposure to a chemical warfare agent) that would endanger 
        the health of exposed personnel because of the deleterious 
        effects of--

[[Page 112 STAT. 1957]]

                    (A) a single exposure to the agent;
                    (B) exposure to the agent concurrently with other 
                dangerous exposures, such as exposures to--
                          (i) other potentially toxic substances in the 
                      environment, including pesticides, other insect 
                      and vermin control agents, and environmental 
                      pollutants;
                          (ii) low-grade nuclear and electromagnetic 
                      radiation present in the environment;
                          (iii) preventive medications (that are 
                      dangerous when taken concurrently with other 
                      dangerous exposures referred to in this 
                      paragraph);
                          (iv) diesel fuel, jet fuel, and other 
                      hydrocarbon-based fuels; and
                          (v) occupational hazards, including 
                      battlefield hazards; and
                    (C) repeated exposures to the agent, or some 
                combination of one or more exposures to the agent and 
                other dangerous exposures referred to in subparagraph 
                (B), over time.
            (2) To provide for--
                    (A) the prevention of and protection against, and 
                the detection (including confirmation) of, exposures to 
                a chemical warfare agent (whether intentional or 
                inadvertent) at levels that, even if not sufficient to 
                endanger health immediately, are greater than the level 
                that is recognized under Department of Defense policies 
                as being the maximum safe level of exposure to that 
                agent for the general population; and
                    (B) the recording, reporting, coordinating, and 
                retaining of information on possible exposures described 
                in subparagraph (A), including the monitoring of the 
                health effects of exposures on humans and animals, 
                environmental effects, and ecological effects, and the 
                documenting and reporting of those effects specifically 
                by location.
            (3) To provide solutions for the concerns and mission 
        requirements that are specifically applicable for one or more of 
        the Armed Forces in a protracted conflict when exposures to 
        chemical agents could be complex, dynamic, and occurring over an 
        extended period.

    (c) Research Program.--The Secretary of Defense shall develop and 
carry out a plan to establish a research program for determining the 
effects of exposures to chemical warfare agents of the type described in 
subsection (b). The research shall be designed to yield results that can 
guide the Secretary in the evolution of policy and doctrine on exposures 
to chemical warfare agents and to develop new risk assessment methods 
and instruments with respect to such exposures. The plan shall state the 
objectives and scope of the program and include a 5-year funding plan.
    (d) Report.--Not later than May 1, 1999, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the results of the review under subsection (a) and on the research 
program developed under subsection (c). The report shall include the 
following:
            (1) Each modification of chemical warfare defense policy and 
        doctrine resulting from the review.

[[Page 112 STAT. 1958]]

            (2) Any recommended legislation regarding chemical warfare 
        defense.
            (3) The plan for the research program.

SEC. 248. LANDMINE ALTERNATIVES.

    (a) Availability of Funds.--(1) Of the amounts authorized to be 
appropriated in section 201, not more than $19,200,000 shall be 
available for activities relating to the identification, adaptation, 
modification, research, and development of existing and new technologies 
and concepts that--
            (A) would provide a combat capability that is equivalent to 
        the combat capability provided by non-self destructing anti-
        personnel landmines;
            (B) would provide a combat capability that is equivalent to 
        the combat capability provided by anti-personnel submunitions 
        used in mixed anti-tank mine systems; or
            (C) would provide a combat capability that is equivalent to 
        the combat capability provided by current mixed mine systems.

    (2) Of the amount available under paragraph (1)--
            (A) not more than $17,200,000 shall be made available for 
        activities referred to in subparagraph (A) of that paragraph for 
        the current efforts of the Army referred to as the Non-Self 
        Destruct Alternative; and
            (B) not more than $2,000,000 shall be made available for 
        activities referred to in subparagraphs (B) or (C) of that 
        paragraph that relate to anti-personnel submunitions used in 
        mixed mine systems or an alternative for mixed munitions.

    (b) Funding for Research Into Alternatives to Anti-Personnel 
Submunitions Used in Mixed Mine Systems or an Alternative for Mixed 
Munitions.--The Secretary shall include with the materials submitted to 
Congress with the budget for fiscal year 2000 under section 1105 of 
title 31, United States Code, an explanation of any funds requested to 
support a search for existing and new technologies and concepts that 
could provide a combat capability equivalent to the combat capability 
provided by anti-personnel submunitions used in mixed mine systems or an 
alternative to mixed munitions.
    (c) Studies.--The <<NOTE: Contracts.>>  Secretary of Defense shall 
enter into two contracts, each with an appropriate scientific 
organization--
            (1) to carry out a study on existing and new technologies 
        and concepts referred to in subsection (a); and
            (2) to submit to the Secretary a report on the study, 
        including any recommendations considered appropriate by the 
        scientific organization.

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

[[Page 112 STAT. 1959]]

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 311. Refurbishment of M1-A1 tanks.
Sec. 312. Operation of prepositioned fleet, National Training Center, 
           Fort Irwin, California.
Sec. 313. Berthing space at Norfolk Naval Shipyard, Virginia.
Sec. 314. NATO common-funded military budget.

                  Subtitle C--Environmental Provisions

Sec. 321. Settlement of claims of foreign governments for environmental 
           cleanup of overseas sites formerly used by the Department of 
           Defense.
Sec. 322. Authority to pay negotiated settlement for environmental 
           cleanup of 
           formerly used defense sites in Canada.
Sec. 323. Removal of underground storage tanks.
Sec. 324. Report regarding polychlorinated biphenyl waste under 
           Department of 
           Defense control overseas.
Sec. 325. Modification of deadline for submittal to Congress of annual 
           reports on 
           environmental activities.
Sec. 326. Submarine solid waste control.
Sec. 327. Arctic Military Environmental Cooperation Program.
Sec. 328. Sense of Congress regarding oil spill prevention training for 
           personnel on board Navy vessels.

                Subtitle D--Information Technology Issues

Sec. 331. Additional information technology responsibilities of Chief 
           Information 
           Officers.
Sec. 332. Defense-wide electronic mall system for supply purchases.
Sec. 333. Priority funding to ensure year 2000 compliance of information 
           technology and national security systems.
Sec. 334. Evaluation of year 2000 compliance as part of training 
           exercises programs.
Sec. 335. Continuity of essential operations at risk of failure because 
           of information technology and national security systems that 
           are not year 2000 compliant.

         Subtitle E--Defense Infrastructure Support Improvement

Sec. 341. Clarification of definition of depot-level maintenance and 
           repair.
Sec. 342. Reporting and analysis requirements before change of 
           commercial and 
           industrial type functions to private sector performance.
Sec. 343. Notifications of determinations of military items as being 
           commercial items for purposes of the exception to 
           requirements regarding core logistics capabilities.
Sec. 344. Oversight of development and implementation of automated 
           identification technology.
Sec. 345. Contractor-operated civil engineering supply stores program.
Sec. 346. Conditions on expansion of functions performed under prime 
           vendor 
           contracts for depot-level maintenance and repair.
Sec. 347. Best commercial inventory practices for management of 
           secondary supply items.
Sec. 348. Personnel reductions in Army Materiel Command.
Sec. 349. Inventory management of in-transit items.
Sec. 350. Review of Defense Automated Printing Service functions.
Sec. 351. Development of plan for establishment of core logistics 
           capabilities for maintenance and repair of C-17 aircraft.

   Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 361. Continuation of management and funding of Defense Commissary 
           Agency through the Office of the Secretary of Defense.
Sec. 362. Expansion of current eligibility of Reserves for commissary 
           benefits.
Sec. 363. Costs payable to the Department of Defense and other Federal 
           agencies for services provided to the Defense Commissary 
           Agency.

[[Page 112 STAT. 1960]]

Sec. 364. Collection of dishonored checks presented at commissary 
           stores.
Sec. 365. Restrictions on patron access to, and purchases in, overseas 
           commissaries and exchange stores.
Sec. 366. Repeal of requirement for Air Force to sell tobacco products 
           to enlisted personnel.
Sec. 367. Prohibition on consolidation or other organizational changes 
           of Department of Defense retail systems.
Sec. 368. Defense Commissary Agency telecommunications.
Sec. 369. Survey of commissary store patrons regarding satisfaction with 
           commissary store merchandise.

                        Subtitle G--Other Matters

Sec. 371. Eligibility requirements for attendance at Department of 
           Defense domestic dependent elementary and secondary schools.
Sec. 372. Assistance to local educational agencies that benefit 
           dependents of members of the Armed Forces and Department of 
           Defense civilian employees.
Sec. 373. Department of Defense readiness reporting system.
Sec. 374. Specific emphasis of program to investigate fraud, waste, and 
           abuse within Department of Defense.
Sec. 375. Condition for providing financial assistance for support of 
           additional duties assigned to the Army National Guard.
Sec. 376. Demonstration program to improve quality of personal property 
           shipments of members.
Sec. 377. Pilot program for acceptance and use of landing fees charged 
           for use of 
           domestic military airfields by civil aircraft.
Sec. 378. Strategic plan for expansion of distance learning initiatives.
Sec. 379. Public availability of operating agreements between military 
           installations and financial institutions.

               Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the use of the Armed Forces and other activities and agencies of the 
Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
            (1) For the Army, $17,002,563,000.
            (2) For the Navy, $21,577,702,000.
            (3) For the Marine Corps, $2,528,603,000.
            (4) For the Air Force, $18,690,633,000.
            (5) For Defense-wide activities, $10,550,076,000.
            (6) For the Army Reserve, $1,198,022,000.
            (7) For the Naval Reserve, $920,639,000.
            (8) For the Marine Corps Reserve, $117,893,000.
            (9) For the Air Force Reserve, $1,722,796,000.
            (10) For the Army National Guard, $2,564,315,000.
            (11) For the Air National Guard, $3,047,433,000.
            (12) For the Defense Inspector General, $130,764,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $7,324,000.
            (14) For Environmental Restoration, Army, $370,640,000.
            (15) For Environmental Restoration, Navy, $274,600,000.
            (16) For Environmental Restoration, Air Force, $372,100,000.
            (17) For Environmental Restoration, Defense-wide, 
        $25,091,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $195,000,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $50,000,000.

[[Page 112 STAT. 1961]]

            (20) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $725,582,000.
            (21) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $15,000,000.
            (22) For Defense Health Program, $9,617,435,000.
            (23) For Cooperative Threat Reduction programs, 
        $440,400,000.
            (24) For Overseas Contingency Operations Transfer Fund, 
        $746,900,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the use of the Armed Forces and other activities and agencies of the 
Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, $1,076,571,000.
            (2) For the National Defense Sealift Fund, $669,566,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 1999 
from the Armed Forces Retirement Home Trust Fund the sum of $70,745,000 
for the operation of the Armed Forces Retirement Home, including the 
United States Soldiers' and Airmen's Home and the Naval Home.

SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.

    (a) Transfer Authority.--To the extent provided in appropriations 
Acts, not more than $150,000,000 is authorized to be transferred from 
the National Defense Stockpile Transaction Fund to operation and 
maintenance accounts for fiscal year 1999 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.

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

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 311. REFURBISHMENT OF M1-A1 TANKS.

    Of the amount authorized to be appropriated pursuant to section 
301(1) for operation and maintenance for the Army, $31,000,000 shall be 
available only for the refurbishment of up to 70 M1-A1 tanks under the 
AIM-XXI program.

[[Page 112 STAT. 1962]]

SEC. 312. OPERATION OF PREPOSITIONED FLEET, NATIONAL TRAINING CENTER, 
            FORT IRWIN, CALIFORNIA.

    Of the amount authorized to be appropriated pursuant to section 
301(1) for operation and maintenance for the Army, $60,200,000 shall be 
available only to pay costs associated with the operation of the 
prepositioned fleet of equipment during training rotations at the 
National Training Center, Fort Irwin, California.

SEC. 313. BERTHING SPACE AT NORFOLK NAVAL SHIPYARD, VIRGINIA.

    Of the amount authorized to be appropriated pursuant to section 
301(2) for operation and maintenance for the Navy, $6,000,000 may be 
available for the purpose of relocating the U.S.S. WISCONSIN, which is 
currently in a reserve status at the Norfolk Naval Shipyard, Virginia, 
to a suitable location in order to increase available berthing space at 
the shipyard.

SEC. 314. NATO COMMON-FUNDED MILITARY BUDGET.

    Of the amount authorized to be appropriated pursuant to section 
301(1) for operation and maintenance for the Army, $227,377,000 shall be 
available for contributions for the common-funded Military Budget of the 
North Atlantic Treaty Organization.

                  Subtitle C--Environmental Provisions

SEC. 321. <<NOTE: 10 USC 2701 note.>>  SETTLEMENT OF CLAIMS OF FOREIGN 
            GOVERNMENTS FOR ENVIRONMENTAL CLEANUP OF OVERSEAS SITES 
            FORMERLY USED BY THE DEPARTMENT OF DEFENSE.

    (a) Notice of <<NOTE: President.>>  Negotiations.--The President 
shall notify Congress before entering into any negotiations for the ex-
gratia settlement of the claims of a government of another country 
against the United States for environmental cleanup of sites in that 
country that were formerly used by the Department of Defense.

    (b) Authorization Required for Use of Funds for Payment of 
Settlement.--No funds may be used for any payment under an ex-gratia 
settlement of any claims described in subsection (a) unless the use of 
the funds for that purpose is specifically authorized by law or 
international agreement, including a treaty.

SEC. 322. AUTHORITY TO PAY NEGOTIATED SETTLEMENT FOR ENVIRONMENTAL 
            CLEANUP OF FORMERLY USED DEFENSE SITES IN CANADA.

    (a) Findings.--Congress makes the following findings with respect to 
the authorization of payment of settlement with Canada in subsection (b) 
regarding environmental cleanup at formerly used defense sites in 
Canada:
            (1) A unique and longstanding national security alliance 
        exists between the United States and Canada.
            (2) The sites covered by the settlement were formerly used 
        by the United States and Canada for their mutual defense.
            (3) There is no formal treaty or international agreement 
        between the United States and Canada regarding the environmental 
        cleanup of the sites.
            (4) Environmental contamination at some of the sites could 
        pose a substantial risk to the health and safety of the United 
        States citizens residing in States near the border between the 
        United States and Canada.

[[Page 112 STAT. 1963]]

            (5) The United States and Canada reached a negotiated 
        agreement for an ex-gratia reimbursement of Canada in full 
        satisfaction of claims of Canada relating to environmental 
        contamination which agreement was embodied in an exchange of 
        Notes between the Government of the United States and the 
        Government of Canada.
            (6) There is a unique factual basis for authorizing a 
        reimbursement of Canada for environmental cleanup at sites in 
        Canada after the United States departure from such sites.
            (7) The basis for and authorization of such reimbursement 
        does not extend to similar claims by other nations.
            (8) The Government of Canada is committed to spending the 
        entire $100,000,000 of the reimbursement authorized in 
        subsection (b) in the United States, which will benefit United 
        States industry and United States workers.

    (b) Authority To Make Payments.--(1) Subject to subsection (c), the 
Secretary of Defense may, using funds specified under subsection (d), 
make a payment described in paragraph (2) for each fiscal year through 
fiscal year 2008 for purposes of the ex-gratia reimbursement of Canada 
in full satisfaction of any and all claims asserted against the United 
States by Canada for environmental cleanup of sites in Canada that were 
formerly used for the mutual defense of the United States and Canada.
    (2) A payment referred to in paragraph (1) is a payment of 
$10,000,000, in constant fiscal year 1996 dollars, into the Foreign 
Military Sales Trust Account for purposes of Canada.
    (c) Condition on Authority for Subsequent Fiscal Years.--A payment 
may be made under subsection (b) for a fiscal year after fiscal year 
1999 only if the Secretary of Defense submits to Congress with the 
budget for such fiscal year under section 1105 of title 31, United 
States Code, evidence that the cumulative amount expended by the 
Government of Canada for environmental cleanup activities in Canada 
during any fiscal years before such fiscal year in which a payment under 
that subsection was authorized was an amount equal to or greater than 
the aggregate amount of the payments under that subsection during such 
fiscal years.
    (d) Source of Funds.--(1) The payment under subsection (b) for 
fiscal year 1998 shall be made from amounts appropriated pursuant to 
section 301(5) of the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105-85; 111 Stat. 1669).
    (2) The payment under subsection (b) for fiscal year 1999 shall be 
made from amounts appropriated pursuant to section 301(5).
    (3) For a fiscal year after fiscal year 1999, a payment may be made 
under subsection (b) from amounts appropriated pursuant to the 
authorization of appropriations for the Department of Defense for such 
fiscal year for Operation and Maintenance, Defense-Wide.

SEC. 323. REMOVAL OF UNDERGROUND STORAGE TANKS.

    The Secretary of the Army may use funds available pursuant to the 
authorization of appropriations in section 301(18) (relating to 
environmental restoration of formerly used defense sites) for the 
removal of underground storage tanks to the extent that, and in 
accordance with such criteria as, the Secretary determines appropriate 
for the use of such funds.

[[Page 112 STAT. 1964]]

SEC. 324. REPORT REGARDING POLYCHLORINATED BIPHENYL WASTE UNDER 
            DEPARTMENT OF DEFENSE CONTROL OVERSEAS.

    (a) Report Required.--(1) Not later than March 1, 1999, the 
Secretary of Defense shall submit to the committees specified in 
paragraph (2) a report on the status of foreign-manufactured 
polychlorinated biphenyl waste. The Secretary shall prepare the report 
in consultation with the Administrator of the Environmental Protection 
Agency and the Secretary of State.
    (2) The committees referred to in paragraph (1) are the 
following:
            (A) The Committee on Armed Services and the Committee on 
        Environment and Public Works of the Senate.
            (B) The Committee on National Security, the Committee on 
        Commerce, and the Committee on Transportation and Infrastructure 
        of the House of Representatives.

    (b) Elements of Report.--The report under subsection (a) shall 
include the following:
            (1) The identity of each foreign country from which the 
        Secretary of Defense anticipates that the Department of Defense 
        will need to transport foreign-manufactured polychlorinated 
        biphenyl waste into the customs territory of the United States.
            (2) For each foreign country identified under paragraph (1), 
        an inventory of the type, concentrations, and estimated quantity 
        of foreign-manufactured polychlorinated biphenyl waste involved, 
        the reasons why disposal of the polychlorinated biphenyl waste 
        in the foreign country is not available, the identity of other 
        locations or facilities where disposal of the polychlorinated 
        biphenyl waste in an environmentally sound manner is available, 
        and the availability of alternative technologies and mobile 
        units for polychlorinated biphenyl waste treatment or disposal.
            (3) An accounting of all foreign-manufactured 
        polychlorinated biphenyl waste that exists as of the date of the 
        enactment of this Act and as of the date of the report.
            (4) An estimate of the volume of foreign-manufactured 
        polychlorinated biphenyl waste that is likely to be generated 
        annually in each of the next 5 calendar years, and the basis for 
        each such estimate.
            (5) A description of any hazards to human health or the 
        environment posed by foreign-manufactured polychlorinated 
        biphenyl waste.
            (6) A description of any international or domestic legal 
        impediments that the Department has experienced in disposing of 
        foreign-manufactured polychlorinated biphenyl waste in an 
        environmentally sound manner.
            (7) A description of any efforts undertaken by the 
        Department to seek relief from legal impediments to the disposal 
        of foreign-manufactured polychlorinated biphenyl waste, 
        including the relief available pursuant to section 6(e) or 22 of 
        the Toxic Substances Control Act (15 U.S.C. 2605(e), 2621).
            (8) The identity of the possible disposal or treatment 
        facilities in the United States that would be used if foreign-
        manufactured polychlorinated biphenyl waste were transported 
        into the customs territory of the United States, and the method 
        of disposal or treatment at each such facility.

[[Page 112 STAT. 1965]]

            (9) A description of Department policy and practice 
        concerning procurement or purchase of foreign-manufactured 
        polychlorinated biphenyls or materials containing foreign-
        manufactured polychlorinated biphenyls.

    (c) Recommendations.--The report shall also include such 
recommendations as the Secretary of Defense, with the concurrence of the 
Administrator of the Environmental Protection Agency and the Secretary 
of State, considers necessary regarding changes to United States law to 
allow for the disposal, in an environmentally sound manner, of foreign-
manufactured polychlorinated biphenyl waste, together with a statement 
of whether and how such changes would be consistent with international 
law, including the Basel Convention on the Control of Transboundary 
Movements of Hazardous Wastes and Their Disposal and the Protocol to the 
Convention on Long-Range Transboundary Air Pollution on Persistent 
Organic Pollutants.
    (d) Definitions.--In this section:
            (1) The term ``polychlorinated biphenyl waste'' means--
                    (A) polychlorinated biphenyls; and
                    (B) materials containing polychlorinated biphenyls;
        that are ready for disposal.
            (2) The term ``foreign-manufactured polychlorinated biphenyl 
        waste'' means polychlorinated biphenyl waste that is owned by 
        the Department of Defense and situated outside of the United 
        States and that consists of--
                    (A) polychlorinated biphenyls; or
                    (B) materials containing polychlorinated biphenyls;
        that were manufactured outside of the United States.

SEC. 325. MODIFICATION OF DEADLINE FOR SUBMITTAL TO CONGRESS OF ANNUAL 
            REPORTS ON ENVIRONMENTAL ACTIVITIES.

    Section 2706 of title 10, United States Code, is amended by striking 
out ``not later than 30 days'' each place it appears in subsections (a), 
(b), (c), and (d) and inserting in lieu thereof ``not later than 45 
days''.

SEC. 326. SUBMARINE SOLID WASTE CONTROL.

    (a) Solid Waste Discharge Requirements.--Subsection (c)(2) of 
section 3 of the Act to Prevent Pollution from Ships (33 U.S.C. 1902) is 
amended--
            (1) in subparagraph (A), by adding at the end the following:
            ``(iii) With regard to a submersible, nonplastic garbage 
        that has been compacted and weighted to ensure negative 
        buoyancy.''; and
            (2) in subparagraph (B)(ii), by striking out ``subparagraph 
        (A)(ii)'' and inserting in lieu thereof ``clauses (ii) and (iii) 
        of subparagraph (A)''.

    (b) Conforming Amendment.--Subsection (e)(3)(A) of that section is 
amended by striking out ``garbage that contains more than the minimum 
amount practicable of''.

SEC. 327. ARCTIC MILITARY ENVIRONMENTAL COOPERATION PROGRAM.

    (a) Activities Under Program.--(1) Subject to paragraph (2), 
activities under the Arctic Military Environmental Cooperation Program 
of the Department of Defense shall include cooperative activities on 
environmental matters in the Arctic region with the military

[[Page 112 STAT. 1966]]

departments and agencies of other countries, including the Russian 
Federation.
    (2) Activities under the Arctic Military Environmental Cooperation 
Program may not include any activities for purposes for which funds for 
Cooperative Threat Reduction programs have been denied or are 
prohibited, including the purposes for which funds are prohibited by 
section 1503 of the National Defense Authorization Act for Fiscal Year 
1997 (Public Law 104-201; 110 Stat. 2732).
    (b) Prior Notice to Congress of Obligation of Funds.--The Secretary 
of Defense shall submit to the congressional defense committees a report 
at least 15 days before the obligation of any funds for the Arctic 
Military Environmental Cooperation Program. Each such report shall 
specify--
            (1) the amount of the proposed obligation;
            (2) the activities for which the Secretary plans to obligate 
        such funds; and
            (3) the terms of the implementing agreement between the 
        United States and the foreign government concerning the activity 
        to be undertaken, including the financial and other 
        responsibilities of each government.

    (c) Availability of Fiscal Year 1999 Funds.--(1) Of the amount 
authorized to be appropriated by section 301(5), $4,000,000 shall be 
available for carrying out the Arctic Military Environmental Cooperation 
Program.
    (2) Amounts available for the Arctic Military Environmental 
Cooperation Program under paragraph (1) may not be obligated or expended 
for that Program until 45 days after the date on which the Secretary of 
Defense submits to the congressional defense committees a plan for the 
Program under paragraph (3).
    (3) The plan for the Arctic Military Environmental Cooperation 
Program under this paragraph shall include the following:
            (A) A statement of the overall goals and objectives of the 
        Program.
            (B) A statement of the proposed activities under the Program 
        and the relationship of such activities to the national security 
        interests of the United States.
            (C) An assessment of the compatibility of the activities set 
        forth under subparagraph (B) with the purposes of the 
        Cooperative Threat Reduction programs of the Department of 
        Defense (including with any prohibitions and limitations 
        applicable to such programs).
            (D) An estimate of the funding to be required and requested 
        in future fiscal years for the activities set forth under 
        subparagraph (B).
            (E) A proposed termination date for the Program.

SEC. 328. SENSE OF CONGRESS REGARDING OIL SPILL PREVENTION TRAINING FOR 
            PERSONNEL ON BOARD NAVY VESSELS.

    (a) Findings.--Congress makes the following findings:
            (1) There have been six significant oil spills in Puget 
        Sound, Washington, in 1998, five at Puget Sound Naval Shipyard 
        (including three from the U.S.S. Kitty Hawk, one from the U.S.S. 
        Carl Vinson, and one from the U.S.S. Sacramento) and one at 
        Naval Station Everett from the U.S.S. Paul F. Foster.
            (2) Navy personnel on board vessels, and not shipyard 
        employees, were primarily responsible for a majority of these 
        oil spills at Puget Sound Naval Shipyard.

[[Page 112 STAT. 1967]]

            (3) Oil spills have the potential to damage the local 
        environment, killing microscopic organisms, contributing to air 
        pollution, harming plants and marine animals, and increasing 
        overall pollution levels in Puget Sound.

    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of the Navy should take immediate action to significantly 
reduce the risk of vessel oil spills, including the minimization of fuel 
oil transfers, the assurance of proper training and qualifications of 
all Naval personnel in occupations that may contribute to or minimize 
the risk of shipboard oil spills, and the improvement of liaison with 
local authorities concerning oil spill prevention and response 
activities.

                Subtitle D--Information Technology Issues

SEC. 331. ADDITIONAL INFORMATION TECHNOLOGY RESPONSIBILITIES OF CHIEF 
            INFORMATION OFFICERS.

    (a) In General.--(1) Chapter 131 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2223. Information technology: additional responsibilities of 
                        Chief Information Officers

    ``(a) Additional Responsibilities of Chief Information Officer of 
Department of Defense.--In addition to the responsibilities provided for 
in chapter 35 of title 44 and in section 5125 of the Clinger-Cohen Act 
of 1996 (40 U.S.C. 1425), the Chief Information Officer of the 
Department of Defense shall--
            ``(1) review and provide recommendations to the Secretary of 
        Defense on Department of Defense budget requests for information 
        technology and national security systems;
            ``(2) ensure the interoperability of information technology 
        and national security systems throughout the Department of 
        Defense;
            ``(3) ensure that information technology and national 
        security systems standards that will apply throughout the 
        Department of Defense are prescribed; and
            ``(4) provide for the elimination of duplicate information 
        technology and national security systems within and between the 
        military departments and Defense Agencies.

    ``(b) Additional Responsibilities of Chief Information Officer of 
Military Departments.--In addition to the responsibilities provided for 
in chapter 35 of title 44 and in section 5125 of the Clinger-Cohen Act 
of 1996 (40 U.S.C. 1425), the Chief Information Officer of a military 
department, with respect to the military department concerned, shall--
            ``(1) review budget requests for all information technology 
        and national security systems;
            ``(2) ensure that information technology and national 
        security systems are in compliance with standards of the 
        Government and the Department of Defense;
            ``(3) ensure that information technology and national 
        security systems are interoperable with other relevant 
        information technology and national security systems of the 
        Government and the Department of Defense; and
            ``(4) coordinate with the Joint Staff with respect to 
        information technology and national security systems.

[[Page 112 STAT. 1968]]

    ``(c) Definitions.--In this section:
            ``(1) The term `Chief Information Officer' means the senior 
        official designated by the Secretary of Defense or a Secretary 
        of a military department pursuant to section 3506 of title 44.
            ``(2) The term `information technology' has the meaning 
        given that term by section 5002 of the Clinger-Cohen Act of 1996 
        (40 U.S.C. 1401).
            ``(3) The term `national security system' has the meaning 
        given that term by section 5142 of the Clinger-Cohen Act of 1996 
        (40 U.S.C. 1452).''.

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

``2223. Information technology: additional responsibilities of Chief 
           Information 
           Officers.''.

    (b) Effective Date.--Section 2223 of title 10, United States Code, 
as added by subsection (a), shall take effect on October 1, 1998.

SEC. 332. <<NOTE: 10 USC 2451 note.>>  DEFENSE-WIDE ELECTRONIC MALL 
            SYSTEM FOR SUPPLY PURCHASES.

    (a) Electronic Mall System Defined.--In this section, the term 
``electronic mall system'' means an electronic system for displaying, 
ordering, and purchasing supplies and materiel available from sources 
within the Department of Defense and from the private sector.
    (b) Development and Management.--(1) Using systems and technology 
available in the Department of Defense as of the date of the enactment 
of this Act, the Joint Electronic Commerce Program Office of the 
Department of Defense shall develop a single, defense-wide electronic 
mall system, which shall provide a single, defense-wide electronic point 
of entry and a single view, access, and ordering capability for all 
Department of Defense electronic catalogs. The Secretary of each 
military department and the head of each Defense Agency shall provide to 
the Joint Electronic Commerce Program Office the necessary and requested 
data to ensure compliance with this paragraph.
    (2) The Defense Logistics Agency, under the direction of the Joint 
Electronic Commerce Program Office, shall be responsible for maintaining 
the defense-wide electronic mall system developed under paragraph (1).
    (c) Role of Chief Information Officer.--The Chief Information 
Officer of the Department of Defense shall be responsible for--
            (1) overseeing the elimination of duplication and overlap 
        among Department of Defense electronic catalogs; and
            (2) ensuring that such catalogs utilize technologies and 
        formats compliant with the requirements of subsection (b).

    (d) Implementation.--Within 180 days after the date of the enactment 
of this Act, the Chief Information Officer shall develop and provide to 
the congressional defense committees--
            (1) an inventory of all existing and planned electronic mall 
        systems in the Department of Defense; and
            (2) a schedule for ensuring that each such system is 
        compliant with the requirements of subsection (b).

[[Page 112 STAT. 1969]]

SEC. 333. PRIORITY FUNDING TO ENSURE YEAR 2000 COMPLIANCE OF INFORMATION 
            TECHNOLOGY AND NATIONAL SECURITY SYSTEMS.

    (a) Funds for Completion of Year 2000 Conversion.--None of the funds 
authorized to be appropriated pursuant to this Act may (except as 
provided in subsection (b)) be obligated or expended on the development 
or modernization of any information technology or national security 
system of the Department of Defense in use by the Department of Defense 
(whether or not the system is a mission critical system) if the date-
related data processing capability of that system does not meet 
certification level 1a, 1b, or 2 (as prescribed in the April 1997 
publication of the Department of Defense entitled ``Year 2000 Management 
Plan'').
    (b) Exception for Certain Information Technology and National 
Security Systems.--The limitation in subsection (a) does not apply to an 
obligation or expenditure for an information technology or national 
security system that is reported to the Office of the Secretary of 
Defense by October 1, 1998, in accordance with the preparation 
instructions for the May 1998 Department of Defense quarterly report on 
the status of year 2000 compliance, if--
            (1) the obligation or expenditure is directly related to 
        ensuring that the reported system achieves year 2000 compliance;
            (2) the system is being developed and fielded to replace, 
        before January 1, 2000, a noncompliant system or a system to be 
        terminated in accordance with the May 1998 Department of Defense 
        quarterly report on the status of year 2000 compliance; or
            (3) the obligation or expenditure is required for a 
        particular change that is specifically required by law or that 
        is specifically directed by the Secretary of Defense.

    (c) Unallocated Reductions of Funds Not To Apply to Mission Critical 
Systems.--Funds authorized to be appropriated pursuant to this Act for 
mission critical systems are not subject to any unallocated reduction of 
funds made by or otherwise applicable to funds authorized to be 
appropriated pursuant to this Act.
    (d) Current Services Operations Not Affected.--Subsection (a) does 
not prohibit the obligation or expenditure of funds for current services 
operations of information technology and national security systems.
    (e) Waiver Authority.--The Secretary of Defense may waive subsection 
(a) on a case-by-case basis with respect to an information technology or 
national security system if the Secretary provides the congressional 
defense committees with written notice of the waiver, including the 
reasons for the waiver and a timeline for the testing and certification 
of the system as year 2000 compliant.
    (f ) Required Report.--(1) Not later than December 1, 1998, the 
Secretary of Defense shall submit to the congressional defense 
committees a report describing--
            (A) an executable strategy to be used throughout the 
        Department of Defense to test information technology and 
        national security systems for year 2000 compliance (to include 
        functional capability tests and military exercises);
            (B) the plans of the Department of Defense for ensuring that 
        adequate resources (such as testing facilities, tools, and

[[Page 112 STAT. 1970]]

        personnel) are available to ensure that all mission critical 
        systems achieve year 2000 compliance; and
            (C) the criteria and process to be used to certify a system 
        as year 2000 compliant.

    (2) The report shall also include--
            (A) an updated list of all mission critical systems; and
            (B) guidelines for developing contingency plans for the 
        functioning of each information technology or national security 
        system in the event of a year 2000 problem in any such system.

    (g) Capability Contingency Plans.--Not later than December 30, 1998, 
the Secretary of Defense shall have in place contingency plans to ensure 
continuity of operations for every critical mission or function of the 
Department of Defense that is dependent on an information technology or 
national security system.
    (h) Inspector General Evaluation.--The Inspector General of the 
Department of Defense shall selectively audit information technology and 
national security systems certified as year 2000 compliant to evaluate 
the ability of systems to successfully operate during the actual year 
2000, including the ability of the systems to access and transmit 
information from point of origin to point of termination.
    (i) Definitions.--For purposes of this section:
            (1) The term ``information technology'' has the meaning 
        given that term in section 5002 of the Clinger-Cohen Act of 1996 
        (40 U.S.C. 1401).
            (2) The term ``national security system'' has the meaning 
        given that term in section 5142 of such Act (40 U.S.C. 1452).
            (3) The term ``development or modernization'' has the 
        meaning given that term in paragraph E of section 180203 of the 
        Department of Defense Financial Management Regulation (DOD 
        7000.14-R), but does not include any matter covered by 
        subparagraph 3 of that paragraph.
            (4) The term ``current services'' has the meaning given that 
        term in paragraph C of section 180203 of the Department of 
        Defense Financial Management Regulation (DOD 7000.14-R).
            (5) The term ``mission critical system'' means an 
        information technology or national security system that is 
        designated as mission critical in the May 1998 Department of 
        Defense quarterly report on the status of year 2000 compliance.

SEC. 334. EVALUATION OF YEAR 2000 COMPLIANCE AS PART OF TRAINING 
            EXERCISES PROGRAMS.

    (a) Report on Evaluation Plan.--Not later than December 15, 1998, 
the Secretary of Defense shall submit to Congress a plan for the 
execution of a simulated year 2000 as part of military exercises 
described in subsection (c) in order to evaluate, in an operational 
environment, the extent to which information technology and national 
security systems involved in those exercises will successfully operate 
during the actual year 2000, including the ability of those systems to 
access and transmit information from point of origin to point of 
termination.
    (b) Evaluation of Compliance in Selected Exercises.--In conducting 
the military exercises described in subsection (c), the Secretary of 
Defense shall ensure that--
            (1) at least 25 of those exercises (referred to in this 
        section as ``year 2000 simulation exercises'') are conducted so 
        as to

[[Page 112 STAT. 1971]]

        include a simulated year 2000 in accordance with the plan 
        submitted under subsection (a);
            (2) at least two of those exercises are conducted by the 
        commander of each unified or specified combatant command; and
            (3) all mission critical systems that are expected to be 
        used if the Armed Forces are involved in a conflict in a major 
        theater of war are tested in at least two exercises.

    (c) Covered Military Exercises.--A military exercise referred to in 
this section is a military exercise conducted by the Department of 
Defense, during the period beginning on January 1, 1999, and ending on 
September 30, 1999--
            (1) under the training exercises program known as the ``CJCS 
        Exercise Program'';
            (2) at the Naval Strike and Air Warfare Center, the Army 
        National Training Center, or the Air Force Air Warfare Center; 
        or
            (3) as part of Naval Carrier Group fleet training or Marine 
        Corps Expeditionary Unit training.

    (d) Alternative Testing Method.--In the case of an information 
technology or national security system for which a simulated year 2000 
test as part of a military exercise described in subsection (c) is not 
feasible or presents undue risk, the Secretary of Defense shall test the 
system using a functional end-to-end test or through a Defense Major 
Range and Test Facility Base. The Secretary shall include the plans for 
these tests in the plan required by subsection (a). Tests under this 
subsection are in addition to the 25 tests required by subsection (b).
    (e) Authority for Exclusion of Systems Not Capable of Performing 
Reliably in Year 2000 Simulation.--(1) In carrying out a year 2000 
simulation exercise, the Secretary of Defense may exclude a particular 
information technology or national security system from the year 2000 
simulation phase of the exercise if the Secretary determines that the 
system would be incapable of performing reliably during the year 2000 
simulation phase of the exercise. In such a case, the system excluded 
shall be replaced in accordance with the year 2000 contingency plan for 
the system.
    (2) If the Secretary of Defense excludes an information technology 
or national security system from the year 2000 simulation phase of an 
exercise as provided in paragraph (1), the Secretary shall notify 
Congress of that exclusion not later than two weeks before commencing 
that exercise. The notice shall include a list of each information 
technology or national security system excluded from the exercise, a 
description of how the exercise will use the year 2000 contingency plan 
for each such system, and a description of the effect that continued 
year 2000 noncompliance of each such system would have on military 
readiness.
    (3) An information technology or national security system with 
cryptological applications that is not capable of having its internal 
clock adjusted forward to a simulated later time is exempt from the year 
2000 simulation phase of an exercise under this section.
    (f ) Comptroller General Review.--Not later than January 30, 1999, 
the Comptroller General shall review the report and plan submitted under 
subsection (a) and submit to Congress a briefing evaluating the 
methodology to be used under the plan to simulate the year 2000 and 
describing the potential information that will be collected as a result 
of implementation of the plan,

[[Page 112 STAT. 1972]]

the adequacy of the planned tests, and the impact that the plan will 
have on military readiness.
    (g) Definitions.--For the purposes of this section:
            (1) The term ``information technology'' has the meaning 
        given that term in section 5002 of the Clinger-Cohen Act of 1996 
        (40 U.S.C. 1401).
            (2) The term ``national security system'' has the meaning 
        given that term in section 5142 of such Act (40 U.S.C. 1452).
            (3) The term ``mission critical system'' means an 
        information technology or national security system that is 
        designated as mission critical in the May 1998 Department of 
        Defense quarterly report on the status of year 2000 compliance.

SEC. 335. CONTINUITY OF ESSENTIAL OPERATIONS AT RISK OF FAILURE BECAUSE 
            OF INFORMATION TECHNOLOGY AND NATIONAL SECURITY SYSTEMS THAT 
            ARE NOT YEAR 2000 COMPLIANT.

    (a) Report Required.--Not later than March 31, 1999, the Secretary 
of Defense and the Director of Central Intelligence shall jointly submit 
to the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a report on the plans 
of the Department of Defense and the intelligence community for ensuring 
the continuity of performance of essential operations that are at risk 
of failure because of information technology and national security 
systems that are not year 2000 compliant.
    (b) Content.--The report shall contain, at a minimum, the following:
            (1) A prioritization of mission critical systems to ensure 
        that the most critical systems have the highest priority for 
        efforts to reprogram information technology and national 
        security systems to be year 2000 compliant.
            (2) A discussion of the private and other public information 
        and support systems relied on by the national security 
        community, including the intelligence community, and the efforts 
        under way to ensure that those systems are year 2000 compliant.
            (3) The efforts under way to repair the underlying operating 
        systems and infrastructure.
            (4) The plans for comprehensive testing of Department of 
        Defense systems, including simulated operational tests in 
        mission areas.
            (5) A comprehensive contingency plan, for the entire 
        national security community, which provides for resolving 
        emergencies resulting from a system that is not year 2000 
        compliant and includes provision for the creation of crisis 
        action teams for use in resolving such emergencies.
            (6) A discussion of the efforts undertaken to ensure the 
        continued reliability of service on the systems used by the 
        President and other leaders of the United States for 
        communicating with the leaders of other nations.
            (7) A discussion of the vulnerability of allied armed forces 
        to the failure of systems that are not, or have critical 
        components that are not, year 2000 compliant, together with an 
        assessment of the potential problems for interoperability among 
        the Armed Forces of the United States and allied armed forces 
        because of the potential for failure of such systems.

[[Page 112 STAT. 1973]]

            (8) An estimate of the total cost of making information 
        technology and national security systems of the Department of 
        Defense and the intelligence community year 2000 compliant.
            (9) The countries that have critical computer-based systems 
        any disruption of which, due to not being year 2000 compliant, 
        would cause a significant potential national security risk to 
        the United States.
            (10) A discussion of the cooperative arrangements between 
        the United States and other nations to assist those nations in 
        identifying and correcting (to the extent necessary to meet 
        national security interests of the United States) any problems 
        in their communications and strategic systems, or other systems 
        identified by the Secretary of Defense, that make the systems 
        not year 2000 compliant.
            (11) A discussion of the threat posed to the national 
        security interests of the United States from any potential 
        failure of strategic systems of foreign countries that are not 
        year 2000 compliant.

    (c) International Cooperative Arrangements.--The Secretary of 
Defense, with the concurrence of the Secretary of State, may enter into 
a cooperative arrangement with a representative of any foreign 
government to provide for the United States to assist the foreign 
government in identifying and correcting (to the extent necessary to 
meet national security interests of the United States) any problems in 
communications, strategic, or other systems of that foreign government 
that render the systems not year 2000 compliant.
    (d) Definitions.--In this section:
            (1) The term ``year 2000 compliant'', with respect to an 
        information technology or national security system of the United 
        States or a computer-based system of a foreign government, means 
        that the system correctly recognizes dates in years after 1999 
        as being dates after 1999 for the purposes of system functions 
        for which the correct date is relevant to the performance of the 
        functions, consistent with certification level 1a, 1b, or 2 (as 
        prescribed in the April 1997 publication of the Department of 
        Defense entitled ``Year 2000 Management Plan'').
            (2) The term ``information technology'' has the meaning 
        given that term by section 5002 of the Clinger-Cohen Act of 1996 
        (40 U.S.C. 1401).
            (3) The term ``national security system'' has the meaning 
        given that term by section 5142 of the Clinger-Cohen Act of 1996 
        (40 U.S.C. 1452).

         Subtitle E--Defense Infrastructure Support Improvement

SEC. 341. CLARIFICATION OF DEFINITION OF DEPOT-LEVEL MAINTENANCE AND 
            REPAIR.

    Section 2460(a) of title 10, United States Code, is amended by 
inserting before the period at the end of the first sentence the 
following: ``or the location at which the maintenance or repair is 
performed''.

[[Page 112 STAT. 1974]]

SEC. 342. REPORTING AND ANALYSIS REQUIREMENTS BEFORE CHANGE OF 
            COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO PRIVATE SECTOR 
            PERFORMANCE.

    (a) In General.--Section 2461 of title 10, United States Code, is 
amended--
            (1) by redesignating subsections (c) and (g) as subsections 
        (g) and (h), respectively, and transferring subsection (g), as 
        so redesignated, to appear after subsection (f ); and
            (2) by striking out subsections (a) and (b) and inserting in 
        lieu thereof the following new subsections:

    ``(a) Reporting and Analysis Requirements as Precondition to Change 
in Performance.--A commercial or industrial type function of the 
Department of Defense that, as of October 1, 1980, was being performed 
by Department of Defense civilian employees may not be changed to 
performance by the private sector until the Secretary of Defense fully 
complies with the reporting and analysis requirements specified in 
subsections (b) and (c).
    ``(b) Notification and Elements of Analysis.--(1) Before commencing 
to analyze a commercial or industrial type function described in 
subsection (a) for possible change to performance by the private sector, 
the Secretary of Defense shall submit to Congress a report containing 
the following:
            ``(A) The function to be analyzed for possible change.
            ``(B) The location at which the function is performed by 
        Department of Defense civilian employees.
            ``(C) The number of civilian employee positions potentially 
        affected.
            ``(D) The anticipated length and cost of the analysis.
            ``(E) A certification that a proposed performance of the 
        commercial or industrial type function by persons who are not 
        civilian employees of the Department of Defense is not a result 
        of a decision by an official of a military department or Defense 
        Agency to impose predetermined constraints or limitations on 
        such employees in terms of man years, end strengths, full-time 
        equivalent positions, or maximum number of employees.

    ``(2) The duty to prepare a report under paragraph (1) may be 
delegated. A report prepared below the major command or claimant level 
of a military department, or below the equivalent level in a Defense 
Agency, pursuant to any such delegation shall be reviewed at the major 
command, claimant level, or equivalent level, as the case may be, before 
submission to Congress.
    ``(3) An analysis of a commercial or industrial type function for 
possible change to performance by the private sector shall include the 
following:
            ``(A) An examination of the cost of performance of the 
        function by Department of Defense civilian employees and by one 
        or more private contractors to demonstrate whether change to 
        performance by the private sector will result in savings to the 
        Government over the life of the contract, including in the 
        examination the following:
                    ``(i) The cost to the Government, estimated by the 
                Secretary of Defense (based on offers received), for 
                performance of the function by the private sector.
                    ``(ii) The estimated cost to the Government of 
                Department of Defense civilian employees performing the 
                function.

[[Page 112 STAT. 1975]]

                    ``(iii) In addition to the costs referred to in 
                clause (i), an estimate of all other costs and 
                expenditures that the Government would incur because of 
                the award of such a contract.
            ``(B) An examination of the potential economic effect of 
        performance of the function by the private sector on the 
        following:
                    ``(i) Employees of the Department of Defense who 
                would be affected by such a change in performance.
                    ``(ii) The local community and the Government, if 
                more than 75 employees of the Department of Defense 
                perform the function.
            ``(C) An examination of the effect of performance of the 
        function by the private sector on the military mission 
        associated with the performance of the function.

    ``(4)(A) A representative individual or entity at a facility where a 
commercial or industrial type function is analyzed for possible change 
in performance may submit to the Secretary of Defense an objection to 
the analysis on the grounds that the report required by paragraph (1) 
has not been submitted or that the certification required by paragraph 
(1)(E) is not included in the report submitted as a condition for the 
analysis. The objection shall be in writing and shall be submitted 
within 90 days after the following date:
            ``(i) In the case of a failure to submit the report when 
        required, the date on which the representative individual or an 
        official of the representative entity authorized to pose the 
        objection first knew or should have known of that failure.
            ``(ii) In the case of a failure to include the certification 
        in a submitted report, the date on which the report was 
        submitted to Congress.

    ``(B) If the Secretary determines that the report required by 
paragraph (1) was not submitted or that the required certification was 
not included in the submitted report, the commercial or industrial type 
function covered by the analysis to which objected may not be the 
subject of a solicitation of offers for, or award of, a contract until, 
respectively, the report is submitted or a report containing the 
certification in full compliance with the certification requirement is 
submitted.
    ``(c) Notification of Decision.--(1) If, as a result of the 
completion of the examinations under subsection (b)(3), a decision is 
made to change the commercial or industrial type function that was the 
subject of the analysis to performance by the private sector, the 
Secretary of Defense shall submit to Congress a report describing that 
decision. The report shall contain the following:
            ``(A) An indication that the examinations required under 
        subsection (b)(3) have been completed.
            ``(B) The Secretary's certification that the Government 
        calculation of the cost of performance of the function by 
        Department of Defense civilian employees is based on an estimate 
        of the most cost effective manner for performance of the 
        function by Department of Defense civilian employees.
            ``(C) The Secretary's certification that the examination 
        required by subsection (b)(3)(A) as part of the analysis 
        demonstrates that the performance of the function by the private 
        sector will result in savings to the Government over the life of 
        the contract.

[[Page 112 STAT. 1976]]

            ``(D) The Secretary's certification that the entire analysis 
        is available for examination.
            ``(E) A schedule for completing the change to performance of 
        the function by the private sector.

    ``(2) The change of the function to contractor performance may not 
begin until after the submission of the report required by this 
subsection.''.
    (b) Definition of Small Function for Waiver Purposes.--Subsection 
(d) of section 2461 of title 10, United States Code, is amended by 
striking out ``20'' and inserting in lieu thereof ``50''.
    (c) Conforming Amendments.--(1) Subsections (d) and (e) of section 
2461 of title 10, United States Code, are amended by inserting ``and 
subsection (g)'' after ``Subsections (a) through (c)''.
    (2) Subsections (e)(2) and (f )(1) of such section are amended by 
striking out ``converted'' and inserting in lieu thereof ``changed''.
    (3) Subsection (f )(2) of such section is amended by striking out 
``conversion'' and inserting in lieu thereof ``change''.
    (d) Effective <<NOTE: 10 USC 2461 note.>>  Date.--The amendments 
made by this section shall take effect on the date of the enactment of 
this Act, but the amendments shall not apply with respect to a 
conversion of a function of the Department of Defense to performance by 
a private contractor concerning which the Secretary of Defense provided 
to Congress, before the date of the enactment of this Act, a 
notification under paragraph (1) of section 2461(a) of title 10, United 
States Code, as in effect on the day before the date of the enactment of 
this Act.

SEC. 343. NOTIFICATIONS OF DETERMINATIONS OF MILITARY ITEMS AS BEING 
            COMMERCIAL ITEMS FOR PURPOSES OF THE EXCEPTION TO 
            REQUIREMENTS REGARDING CORE LOGISTICS CAPABILITIES.

    (a) Requirement.--Section 2464 of title 10, United States Code, is 
amended by adding at the end the following:
    ``(c) Notification of Determinations Regarding Certain Commercial 
Items.--The first time that a weapon system or other item of military 
equipment described in subsection (a)(3) is determined to be a 
commercial item for the purposes of the exception contained in that 
subsection, the Secretary of Defense shall submit to Congress a 
notification of the determination, together with the justification for 
the determination. The justification for the determination shall 
include, at a minimum, the following:
            ``(1) The estimated percentage of commonality of parts of 
        the version of the item that is sold or leased in the commercial 
        marketplace and the Government's version of the item.
            ``(2) The value of any unique support and test equipment and 
        tools that are necessary to support the military requirements if 
        the item were maintained by the Government.
            ``(3) A comparison of the estimated life cycle logistics 
        support costs that would be incurred by the Government if the 
        item were maintained by the private sector with the estimated 
        life cycle logistics support costs that would be incurred by the 
        Government if the item were maintained by the Government.''.

    (b) Applicability.--Subsection <<NOTE: 10 USC 2464 note.>>  (c) of 
section 2464 of title 10, United States Code (as added by subsection 
(a)), shall apply with respect to determinations made after the date of 
the enactment of this Act.

[[Page 112 STAT. 1977]]

SEC. 344. <<NOTE: 10 USC 113 note.>>  OVERSIGHT OF DEVELOPMENT AND 
            IMPLEMENTATION OF AUTOMATED IDENTIFICATION TECHNOLOGY.

    (a) Definitions.--In this section:
            (1) The term ``automated identification technology program'' 
        means a program in the Department of Defense, including any 
        pilot program, employing one or more of the following 
        technologies:
                    (A) Magnetic stripe.
                    (B) Bar codes, both linear and two-dimensional 
                (including matrix symbologies).
                    (C) Smart Card.
                    (D) Optical memory.
                    (E) Personal computer memory card international 
                association carriers.
                    (F) Any other established or emerging automated 
                identification technology, including biometrics and 
                radio frequency identification.
            (2) The term ``Smart Card'' means a credit card size device 
        that contains one or more integrated circuits.

    (b) Establishment of Automated Identification Technology Office.--
(1) The Secretary of Defense shall establish an Automated Identification 
Technology Office within the Department of Defense that shall be 
responsible for--
            (A) overseeing the development and implementation of all 
        automated identification technology programs in the Department; 
        and
            (B) coordinating automated identification technology 
        programs with the Joint Staff, the Secretaries of the military 
        departments, and the directors of the Defense Agencies.

    (2) After the date of the enactment of this Act, funds appropriated 
for the Department of Defense may not be obligated for an automated 
identification technology program unless the program has been reviewed 
and approved by the Automated Identification Technology Office. Pending 
the establishment of the Automated Identification Technology Office, the 
review and approval of a program by the Smart Card Technology Office of 
the Defense Human Resources Field Activity of the Department of Defense 
shall be sufficient to satisfy the requirements of this paragraph even 
if the approval was given before the date of the enactment of this Act.
    (3) As part of its oversight responsibilities, the Automated 
Identification Technology Office shall establish standards designed--
            (A) to ensure the compatibility and interoperability of 
        automated identification technology programs in the Department 
        of Defense; and
            (B) to identify and terminate redundant, infeasible, or 
        uneconomical automated identification technology programs.

    (c) Funding for Increased Use of Smart Cards.--(1) Of the funds 
available for the Navy for fiscal year 1999 for operation and 
maintenance, the Secretary of the Navy shall allocate sufficient 
amounts, up to $25,000,000, for the purpose of making significant 
progress toward ensuring that Smart Cards with a multi-application, 
multi-technology automated reading capability are issued and used 
throughout the Navy and the Marine Corps for purposes for which Smart 
Cards are suitable.

[[Page 112 STAT. 1978]]

    (2) Not later than June 30, 1999, the Secretary of the Navy shall 
equip with Smart Card technology at least one carrier battle group, one 
carrier air wing, and one amphibious readiness group (including the 
Marine Corps units embarked on the vessels of such battle and readiness 
groups) in each of the United States Atlantic Command and the United 
States Pacific Command.
    (3) None of the funds appropriated pursuant to any authorization of 
appropriations in this Act may be expended after June 30, 1999, for the 
procurement of the Joint Uniformed Services Identification card for 
members of the Navy or the Marine Corps or for the issuance of such card 
to such members, until the Secretary of the Navy certifies in writing to 
the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives that the Secretary has 
completed the issuance of Smart Cards in accordance with paragraph (2).
    (d) Defense-Wide Plan.--Not later than March 31, 1999, the Secretary 
of Defense shall submit to the congressional defense committees a plan 
for the use of Smart Card technology by each military department. The 
Secretary shall include in the plan an estimate of the costs of the 
plan, the savings to be derived from carrying out the plan, and a 
description of the ways in which the Department of Defense will review 
and revise business practices to take advantage of Smart Card 
technology.

SEC. 345. CONTRACTOR-OPERATED CIVIL ENGINEERING SUPPLY STORES PROGRAM.

    (a) Definitions.--In this section:
            (1) The term ``contractor-operated civil engineering supply 
        store'' means a Government-owned facility that, as of the date 
        of the enactment of this Act, is operated by a contractor under 
        the contractor-operated civil engineering supply store program 
        of the Department of the Air Force (known as the ``COCESS 
        program'') for the purpose of--
                    (A) maintaining inventories of civil engineering 
                supplies on behalf of a military department; and
                    (B) furnishing such supplies to the department as 
                needed.
            (2) The term ``civil engineering supplies'' means parts and 
        supplies needed for the repair and maintenance of military 
        installations.

    (b) Findings.--Congress finds the following:
            (1) In 1970, the Strategic Air Command of the Air Force 
        began to use contractor-operated civil engineering supply stores 
        to improve the efficiency and effectiveness of materials 
        management and relieve the Air Force from having to maintain 
        large inventories of civil engineering supplies.
            (2) Contractor-operated civil engineering supply stores are 
        designed to support the civil engineering and public works 
        efforts of the Armed Forces through the provision of quality 
        civil engineering supplies at competitive prices and within a 
        reasonable period of time.
            (3) Through the use of a contractor-operated civil 
        engineering supply store, a guaranteed inventory level of civil 
        engineering supplies is maintained at a military installation, 
        which ensures that urgently needed civil engineering supplies 
        are available on site.

[[Page 112 STAT. 1979]]

            (4) The contractor operating the contractor-operated civil 
        engineering supply store is an independent business organization 
        whose customer is a military department and the Armed Forces and 
        who is subject to all the rules of private business and the 
        regulations of the Government.
            (5) The use of contractor-operated civil engineering supply 
        stores ensures the best price and best buy for the Government.
            (6) Ninety-five percent of the cost savings realized through 
        the use of contractor-operated civil engineering supply stores 
        is due to savings in the cost of actually procuring supplies.
            (7) In the past 30 years, private contractors have never 
        lost a cost comparison conducted pursuant to the criteria set 
        forth in Office of Management and Budget Circular A-76 for the 
        provision of civil engineering supplies to the Government.

    (c) Conditions on Multi-Function Contracts.--A civil engineering 
supplies function that is performed, as of the date of the enactment of 
this Act, by a contractor-operated civil engineering supply store may 
not be combined with another supply function or any service function, 
including any base operating support function, for purposes of 
competition or contracting, until 60 days after the date on which the 
Secretary of Defense submits to Congress a report--
            (1) notifying Congress of the proposed combined competition 
        or contract; and
            (2) explaining why a combined competition or contract is the 
        best method by which to achieve cost savings and efficiencies to 
        the Government.

    (d) GAO Reviews.--Not later than 50 days after the date on which the 
Secretary of Defense submits a report to Congress under subsection (c), 
the Comptroller General shall review the report and submit to Congress a 
briefing regarding whether the cost savings and efficiencies identified 
in the report are achievable.
    (e) Relationship to Other Laws.--If a civil engineering supplies 
function covered by subsection (c) is proposed for combination with a 
supply or service function that is subject to the study and reporting 
requirements of section 2461 of title 10, United States Code, the 
Secretary of Defense may include the report required under subsection 
(c) as part of the report under such section.

SEC. 346. <<NOTE: 10 USC 2464 note.>>  CONDITIONS ON EXPANSION OF 
            FUNCTIONS PERFORMED UNDER PRIME VENDOR CONTRACTS FOR DEPOT-
            LEVEL MAINTENANCE AND REPAIR.

    (a) Conditions on Expanded Use.--The Secretary of Defense or the 
Secretary of a military department, as the case may be, may not enter 
into a prime vendor contract for depot-level maintenance and repair of a 
weapon system or other military equipment described in section 
2464(a)(3) of title 10, United States Code, before the end of the 30-day 
period beginning on the date on which the Secretary submits to Congress 
a report, specific to the proposed contract, that--
            (1) describes the competitive procedures to be used to award 
        the prime vendor contract; and
            (2) contains an analysis of costs and benefits that 
        demonstrates that use of the prime vendor contract will result 
        in savings to the Government over the life of the contract.

    (b) Definitions.--In this section:

[[Page 112 STAT. 1980]]

            (1) The term ``prime vendor contract'' means an innovative 
        contract that gives a defense contractor the responsibility to 
        manage, store, and distribute inventory, manage and provide 
        services, or manage and perform research, on behalf of the 
        Department of Defense on a frequent, regular basis, for users 
        within the Department on request. The term includes contracts 
        commonly referred to as prime vendor support contracts, flexible 
        sustainment contracts, and direct vendor delivery contracts.
            (2) The term ``depot-level maintenance and repair'' has the 
        meaning given such term in section 2460 of title 10, United 
        States Code.

    (c) Relationship to Other Laws.--Nothing in this section shall be 
construed to exempt a prime vendor contract from the requirements of 
section 2461 of title 10, United States Code, or any other provision of 
chapter 146 of such title.

SEC. 347. <<NOTE: 10 USC 2458 note.>>  BEST COMMERCIAL INVENTORY 
            PRACTICES FOR MANAGEMENT OF SECONDARY SUPPLY ITEMS.

    (a) Development and Submission of Schedule.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of each 
military department shall submit to Congress a schedule for implementing 
within the military department, for secondary supply items managed by 
that military department, inventory practices identified by the 
Secretary as being the best commercial inventory practices for the 
acquisition and distribution of such supply items consistent with 
military requirements. The schedule shall provide for the implementation 
of such practices to be completed not later than five years after the 
date of the enactment of this Act.
    (b) Definition.--For purposes of this section, the term ``best 
commercial inventory practice'' includes cellular repair processes, use 
of third-party logistics providers, and any other practice that the 
Secretary of the military department determines will enable the military 
department to reduce inventory levels while improving the responsiveness 
of the supply system to user needs.
    (c) GAO Reports on Military Department and Defense Logistics Agency 
Schedules.--(1) Not later than 240 days after the date of the enactment 
of this Act, the Comptroller General shall submit to Congress a report 
evaluating the extent to which the Secretary of each military department 
has complied with the requirements of this section.
    (2) Not later than 18 months after the date on which the Director of 
the Defense Logistics Agency submits to Congress a schedule for 
implementing best commercial inventory practices under section 395 of 
the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1718; 10 U.S.C. 2458 note), the Comptroller General 
shall submit to Congress an evaluation of the extent to which best 
commercial inventory practices are being implemented in the Defense 
Logistics Agency in accordance with that schedule.

SEC. 348. PERSONNEL REDUCTIONS IN ARMY MATERIEL COMMAND.

    Not <<NOTE: Reports.>>  later than March 31, 1999, the Comptroller 
General shall submit to the congressional defense committees a report 
concerning--
            (1) the effect that the quadrennial defense review's 
        proposed personnel reductions in the Army Materiel Command will 
        have on workload and readiness if implemented; and

[[Page 112 STAT. 1981]]

            (2) the projected cost savings from such reductions and the 
        manner in which such savings are expected to be achieved.

SEC. 349. <<NOTE: 10 USC 2458 note.<plus-minus>>>  INVENTORY MANAGEMENT 
            OF IN-TRANSIT ITEMS.

    (a) Requirement for Plan.--Not later than March 1, 1999, the 
Secretary of Defense shall submit to Congress a comprehensive plan to 
ensure visibility over all in-transit end items and secondary items.
    (b) End Items.--The plan required by subsection (a) shall address 
the specific mechanisms to be used to enable the Department of Defense 
to identify at any time the quantity and location of all end items.
    (c) Secondary Items.--The plan required by subsection (a) shall 
address the following problems with Department of Defense management of 
inventories of in-transit secondary items:
            (1) The vulnerability of in-transit secondary items to loss 
        through fraud, waste, and abuse.
            (2) Loss of oversight of in-transit secondary items, 
        including any loss of oversight when items are being transported 
        by commercial carriers.
            (3) Loss of accountability for in-transit secondary items 
        due to either a delay of delivery of the items or a lack of 
        notification of a delivery of the items.

    (d) Content of Plan.--The plan shall include for subsection (b) and 
for each of the problems described in subsection (c) the following 
information:
            (1) The actions to be taken by the Department.
            (2) Statements of objectives.
            (3) Performance measures and schedules.
            (4) An identification of any resources necessary for 
        implementing the required actions, together with an estimate of 
        the annual costs.

    (e) GAO Reviews.--(1) Not later than 60 days after the date on which 
the Secretary of Defense submits the plan to Congress, the Comptroller 
General shall review the plan and submit to Congress any comments that 
the Comptroller General considers appropriate regarding the plan.
    (2) The Comptroller General shall monitor any implementation of the 
plan and, not later than 1 year after the date referred to in paragraph 
(1), submit to Congress an assessment of the extent to which the plan 
has been implemented.

SEC. 350. REVIEW OF DEFENSE AUTOMATED PRINTING SERVICE FUNCTIONS.

    (a) Review Required.--The Secretary of Defense shall provide for a 
review of the functions of the Defense Automated Printing Service in 
accordance with this section and shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives the matters required under subsection (f ) not 
later than March 31, 1999.
    (b) Performance by Independent Entity.--The Secretary of Defense 
shall select the General Accounting Office, an experienced entity in the 
private sector, or any other entity outside the Department of Defense to 
perform the review under this section. The Comptroller General shall 
perform the review if the Secretary selects the Comptroller General to 
do so.
    (c) Consultation.--Regardless of the entity selected by the 
Secretary under subsection (b) to perform the review, the entity

[[Page 112 STAT. 1982]]

shall perform the review in consultation with persons in the private 
sector who have expertise and experience in performing in the private 
sector functions similar to the functions performed by the Defense 
Automated Printing Service. If such a person obtains any privileged 
information (as defined by the Secretary of Defense) as a result of 
participating in the review, the person may not receive a contract, 
either through the Department of Defense or the Government Printing 
Office, to provide services for the Department of Defense similar to the 
functions performed by the Defense Automated Printing Service for a one-
year period beginning on the date the report is submitted to the 
Secretary of Defense under subsection (e).
    (d) Elements of Review.--In performing the review under this 
section, the entity selected under subsection (b) shall specifically 
address the following:
            (1) The functions performed by the Defense Automated 
        Printing Service.
            (2) The functions of the Defense Automated Printing Service 
        that are inherently national security functions and, as such, 
        need to be performed within the Department of Defense.
            (3) The functions of the Defense Automated Printing Service 
        that are appropriate for transfer to another appropriate entity 
        to perform, including a private sector entity.
            (4) The appropriate management structure of the Defense 
        Automated Printing Service, the effectiveness of the current 
        structure of the Defense Automated Printing Service in 
        supporting current and future customer requirements, and any 
        plans to address any deficiencies in supporting such 
        requirements.
            (5) The current and future requirements of customers of the 
        Defense Automated Printing Service.
            (6) The best business practices that are used by the Defense 
        Automated Printing Service and other best business practices 
        that could be used by the Defense Automated Printing Service.
            (7) Options for maximizing the Defense Automated Printing 
        Service structure and services to provide the most cost 
        effective service to its customers.

    (e) Report on Results of Review.--The entity performing the review 
under this section shall submit to the Secretary of Defense a report 
that sets forth the results of the review. In addition to specifically 
addressing the matters specified in subsection (d), the report shall 
also include the following:
            (1) A list of all sites where functions of the Defense 
        Automated Printing Service are performed by the Defense 
        Automated Printing Service.
            (2) The total number of the personnel employed by the 
        Defense Automated Printing Service and the locations where the 
        personnel perform the duties as employees.
            (3) For each site identified under paragraph (1), an 
        assessment of each type of equipment at the site.
            (4) The types and explanation of the networking and 
        technology integration linking all of the sites referred to in 
        paragraph (1).
            (5) For each function of the Defense Automated Printing 
        Service determined to be an inherently national security 
        function under subsection (d)(2), a detailed justification for 
        the determination.

[[Page 112 STAT. 1983]]

            (6) For each function of the Defense Automated Printing 
        Service determined to be appropriate for transfer under 
        subsection (d)(3), a detailed assessment of the costs or savings 
        associated with the transfer.

    (f ) Review and Comments of Secretary of Defense.--(1) After 
reviewing the report submitted under subsection (e), the Secretary of 
Defense shall submit the report to Congress. The Secretary shall include 
with the report the following:
            (1) The Secretary's comments and recommendations regarding 
        the report.
            (2) A plan to transfer to another appropriate entity, or 
        contract with another appropriate entity for, the performance of 
        the functions of the Defense Automated Printing Service that--
                    (A) are not identified in the review as being 
                inherently national security functions; and
                    (B) the Secretary believes should be transferred or 
                contracted for performance outside the Department of 
                Defense in accordance with law.
            (3) Any recommended legislation and any administrative 
        action that is necessary for transferring or contracting for the 
        performance of the functions.

    (g) Extension of Requirement for Competitive Procurement of 
Services.--Section 351(a) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 266), as amended by 
section 351(a) of the National Defense Authorization Act for Fiscal Year 
1997 (Public Law 104-201; 110 Stat. 2490) and section 387(a)(1) of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 1713), is further amended by striking out ``1998'' and 
inserting in lieu thereof ``1999''.

SEC. 351. DEVELOPMENT OF PLAN FOR ESTABLISHMENT OF CORE LOGISTICS 
            CAPABILITIES FOR MAINTENANCE AND REPAIR OF C-17 AIRCRAFT.

    (a) Plan Required.--Not later than March 1, 1999, the Secretary of 
the Air Force shall submit to Congress a plan for the establishment of 
the core logistics capabilities for the C-17 aircraft consistent with 
the requirements of section 2464 of title 10, United States Code.
    (b) Effect on Existing Contract.--After March 1, 1999, the Secretary 
of the Air Force may not extend the Interim Contract for the C-17 
Flexible Sustainment Program before the end of the 60-day period 
beginning on the date on which the plan required by subsection (a) is 
received by Congress.
    (c) Comptroller <<NOTE: Reports.>> General Review.--During the 
period specified in subsection (b), the Comptroller General shall review 
the plan required under subsection (a) and submit to Congress a report 
evaluating the merits of the plan.

[[Page 112 STAT. 1984]]

   Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 361. CONTINUATION OF MANAGEMENT AND FUNDING OF DEFENSE COMMISSARY 
            AGENCY THROUGH THE OFFICE OF THE SECRETARY OF DEFENSE.

    (a) Management and Funding Responsibilities.--Section 192 of title 
10, United States Code, is amended by adding at the end the following 
new subsection:
    ``(d) Special Rule for Defense Commissary Agency.--Notwithstanding 
the results of any periodic review under subsection (c) with regard to 
the Defense Commissary Agency, the Secretary of Defense may not transfer 
to the Secretary of a military department the responsibility to manage 
and fund the provision of services and supplies provided by the Defense 
Commissary Agency unless the transfer of the management and funding 
responsibility is specifically authorized by a law enacted after the 
date of the enactment of this subsection.''.
    (b) Governing Board.--Section 2482 of such title is amended by 
adding at the end the following new subsection:
    ``(c) Governing Board.--(1) Notwithstanding section 192(d) of this 
title, the Secretary of Defense shall establish a governing board for 
the commissary system to provide advice to the Secretary regarding the 
prudent operation of the commissary system and to assist in the overall 
supervision of the Defense Commissary Agency. The Secretary may 
authorize the board to have such supervisory authority as the Secretary 
considers appropriate to permit the board to carry out its 
responsibilities.
    ``(2) The Secretary of Defense shall determine the membership of the 
governing board, which shall include, at a minimum, appropriate 
representatives from each military department.
    ``(3) The governing board shall be accountable only to the Secretary 
of Defense and to the civilian officer of the Department of Defense who 
is assigned the responsibility for the overall supervision of the 
Defense Commissary Agency pursuant to section 192(a) of this 
title. <<NOTE: Reports.>>  The Director of the Defense Commissary Agency 
shall be accountable to and report to the board.''.

SEC. 362. EXPANSION OF CURRENT ELIGIBILITY OF RESERVES FOR COMMISSARY 
            BENEFITS.

    (a) Days of Eligibility for Ready Reserve Members With 50 Creditable 
Points.--Section 1063 of title 10, United States Code, is amended--
            (1) by striking out subsection (b); and
            (2) in subsection (a)--
                    (A) by striking out ``(1)'';
                    (B) by striking out ``12 days of eligibility'' and 
                inserting in lieu thereof ``24 days of eligibility''; 
                and
                    (C) by striking out ``(2) Paragraph (1)'' and 
                inserting in lieu thereof ``(b) Effect of Compensation 
                or Type of Duty.--Subsection (a)''.

    (b) Days of Eligibility for Reserve Retirees Under Age 60.--Section 
1064 of such title is amended by striking out ``for 12 days each 
calendar year'' and inserting in lieu thereof ``for 24 days each 
calendar year''.

[[Page 112 STAT. 1985]]

    (c) Eligibility of Members of National Guard Serving in Federally 
Declared Disaster.--Chapter 54 of such title is amended by inserting 
after section 1063 the following new section:

``Sec. 1063a. Use of commissary stores and MWR retail facilities: 
                        members of National Guard serving in federally 
                        declared disaster

    ``(a) Eligibility of Members.--A member of the National Guard who, 
although not in Federal service, is called or ordered to duty in 
response to a federally declared disaster shall be permitted to use 
commissary stores and MWR retail facilities during the period of such 
duty on the same basis as members of the armed forces on active duty.
    ``(b) Eligibility of Dependents.--A dependent of a member of the 
National Guard who is permitted under subsection (a) to use commissary 
stores and MWR retail facilities shall be permitted to use such stores 
and facilities, during the same period as the member, on the same basis 
as dependents of members of the armed forces on active duty.
    ``(c) Definitions.--In this section:
            ``(1) Federally declared disaster.--The term `federally 
        declared disaster' means a disaster or other situation for which 
        a Presidential declaration of major disaster is issued under 
        section 401 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5170).
            ``(2) MWR retail facilities.--The term `MWR retail 
        facilities' has the meaning given that term in section 1065(e) 
        of this title.''.

    (d) Section Headings.--(1) The heading of section 1063 of such title 
is amended to read as follows:

``Sec. 1063. Use of commissary stores: members of Ready Reserve with at 
                        least 50 creditable points''.

    (2) The heading of section 1064 of such title is amended to read as 
follows:

``Sec. 1064. Use of commissary stores: persons qualified for retired pay 
                        under chapter 1223 but under age 60''.

    (e) Clerical Amendment.--The table of sections at the beginning of 
chapter 54 of such title is amended by striking out the items relating 
to sections 1063 and 1064 and inserting in lieu thereof the following 
items:

``1063. Use of commissary stores: members of Ready Reserve with at least 
           50 
           creditable points.
``1063a. Use of commissary stores and MWR retail facilities: members of 
           National Guard serving in federally declared disaster.
``1064. Use of commissary stores: persons qualified for retired pay 
           under chapter 1223 but under age 60.''.

SEC. 363. COSTS PAYABLE TO THE DEPARTMENT OF DEFENSE AND OTHER FEDERAL 
            AGENCIES FOR SERVICES PROVIDED TO THE DEFENSE COMMISSARY 
            AGENCY.

    (a) Limitation.--Section 2482(b)(1) of title 10, United States Code, 
is amended by adding at the end the following: ``However, the Defense 
Commissary Agency may not pay for any such service provided by the 
United States Transportation Command any amount that exceeds the price 
at which the service could be procured through full and open 
competition, as such term is defined

[[Page 112 STAT. 1986]]

in section 4(6) of the Office of Federal Procurement Policy Act (41 
U.S.C. 403(6)).''.
    (b) Effective <<NOTE: 10 USC 2482 note.>>  Date.--The amendment made 
by subsection (a) shall apply with respect to services provided or 
obtained on or after the date of the enactment of this Act.

SEC. 364. COLLECTION OF DISHONORED CHECKS PRESENTED AT COMMISSARY 
            STORES.

    Section 2486 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) Collection of Dishonored Checks.--(1) The Secretary of Defense 
may impose a charge for the collection of a check accepted at a 
commissary store that is not honored by the financial institution on 
which the check is drawn. The imposition and amounts of charges shall be 
consistent with practices of commercial grocery stores regarding 
dishonored checks.
    ``(2)(A) The following persons are liable to the United States for 
the amount of a check referred to in paragraph (1) that is returned 
unpaid to the United States, together with any charge imposed under that 
paragraph:
            ``(i) The person who presented the check.
            ``(ii) Any person whose status and relationship to the 
        person who presented the check provide the basis for that 
        person's eligibility to make purchases at a commissary store.

    ``(B) Any amount for which a person is liable under subparagraph (A) 
may be collected by deducting and withholding such amount from any 
amounts payable to that person by the United States.
    ``(3) Amounts collected as charges imposed under paragraph (1) shall 
be credited to the commissary trust revolving fund.
    ``(4) Appropriated funds may be used to pay any costs incurred in 
the collection of checks and charges referred to in paragraph (1). An 
appropriation account charged a cost under the preceding sentence shall 
be reimbursed the amount of that cost out of funds in the commissary 
trust revolving fund.
    ``(5) In this subsection, the term `commissary trust revolving fund' 
means the trust revolving fund maintained by the Department of Defense 
for surcharge collections and proceeds of sales of commissary stores.''.

SEC. 365. RESTRICTIONS ON PATRON ACCESS TO, AND PURCHASES IN, OVERSEAS 
            COMMISSARIES AND EXCHANGE STORES.

    (a) Authority to Impose Restrictions; Limitations on Authority.--
Chapter 147 of title 10, United States Code, is amended by adding at the 
end the following new section:

``Sec. 2492. Overseas commissary and exchange stores: access and 
                        purchase restrictions

    ``(a) General Authority.--(1) The Secretary of Defense may establish 
restrictions on the ability of eligible patrons of commissary and 
exchange stores located outside of the United States to purchase certain 
merchandise items (or the quantity of certain merchandise items) 
otherwise included within an authorized merchandise category if the 
Secretary determines that such restrictions are necessary to prevent the 
resale of such merchandise in violation of treaty obligations of the 
United States or host nation laws (to the extent such laws are not 
inconsistent with United States laws).

[[Page 112 STAT. 1987]]

    ``(2) In establishing a quantity or other restriction, the 
Secretary--
            ``(A) may not discriminate among the various categories of 
        eligible patrons of the commissary and exchange system; and
            ``(B) shall ensure that the restriction is consistent with 
        the purpose of the overseas commissary and exchange system to 
        provide reasonable access for eligible patrons to purchase 
        merchandise items made in the United States.

    ``(b) Controlled Item Lists.--For each location outside the United 
States that is served by the commissary system or the exchange system, 
the Secretary of Defense may maintain a list of controlled merchandise 
items, except that, after the date of the enactment of this section, the 
Secretary may not change the list to add a merchandise item unless, 
before making the change, the Secretary submits to Congress a notice of 
the proposed addition and the reasons for the addition of the item.
    ``(c) Annual Report.--The Secretary of Defense shall submit to 
Congress an annual report describing the host nation laws and the treaty 
obligations of the United States, and the conditions within host 
nations, that necessitate the use of quantity or other restrictions on 
purchases in commissary and exchange stores located outside the United 
States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2492. Overseas commissary and exchange stores: access and purchase 
           restrictions.''.

SEC. 366. REPEAL OF REQUIREMENT FOR AIR FORCE TO SELL TOBACCO PRODUCTS 
            TO ENLISTED PERSONNEL.

    (a) Repeal.--Section 9623 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 939 of such title is amended by striking out the item relating 
to section 9623.

SEC. 367. <<NOTE: 10 USC 2482 note.<plus-minus>>>  PROHIBITION ON 
            CONSOLIDATION OR OTHER ORGANIZATIONAL CHANGES OF DEPARTMENT 
            OF DEFENSE RETAIL SYSTEMS.

    (a) Defense Retail Systems Defined.--For purposes of this section, 
the term ``defense retail systems'' means the defense commissary system 
and exchange stores and other revenue-generating facilities operated by 
nonappropriated fund activities of the Department of Defense for the 
morale, welfare, and recreation of members of the Armed Forces.
    (b) Prohibition.--The operation and administration of the defense 
retail systems may not be consolidated or otherwise merged unless the 
consolidation or merger is specifically authorized by a law enacted 
after the date of the enactment of this Act.
    (c) Effect on Existing Study.--Nothing in this section shall be 
construed to prohibit the study of defense retail systems, known as the 
``Joint Exchange Due Diligence Study'', which is underway on the date of 
the enactment of this Act pursuant to a contract awarded by the 
Department of the Navy on April 21, 1998, except that any recommendation 
contained in the completed study regarding the operation or 
administration of the defense retail systems

[[Page 112 STAT. 1988]]

may not be implemented unless implementation of the recommendation is 
specifically authorized by a law enacted after the date of the enactment 
of this Act.

SEC. 368. DEFENSE COMMISSARY AGENCY TELECOMMUNICATIONS.

    (a) Use <<NOTE: Regulations.>>  of FTS 2000/2001.--The Secretary of 
Defense shall prescribe in regulations authority for the Defense 
Commissary Agency to meet its telecommunication requirements by 
obtaining telecommunication services and related items under the FTS 
2000/2001 contract.

    (b) Report.--Upon the initiation of telecommunication service for 
the Defense Commissary Agency under the FTS 2000/2001 contract, the 
Secretary of Defense shall submit to Congress a notification that the 
service has been initiated.
    (c) Definition.--In this section, the term ``FTS 2000/2001 
contract'' means the contract for the provision of telecommunication 
services for the Federal Government that was entered into by the Defense 
Information Technology Contract Organization.

SEC. 369. SURVEY OF COMMISSARY STORE PATRONS REGARDING SATISFACTION WITH 
            COMMISSARY STORE MERCHANDISE.

    (a) Patron <<NOTE: Contracts.>>  Survey.--The Secretary of Defense 
shall enter into a contract with a commercial survey firm to conduct a 
survey of eligible patrons of the commissary store system to determine 
patron satisfaction with the merchandise sold in commissary stores, 
including patron views on product quality, prices, assortment, and such 
other matters as the Secretary considers appropriate.

    (b) Survey Location.--The survey shall be conducted at not less than 
three military installations in the United States of each of the Armed 
Forces (other than the Coast Guard).
    (c) Report on Results.--The survey shall be completed, and the 
results submitted to the Secretary of Defense, the Committee on Armed 
Services of the Senate, and the Committee on National Security of the 
House of Representatives, not later than February 28, 1999.

                        Subtitle G--Other Matters

SEC. 371. ELIGIBILITY REQUIREMENTS FOR ATTENDANCE AT DEPARTMENT OF 
            DEFENSE DOMESTIC DEPENDENT ELEMENTARY AND SECONDARY SCHOOLS.

    (a) Dependents of Members Residing in Certain Areas.--Subsection (a) 
of section 2164 of title 10, United States Code, is amended--
            (1) by designating the first sentence as paragraph (1);
            (2) by designating the second sentence as paragraph (2); and
            (3) by adding at the end of paragraph (2) (as so designated) 
        the following new sentence: ``If a member of the armed forces is 
        assigned to a remote location or is assigned to an unaccompanied 
        tour of duty, a dependent of the member who resides, on or off a 
        military installation, in a territory, commonwealth, or 
        possession of the United States, as authorized by the member's 
        orders, may be enrolled in an educational program provided by 
        the Secretary under this subsection.''.

[[Page 112 STAT. 1989]]

    (b) Waiver of Five-Year Attendance Limitation.--Subsection (c)(2) of 
such section is amended by striking out subparagraph (B) and inserting 
in lieu thereof the following new subparagraph:
    ``(B) At the discretion of the Secretary, a dependent referred to in 
subparagraph (A) may be enrolled in the program for more than five 
consecutive school years if the dependent is otherwise qualified for 
enrollment, space is available in the program, and the Secretary will be 
reimbursed for the educational services provided. Any such extension 
shall cover only one school year at a time.''.
    (c) Customs Service Employee Dependents in Puerto Rico.--(1) 
Subsection (c)(1) of such section is amended--
            (A) by inserting ``(A)'' after ``(1)''; and
            (B) by adding at the end the following new subparagraph:

    ``(B) A dependent of a United States Customs Service employee who 
resides in Puerto Rico, but not on a military installation, may enroll 
in an educational program provided by the Secretary pursuant to 
subsection (a) in Puerto Rico in accordance with the same rules as apply 
to a dependent of a Federal employee residing in permanent living 
quarters on a military installation.''.
    (2) Subsection (c)(2) of such section is further amended by adding 
at the end the following new subparagraph:
    ``(D) Subparagraph (A) shall not apply to a dependent covered by 
paragraph (1)(B). No requirement under this paragraph for reimbursement 
for educational services provided for the dependent shall apply with 
respect to the dependent, except that the Secretary may require the 
United States Customs Service to reimburse the Secretary for the cost of 
the educational services provided for the dependent.''.
    (3) The <<NOTE: Applicability. 10 USC 2164 note.>>  amendments made 
by this subsection shall apply with respect to academic years beginning 
on or after the date of the enactment of this Act.

SEC. 372. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
            DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF 
            DEFENSE CIVILIAN EMPLOYEES.

    (a) Continuation of Department of Defense Program for Fiscal Year 
1999.--Of the amount authorized to be appropriated pursuant to section 
301(5) for operation and maintenance for Defense-wide activities--
            (1) $30,000,000 shall be available only for the purpose of 
        providing educational agencies assistance (as defined in 
        subsection (d)(1)) to local educational agencies; and
            (2) $5,000,000 shall be available only for the purpose of 
        making educational agencies payments (as defined in subsection 
        (d)(2)) to local educational agencies.

    (b) Notification.--Not later than June 30, 1999, the Secretary of 
Defense shall--
            (1) notify each local educational agency that is eligible 
        for educational agencies assistance for fiscal year 1999 of that 
        agency's eligibility for such assistance and the amount of such 
        assistance for which that agency is eligible; and
            (2) notify each local educational agency that is eligible 
        for an educational agencies payment for fiscal year 1999 of that 
        agency's eligibility for such payment and the amount of the 
        payment for which that agency is eligible.

[[Page 112 STAT. 1990]]

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

SEC. 373. DEPARTMENT OF DEFENSE READINESS REPORTING SYSTEM.

    (a) Establishment of System.--(1) Chapter 2 of title 10, United 
States Code, is amended by inserting after section 116 the following new 
section:

``Sec. 117. Readiness reporting system: establishment; reporting to 
                        congressional committees

    ``(a) Required Readiness Reporting System.--The Secretary of Defense 
shall establish a comprehensive readiness reporting system for the 
Department of Defense. The readiness reporting system shall measure in 
an objective, accurate, and timely manner the capability of the armed 
forces to carry out--
            ``(1) the National Security Strategy prescribed by the 
        President in the most recent annual national security strategy 
        report under section 108 of the National Security Act of 1947 
        (50 U.S.C. 404a);
            ``(2) the defense planning guidance provided by the 
        Secretary of Defense pursuant to section 113(g) of this title; 
        and
            ``(3) the National Military Strategy prescribed by the 
        Chairman of the Joint Chiefs of Staff.

    ``(b) Readiness Reporting System Characteristics.--In establishing 
the readiness reporting system, the Secretary shall ensure--
            ``(1) that the readiness reporting system is applied 
        uniformly throughout the Department of Defense;
            ``(2) that information in the readiness reporting system is 
        continually updated, with any change in the overall readiness 
        status of a unit, an element of the training establishment, or 
        an element of defense infrastructure, that is required to be 
        reported as part of the readiness reporting system, being 
        reported within 24 hours of the event necessitating the change 
        in readiness status; and
            ``(3) that sufficient resources are provided to establish 
        and maintain the system so as to allow reporting of changes in 
        readiness status as required by this section.

    ``(c) Capabilities.--The readiness reporting system shall measure 
such factors relating to readiness as the Secretary prescribes, except 
that the system shall include the capability to do each of the 
following:

[[Page 112 STAT. 1991]]

            ``(1) Measure, on a monthly basis, the capability of units 
        (both as elements of their respective armed force and as 
        elements of joint forces) to conduct their assigned wartime 
        missions.
            ``(2) Measure, on a quarterly basis, the capability of 
        training establishments to provide trained and ready forces for 
        wartime missions.
            ``(3) Measure, on a quarterly basis, the capability of 
        defense installations and facilities and other elements of 
        Department of Defense infrastructure, both in the United States 
        and abroad, to provide appropriate support to forces in the 
        conduct of their wartime missions.
            ``(4) Measure, on a monthly basis, critical warfighting 
        deficiencies in unit capability.
            ``(5) Measure, on a quarterly basis, critical warfighting 
        deficiencies in training establishments and defense 
        infrastructure.
            ``(6) Measure, on a monthly basis, the level of current risk 
        based upon the readiness reporting system relative to the 
        capability of forces to carry out their wartime missions.

    ``(d) Quarterly and Monthly Joint Readiness Reviews.--(1) The 
Chairman of the Joint Chiefs of Staff shall--
            ``(A) on a quarterly basis, conduct a joint readiness 
        review; and
            ``(B) on a monthly basis, review any changes that have been 
        reported in readiness since the previous joint readiness review.

    ``(2) The Chairman shall incorporate into both the joint readiness 
review required under paragraph (1)(A) and the monthly review required 
under paragraph (1)(B) the current information derived from the 
readiness reporting system and shall assess the capability of the armed 
forces to execute their wartime missions based upon their posture at the 
time the review is conducted. The Chairman shall submit to the Secretary 
of Defense the results of each review under paragraph (1), including the 
deficiencies in readiness identified during that review.
    ``(e) Submission to Congressional Committees.--The Secretary shall 
each month submit to the Committee on Armed Services and the Committee 
on Appropriations of the Senate and the Committee on National Security 
and the Committee on Appropriations of the House of Representatives a 
report in writing containing the results of the most recent joint 
readiness review or monthly review conducted under subsection (d), 
including the current information derived from the readiness reporting 
system. Each such report shall be submitted in unclassified form and 
may, as the Secretary determines necessary, also be submitted in 
classified form.
    ``(f ) Regulations.--The Secretary shall prescribe regulations to 
carry out this section. In those regulations, the Secretary shall 
prescribe the units that are subject to reporting in the readiness 
reporting system, what type of equipment is subject to such reporting, 
and the elements of the training establishment and of defense 
infrastructure that are subject to such reporting.''.

[[Page 112 STAT. 1992]]

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 116 the 
following new item:

``117. Readiness reporting system: establishment; reporting to 
           congressional committees.''.

    (b) Implementation.--The <<NOTE: 10 USC 117 note.>>  Secretary of 
Defense shall establish and implement the readiness reporting system 
required by section 117 of title 10, United States Code, as added by 
subsection (a), so as to ensure that the capabilities required by 
subsection (c) of that section are attained not later than January 15, 
2000.

    (c) Implementation <<NOTE: 10 USC 117 note.>>  Plan.--Not later than 
March 1, 1999, the Secretary of Defense shall submit to Congress a 
report setting forth the Secretary's plan for implementation of section 
117 of title 10, United States Code, as added by subsection (a).

    (d) Repeal <<NOTE: 10 USC 482 note.>>  of Quarterly Readiness Report 
Requirement.--(1) Effective January 15, 2000, or the date on which the 
first report of the Secretary of Defense is submitted under section 
117(e) of title 10, United States Code, as added by subsection (a), 
whichever is later, the Secretary of Defense shall cease to submit 
reports under section 482 of title 10, United States Code.

    (2) Effective June 1, 2001--
            (A) section 482 of title 10, United States Code, is 
        repealed; and
            (B) the table of sections at the beginning of chapter 23 of 
        such title is amended by striking out the item relating to that 
        section.

SEC. 374. SPECIFIC EMPHASIS OF PROGRAM TO INVESTIGATE FRAUD, WASTE, AND 
            ABUSE WITHIN DEPARTMENT OF DEFENSE.

    Section 392 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 10 U.S.C. 113 note) is amended by 
inserting before the period the following: ``and any fraud, waste, and 
abuse occurring in connection with overpayments made to vendors by the 
Department of Defense, including overpayments identified under section 
354 of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 10 U.S.C. 2461 note)''.

SEC. 375. CONDITION FOR PROVIDING FINANCIAL ASSISTANCE FOR SUPPORT OF 
            ADDITIONAL DUTIES ASSIGNED TO THE ARMY NATIONAL GUARD.

    (a) Competitive Source Selection.--Section 113(b) of title 32, 
United States Code, is amended to read as follows:
    ``(b) Covered Activities.--(1) Except as provided in paragraph (2), 
financial assistance may be provided for the performance of an activity 
by the Army National Guard under subsection (a) only if--
            ``(A) the activity is carried out in the performance of a 
        responsibility of the Secretary of the Army under paragraph (6), 
        (10), or (11) of section 3013(b) of title 10; and
            ``(B) the Army National Guard was selected to perform the 
        activity under competitive procedures that permit all qualified 
        public-sector and private-sector sources to submit offers and be 
        considered for selection to perform the activity on the basis of 
        the offers.

    ``(2) Paragraph (1)(B) does not apply to an activity that, on the 
date of the enactment of this subsection, was performed for

[[Page 112 STAT. 1993]]

the Federal Government by employees of the Federal Government or 
employees of a State.''.
    (b) Prospective <<NOTE: 32 USC 113 note.>>  Applicability.--
Subsection (b)(1)(B) of section 113 of title 32, United States Code (as 
added by subsection (a) of this section), does not apply to--
            (1) financial assistance provided under that section before 
        October 1, 1998; or
            (2) financial assistance for an activity that, before May 9, 
        1998, the Secretary of the Army identified in writing as being 
        under consideration for supporting with financial assistance 
        under that section.

SEC. 376. DEMONSTRATION PROGRAM TO IMPROVE QUALITY OF PERSONAL PROPERTY 
            SHIPMENTS OF MEMBERS.

    (a) Definition.--In this section, the term ``current demonstration 
program'' means the pilot program to improve the movement of household 
goods of members of the Armed Forces that is identified in the re-
engineering pilot solicitation of the Military Traffic Management 
Command designated as DAMTO1-97-R-3001.
    (b) Completion of Current Demonstration Program.--The Secretary of 
Defense shall complete the current demonstration program to improve the 
quality of personal property shipments within the Department of Defense 
not later than October 1, 1999.
    (c) Evaluations of Current and Alternative Demonstrations.--(1) Not 
later than August 31, 1999, the Secretary of Defense shall submit to 
Congress a report evaluating the following:
            (A) Whether the current demonstration program, as 
        implemented, meets the goals for the current demonstration 
        program previously agreed upon between the Department of Defense 
        and representatives of private sector entities involved in the 
        transportation of household goods for members of the Armed 
        Forces, as such goals are contained in the report of the 
        Comptroller General designated as report ``NSIAD 97-49''.
            (B) Whether the demonstration program contained in the 
        proposal prepared for the Secretary of Defense by private sector 
        entities involved in the transportation of household goods for 
        members of the Armed Forces as an alternative to the current 
        demonstration program would, if implemented, be likely to meet 
        the goals for the current demonstration program.

    (2) <<NOTE: Reports.>>  The Secretary shall also submit to Congress 
interim reports regarding the progress of the current demonstration 
program not later than January 15, 1999, and April 15, 1999.

    (d) Prohibition.--The Secretary of Defense may not exercise any 
option with respect to the current demonstration program that would have 
the effect of extending the current demonstration program after October 
1, 1999, or otherwise continue the current demonstration program after 
that date, until the end of the 30-day period beginning on the date on 
which the Secretary submits the report required under subsection (c)(1).

SEC. 377. <<NOTE: 10 USC 113 note.>>  PILOT PROGRAM FOR ACCEPTANCE AND 
            USE OF LANDING FEES CHARGED FOR USE OF DOMESTIC MILITARY 
            AIRFIELDS BY CIVIL AIRCRAFT.

    (a) Pilot Program Authorized.--The Secretary of each military 
department may carry out a pilot program during fiscal years 1999 and 
2000 to demonstrate the use of landing fees as a source of funding for 
the operation and maintenance of airfields of that

[[Page 112 STAT. 1994]]

department. No fee may be charged under the pilot program for a landing 
after September 30, 2000.
    (b) Uniform Landing Fees.--The Secretary of Defense shall prescribe 
the landing fees, which shall be uniform for the military departments, 
that may be imposed under a pilot program carried out under this 
section.
    (c) Use of Proceeds.--Amounts received for a fiscal year in payment 
of landing fees imposed under the pilot program for use of a military 
airfield shall be credited to the appropriation that is available for 
that fiscal year for the operation and maintenance of the military 
airfield, shall be merged with amounts in the appropriation to which 
credited, and shall be available for that military airfield for the same 
period and purposes as the appropriation is available.
    (d) Report.--Not later than March 31, 2000, the Secretary of Defense 
shall submit to Congress a report on the pilot programs carried out 
under this section by the Secretaries of the military departments. The 
report shall specify the amounts of fees received and retained by each 
military department under its pilot program as of December 31, 1999.

SEC. 378. STRATEGIC PLAN FOR EXPANSION OF DISTANCE LEARNING INITIATIVES.

    (a) Plan Required.--The Secretary of Defense shall develop a 
strategic plan for guiding and expanding distance learning initiatives 
within the Department of Defense. The plan shall provide for an 
expansion of such initiatives over five consecutive fiscal years 
beginning with fiscal year 2000.
    (b) Content of Plan.--The strategic plan shall contain, at a 
minimum, the following:
            (1) A statement of measurable goals and objectives and 
        outcome-related performance indicators (consistent with section 
        1115 of title 31, United States Code, relating to agency 
        performance plans) for the development and execution of distance 
        learning initiatives throughout the Department of Defense.
            (2) A detailed description of how distance learning 
        initiatives are to be developed and managed within the 
        Department of Defense.
            (3) An assessment of the estimated costs and the benefits 
        associated with developing and maintaining an appropriate 
        infrastructure for distance learning.
            (4) A statement of planned expenditures for the investments 
        necessary to build and maintain that infrastructure.
            (5) A description of the mechanisms that are to be used to 
        supervise the development and coordination of the distance 
        learning initiatives of the Department of Defense.

    (c) Relationship to Existing Initiative.--In developing the 
strategic plan, the Secretary may take into account the ongoing 
collaborative effort among the Department of Defense, other Federal 
agencies, and private industry that is known as the Advanced 
Distribution Learning initiative. However, the Secretary shall ensure 
that the strategic plan is specifically focused on the training and 
education goals and objectives of the Department of Defense.
    (d) Submission to Congress.--The Secretary of Defense shall submit 
the strategic plan to Congress not later than March 1, 1999.

[[Page 112 STAT. 1995]]

SEC. 379. <<NOTE: 10 USC 2468 note.>>  PUBLIC AVAILABILITY OF OPERATING 
            AGREEMENTS BETWEEN MILITARY INSTALLATIONS AND FINANCIAL 
            INSTITUTIONS.

    With respect to an agreement between the commander of a military 
installation in the United States (or the designee of such an 
installation commander) and a financial institution that permits, 
allows, or otherwise authorizes the provision of financial services by 
the financial institution on the military installation, nothing in the 
terms or nature of such an agreement shall be construed to exempt the 
agreement from the provisions of sections 552 and 552a of title 5, 
United States Code.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength levels.
Sec. 403. Date for submission of annual manpower requirements report.
Sec. 404. Additional exemption from percentage limitation on number of 
           lieutenant generals and vice admirals.
Sec. 405. Extension of authority for Chairman of the Joint Chiefs of 
           Staff to designate up to 12 general and flag officer 
           positions to be excluded from general and flag officer grade 
           limitations.
Sec. 406. Exception for Chief, National Guard Bureau, from limitation on 
           number of officers above major general.
Sec. 407. Limitation on daily average of personnel on active duty in 
           grades E-8 and E-9.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
           reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Increase in number of members in certain grades authorized to 
           serve on active duty in support of the reserves.
Sec. 415. Consolidation of strength authorizations for active status 
           Naval Reserve flag officers of the Navy Medical Department 
           Staff Corps.

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                        Subtitle A--Active Forces

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

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 1999, as follows:
            (1) The Army, 480,000.
            (2) The Navy, 372,696.
            (3) The Marine Corps, 172,200.
            (4) The Air Force, 370,882.

SEC. 402. REVISION IN PERMANENT END STRENGTH LEVELS.

    (a) Revised End Strength Floors.--Subsection (b) of section 691 of 
title 10, United States Code, is amended--
            (1) in paragraph (1), by striking out ``495,000'' and 
        inserting in lieu thereof ``480,000'';
            (2) in paragraph (2), by striking out ``390,802'' and 
        inserting in lieu thereof ``372,696'';
            (3) in paragraph (3), by striking out ``174,000'' and 
        inserting in lieu thereof ``172,200''; and

[[Page 112 STAT. 1996]]

            (4) in paragraph (4), by striking out ``371,577'' and 
        inserting in lieu thereof ``370,802''.

    (b) Revision to Flexibility Authority for the Army.--Subsection (e) 
of such section is amended by striking out ``1 percent or, in the case 
of the Army, by not more than 1.5 percent,'' and inserting in lieu 
thereof ``0.5 percent.''.
    (c) Effective <<NOTE: 10 USC 691 note.>>  Date.--The amendments made 
by this section shall take effect on October 1, 1998.

SEC. 403. DATE FOR SUBMISSION OF ANNUAL MANPOWER REQUIREMENTS REPORT.

    Section 115a(a) of title 10, United States Code, is amended--
            (1) by striking out ``, not later than February 15 of each 
        fiscal year,'' in the first sentence; and
            (2) by striking out ``The report shall be in writing and'' 
        in the second sentence and inserting in lieu thereof ``The 
        report, which shall be in writing, shall be submitted each year 
        not later than 45 days after the date on which the President 
        submits to Congress the budget for the next fiscal year under 
        section 1105 of title 31. The report''.

SEC. 404. ADDITIONAL EXEMPTION FROM PERCENTAGE LIMITATION ON NUMBER OF 
            LIEUTENANT GENERALS AND VICE ADMIRALS.

    Section 525(b)(4)(B) of title 10, United States Code, is amended by 
striking out ``six'' and inserting in lieu thereof ``seven''.

SEC. 405. EXTENSION OF AUTHORITY FOR CHAIRMAN OF THE JOINT CHIEFS OF 
            STAFF TO DESIGNATE UP TO 12 GENERAL AND FLAG OFFICER 
            POSITIONS TO BE EXCLUDED FROM GENERAL AND FLAG OFFICER GRADE 
            LIMITATIONS.

    Section 526(b)(2) of title 10, United States Code, is amended by 
striking out ``October 1, 1998'' and inserting in lieu thereof ``October 
1, 2002''.

SEC. 406. EXCEPTION FOR CHIEF, NATIONAL GUARD BUREAU, FROM LIMITATION ON 
            NUMBER OF OFFICERS ABOVE MAJOR GENERAL.

    Section 525(b) of title 10, United States Code, is amended by adding 
at the end the following new paragraph:
    ``(6) An officer while serving as Chief of the National Guard Bureau 
is in addition to the number that would otherwise be permitted for that 
officer's armed force for officers serving on active duty in grades 
above major general under paragraph (1).''.

SEC. 407. LIMITATION ON DAILY AVERAGE OF PERSONNEL ON ACTIVE DUTY IN 
            GRADES E-8 AND E-9.

    (a) Fiscal Year Basis for Application of Limitation.--The first 
sentence of section 517(a) of title 10, United States Code, is amended--
            (1) by striking out ``a calendar year'' and inserting in 
        lieu thereof ``a fiscal year''; and
            (2) by striking out ``January 1 of that year'' and inserting 
        in lieu thereof ``the first day of that fiscal year''.

    (b) Effective <<NOTE: 10 USC 517 note.>>  Date.--The amendments made 
by subsection (a) shall take effect on October 1, 1999.

[[Page 112 STAT. 1997]]

                       Subtitle B--Reserve Forces

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

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 30, 
1999, as follows:
            (1) The Army National Guard of the United States, 357,223.
            (2) The Army Reserve, 208,003.
            (3) The Naval Reserve, 90,843.
            (4) The Marine Corps Reserve, 40,018.
            (5) The Air National Guard of the United States, 106,992.
            (6) The Air Force Reserve, 74,243.
            (7) The Coast Guard Reserve, 8,000.

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

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

SEC. 412. <<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, 1999, 
the following number of Reserves to be serving on full-time active duty 
or full-time duty, in the case of members of the National Guard, for the 
purpose of organizing, administering, recruiting, instructing, or 
training the reserve components:
            (1) The Army National Guard of the United States, 21,986.
            (2) The Army Reserve, 12,807.
            (3) The Naval Reserve, 15,590.
            (4) The Marine Corps Reserve, 2,362.
            (5) The Air National Guard of the United States, 10,931.
            (6) The Air Force Reserve, 992.

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

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 1999 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
            (1) For the Army Reserve, 5,395.

[[Page 112 STAT. 1998]]

            (2) For the Army National Guard of the United States, 
        23,125.
            (3) For the Air Force Reserve, 9,761.
            (4) For the Air National Guard of the United States, 22,408.

SEC. 414. INCREASE IN NUMBER OF MEMBERS IN CERTAIN GRADES AUTHORIZED TO 
            SERVE ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

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

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps
------------------------------------------------------------------------
Major or Lieutenant Commander.......    3,219   1,071     791      140
Lieutenant Colonel or Commander.....    1,524     520     713       90
Colonel or Navy Captain.............      438     188     297     30''.
------------------------------------------------------------------------

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

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps
------------------------------------------------------------------------
E-9.................................     623     202      395       20
E-8.................................   2,585     429      997     94''.
------------------------------------------------------------------------

    (c) Effective <<NOTE: 10 USC 12011 note.>>  Date.--The amendments 
made by this section shall take efffect on October 1, 1998.

SEC. 415. CONSOLIDATION OF STRENGTH AUTHORIZATIONS FOR ACTIVE STATUS 
            NAVAL RESERVE FLAG OFFICERS OF THE NAVY MEDICAL DEPARTMENT 
            STAFF CORPS.

    Section 12004(c) of title 10, United States Code, is amended--
            (1) in the table in paragraph (1)--
                    (A) by striking out the item relating to the Medical 
                Corps and inserting in lieu thereof the following:

      ``Medical Department staff corps............................ 9''; 

                and
                    (B) by striking out the items relating to the Dental 
                Corps, the Nurse Corps, and the Medical Service Corps; 
                and
            (2) by adding at the end the following:

    ``(4)(A) For the purposes of paragraph (1), the Medical Department 
staff corps referred to in the table are as follows:
            ``(i) The Medical Corps.
            ``(ii) The Dental Corps.
            ``(iii) The Nurse Corps.
            ``(iv) The Medical Service Corps.

    ``(B) Each of the Medical Department staff corps is authorized one 
rear admiral (lower half) within the strength authorization distributed 
to the Medical Department staff corps under paragraph (1). The Secretary 
of the Navy shall distribute the remainder of the strength authorization 
for the Medical Department staff corps under that paragraph among those 
staff corps as the Secretary determines appropriate to meet the needs of 
the Navy.''.

[[Page 112 STAT. 1999]]

               Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 1999 a total of 
$70,592,286,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 1999.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Codification of eligibility of retired officers and former 
           officers for consideration by special selection boards.
Sec. 502. Involuntary separation pay denied for officer discharged for 
           failure of 
           selection for promotion requested by the officer.
Sec. 503. Streamlined selective retention process for regular officers.
Sec. 504. Permanent applicability of limitations on years of active 
           naval service of Navy limited duty officers in grades of 
           commander and captain.
Sec. 505. Tenure of Chief of the Air Force Nurse Corps.
Sec. 506. Grade of Air Force Assistant Surgeon General for Dental 
           Services.
Sec. 507. Review regarding allocation of Naval Reserve Officers' 
           Training Corps scholarships among participating colleges and 
           universities.

                  Subtitle B--Reserve Component Matters

Sec. 511. Use of Reserves for emergencies involving weapons of mass 
           destruction.
Sec. 512. Service required for retirement of National Guard officer in 
           higher grade.
Sec. 513. Reduced time-in-grade requirement for reserve general and flag 
           officers involuntarily transferred from active status.
Sec. 514. Active status service requirement for promotion consideration 
           for Army and Air Force reserve component brigadier generals.
Sec. 515. Composition of selective early retirement boards for rear 
           admirals of the Naval Reserve and major generals of the 
           Marine Corps Reserve.
Sec. 516. Authority for temporary waiver for certain Army Reserve 
           officers of baccalaureate degree requirement for promotion of 
           reserve officers.
Sec. 517. Furnishing of burial flags for deceased members and former 
           members of the Selected Reserve.

               Subtitle C--Military Education and Training

Sec. 521. Separate housing for male and female recruits during recruit 
           basic training.
Sec. 522. After-hours privacy for recruits during basic training.
Sec. 523. Sense of the House of Representatives relating to small unit 
           assignments by gender during recruit basic training.
Sec. 524. Extension of reporting dates for Commission on Military 
           Training and Gender-Related Issues.
Sec. 525. Improved oversight of innovative readiness training.

           Subtitle D--Decorations, Awards, and Commendations

Sec. 531. Study of new decorations for injury or death in line of duty.
Sec. 532. Waiver of time limitations for award of certain decorations to 
           certain 
           persons.
Sec. 533. Commendation and commemoration of the Navy and Marine Corps 
           personnel who served in the United States Navy Asiatic Fleet 
           from 1910-1942.
Sec. 534. Appreciation for service during World War I and World War II 
           by members of the Navy assigned on board merchant ships as 
           the Naval Armed Guard Service.
Sec. 535. Sense of Congress regarding the heroism, sacrifice, and 
           service of the military forces of South Vietnam, other 
           nations, and indigenous groups in connection with the United 
           States Armed Forces during the Vietnam conflict.

[[Page 112 STAT. 2000]]

Sec. 536. Sense of Congress regarding the heroism, sacrifice, and 
           service of former South Vietnamese commandos in connection 
           with United States Armed Forces during the Vietnam conflict.
Sec. 537. Prohibition on members of Armed Forces entering correctional 
           facilities to present decorations to persons who have 
           committed serious violent 
           felonies.

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

Sec. 541. Personnel freeze.
Sec. 542. Professional staff.
Sec. 543. Ex parte communications.
Sec. 544. Timeliness standards.
Sec. 545. Scope of correction of military records.

                           Subtitle F--Reports

Sec. 551. Report on personnel retention.
Sec. 552. Report on process for selection of members for service on 
           courts-martial.
Sec. 553. Report on prisoners transferred from United States 
           Disciplinary Barracks, Fort Leavenworth, Kansas, to Federal 
           Bureau of Prisons.
Sec. 554. Review and report regarding the distribution of National Guard 
           full-time support among the States.

                        Subtitle G--Other Matters

Sec. 561. Two-year extension of certain force drawdown transition 
           authorities relating to personnel management and benefits.
Sec. 562. Leave without pay for suspended academy cadets and midshipmen.
Sec. 563. Continued eligibility under Voluntary Separation Incentive 
           program for members who involuntarily lose membership in a 
           reserve component.
Sec. 564. Reinstatement of definition of financial institution in 
           authorities for reimbursement of defense personnel for 
           Government errors in direct deposit of pay.
Sec. 565. Increase in maximum amount for College Fund program.
Sec. 566. Central Identification Laboratory, Hawaii.
Sec. 567. Military funeral honors for veterans.
Sec. 568. Status in the Naval Reserve of cadets at the Merchant Marine 
           Academy.
Sec. 569. Repeal of restriction on civilian employment of enlisted 
           members.
Sec. 570. Transitional compensation for abused dependent children not 
           residing with the spouse or former spouse of a member 
           convicted of dependent abuse.
Sec. 571. Pilot program for treating GED and home school diploma 
           recipients as high school graduates for determinations of 
           eligibility for enlistment in the Armed Forces.
Sec. 572. Sense of Congress concerning New Parent Support Program and 
           military families.
Sec. 573. Advancement of Benjamin O. Davis, Junior, to grade of general 
           on the 
           retired list of the Air Force.
Sec. 574. Sense of the House of Representatives concerning adherence by 
           civilians in military chain of command to the standard of 
           exemplary conduct required of commanding officers and others 
           in authority in the Armed Forces.

                  Subtitle A--Officer Personnel Policy

SEC. 501. CODIFICATION OF ELIGIBILITY OF RETIRED OFFICERS AND FORMER 
            OFFICERS FOR CONSIDERATION BY SPECIAL SELECTION BOARDS.

    (a) Persons Not Considered by Promotion Boards Due to Administrative 
Error.--Subsection (a) of section 628 of title 10, United States Code, 
is amended--
            (1) by striking out paragraph (1) (and the subsection 
        designation at the beginning of that paragraph) and inserting in 
        lieu thereof the following:

    ``(a) Persons Not Considered by Promotion Boards Due to 
Administrative Error.--(1) If the Secretary of the military department 
concerned determines that because of administrative error a person who 
should have been considered for selection for

[[Page 112 STAT. 2001]]

promotion by a promotion board was not so considered, the Secretary 
shall convene a special selection board under this subsection to 
determine whether that person (whether or not then on active duty) 
should be recommended for promotion.'';
            (2) in paragraph (2), by striking out ``the officer as his 
        record'' in the first sentence and inserting in lieu thereof 
        ``the person whose name was referred to it for consideration as 
        that record''; and
            (3) in paragraph (3), by striking out ``an officer in a 
        grade'' and all that follows through ``the officer'' and 
        inserting in lieu thereof ``a person whose name was referred to 
        it for consideration for selection for appointment to a grade 
        other than a general officer or flag officer grade, the 
        person''.

    (b) Persons Considered by Promotion Boards in Unfair Manner.--
Subsection (b) of such section is amended--
            (1) by striking out paragraph (1) and inserting in lieu 
        thereof the following:

    ``(b) Persons Considered by Promotion Boards in Unfair Manner.--(1) 
If the Secretary of the military department concerned determines, in the 
case of a person who was considered for selection for promotion by a 
promotion board but was not selected, that there was material unfairness 
with respect to that person, the Secretary may convene a special 
selection board under this subsection to determine whether that person 
(whether or not then on active duty) should be recommended for 
promotion. In order to determine that there was material unfairness, the 
Secretary must determine that--
            ``(A) the action of the promotion board that considered the 
        person was contrary to law or involved material error of fact or 
        material administrative error; or
            ``(B) the board did not have before it for its consideration 
        material information.'';
            (2) in paragraph (2), by striking out ``the officer as his 
        record'' in the first sentence and inserting in lieu thereof 
        ``the person whose name was referred to it for consideration as 
        that record''; and
            (3) in paragraph (3)--
                    (A) by striking out ``an officer'' and inserting in 
                lieu thereof ``a person''; and
                    (B) by striking out ``the officer'' and inserting in 
                lieu thereof ``the person''.

    (c) Conforming Amendments.--(1) Subsection (c) of such section is 
amended--
            (A) by inserting ``Reports of Boards.--'' after ``(c)'';
            (B) by striking out ``officer'' both places it appears in 
        paragraph (1) and inserting in lieu thereof ``person''; and
            (C) in paragraph (2), by adding the following new sentence 
        at the end: ``However, in the case of a board convened under 
        this section to consider a warrant officer or former warrant 
        officer, the provisions of sections 576(d) and 576(f ) of this 
        title (rather than the provisions of section 617(b) and 618 of 
        this title) apply to the report and proceedings of the board in 
        the same manner as they apply to the report and proceedings of a 
        selection board convened under section 573 of this title.''.

    (2) Subsection (d)(1) of such section is amended--
            (A) by inserting ``Appointment of Persons Selected by 
        Boards.--'' after ``(d)'';

[[Page 112 STAT. 2002]]

            (B) by striking out ``an officer'' and inserting in lieu 
        thereof ``a person'';
            (C) by striking out ``such officer'' and inserting in lieu 
        thereof ``that person'';
            (D) by striking out ``the next higher grade'' the second 
        place it appears and inserting in lieu thereof ``that grade''; 
        and
            (E) by adding at the end the following: ``However, in the 
        case of a board convened under this section to consider a 
        warrant officer or former warrant officer, if the report of that 
        board, as approved by the Secretary concerned, recommends that 
        warrant officer or former warrant officer for promotion to the 
        next higher grade, that person shall, as soon as practicable, be 
        appointed to the next higher grade in accordance with provisions 
        of section 578(c) of this title (rather than subsections (b), 
        (c), and (d) of section 624 of this title).''.

    (3) Subsection (d)(2) of such section is amended--
            (A) by striking out ``An officer who is promoted'' and 
        inserting in lieu thereof ``A person who is appointed'';
            (B) by striking out ``such promotion'' and inserting in lieu 
        thereof ``that appointment''; and
            (C) by adding at the end the following new sentence: ``In 
        the case of a person who is not on the active-duty list when 
        appointed to the next higher grade, placement of that person on 
        the active-duty list pursuant to the preceding sentence shall be 
        only for purposes of determination of eligibility of that person 
        for consideration for promotion by any subsequent special 
        selection board under this section.''.

    (d) Applicability to Deceased Persons.--Subsection (e) of such 
section is amended to read as follows:
    ``(e) Deceased Persons.--If a person whose name is being considered 
for referral to a special selection board under this section dies before 
the completion of proceedings under this section with respect to that 
person, this section shall be applied to that person posthumously.''.
    (e) Recodification of Administrative Matters.--Such section is 
further amended by adding at the end the following:
    ``(f ) Convening of Boards.--A board convened under this section--
            ``(1) shall be convened under regulations prescribed by the 
        Secretary of Defense;
            ``(2) shall be composed in accordance with section 612 of 
        this title or, in the case of board to consider a warrant 
        officer or former warrant officer, in accordance with section 
        573 of this title and regulations prescribed by the Secretary of 
        the military department concerned; and
            ``(3) shall be subject to the provisions of section 613 of 
        this title.

    ``(g) Promotion Board Defined.--In this section, the term `promotion 
board' means a selection board convened by the Secretary of a military 
department under section 573(a) or 611(a) of this title.''.
    (f ) Ratification <<NOTE: 10 USC 628 note.>>  of Codified 
Practice.--The consideration by a special selection board convened under 
section 628 of title 10, United States Code, before the date of the 
enactment of this Act of a person who, at the time of consideration, was 
a retired

[[Page 112 STAT. 2003]]

officer or former officer of the Armed Forces (including a deceased 
retired or former officer) is hereby ratified.

SEC. 502. INVOLUNTARY SEPARATION PAY DENIED FOR OFFICER DISCHARGED FOR 
            FAILURE OF SELECTION FOR PROMOTION REQUESTED BY THE OFFICER.

    (a) Ineligibility for Separation Pay.--Section 1174(a) of title 10, 
United States Code, is amended by adding at the end the following:
    ``(3) Notwithstanding paragraphs (1) and (2), an officer discharged 
under any provision of chapter 36 of this title for twice failing of 
selection for promotion to the next higher grade is not entitled to 
separation pay under this section if either (or both) of those failures 
of selection for promotion was by the action of a selection board to 
which the officer submitted a request in writing not to be selected for 
promotion or who otherwise directly caused his nonselection through 
written communication to the Board under section 614(b) of this 
title.''.
    (b) Report of Selection Board To Name Officers Requesting 
Nonselection.--Section 617 of such title is amended by adding at the end 
the following:
    ``(c) A selection board convened under section 611(a) of this title 
shall include in its report to the Secretary concerned the name of any 
regular officer considered and not recommended for promotion by the 
board who submitted to the board a request not to be selected for 
promotion or who otherwise directly caused his nonselection through 
written communication to the Board under section 614(b) of this 
title.''.
    (c) Effective <<NOTE: 10 USC 617 note.>>  Date.--The amendments made 
by this section shall apply with respect to selection boards convened 
under section 611(a) of title 10, United States Code, on or after the 
date of the enactment of this Act.

SEC. 503. STREAMLINED SELECTIVE RETENTION PROCESS FOR REGULAR OFFICERS.

    (a) Repeal of Requirement for Duplicative Board.--Section 1183 of 
title 10, United States Code, is repealed.
    (b) Conforming Amendments.--(1) Section 1182(c) of such title is 
amended by striking out ``send the record of proceedings to a board of 
review convened under section 1183 of this title'' and inserting in lieu 
thereof ``recommend to the Secretary concerned that the officer not be 
retained on active duty''.
    (2) Section 1184 of such title is amended by striking out ``board of 
review convened under section 1183 of this title'' and inserting in lieu 
thereof ``board of inquiry convened under section 1182 of this title''.
    (c) Clerical Amendments.--(1) The heading for section 1184 of such 
title is amended by striking out ``review'' and inserting in lieu 
thereof ``inquiry''.

[[Page 112 STAT. 2004]]

    (2) The table of sections at the beginning of chapter 60 of such 
title is amended by striking out the items relating to sections 1183 and 
1184 and inserting in lieu thereof the following:

``1184. Removal of officer: action by Secretary upon recommendation of 
           board of inquiry.''.

SEC. 504. PERMANENT APPLICABILITY OF LIMITATIONS ON YEARS OF ACTIVE 
            NAVAL SERVICE OF NAVY LIMITED DUTY OFFICERS IN GRADES OF 
            COMMANDER AND CAPTAIN.

    (a) Commanders.--Section 633 of title 10, United States Code, is 
amended--
            (1) by striking out ``Except an officer'' and all that 
        follows through ``or section 6383 of this title applies'' and 
        inserting in lieu thereof ``Except an officer of the Navy or 
        Marine Corps who is an officer designated for limited duty to 
        whom section 5596(e) or 6383 of this title applies''; and
            (2) by striking out the second sentence.

    (b) Captains.--Section 634 of such title is amended--
            (1) by inserting ``an officer of the Navy who is designated 
        for limited duty to whom section 6383(a)(4) of this title 
        applies and except'' in the first sentence after ``Except''; and
            (2) by striking out the second sentence.

    (c) Years of Active Naval Service.--Section 6383(a) of such title is 
amended by striking out paragraph (5).
    (d) Limitations on Selective Retentions.--Section 6383(k) of such 
title is amended by striking out the last sentence.

SEC. 505. TENURE OF CHIEF OF THE AIR FORCE NURSE CORPS.

    Section 8069(b) of title 10, United States Code, is amended by 
striking out ``, but not for more than three years, and may not be 
reappointed to the same position'' in the last sentence.

SEC. 506. GRADE OF AIR FORCE ASSISTANT SURGEON GENERAL FOR DENTAL 
            SERVICES.

    Section 8081 of title 10, United States Code, is amended--
            (1) in the first sentence, by striking out ``major'' and 
        inserting in lieu thereof ``lieutenant colonel''; and
            (2) by striking out the second sentence and inserting in 
        lieu thereof the following: ``An appointee who holds a lower 
        regular grade shall be appointed in the regular grade of 
        brigadier general. The Assistant Surgeon General for Dental 
        Services serves at the pleasure of the Secretary.''.

SEC. 507. <<NOTE: 10 USC 2107 note.>>  REVIEW REGARDING ALLOCATION OF 
            NAVAL RESERVE OFFICERS' TRAINING CORPS SCHOLARSHIPS AMONG 
            PARTICIPATING COLLEGES AND UNIVERSITIES.

    (a) Review.--The Secretary of the Navy should review the process and 
criteria used to determine the number of Naval Reserve Officer Training 
Corps (NROTC) scholarship recipients who attend each college and 
university participating in the NROTC program and how those scholarships 
are allocated to those schools.
    (b) Purpose of Review.--The review should seek to determine--
            (1) whether the method used by the Navy to allocate NROTC 
        scholarships could be changed so as to increase the likelihood 
        that scholarship awardees attend the school of their choice 
        while maintaining the Navy's capability to attain the objectives 
        of the Naval ROTC program to meet the annual

[[Page 112 STAT. 2005]]

        requirement for newly commissioned Navy ensigns and Marine Corps 
        second lieutenants, as well as the overall needs of the officer 
        corps of the Department of the Navy; and
            (2) within the determination under paragraph (1), whether 
        the likelihood of a scholarship awardee who wants to attend a 
        school of choice in the student's State of residence can be 
        increased.

    (c) Matters Reviewed.--The matters reviewed should include the 
following:
            (1) The factors and criteria considered in the process of 
        determining the allocation of NROTC scholarships to host 
        colleges and universities.
            (2) Historical data indicating the extent to which NROTC 
        scholarship recipients attend colleges and universities they 
        have indicated a preference to attend, as opposed to attending 
        solely or mainly in order to receive an NROTC scholarship.
            (3) The extent to which the process used by the Navy to 
        allocate NROTC scholarships to participating colleges and 
        universities contributes to optimizing resources available for 
        the operation of the NROTC program and improving the 
        professional education of NROTC midshipmen.
            (4) The effects that eliminating the controlled allocation 
        of scholarships to host colleges and universities, entirely or 
        by State, would have on the NROTC program.

    (d) Consultation Requirement.--In carrying out a review under 
subsection (a), the Secretary should consult with officials of 
interested associations and of colleges and universities which host ROTC 
units and such other officials as the Secretary considers appropriate.

                  Subtitle B--Reserve Component Matters

SEC. 511. USE OF RESERVES FOR EMERGENCIES INVOLVING WEAPONS OF MASS 
            DESTRUCTION.

    (a) Order to Active Duty.--(1) Section 12304 of title 10, United 
States Code, is amended--
            (A) in subsection (a), by inserting ``or that it is 
        necessary to provide assistance referred to in subsection (b)'' 
        after ``to augment the active forces for any operational 
        mission'';
            (B) in subsection (b)--
                    (i) by striking out ``(b)'' and inserting in lieu 
                thereof ``(c) Limitations.--(1)''; and
                    (ii) by striking out ``, or to provide'' and 
                inserting in lieu thereof ``or, except as provided in 
                subsection (b), to provide'';
            (C) by redesignating subsection (c) as paragraph (2); and
            (D) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Support for Responses to Certain Emergencies.--The authority 
under subsection (a) includes authority to order a unit or member to 
active duty to provide assistance in responding to an emergency 
involving a use or threatened use of a weapon of mass destruction.''.
    (2) Subsection (i) of such section is amended to read as follows:
    ``(i) Definitions.--In this section:

[[Page 112 STAT. 2006]]

            ``(1) The term `Individual Ready Reserve mobilization 
        category' means, in the case of any reserve component, the 
        category of the Individual Ready Reserve described in section 
        10144(b) of this title.
            ``(2) The term `weapon of mass destruction' has the meaning 
        given that term in section 1403 of the Defense Against Weapons 
        of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).''.

    (3) Such section is further amended--
            (A) in subsection (a), by inserting ``Authority.--'' after 
        ``(a)'';
            (B) in subsection (d), by inserting ``Exclusion From 
        Strength Limitations.--'' after ``(d)'';
            (C) in subsection (e), by inserting ``Policies and 
        Procedures.--'' after ``(e)'';
            (D) in subsection (f ), by inserting ``Notification of 
        Congress.--'' after ``(f )'';
            (E) in subsection (g), by inserting ``Termination of 
        Duty.--'' after ``(g)''; and
            (F) in subsection (h), by inserting ``Relationship to War 
        Powers Resolution.--'' after ``(h)''.

    (b) Use of Active Guard and Reserve Personnel.--(1) 
Section 12310 of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(c)(1) A Reserve on active duty as described in subsection (a), or 
a Reserve who is a member of the National Guard serving on full-time 
National Guard duty under section 502(f ) of title 32 in connection with 
functions referred to in subsection (a), may, subject to paragraph (3), 
perform duties in support of emergency preparedness programs to prepare 
for or to respond to any emergency involving the use of a weapon of mass 
destruction (as defined in section 1403 of the Defense Against Weapons 
of Mass Destruction Act of 1996 (50 U.S.C. 2302(1))).
    ``(2) The costs of the pay, allowances, clothing, subsistence, 
gratuities, travel, and related expenses for a Reserve performing duties 
under the authority of paragraph (1) shall be paid from the 
appropriation that is available to pay such costs for other members of 
the reserve component of that Reserve who are performing duties as 
described in subsection (a).
    ``(3) A Reserve may perform duties described in paragraph (1) only--
            ``(A) while assigned to the Department of Defense 
        Consequence Management Program Integration Office; or
            ``(B) while assigned to a reserve component rapid assessment 
        element team and performing those duties within the geographical 
        limits of the United States, its territories and possessions, 
        the District of Columbia, and the Commonwealth of Puerto Rico.

    ``(4) The number of Reserves on active duty who are performing 
duties described in paragraph (1) at the same time may not exceed 228. 
Reserves on active duty who are performing duties described in paragraph 
(1) shall be counted against the annual end strength authorizations 
required by section 115(a)(1)(B) and 115(a)(2) of this title. The 
justification material for the defense budget request for a fiscal year 
shall identify the number and component of the Reserves programmed to be 
performing duties described in paragraph (1) during that fiscal year.

[[Page 112 STAT. 2007]]

    ``(5) A reserve component rapid assessment element team, and any 
Reserve assigned to such a team, may not be used to respond to an 
emergency described in paragraph (1) unless the Secretary of Defense has 
certified to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives that that 
team, or that Reserve, possesses the requisite skills, training, and 
equipment to be proficient in all mission requirements.
    ``(6) If the Secretary of Defense submits to Congress any request 
for the enactment of legislation to modify the requirements of paragraph 
(3) or to increase the number of personnel authorized by paragraph (4), 
the Secretary shall provide with the request--
            ``(A) justification for each such requested modification or 
        for the requested additional personnel and explain the need for 
        the increase in the context of existing or projected similar 
        capabilities at the local, State, and Federal levels; and
            ``(B) the Secretary's plan for sustaining the qualifications 
        of the personnel and teams described in paragraph (3)(B).''.

    (2) The Secretary of Defense may not submit to Congress earlier than 
90 days after the date of the receipt by Congress of the report required 
by section 1411 of this Act a request for the enactment of legislation 
to modify the requirements of paragraph (3), or to increase the number 
of personnel authorized by paragraph (4), of section 12310(c) of title 
10, United States Code, as added by paragraph (1).

SEC. 512. SERVICE REQUIRED FOR RETIREMENT OF NATIONAL GUARD OFFICER IN 
            HIGHER GRADE.

    (a) Revision of Requirement.--Subparagraph (E) of section 1370(d)(3) 
of title 10, United States Code, is amended to read as follows:
    ``(E) To the extent authorized by the Secretary of the military 
department concerned, a person who, after having been found qualified 
for Federal recognition in a higher grade by a board under section 307 
of title 32, serves in a position for which that grade is the minimum 
authorized grade and is appointed as a reserve officer in that grade may 
be credited for the purposes of subparagraph (A) as having served in 
that grade. The period of the service for which credit is afforded under 
the preceding sentence may only be the period for which the person 
served in the position after the Senate provides advice and consent for 
the appointment.''.
    (b) Effective <<NOTE: 10 USC 1370 note.>>  Date.--The amendment made 
by subsection (a) shall take effect on the date of the enactment of this 
Act and shall apply with respect to appointments to higher grades that 
take effect after that date.

SEC. 513. REDUCED TIME-IN-GRADE REQUIREMENT FOR RESERVE GENERAL AND FLAG 
            OFFICERS INVOLUNTARILY TRANSFERRED FROM ACTIVE STATUS.

    (a) Minimum Service in Active Status.--Section 1370(d)(3) of title 
10, United States Code, as amended by section 511, is further amended by 
adding at the end the following new subparagraph:
    ``(F) A person covered by subparagraph (A) who has completed at 
least six months of satisfactory service in a grade above colonel or (in 
the case of the Navy) captain and, while serving in an active status in 
such grade, is involuntarily transferred (other than for cause) from 
active status may be credited with satisfactory

[[Page 112 STAT. 2008]]

service in the grade in which serving at the time of such transfer, 
notwithstanding failure of the person to complete three years of service 
in that grade.''.
    (b) Effective <<NOTE: 10 USC 1370 note.>>  Date.--Subparagraph (F) 
of such section, as added by subsection (a), shall take effect on the 
date of the enactment of this Act and shall apply with respect to 
transfers referred to in such subparagraph that are made on or after 
that date.

SEC. 514. ACTIVE STATUS SERVICE REQUIREMENT FOR PROMOTION CONSIDERATION 
            FOR ARMY AND AIR FORCE RESERVE COMPONENT BRIGADIER GENERALS.

    Section 14301 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) A reserve component brigadier general of the Army or the Air 
Force who is in an inactive status is eligible (notwithstanding 
subsection (a)) for consideration for promotion to major general by a 
promotion board convened under section 14101(a) of this title if the 
officer--
            ``(1) has been in an inactive status for less than 1 year as 
        of the date of the convening of the promotion board; and
            ``(2) had continuously served for at least 1 year on the 
        reserve active status list or the active duty list (or a 
        combination of both) immediately before the officer's most 
        recent transfer to an inactive status.''.

SEC. 515. COMPOSITION OF SELECTIVE EARLY RETIREMENT BOARDS FOR REAR 
            ADMIRALS OF THE NAVAL RESERVE AND MAJOR GENERALS OF THE 
            MARINE CORPS RESERVE.

    (a) In General.--Section 14705(b) of title 10, United States Code, 
is amended--
            (1) by inserting ``(1)'' after ``(b) Boards.--''; and
            (2) by adding at the end the following:

    ``(2) In the case of such a board convened to consider officers in 
the grade of rear admiral or major general, the Secretary of the Navy 
may appoint the board without regard to section 14102(b) of this title. 
In doing so, however, the Secretary shall ensure that--
            ``(A) each regular commissioned officer appointed to the 
        board holds a grade higher than the grade of rear admiral or 
        major general; and
            ``(B) at least one member of the board is a reserve officer 
        who holds the grade of rear admiral or major general.''.

    (b) Technical Amendments.--Paragraph (1) of such section, as 
designated by subsection (a)(1), is amended--
            (1) by inserting ``of officers'' after ``consideration''; 
        and
            (2) by inserting ``continuation'' after ``shall convene a''.

SEC. 516. <<NOTE: 10 USC 12205 note.>>  AUTHORITY FOR TEMPORARY WAIVER 
            FOR CERTAIN ARMY RESERVE OFFICERS OF BACCALAUREATE DEGREE 
            REQUIREMENT FOR PROMOTION OF RESERVE OFFICERS.

    (a) Waiver Authority for Army OCS Graduates.--The Secretary of the 
Army may waive the applicability of section 12205(a) of title 10, United 
States Code, to any officer who before the date of the enactment of this 
Act was commissioned through the Army Officer Candidate School. Any such 
waiver shall be made on a case-by-case basis, considering the individual 
circumstances of the officer involved, and may continue in effect for no 
more than 2 years after the waiver is granted. The Secretary may provide 
for

[[Page 112 STAT. 2009]]

such a waiver to be effective before the date of the waiver, as 
appropriate in an individual case.
    (b) Expiration of Authority.--A waiver under this section may not be 
granted after September 30, 2000.

SEC. 517. FURNISHING OF BURIAL FLAGS FOR DECEASED MEMBERS AND FORMER 
            MEMBERS OF THE SELECTED RESERVE.

    Section 2301 of title 38, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f )(1) The Secretary shall furnish a flag to drape the casket of 
each deceased member or former member of the Selected Reserve (as 
<plus-minus>described in section 10143 of title 10) who is not otherwise 
eligible for a flag under this section or section 1482(a) of title 10--
            ``(A) who completed at least one enlistment as a member of 
        the Selected Reserve or, in the case of an officer, completed 
        the period of initial obligated service as a member of the 
        Selected Reserve;
            ``(B) who was discharged before completion of the person's 
        initial enlistment as a member of the Selected Reserve or, in 
        the case of an officer, period of initial obligated service as a 
        member of the Selected Reserve, for a disability incurred or 
        aggravated in line of duty; or
            ``(C) who died while a member of the Selected Reserve.

    ``(2) A flag may not be furnished under subparagraphs (A) or (B) of 
paragraph (1) in the case of a person whose last discharge from service 
in the Armed Forces was under conditions less favorable than honorable.
    ``(3) After the burial, a flag furnished under paragraph (1) shall 
be given to the next of kin or to such other person as the Secretary 
considers appropriate.''.

               Subtitle C--Military Education and Training

SEC. 521. SEPARATE HOUSING FOR MALE AND FEMALE RECRUITS DURING RECRUIT 
            BASIC TRAINING.

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

``Sec. 4319. Recruit basic training: separate housing for male and 
                        female recruits

    ``(a) Physically Separate Housing.--(1) The Secretary of the Army 
shall provide for housing male recruits and female recruits separately 
and securely from each other during basic training.
    ``(2) To meet the requirements of paragraph (1), the sleeping areas 
and latrine areas provided for male recruits shall be physically 
separated from the sleeping areas and latrine areas provided for female 
recruits by permanent walls, and the areas for male recruits and the 
areas for female recruits shall have separate entrances.
    ``(3) The Secretary shall ensure that, when a recruit is in an area 
referred to in paragraph (2), the area is supervised by one or more 
persons who are authorized and trained to supervise the area.
    ``(b) Alternative Separate Housing.--If male recruits and female 
recruits cannot be housed as provided under subsection

[[Page 112 STAT. 2010]]

(a) by October 1, 2001, at a particular installation, the Secretary of 
the Army shall require (on and after that date) that male recruits in 
basic training at such installation be housed in barracks or other troop 
housing facilities that are only for males and that female recruits in 
basic training at such installation be housed in barracks or other troop 
housing facilities that are only for females.
    ``(c) Construction Planning.--In planning for the construction of 
housing to be used for housing recruits during basic training, the 
Secretary of the Army shall ensure that the housing is to be constructed 
in a manner that facilitates the housing of male recruits and female 
recruits separately and securely from each other.
    ``(d) Basic Training Defined.--In this section, the term `basic 
training' means the initial entry training program of the Army that 
constitutes the basic training of new recruits.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``4319. Recruit basic training: separate housing for male and female 
           recruits.''.

    (3) <<NOTE: 10 USC 4319 note.>>  The Secretary of the Army shall 
implement section 4319 of title 10, United States Code, as added by 
paragraph (1), as rapidly as feasible and shall ensure that the 
provisions of that section are applied to all recruit basic training 
classes beginning not later than the first such class that enters basic 
training on or after April 15, 1999.

    (b) Navy and Marine Corps.--(1) Part III of subtitle C of title 10, 
United States Code, is amended by inserting after chapter 601 the 
following new chapter:

                    ``CHAPTER 602--TRAINING GENERALLY

``Sec.
``6931. Recruit basic training: separate housing for male and female 
           recruits.

``Sec. 6931. Recruit basic training: separate housing for male and 
                        female recruits

    ``(a) Physically Separate Housing.--(1) The Secretary of the Navy 
shall provide for housing male recruits and female recruits separately 
and securely from each other during basic training.
    ``(2) To meet the requirements of paragraph (1), the sleeping areas 
and latrine areas provided for male recruits shall be physically 
separated from the sleeping areas and latrine areas provided for female 
recruits by permanent walls, and the areas for male recruits and the 
areas for female recruits shall have separate entrances.
    ``(3) The Secretary shall ensure that, when a recruit is in an area 
referred to in paragraph (2), the area is supervised by one or more 
persons who are authorized and trained to supervise the area.
    ``(b) Alternative Separate Housing.--If male recruits and female 
recruits cannot be housed as provided under subsection (a) by October 1, 
2001, at a particular installation, the Secretary of the Navy shall 
require (on and after that date) that male recruits in basic training at 
such installation be housed in barracks or other troop housing 
facilities that are only for males and that female recruits in basic 
training at such installation be housed in barracks or other troop 
housing facilities that are only for females.

[[Page 112 STAT. 2011]]

    ``(c) Construction Planning.--In planning for the construction of 
housing to be used for housing recruits during basic training, the 
Secretary of the Navy shall ensure that the housing is to be constructed 
in a manner that facilitates the housing of male recruits and female 
recruits separately and securely from each other.
    ``(d) Basic Training Defined.--In this section, the term `basic 
training' means the initial entry training programs of the Navy and 
Marine Corps that constitute the basic training of new recruits.''.
    (2) The tables of chapters at the beginning of subtitle C, and at 
the beginning of part III of subtitle C, of such title are amended by 
inserting after the item relating to chapter 601 the following new item:

``602. Training Generally........................................6931''.

    (3) <<NOTE: 10 USC 6931 note.>>  The Secretary of the Navy shall 
implement section 6931 of title 10, United States Code, as added by 
paragraph (1), as rapidly as feasible and shall ensure that the 
provisions of that section are applied to all recruit basic training 
classes beginning not later than the first such class that enters basic 
training on or after April 15, 1999.

    (c) Air Force.--(1) Chapter 901 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 9319. Recruit basic training: separate housing for male and 
                        female recruits

    ``(a) Physically Separate Housing.--(1) The Secretary of the Air 
Force shall provide for housing male recruits and female recruits 
separately and securely from each other during basic training.
    ``(2) To meet the requirements of paragraph (1), the sleeping areas 
and latrine areas provided for male recruits shall be physically 
separated from the sleeping areas and latrine areas provided for female 
recruits by permanent walls, and the areas for male recruits and the 
areas for female recruits shall have separate entrances.
    ``(3) The Secretary shall ensure that, when a recruit is in an area 
referred to in paragraph (2), the area is supervised by one or more 
persons who are authorized and trained to supervise the area.
    ``(b) Alternative Separate Housing.--If male recruits and female 
recruits cannot be housed as provided under subsection (a) by October 1, 
2001, at a particular installation, the Secretary of the Air Force shall 
require (on and after that date) that male recruits in basic training at 
such installation be housed in barracks or other troop housing 
facilities that are only for males and that female recruits in basic 
training at such installation be housed in barracks or other troop 
housing facilities that are only for females.
    ``(c) Construction Planning.--In planning for the construction of 
housing to be used for housing recruits during basic training, the 
Secretary of the Air Force shall ensure that the housing is to be 
constructed in a manner that facilitates the housing of male recruits 
and female recruits separately and securely from each other.
    ``(d) Basic Training Defined.--In this section, the term `basic 
training' means the initial entry training program of the Air Force that 
constitutes the basic training of new recruits.''.

[[Page 112 STAT. 2012]]

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

``9319. Recruit basic training: separate housing for male and female 
           recruits.''.

    (3) <<NOTE: 10 USC 9319 note.>>  The Secretary of the Air Force 
shall implement section 9319 of title 10, United States Code, as added 
by paragraph (1), as rapidly as feasible and shall ensure that the 
provisions of that section are applied to all recruit basic training 
classes beginning not later than the first such class that enters basic 
training on or after April 15, 1999.

    (d) GAO Review of Costs of Separate Housing Facilities for Male and 
Female Recruits During Recruit Basic Training.--Not later than March 1, 
1999, the Comptroller General shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report on the costs that would be incurred by 
each of the military departments if required to provide housing for male 
and female recruits during basic training in separate structures. The 
report shall be prepared separately for each of the Army, Navy, and Air 
Force and shall be based on reviews and cost analyses prepared 
independently of the Department of Defense.

SEC. 522. AFTER-HOURS PRIVACY FOR RECRUITS DURING BASIC TRAINING.

    (a) Army.--(1) Chapter 401 of title 10, United States Code, is 
amended by adding after section 4319, as added by section 521(a)(1), the 
following new section:

``Sec. 4320. Recruit basic training: privacy

    ``The Secretary of the Army shall require that access by drill 
sergeants and other training personnel to a living area in which 
recruits are housed during basic training shall be limited after the end 
of the training day, other than in the case of an emergency or other 
exigent circumstance, to drill sergeants and other training personnel 
who are of the same sex as the recruits housed in that living area or to 
superiors in the chain of command of those recruits who, if not of the 
same sex as the recruits housed in that living area, are accompanied by 
a member (other than a recruit) who is of the same sex as the recruits 
housed in that living area.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 4319, as added by 
section 521(a)(2), the following new item:

``4320. Recruit basic training: privacy.''.

    (3) <<NOTE: 10 USC 4320 note.>>  The Secretary of the Army shall 
implement section 4320 of title 10, United States Code, as added by 
paragraph (1), as rapidly as feasible and shall ensure that the 
provisions of that section are applied to all recruit basic training 
classes beginning not later than the first such class that enters basic 
training on or after April 15, 1999.

    (b) Navy.--(1) Chapter 602 of title 10, United States Code, as added 
by section 521(b)(1), is amended by adding at the end the following new 
section:

``Sec. 6932. Recruit basic training: privacy

    ``The Secretary of the Navy shall require that access by recruit 
division commanders and other training personnel to a living area

[[Page 112 STAT. 2013]]

in which Navy recruits are housed during basic training shall be limited 
after the end of the training day, other than in the case of an 
emergency or other exigent circumstance, to recruit division commanders 
and other training personnel who are of the same sex as the recruits 
housed in that living area or to superiors in the chain of command of 
those recruits who, if not of the same sex as the recruits housed in 
that living area, are accompanied by a member (other than a recruit) who 
is of the same sex as the recruits housed in that living area.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``6932. Recruit basic training: privacy.''.

    (3) <<NOTE: 10 USC 6932 note.>>  The Secretary of the Navy shall 
implement section 6932 of title 10, United States Code, as added by 
paragraph (1), as rapidly as feasible and shall ensure that the 
provisions of that section are applied to all recruit basic training 
classes beginning not later than the first such class that enters basic 
training on or after April 15, 1999.

    (c) Air Force.--(1) Chapter 901 of title 10, United States Code, is 
amended by adding after section 9319, as added by section 521(c)(1), the 
following new section:

``Sec. 9320. Recruit basic training: privacy

    ``The Secretary of the Air Force shall require that access by 
military training instructors and other training personnel to a living 
area in which recruits are housed during basic training shall be limited 
after the end of the training day, other than in the case of an 
emergency or other exigent circumstance, to military training 
instructors and other training personnel who are of the same sex as the 
recruits housed in that living area or to superiors in the chain of 
command of those recruits who, if not of the same sex as the recruits 
housed in that living area, are accompanied by a member (other than a 
recruit) who is of the same sex as the recruits housed in that living 
area.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 9319, as added by 
section 521(c)(2), the following new item:

``9320. Recruit basic training: privacy.''.

    (3) <<NOTE: 10 USC 9320 note.>>  The Secretary of the Air Force 
shall implement section 9320 of title 10, United States Code, as added 
by paragraph (1), as rapidly as feasible and shall ensure that the 
provisions of that section are applied to all recruit basic training 
classes beginning not later than the first such class that enters basic 
training on or after April 15, 1999.

SEC. 523. SENSE OF THE HOUSE OF REPRESENTATIVES RELATING TO SMALL UNIT 
            ASSIGNMENTS BY GENDER DURING RECRUIT BASIC TRAINING.

    It is the sense of the House of Representatives that the Secretary 
of each military department should require that during recruit basic 
training male recruits and female recruits be assigned to separate units 
at the small unit levels designated by the different services as 
platoons, divisions, or flights, as recommended in the report of the 
Federal Advisory Committee on Gender-Integrated Training and Related 
Issues, chaired by Nancy Kassebaum-Baker,

[[Page 112 STAT. 2014]]

that was submitted to the Secretary of Defense on December 16, 1997.

SEC. 524. <<NOTE: 10 USC 113 note.>>  EXTENSION OF REPORTING DATES FOR 
            COMMISSION ON MILITARY TRAINING AND GENDER-RELATED ISSUES.

    (a) First Report.--Subsection (e)(1) of section 562 of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 
Stat. 1754) is amended by striking out ``April 15, 1998'' and inserting 
in lieu thereof ``October 15, 1998''.
    (b) Final Report.--Subsection (e)(2) of such section is amended by 
striking out ``September 16, 1998'' and inserting in lieu thereof 
``March 15, 1999''.

SEC. 525. IMPROVED OVERSIGHT OF INNOVATIVE READINESS TRAINING.

    (a) In General.--Section 2012 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``( j) Oversight and Cost Accounting.--The Secretary of Defense 
shall establish a program to improve the oversight and cost accounting 
of training projects conducted in accordance with this section. The 
program shall include measures to accomplish the following:
            ``(1) Ensure that each project that is proposed to be 
        conducted in accordance with this section (regardless of whether 
        additional funding from the Secretary of Defense is sought) is 
        requested in writing, reviewed for full compliance with this 
        section, and approved in advance of initiation by the Secretary 
        of the military department concerned and, in the case of a 
        project that seeks additional funding from the Secretary of 
        Defense, by the Secretary of Defense.
            ``(2) Ensure that each project that is conducted in 
        accordance with this section is required to provide, within a 
        specified period following completion of the project, an after-
        action report to the Secretary of Defense.
            ``(3) Require that each application for a project to be 
        conducted in accordance with this section include an analysis 
        and certification that the proposed project would not result in 
        a significant increase in the cost of training (as determined in 
        accordance with procedures prescribed by the Secretary of 
        Defense).
            ``(4) Determine the total program cost for each project, 
        including both those costs that are borne by the military 
        departments from their own accounts and those costs that are 
        borne by defense-wide accounts.
            ``(5) Provide for oversight of project execution to ensure 
        that a training project under this section is carried out in 
        accordance with the proposal for that project as approved.''.

    (b) <<NOTE: 10 USC 2012 note.>>  Implementation.--The Secretary of 
Defense may not initiate any project under section 2012 of title 10, 
United States Code, after October 1, 1998, until the program required by 
subsection (i) of that section (as added by subsection (a)) has been 
established.

[[Page 112 STAT. 2015]]

           Subtitle D--Decorations, Awards, and Commendations

SEC. 531. STUDY OF NEW DECORATIONS FOR INJURY OR DEATH IN LINE OF DUTY.

    (a) Study of Need and Criteria for New Decoration.--(1) The 
Secretary of Defense shall carry out a study of the need for, and the 
the appropriate criteria for, two possible new decorations.
    (2) The first such decoration would, if implemented, be awarded to 
members of the Armed Forces who, while serving under competent authority 
in any capacity with the Armed Forces, are killed or injured in the line 
of duty as a result of noncombat circumstances occurring--
            (A) as a result of an international terrorist attack against 
        the United States or a foreign nation friendly to the United 
        States;
            (B) while engaged in, training for, or traveling to or from 
        a peacetime or contingency operation; or
            (C) while engaged in, training for, or traveling to or from 
        service outside the territory of the United States as part of a 
        peacekeeping force.

    (3) The second such decoration would, if implemented, be awarded to 
civilian nationals of the United States who, while serving under 
competent authority in any capacity with the Armed Forces, are killed or 
injured in the line of duty under circumstances which, if they were 
members of the Armed Forces, would qualify them for award of the Purple 
Heart or the medal described in paragraph (2).
    (b) Recommendation to Congress.--Not later than July 31, 1999, the 
Secretary shall submit to Congress a report setting forth the 
Secretary's recommendation concerning the need for, and propriety of, 
each of the possible new decorations referred to in subsection (a).
    (c) Coordination.--The Secretary shall carry out this section in 
coordination with the Secretaries of the military departments and the 
Secretary of Transportation with regard to the Coast Guard.

SEC. 532. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS TO 
            CERTAIN PERSONS.

    (a) Waiver.--Any limitation established by law or policy for the 
time within which a recommendation for the award of a military 
decoration or award must be submitted shall not apply to awards of 
decorations described in this section, the award of each such decoration 
having been determined by the Secretary of the military department 
concerned to be warranted in accordance with section 1130 of title 10, 
United States Code.
    (b) Distinguished-Service Cross.--Subsection (a) applies to the 
award of the Distinguished-Service Cross of the Army as follows:
            (1) To Isaac Camacho of El Paso, Texas, for extraordinary 
        heroism in actions at Camp Hiep Hoa in Vietnam on November 24, 
        1963, while serving as a member of the Army.
            (2) To Bruce P. Crandall of Mesa, Arizona, for extraordinary 
        heroism in actions at Landing Zone X-Ray in Vietnam on November 
        14, 1965, while serving as a member of the Army.

[[Page 112 STAT. 2016]]

            (3) To Leland B. Fair of Jessieville, Arkansas, for 
        extraordinary heroism in actions in the Philippine Islands on 
        July 4, 1945, while serving as a member of the Army.

    (c) Distinguished-Service Medal.--Subsection (a) applies to the 
award of the Distinguished-Service Medal of the Army to Richard P. 
Sakakida of Fremont, California, for exceptionally meritorious service 
while a prisoner of war in the Philippine Islands from May 7, 1942, to 
September 14, 1945, while serving as a member of the Army.
    (d) Navy Cross.--Subsection (a) applies to the posthumous award of 
the Navy Cross to Joseph F. Keenan for extraordinary heroism in actions 
on March 26-27, 1953, while serving as a member of the Navy.
    (e) Silver Star Medal.--Subsection (a) applies to the award of the 
Silver Star Medal of the Navy to Andrew A. Bernard of Methuen, 
Massachusetts, for gallantry in action on November 24, 1943, while 
serving as a member of the Navy.
    (f ) Distinguished Flying Cross.--Subsection (a) applies to the 
award of the Distinguished Flying Cross for service during World War II 
or Korea (including multiple awards to the same individual) in the case 
of each individual (not covered by section 573(d) of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 
Stat. 1757)) concerning whom the Secretary of the Navy (or an officer of 
the Navy acting on behalf of the Secretary) submitted to the Committee 
on National Security of the House of Representatives and the Committee 
on Armed Services of the Senate, before the date of the enactment of 
this Act, a notice as provided in section 1130(b) of title 10, United 
States Code, that the award of the Distinguished Flying Cross to that 
individual is warranted and that a waiver of time restrictions 
prescribed by law for recommendation for such award is recommended.

SEC. 533. COMMENDATION AND COMMEMORATION OF THE NAVY AND MARINE CORPS 
            PERSONNEL WHO SERVED IN THE UNITED STATES NAVY ASIATIC FLEET 
            FROM 1910-1942.

    (a) Findings.--Congress makes the following findings:
            (1) The United States established the Asiatic Fleet of the 
        Navy in 1910 to protect United States nationals, policies, and 
        possessions in the Far East.
            (2) The sailors and Marines of the Asiatic Fleet ensured the 
        safety of United States and foreign nationals and provided 
        humanitarian assistance in that region during the Chinese civil 
        war, the Yangtze Flood of 1931, and the outbreak of Sino-
        Japanese hostilities.
            (3) In 1940, due to deteriorating political relations and 
        increasing tensions between the United States and Japan, a 
        reinforced Asiatic Fleet began concentrating on the defense of 
        the Philippines and engaged in extensive training to ensure 
        maximum operational readiness for any eventuality.
            (4) Following the declaration of war against Japan in 
        December 1941, the warships, submarines, and aircraft of the 
        Asiatic Fleet courageously fought many battles against superior 
        Japanese forces.
            (5) The Asiatic Fleet directly suffered the loss of 22 
        vessels, 1,826 men killed or missing in action, and 518 men 
        captured

[[Page 112 STAT. 2017]]

        and imprisoned under the worst of conditions, with many of them 
        dying while held as prisoners of war.

    (b) Congressional Commendation.--Congress--
            (1) commends the Navy and Marine Corps personnel who served 
        in the Asiatic Fleet of the United States Navy during the period 
        from 1910 to 1942; and
            (2) honors those who gave their lives in the line of duty 
        while serving in the Asiatic Fleet.

    (c) Commemoration of United States Navy Asiatic Fleet.--
The <<NOTE: President.>>  President is authorized and requested to issue 
a proclamation designating an appropriate commemoration of the United 
States Navy Asiatic Fleet and calling upon the people of the United 
States to observe such commemoration with appropriate programs, 
ceremonies, and activities.

SEC. 534. APPRECIATION FOR SERVICE DURING WORLD WAR I AND WORLD WAR II 
            BY MEMBERS OF THE NAVY ASSIGNED ON BOARD MERCHANT SHIPS AS 
            THE NAVAL ARMED GUARD SERVICE.

    (a) Findings.--Congress makes the following findings:
            (1) The Navy established a special force during both World 
        War I and World War II, known as the Naval Armed Guard Service, 
        to protect merchant ships of the United States from enemy attack 
        by stationing members of the Navy and weapons on board those 
        ships.
            (2) Members of the Naval Armed Guard Service served on 6,236 
        merchant ships during World War II, of which 710 were sunk by 
        enemy action.
            (3) Over 144,900 members of the Navy served in the Naval 
        Armed Guard Service during World War II as officers, gun 
        crewmen, signalmen, and radiomen, of whom 1,810 were killed in 
        action.
            (4) The efforts of the members of the Naval Armed Guard 
        Service played a significant role in the safe passage of United 
        States merchant ships to their destinations in the Soviet Union 
        and various locations in western Europe and the Pacific Theater.
            (5) The efforts of the members of the Navy who served in the 
        Naval Armed Guard Service have been largely overlooked due to 
        the rapid disbanding of the service after World War II and lack 
        of adequate records.
            (6) Recognition of the service of the naval personnel who 
        served in the Naval Armed Guard Service is highly warranted and 
        long overdue.

    (b) Sense of Congress.--Congress expresses its appreciation, and the 
appreciation of the American people, for the dedicated service performed 
during World War I and World War II by members of the Navy assigned as 
gun crews on board merchant ships as part of the Naval Armed Guard 
Service.

SEC. 535. SENSE OF CONGRESS REGARDING THE HEROISM, SACRIFICE, AND 
            SERVICE OF THE MILITARY FORCES OF SOUTH VIETNAM, OTHER 
            NATIONS, AND INDIGENOUS GROUPS IN CONNECTION WITH THE UNITED 
            STATES ARMED FORCES DURING THE VIETNAM CONFLICT.

    (a) Findings.--Congress finds the following:
            (1) South Vietnam, Australia, South Korea, Thailand, New 
        Zealand, and the Philippines contributed military forces,

[[Page 112 STAT. 2018]]

        together with the United States, during military operations 
        conducted in Southeast Asia during the Vietnam conflict.
            (2) Indigenous groups, such as the Hmong, Nung, Montagnard, 
        Kahmer, Hoa Hao, and Cao Dai contributed military forces, 
        together with the United States, during military operations 
        conducted in Southeast Asia during the Vietnam conflict.
            (3) The contributions of these combat forces continued 
        through long years of armed conflict.
            (4) As a result, in addition to the United States casualties 
        exceeding 210,000, this willingness to participate in the 
        Vietnam conflict resulted in the death and wounding of more than 
        1,000,000 military personnel from South Vietnam and 16,000 from 
        other allied nations.
            (5) The service of the Vietnamese, indigenous groups, and 
        other allied nations was repeatedly marked by exceptional 
        heroism and sacrifice, with particularly noteworthy 
        contributions being made by the Vietnamese airborne, commando, 
        infantry and ranger units, the Republic of Korea marines, the 
        Capital and White Horse divisions, the Royal Thai Army Black 
        Panther Division, the Royal Australian Regiment, the New Zealand 
        ``V'' force, and the 1st Philippine Civic Action Group.

    (b) Sense of Congress.--Congress recognizes and honors the members 
and former members of the military forces of South Vietnam, the Republic 
of Korea, Thailand, Australia, New Zealand, and the Philippines, as well 
as members of the Hmong, Nung, Montagnard, Kahmer, Hoa Hao, and Cao Dai, 
for their heroism, sacrifice, and service in connection with United 
States Armed Forces during the Vietnam conflict.

SEC. 536. SENSE OF CONGRESS REGARDING THE HEROISM, SACRIFICE, AND 
            SERVICE OF FORMER SOUTH VIETNAMESE COMMANDOS IN CONNECTION 
            WITH UNITED STATES ARMED FORCES DURING THE VIETNAM CONFLICT.

    (a) Findings.--Congress finds the following:
            (1) South Vietnamese commandos were recruited by the United 
        States as part of OPLAN 34A or its predecessor or OPLAN 35 from 
        1961 to 1970.
            (2) The commandos conducted covert operations in North 
        Vietnam during the Vietnam conflict.
            (3) Many of the commandos were captured and imprisoned by 
        North Vietnamese forces, some for as long as 20 years.
            (4) The commandos served and fought proudly during the 
        Vietnam conflict.
            (5) Many of the commandos lost their lives serving in 
        operations conducted by the United States during the Vietnam 
        conflict.
            (6) Many of the Vietnamese commandos now reside in the 
        United States.

    (b) Sense of Congress--Congress recognizes and honors the former 
South Vietnamese commandos for their heroism, sacrifice, and service in 
connection with United States Armed Forces during the Vietnam conflict.

[[Page 112 STAT. 2019]]

SEC. 537. PROHIBITION ON MEMBERS OF ARMED FORCES ENTERING CORRECTIONAL 
            FACILITIES TO PRESENT DECORATIONS TO PERSONS WHO HAVE 
            COMMITTED SERIOUS VIOLENT FELONIES.

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

``Sec. 1132. Presentation of decorations: prohibition on entering 
                        correctional facilities for presentation to 
                        prisoners convicted of serious violent felonies

    ``(a) Prohibition.--A member of the armed forces may not enter a 
Federal, State, local, or foreign correctional facility to present a 
decoration to a person who is incarcerated due to conviction of a 
serious violent felony.
    ``(b) Definitions.--In this section:
            ``(1) The term `decoration' means any decoration or award 
        that may be presented or awarded to a member of the armed 
        forces.
            ``(2) The term `serious violent felony' has the meaning 
        given that term in section 3559(c)(2)(F) of title 18.''.

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

``1132. Presentation of decorations: prohibition on entering 
           correctional facilities for presentation to prisoners 
           convicted of serious violent felonies.''.

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

SEC. 541. <<NOTE: 10 USC 1551 note.>>  PERSONNEL FREEZE.

    (a) Limitation.--During fiscal years 1999, 2000, and 2001, the 
Secretary of a military department may not carry out any reduction in 
the number of military and civilian personnel assigned to duty with the 
service review agency for that military department below the baseline 
number for that agency until--
            (1) <<NOTE: Reports.>>  the Secretary submits to Congress a 
        report that describes the reduction proposed to be made, 
        provides the Secretary's rationale for that reduction, and 
        specifies the number of such personnel that would be assigned to 
        duty with that agency after the reduction; and
            (2) a period of 90 days has elapsed after the date on which 
        such report is submitted.

    (b) Baseline Number.--The baseline number for a service review 
agency under this section is--
            (1) for purposes of the first report with respect to a 
        service review agency under this section, the number of military 
        and civilian personnel assigned to duty with that agency as of 
        October 1, 1997; and
            (2) for purposes of any subsequent report with respect to a 
        service review agency under this section, the number of such 
        personnel specified in the most recent report with respect to 
        that agency under this section.

    (c) Service Review Agency Defined.--In this section, the term 
``service review agency'' means--

[[Page 112 STAT. 2020]]

            (1) with respect to the Department of the Army, the Army 
        Review Boards Agency;
            (2) with respect to the Department of the Navy, the Board 
        for Correction of Naval Records; and
            (3) with respect to the Department of the Air Force, the Air 
        Force Review Boards Agency.

SEC. 542. PROFESSIONAL STAFF.

    (a) In General.--(1) Chapter 79 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 1555. Professional staff

    ``(a) The Secretary of each military department shall assign to the 
staff of the service review agency of that military department at least 
one attorney and at least one physician. Such assignments shall be made 
on a permanent, full-time basis and may be made from members of the 
armed forces or civilian employees.
    ``(b) Personnel assigned pursuant to subsection (a)--
            ``(1) shall work under the supervision of the director or 
        executive director (as the case may be) of the service review 
        agency; and
            ``(2) shall be assigned duties as advisers to the director 
        or executive director or other staff members on legal and 
        medical matters, respectively, that are being considered by the 
        agency.

    ``(c) In this section, the term `service review agency' means--
            ``(1) with respect to the Department of the Army, the Army 
        Review Boards Agency;
            ``(2) with respect to the Department of the Navy, the Board 
        for Correction of Naval Records; and
            ``(3) with respect to the Department of the Air Force, the 
        Air Force Review Boards Agency.''.

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

``1555. Professional staff.''.

    (b) Effective <<NOTE: 10 USC 1555 note.>>  Date.--Section 1555 of 
title 10, United States Code, as added by subsection (a), shall take 
effect 180 days after the date of the enactment of this Act.

SEC. 543. EX PARTE COMMUNICATIONS.

    (a) In General.--(1) Chapter 79 of title 10, United States Code, is 
amended by adding after section 1555, as added by section 542(a)(1), the 
following new section:

``Sec. 1556. Ex parte communications prohibited

    ``(a) In General.--The Secretary of each military department shall 
ensure that an applicant seeking corrective action by the Army Review 
Boards Agency, the Air Force Review Boards Agency, or the Board for 
Correction of Naval Records, as the case may be, is provided a copy of 
all correspondence and communications (including summaries of verbal 
communications) to or from the agency or board, or a member of the staff 
of the agency or board, with an entity or person outside the agency or 
board that pertain directly to the applicant's case or have a material 
effect on the applicant's case.
    ``(b) Exceptions.--Subsection (a) does not apply to the 
following:

[[Page 112 STAT. 2021]]

            ``(1) Classified information.
            ``(2) Information the release of which is otherwise 
        prohibited by law or regulation.
            ``(3) Any record previously provided to the applicant or 
        known to be possessed by the applicant.
            ``(4) Any correspondence that is purely administrative in 
        nature.
            ``(5) Any military record that is (or may be) provided to 
        the applicant by the Secretary of the military department or 
        other source.''.

    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to 1555, as added by section 
542(a)(2), the following new item:

``1556. Ex parte communications prohibited.''.

    (b) Effective <<NOTE: 10 USC 1556 note.>>  Date.--Section 1556 of 
title 10, United States Code, as added by subsection (a), shall apply 
with respect to correspondence and communications made 60 days or more 
after the date of the enactment of this Act.

SEC. 544. TIMELINESS STANDARDS.

    (a) In General.--Chapter 79 of title 10, United States Code, is 
amended by adding after section 1556, as added by section 543(a)(1), the 
following new section:

``Sec. 1557. Timeliness standards for disposition of applications before 
                        Corrections Boards

    ``(a) Ten-Month Clearance Percentage.--Of the applications received 
by a Corrections Board during a period specified in the following table, 
the percentage on which final action by the Corrections Board must be 
completed within 10 months of receipt (other than for those applications 
considered suitable for administrative correction) is as follows:
                          The percentage on which final
``For applications            Correction Board action
  received during--           must be completed within
                              10 months of receipt is--
the period of fiscal years 2001 and 2002                          50    
the period of fiscal years 2003 and 2004                          60    
the period of fiscal years 2005, 2006,                            70    
    and 2007
the period of fiscal years 2008, 2009,                            80    
    and 2010
the period of any fiscal year after                              90.    
    fiscal year 2010

    ``(b) Clearance Deadline for All Applications.--Effective October 1, 
2002, final action by a Corrections Board on all applications received 
by the Corrections Board (other than those applications considered 
suitable for administrative correction) shall be completed within 18 
months of receipt.
    ``(c) Waiver Authority.--The Secretary of the military department 
concerned may exclude an individual application from the timeliness 
standards prescribed in subsections (a) and (b) if the Secretary 
determines that the application warrants a longer period of 
consideration. The authority of the Secretary of a military department 
under this subsection may not be delegated.
    ``(d) Failure To Meet Timeliness Standards Not To Affect Any 
Individual Application.--Failure of a Corrections Board to meet the 
applicable timeliness standard for any period of time under subsection 
(a) or (b) does not confer any presumption or advantage with respect to 
consideration by the board of any application.

[[Page 112 STAT. 2022]]

    ``(e) Reports on Failure To Meet Timeliness Standards.--The 
Secretary of the military department concerned shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report not later than June 1 
following any fiscal year during which the Corrections Board of that 
Secretary's military department was unable to meet the applicable 
timeliness standard for that fiscal year under subsections (a) and (b). 
The report shall specify the reasons why the standard could not be met 
and the corrective actions initiated to ensure compliance in the future. 
The report shall also specify the number of waivers granted under 
subsection (c) during that fiscal year.
    ``(f ) Corrections Board Defined.--In this section, the term 
`Corrections Board' means--
            ``(1) with respect to the Department of the Army, the Army 
        Board for Correction of Military Records;
            ``(2) with respect to the Department of the Navy, the Board 
        for Correction of Naval Records; and
            ``(3) with respect to the Department of the Air Force, the 
        Air Force Board for Correction of Military Records.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
1556, as added by section 543(a)(2), the following new item:

``1557. Timeliness standards for disposition of applications before 
           Corrections Boards.''.

SEC. 545. SCOPE OF CORRECTION OF MILITARY RECORDS.

    (a) Payment of Claims Arising From Correction.--Subsection (c) of 
section 1552 of title 10, United States Code, is amended in the first 
sentence by inserting before the period the following: ``, or on account 
of his or another's service as a civilian employee''.
    (b) Definition of Military Record.--Such section is further amended 
by adding at the end the following new subsection:
    ``(g) In this section, the term `military record' means a document 
or other record that pertains to (1) an individual member or former 
member of the armed forces, or (2) at the discretion of the Secretary of 
the military department concerned, any other military matter affecting a 
member or former member of the armed forces, an employee or former 
employee of that military department, or a dependent or current or 
former spouse of any such person. Such term does not include records 
pertaining to civilian employment matters (such as matters covered by 
title 5 and chapters 81, 83, 87, 108, 373, 605, 607, 643, and 873 of 
this title).''.
    (c) Report.--The Secretary of Defense shall submit to Congress, not 
later than March 31, 1999, a report on the effect of the six-year bar to 
retroactive benefits contained in section 3702 of title 31, United 
States Code, and the Secretary's recommendation as to whether it is 
appropriate for the Secretaries of the military departments to have 
authority to waive that limitation in selected cases involving 
implementation of decisions of the Secretary of a military department 
under chapter 79 of title 10, United States Code. The report shall be 
prepared in consultation with the Secretaries of the military 
departments.

[[Page 112 STAT. 2023]]

                           Subtitle F--Reports

SEC. 551. REPORT ON PERSONNEL RETENTION.

    (a) Report Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to Congress 
a report containing information on the retention of members of the Armed 
Forces on active duty in the combat, combat support, and combat service 
support forces of the Army, Navy, Air Force, and Marine Corps.
    (b) Required Information.--The Secretary shall include in the report 
information on retention of members with military occupational 
specialties (or the equivalent) in combat, combat support, or combat 
service support positions in each of the Army, Navy, Air Force, and 
Marine Corps. Such information shall be shown by pay grade and shall be 
aggregated by enlisted grades and officers grades and shall be shown by 
military occupational specialty (or the equivalent). The report shall 
set forth separately (in numbers and as a percentage) the number of 
members separated during each such fiscal year who terminate service in 
the Armed Forces completely and the number who separate from active duty 
by transferring into a reserve component.
    (c) Years Covered by Report.--The report shall provide the 
information required in the report, shown on a fiscal year basis, for 
each of fiscal years 1989 through 1998.

SEC. 552. REPORT ON PROCESS FOR SELECTION OF MEMBERS FOR SERVICE ON 
            COURTS-MARTIAL.

    (a) Report Required.--Not later than April 15, 1999, the Secretary 
of Defense shall submit to Congress a report on the method of selection 
of members of the Armed Forces to serve on courts-martial.
    (b) Consideration of Alternatives.--In preparing the report, the 
Secretary shall examine alternatives, including random selection, to the 
current system of selection of members of courts-martial by the 
convening authority. Any alternative examined by the Secretary shall be 
consistent with the provisions relating to service on courts-martial 
specified in section 825(d) of title 10, United States Code (article 
25(d) of the Uniform Code of Military Justice). The Secretary shall 
include in the report the Secretary's evaluation of each alternative 
examined.
    (c) Views of Code Committee.--In preparing the report under 
subsection (a), the Secretary shall obtain the views of the members of 
the committee referred to in section 946 of such title (known as the 
``Code Committee'').

SEC. 553. REPORT ON PRISONERS TRANSFERRED FROM UNITED STATES 
            DISCIPLINARY BARRACKS, FORT LEAVENWORTH, KANSAS, TO FEDERAL 
            BUREAU OF PRISONS.

    (a) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress a report, 
to be prepared by the General Counsel of the Department of Defense, 
concerning the decision of the Secretary of the Army in 1994 to transfer 
approximately 500 prisoners from the United States Disciplinary 
Barracks, Fort Leavenworth, Kansas, to the Federal Bureau of Prisons.
    (b) Matters To Be Included.--The Secretary shall include in the 
report the following:

[[Page 112 STAT. 2024]]

            (1) A description of the basis for the selection of 
        prisoners to be transferred, particularly in light of the fact 
        that many of the prisoners transferred are minimum or medium 
        security prisoners, who are considered to have the best chance 
        for rehabilitation, and whether the transfer of those prisoners 
        indicates a change in Department of Defense policy regarding the 
        rehabilitation of military prisoners.
            (2) A comparison of the historical recidivism rates of 
        prisoners released from the United States Disciplinary Barracks 
        and the Federal Bureau of Prisons, together with a description 
        of any plans of the Army to track the parole and recidivism 
        rates of prisoners transferred to the Federal Bureau of Prisons 
        and whether it has tracked those factors for previous 
        transferees.
            (3) A description of the projected future flow of prisoners 
        into the new United States Disciplinary Barracks being 
        constructed at Fort Leavenworth, Kansas, and whether the 
        Secretary of the Army plans to automatically send new prisoners 
        to the Federal Bureau of Prisons without serving at the United 
        States Disciplinary Barracks if that Barracks is at capacity and 
        whether the Memorandum of Understanding between the Federal 
        Bureau of Prisons and the Army covers that possibility.
            (4) A description of the cost of incarcerating a prisoner in 
        the Federal Bureau of Prisons compared to the United States 
        Disciplinary Barracks and the assessment of the Secretary as to 
        the extent to which the transfer of prisoners to the Federal 
        Bureau of Prisons by the Secretary of the Army is made in order 
        to shift a budgetary burden.

    (c) Monitoring.--During fiscal years 1999 through 2003, the 
Secretary of the Army shall track the parole and recidivism rates of 
prisoners transferred from the United States Disciplinary Barracks, Fort 
Leavenworth, Kansas, to the Federal Bureau of Prisons.

SEC. 554. REVIEW AND REPORT REGARDING THE DISTRIBUTION OF NATIONAL GUARD 
            FULL-TIME SUPPORT AMONG THE STATES.

    (a) Requirement for Review.--The Chief of the National Guard Bureau 
shall review the process used for allocating and distributing all 
categories of full-time support personnel among the States for the 
National Guard of the States.
    (b) Purpose of Review.--The purpose of the review is to determine 
whether that allocation and distribution process provides for adequately 
meeting the full-time support personnel requirements of the National 
Guard in the case of those States that have fewer than 16 National Guard 
units categorized in readiness tiers I, II, and III.
    (c) Matters To Be Reviewed.--The matters reviewed shall include the 
following:
            (1) The factors considered for the process of determining 
        the distribution among the States of full-time support 
        personnel, including the weights assigned to those factors.
            (2) The extent to which that process results in full-time 
        support personnel levels for the units of the States described 
        in subsection (b) that are at the levels necessary to optimize 
        the preparedness of those units to meet the mission requirements 
        applicable to those units.

[[Page 112 STAT. 2025]]

            (3) The effects that full-time support personnel at levels 
        determined under that process will have on the National Guard of 
        those States in the future, including the effects on all 
        categories of full-time support personnel, and unit readiness, 
        recruitment, and continued use of existing National Guard 
        armories and other facilities.

    (d) Report.--Not later than March 15, 1999, the Chief of the 
National Guard Bureau shall submit to the Secretary of Defense a report 
on the results of the review. Not later than April 30, 1999, the 
Secretary shall transmit the report, and the Secretary's evaluation of 
and comments on the report, to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives.

                        Subtitle G--Other Matters

SEC. 561. TWO-YEAR EXTENSION OF CERTAIN FORCE DRAWDOWN TRANSITION 
            AUTHORITIES RELATING TO PERSONNEL MANAGEMENT AND BENEFITS.

    (a) Early Retirement Authority for Active Force 
Members.--Section 4403(i) of the National Defense Authorization Act for 
Fiscal Year 1993 (10 U.S.C. 1293 note) is amended by striking out 
``October 1, 1999'' and inserting in lieu thereof ``October 1, 2001''.
    (b) SSB and VSI.--Sections 1174a(h) and 1175(d)(3) of title 10, 
United States Code, are amended by striking out ``September 30, 1999'' 
and inserting in lieu thereof ``September 30, 2001''.
    (c) Selective Early Retirement Boards.--Section 638a(a) of such 
title is amended by striking out ``during the nine-year period beginning 
on October 1, 1990'' and inserting in lieu thereof ``during the period 
beginning on October 1, 1990, and ending on September 30, 2001''.
    (d) Time-in-Grade Requirement for Retention of Grade Upon Voluntary 
Retirement.--Section 1370(a)(2)(A) of such title is amended by striking 
out ``during the nine-year period beginning on October 1, 1990'' and 
inserting in lieu thereof ``during the period beginning on October 1, 
1990, and ending on September 30, 2001''.
    (e) Minimum Commissioned Service for Voluntary Retirement as an 
Officer.--Sections 3911(b), 6323(a)(2), and 8911(b) of such title are 
amended by striking out ``during the nine-year period beginning on 
October 1, 1990'' and inserting in lieu thereof ``during the period 
beginning on October 1, 1990, and ending on September 30, 2001''.
    (f ) Travel, Transportation, and Storage Benefits.--
Sections 404(c)(1)(C), 404(f )(2)(B)(v), 406(a)(2)(B)(v), and 
406(g)(1)(C) of title 37, United States Code, and section 503(c) of the 
National Defense Authorization Act for Fiscal Year 1991 (37 U.S.C. 406 
note) are amended by striking out ``during the nine-year period 
beginning on October 1, 1990'' and inserting in lieu thereof ``during 
the period beginning on October 1, 1990, and ending on September 30, 
2001''.
    (g) Educational Leave for Public and Community 
Service.--Section 4463(f ) of the National Defense Authorization Act for 
Fiscal Year 1993 (10 U.S.C. 1143a note) is amended by striking out 
``September 30, 1999'' and inserting in lieu thereof ``September 30, 
2001''.

[[Page 112 STAT. 2026]]

    (h) Transitional Health Benefits.--Section 1145 of title 10, United 
States Code, is amended--
            (1) in subsections (a)(1) and (c)(1), by striking out 
        ``during the nine-year period beginning on October 1, 1990'' and 
        inserting in lieu thereof ``during the period beginning on 
        October 1, 1990, and ending on September 30, 2001''; and
            (2) in subsection (e), by striking out ``during the five-
        year period beginning on October 1, 1994'' and inserting in lieu 
        thereof ``during the period beginning on October 1, 1994, and 
        ending on September 30, 2001''.

    (i) Transitional Commissary and Exchange Benefits.--
Section 1146 of such title is amended--
            (1) by striking out ``during the nine-year period beginning 
        on October 1, 1990'' and inserting in lieu thereof ``during the 
        period beginning on October 1, 1990, and ending on September 30, 
        2001''; and
            (2) by striking out ``during the five-year period beginning 
        on October 1, 1994'' and inserting in lieu thereof ``during the 
        period beginning on October 1, 1994, and ending on September 30, 
        2001''.

    ( j) Transitional Use of Military Housing.--Section 1147(a) of such 
title is amended--
            (1) in paragraph (1), by striking out ``during the nine-year 
        period beginning on October 1, 1990'' and inserting in lieu 
        thereof ``during the period beginning on October 1, 1990, and 
        ending on September 30, 2001''; and
            (2) in paragraph (2), by striking out ``during the five-year 
        period beginning on October 1, 1994'' and inserting in lieu 
        thereof ``during the period beginning on October 1, 1994, and 
        ending on September 30, 2001''.

    (k) Continued Enrollment of Dependents in Defense Dependents' 
Education System.--Section 1407(c)(1) of the Defense Dependents' 
Education Act of 1978 (20 U.S.C. 926(c)(1)) is amended by striking out 
``during the nine-year period beginning on October 1, 1990'' and 
inserting in lieu thereof ``during the period beginning on October 1, 
1990, and ending on September 30, 2001''.
    (l) Force Reduction Transition Period Definition.--Section 4411 of 
the National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 
12681 note) is amended by striking out ``September 30, 1999'' and 
inserting in lieu thereof ``September 30, 2001''.
    (m) Temporary Special Authority for Force Reduction Period 
Retirements.--Section 4416(b)(1) of the National Defense Authorization 
Act for Fiscal Year 1993 (10 U.S.C. 12681 note) is amended by striking 
out ``October 1, 1999'' and inserting in lieu thereof ``October 1, 
2001''.
    (n) Retired Pay for Non-Regular Service.--(1) Section 12731(f ) of 
title 10, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``September 30, 2001''.
    (2) Section 12731a of such title is amended in subsections (a)(1)(B) 
and (b) by striking out ``October 1, 1999'' and inserting in lieu 
thereof ``October 1, 2001''.
    (o) Reduction of Time-in-Grade Requirement for Retention of Grade 
Upon Voluntary Retirement.--Section 1370(d) of such title is amended by 
adding at the end the following new paragraph:

[[Page 112 STAT. 2027]]

    ``(5) The Secretary of Defense may authorize the Secretary of a 
military department to reduce the 3-year period required by paragraph 
(3)(A) to a period not less than 2 years in the case of retirements 
effective during the period beginning on the date of the enactment of 
this paragraph and ending on September 30, 2001. The number of reserve 
commissioned officers of an armed force in the same grade for whom a 
reduction is made during any fiscal year in the period of service-in-
grade otherwise required under this paragraph may not exceed the number 
equal to 2 percent of the strength authorized for that fiscal year for 
reserve commissioned officers of that armed force in an active status in 
that grade.''.
    (p) Affiliation With Guard and Reserve Units; Waiver of Certain 
Limitations.--Section 1150(a) of such title is amended by striking out 
``during the nine-year period beginning on October 1, 1990'' and 
inserting in lieu thereof ``during the period beginning on October 1, 
1990, and ending on September 30, 2001''.
    (q) Reserve Montgomery GI Bill.--Section 16133(b)(1)(B) of such 
title is amended by striking out ``September 30, 1999'' and inserting in 
lieu thereof ``September 30, 2001''.

SEC. 562. LEAVE WITHOUT PAY FOR SUSPENDED ACADEMY CADETS AND MIDSHIPMEN.

    (a) Authority.--Section 702 of title 10, United States Code, is 
amended--
            (1) by designating the second sentence of subsection (b) as 
        subsection (d);
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Involuntary Leave Without Pay for Suspended 
Academy Cadets and Midshipmen.--(1) Under regulations prescribed under 
subsection (d), the Secretary concerned may place an academy cadet or 
midshipman on involuntary leave for any period during which the 
Superintendent of the Academy at which the cadet or midshipman is 
admitted has suspended the cadet or midshipman from duty at the 
Academy--
            ``(A) pending separation from the Academy;
            ``(B) pending return to the Academy to repeat an academic 
        semester or year; or
            ``(C) for other good cause.

    ``(2) A cadet or midshipman placed on involuntary leave under 
paragraph (1) is not entitled to any pay under section 230(c) of title 
37 for the period of the leave.
    ``(3) Return of an academy cadet or midshipman to a pay status at 
the Academy concerned from involuntary leave status under paragraph (1) 
does not restore any entitlement of the cadet or midshipman to pay for 
the period of the involuntary leave.''.
    (b) Definition.--Such section is further amended--
            (1) in subsection (c) (as redesignated by subsection 
        (a)(2)), by striking out ``cadets at'' and all that follows 
        through ``Naval Academy,'' and inserting in lieu thereof 
        ``academy cadets or midshipmen''; and
            (2) by adding at the end the following new subsection:

    ``(e) Definition.--In this section, the term `academy cadet or 
midshipman' means--
            ``(1) a cadet of the United States Military Academy;

[[Page 112 STAT. 2028]]

            ``(2) a midshipman of the United States Naval Academy;
            ``(3) a cadet of the United States Air Force Academy; or
            ``(4) a cadet of the United States Coast Guard Academy.''.

    (c) Subsection Headings.--Such section is further amended--
            (1) in subsection (a), by inserting ``Graduation 
        Leave.--'' after ``(a)'';
            (2) in subsection (c) (as redesignated by subsection 
        (a)(2)), by inserting ``Inapplicable Leave Provisions.--'' after 
        ``(c)''; and
            (3) in subsection (d) (as designated by subsection (a)(1)), 
        by inserting ``Regulations.--'' after ``(d)''.

SEC. 563. CONTINUED ELIGIBILITY UNDER VOLUNTARY SEPARATION INCENTIVE 
            PROGRAM FOR MEMBERS WHO INVOLUNTARILY LOSE MEMBERSHIP IN A 
            RESERVE COMPONENT.

    (a) Period of Eligibility.--Subsection (a) of section 1175 of title 
10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a)'';
            (2) by striking out ``, for the period of time the member 
        serves in a reserve component''; and
            (3) by adding at the end the following:

    ``(2)(A) Except as provided in subparagraph (B), a financial 
incentive provided a member under this section shall be paid for the 
period equal to twice the number of years of service of the member, 
computed as provided in subsection (e)(5).
    ``(B) If, before the expiration of the period otherwise applicable 
under subparagraph (A) to a member receiving a financial incentive under 
this section, the member is separated from a reserve component or is 
transferred to the Retired Reserve, the period for payment of a 
financial incentive to the member under this section shall terminate on 
the date of the separation or transfer unless--
            ``(i) the separation or transfer is required by reason of 
        the age or number of years of service of the member;
            ``(ii) the separation or transfer is required by reason of 
        the failure of selection for promotion or the medical 
        disqualification of the member, except in a case in which the 
        Secretary of Defense or the Secretary of Transportation 
        determines that the basis for the separation or transfer is a 
        result of a deliberate action taken by the member with the 
        intent to avoid retention in the Ready Reserve or Standby 
        Reserve; or
            ``(iii) in the case of a separation, the member is separated 
        from the reserve component for appointment or enlistment in or 
        transfer to another reserve component of an armed force for 
        service in the Ready Reserve or Standby Reserve of that armed 
        force.''.

    (b) Repeal of Superseded Provision.--Subsection (e)(1) of such 
section is amended by striking out the second sentence.
    (c) Effective <<NOTE: 10 USC 1175 note.>>  Date.--The amendments 
made by this section apply with respect to any person provided a 
voluntary separation incentive under section 1175 of title 10, United 
States Code (whether before, on, or after the date of the enactment of 
this Act).

[[Page 112 STAT. 2029]]

SEC. 564. REINSTATEMENT OF DEFINITION OF FINANCIAL INSTITUTION IN 
            AUTHORITIES FOR REIMBURSEMENT OF DEFENSE PERSONNEL FOR 
            GOVERNMENT ERRORS IN DIRECT DEPOSIT OF PAY.

    (a) Members of the Armed Forces.--Paragraph (1) of section 1053(d) 
of title 10, United States Code, is amended to read as follows:
            ``(1) The term `financial institution' means a bank, savings 
        and loan association, or similar institution or a credit union 
        chartered by the United States or a State.''.

    (b) Civilian Personnel.--Paragraph (1) of section 1594(d) of such 
title is amended to read as follows:
            ``(1) The term `financial institution' means a bank, savings 
        and loan association, or similar institution or a credit union 
        chartered by the United States or a State.''.

SEC. 565. INCREASE IN MAXIMUM AMOUNT FOR COLLEGE FUND PROGRAM.

    (a) Increase in Maximum Rate for Active Component Montgomery GI Bill 
Supplement.--Section 3015(d) of title 38, United States Code, is 
amended--
            (1) by inserting ``, at the time the individual first 
        becomes a member of the Armed Forces,'' after ``Secretary of 
        Defense, may''; and
            (2) by striking out ``$400'' and all that follows through 
        ``that date'' and inserting in lieu thereof ``$950 per month''.

    (b) Effective <<NOTE: 38 USC 3015 note.>>  Date.--The amendments 
made by subsection (a) shall take effect on October 1, 1998, and shall 
apply with respect to individuals who first become members of the Armed 
Forces on or after that date.

SEC. 566. CENTRAL IDENTIFICATION LABORATORY, HAWAII.

    (a) Sense of Congress.--It is the sense of Congress that the Central 
Identification Laboratory, Hawaii, of the Department of the Army is an 
important element of the Department of Defense and is critical to the 
full accounting of members of the Armed Forces who have been classified 
as POW/MIAs or are otherwise unaccounted for.
    (b) Required Staffing Level.--The Secretary of Defense shall provide 
sufficient personnel to fill all authorized personnel positions of the 
Central Identification Laboratory, Hawaii, Department of the Army. Those 
personnel shall be drawn from members of the Army, Navy, Air Force, and 
Marine Corps and from civilian personnel, as appropriate, considering 
the proportion of POW/MIAs from each service.
    (c) Joint Manning Plan.--The Secretary of Defense shall develop and 
implement, not later than March 31, 2000, a joint manning plan to ensure 
the appropriate participation of the four services in the staffing of 
the Central Identification Laboratory, Hawaii, as required by subsection 
(b).
    (d) Limitation on Reductions.--The Secretary of the Army may not 
carry out any personnel reductions (in authorized or assigned personnel) 
at the Central Identification Laboratory, Hawaii, until the joint 
manning plan required by subsection (c) is implemented.

[[Page 112 STAT. 2030]]

SEC. 567. MILITARY FUNERAL HONORS FOR VETERANS.

    (a) Conference on Practices Concerning Military Honors at Funerals 
for Veterans.--(1) The Secretary of Defense, in consultation with the 
Secretary of Veterans Affairs, shall convene and preside over a 
conference, to be completed not later than December 31, 1998, for the 
purpose of determining means of improving and increasing the 
availability of military funeral honors for veterans. The Secretary of 
Veterans Affairs shall also participate in the conference.
    (2) The Secretaries shall invite and encourage the participation at 
the conference of appropriate representatives of veterans service 
organizations.
    (3) The conference shall perform the following:
            (A) Review current policies and practices of the military 
        departments and the Department of Veterans Affairs relating to 
        the provision of military funeral honors for veterans.
            (B) Consider alternative methods for providing military 
        funeral honors for veterans and develop new strategies for 
        providing those honors.
            (C) Determine what resources may be available outside the 
        Department of Defense that could be used to provide military 
        funeral honors for veterans.
            (D) Analyze the costs associated with providing military 
        funeral honors for veterans, including the costs associated with 
        using personnel and other resources for that purpose.
            (E) Assess trends in the rate of death of veterans.
            (F) Propose, consider, and determine means of improving and 
        increasing the availability of military funeral honors for 
        veterans.

    (4) <<NOTE: Reports.>>  Not later than March 31, 1999, the Secretary 
of Defense shall submit to Congress a report on the conference. The 
report shall set forth any modifications to Department of Defense 
directives on military funeral honors adopted as a result of the 
conference and include any recommendations for legislation that the 
Secretary considers appropriate as a result of the conference.

    (b) Honor Guard Details at Funerals of Veterans.--(1) Chapter 75 of 
title 10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 1491. Honor guard details at funerals of veterans

    ``(a) Availability.--The Secretary of a military department shall, 
upon request, provide an honor guard detail (or ensure that an honor 
guard detail is provided) for the funeral of any veteran that occurs 
after December 31, 1999.
    ``(b) Composition of Honor Guard Details.--The Secretary of each 
military department shall ensure that an honor guard detail for the 
funeral of a veteran consists of not less than three persons and (unless 
a bugler is part of the detail) has the capability to play a recorded 
version of Taps.
    ``(c) <<NOTE: Regulations.>>  Persons Forming Honor Guards.--An 
honor guard detail may consist of members of the armed forces or members 
of veterans organizations or other organizations approved for purposes 
of this section under regulations prescribed by the Secretary of 
Defense. The Secretary of a military department may provide 
transportation, or reimbursement for transportation, and expenses for a 
person who participates in an honor guard detail under this section and

[[Page 112 STAT. 2031]]

is not a member of the armed forces or an employee of the United States.

    ``(d) Regulations.--The Secretary of Defense shall by regulation 
establish a system for selection of units of the armed forces and other 
organizations to provide honor guard details. The system shall place an 
emphasis on balancing the funeral detail workload among the units and 
organizations providing honor guard details in an equitable manner as 
they are able to respond to requests for such details in terms of 
geographic proximity and available resources. The Secretary shall 
provide in such regulations that the armed force in which a veteran 
served shall not be considered to be a factor when selecting the 
military unit or other organization to provide an honor guard detail for 
the funeral of the veteran.
    ``(e) Annual Report.--The Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report not later than January 
31 of each year beginning with 2001 and ending with 2005 on the 
experience of the Department of Defense under this section. Each such 
report shall provide data on the number of funerals supported under this 
section, the cost for that support, shown by manpower and other cost 
factors, and the number and costs of funerals supported by each 
participating organization. The data in the report shall be presented in 
a standard format, regardless of military department or other 
organization.
    ``(f ) Veteran Defined.--In this section, the term `veteran' has the 
meaning given that term in section 101(2) of title 38.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``1491. Honor guard details at funerals of veterans.''.

    (c) Treatment of Performance of Honor Guard Functions by Reserves.--
(1) Chapter 1215 of title 10, United States Code, is amended by adding 
at the end the following new section:

``Sec. 12552. Funeral honor guard functions: prohibition of treatment as 
                        drill or training

    ``Performance by a Reserve of honor guard functions at the funeral 
of a veteran may not be considered to be a period of drill or training 
otherwise required.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``12552. Funeral honor guard functions: prohibition of treatment as 
           drill or training.''.

    (d) Repeal of Limitation on Availability of Funds for Honor Guard 
Functions by National Guard.--Section 114 of title 32, United States 
Code, is amended--
            (1) by striking out ``(a)''; and
            (2) by striking out subsection (b).

    (e) Veterans Service Organization Defined.--In this section, the 
term ``veterans service organization'' means any organization recognized 
by the Secretary of Veterans Affairs under section 5902 of title 38, 
United States Code.

SEC. 568. STATUS IN THE NAVAL RESERVE OF CADETS AT THE MERCHANT MARINE 
            ACADEMY.

    Section 1303(c) of the Merchant Marine Act, 1936 <<NOTE: 46 USC app. 
1295b.>>  (46 U.S.C. App. 1295(c)), is amended--

[[Page 112 STAT. 2032]]

            (1) by inserting ``(1)'' after ``(c)'';
            (2) by striking out ``may'' and inserting in lieu thereof 
        ``shall''; and
            (3) by adding at the end the following:

    ``(2) The Secretary of the Navy shall provide for cadets of the 
Academy who are midshipmen in the United States Naval Reserve to be 
issued an identification card (referred to as a `military ID card') and 
to be entitled to all rights and privileges in accordance with the same 
eligibility criteria as apply to other members of the Ready Reserve of 
the reserve components of the Armed Forces.
    ``(3) The Secretary of the Navy shall carry out paragraphs (1) and 
(2) in coordination with the Secretary.''.

SEC. 569. REPEAL OF RESTRICTION ON CIVILIAN EMPLOYMENT OF ENLISTED 
            MEMBERS.

    (a) Repeal.--Section 974 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 49 of such title is amended by striking out the item relating to 
section 974.

SEC. 570. TRANSITIONAL COMPENSATION FOR ABUSED DEPENDENT CHILDREN NOT 
            RESIDING WITH THE SPOUSE OR FORMER SPOUSE OF A MEMBER 
            CONVICTED OF DEPENDENT ABUSE.

    (a) Entitlement Not Conditioned on Forfeiture of Spousal 
Compensation.--Subsection (d) of section 1059 of title 10, United States 
Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking out ``(except as otherwise provided 
                in this subsection)''; and
                    (B) by inserting before the period the following: 
                ``, including an amount (determined under subsection (f 
                )(2)) for each, if any, dependent child of the 
                individual described in subsection (b) who resides in 
                the same household as that spouse or former spouse'';
            (2) in paragraph (2)--
                    (A) by striking out ``(but for subsection (g)) would 
                be eligible'' and inserting in lieu thereof ``is or, but 
                for subsection (g), would be eligible''; and
                    (B) by striking out ``such compensation'' and 
                inserting in lieu thereof ``compensation under this 
                section''; and
            (3) in paragraph (4), by striking out ``For purposes of 
        paragraphs (2) and (3)'' and inserting in lieu thereof ``For 
        purposes of this subsection''.

    (b) Amount of Payment.--Subsection (f )(2) of such section is 
amended by striking out ``has custody of a dependent child or children 
of the member'' and inserting in lieu thereof ``has custody of a 
dependent child of the member who resides in the same household as that 
spouse or former spouse''.
    (c) <<NOTE: 10 USC 1059 note.>>  Prospective Applicability.--No 
benefits shall accrue by reason of the amendments made by this section 
for any month that begins before the date of the enactment of this Act.

[[Page 112 STAT. 2033]]

SEC. 571. <<NOTE: 10 USC 520 note.>>  PILOT PROGRAM FOR TREATING GED AND 
            HOME SCHOOL DIPLOMA RECIPIENTS AS HIGH SCHOOL GRADUATES FOR 
            DETERMINATIONS OF ELIGIBILITY FOR ENLISTMENT IN THE ARMED 
            FORCES.

    (a) Program Required.--The Secretary of Defense shall establish a 
pilot program to assess whether the Armed Forces could better meet 
recruiting requirements by treating GED recipients and home school 
diploma recipients as having graduated from high school with a high 
school diploma for the purpose of determining the eligibility of those 
persons to enlist in the Armed Forces. The Secretary of each military 
department shall administer the pilot program for the Armed Force or 
armed forces under the jurisdiction of that Secretary.
    (b) Persons Eligible Under the Pilot Program as High School 
Graduates.--Under the pilot program, a person shall be treated as having 
graduated from high school with a high school diploma for the purpose 
described in subsection (a) if--
            (1) the person has completed a general education development 
        program while participating in the National Guard Challenge 
        Program under section 509 of title 32, United States Code, and 
        is a GED recipient; or
            (2) the person is a home school diploma recipient and 
        provides a transcript demonstrating completion of high school to 
        the military department involved under the pilot program.

    (c) GED and Home School Diploma Recipients.--For the purposes of 
this section--
            (1) a person is a GED recipient if the person, after 
        completing a general education development program, has obtained 
        certification of high school equivalency by meeting State 
        requirements and passing a State approved exam that is 
        administered for the purpose of providing an appraisal of the 
        person's achievement or performance in the broad subject matter 
        areas usually required for high school graduates; and
            (2) a person is a home school diploma recipient if the 
        person has received a diploma for completing a program of 
        education through the high school level at a home school, 
        without regard to whether the home school is treated as a 
        private school under the law of the State in which located.

    (d) Annual Limit on Number.--Not more than 1,250 GED recipients and 
home school diploma recipients enlisted by an armed force during a 
fiscal year may be treated under the pilot program as having graduated 
from high school with a high school diploma.
    (e) Duration of Pilot Program.--The pilot program shall be in effect 
during the period beginning on October 1, 1998, and ending on September 
30, 2003.
    (f ) Report.--Not later than February 1, 2004, the Secretary of 
Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives a 
report on the pilot program. The report shall include the following, set 
forth separately for GED recipients and home school diploma recipients:
            (1) The assessment of the Secretary of Defense, and any 
        assessment of any of the Secretaries of the military 
        departments, regarding the value of, and any necessity for, 
        authority to treat GED recipients and home school diploma 
        recipients as having graduated from high school with a high 
        school

[[Page 112 STAT. 2034]]

        diploma for the purpose of determining the eligibility of those 
        persons to enlist in the Armed Forces.
            (2) A comparison (shown by armed force and by each fiscal 
        year of the pilot program) of the performance of the persons who 
        enlisted during the fiscal year as GED or home school diploma 
        recipients treated under the pilot program as having graduated 
        from high school with a high school diploma with the performance 
        of the persons who enlisted in that armed force during the same 
        fiscal year after having graduated from high school with a high 
        school diploma, with respect to the following:
                    (A) Attrition.
                    (B) Discipline.
                    (C) Adaptability to military life.
                    (D) Aptitude for mastering the skills necessary for 
                technical specialties.
                    (E) Reenlistment rates.

    (g) State Defined.--For purposes of this section, the term ``State'' 
includes the District of Columbia, the Commonwealth of Puerto Rico, and 
the territories of the United States.

SEC. 572. SENSE OF CONGRESS CONCERNING NEW PARENT SUPPORT PROGRAM AND 
            MILITARY FAMILIES.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the New Parent Support Program that was begun as a pilot 
        program of the Marine Corps at Camp Pendleton, California, has 
        been an effective tool in curbing family violence within the 
        military community;
            (2) such program is a model for future New Parent Support 
        Programs throughout the Marine Corps, Navy, Army, and Air Force; 
        and
            (3) in light of the pressures and strains placed upon 
        military families and the benefits of the New Parent Support 
        Program in helping ``at-risk'' families, the Department of 
        Defense should seek ways to ensure that in future fiscal years 
        funds are made available for New Parent Support Programs for the 
        Army, Navy, Air Force, and Marine Corps in amounts sufficient to 
        meet requirements for those programs.

    (b) Report.--Not later than 120 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress a report 
on the New Parent Support Program of the Department of Defense. The 
Secretary shall include in the report the following:
            (1) A description of how the Army, Navy, Air Force, and 
        Marine Corps are each implementing a New Parent Support Program 
        and how each such program is organized.
            (2) A description of how the implementation of programs for 
        the Army, Navy, and Air Force compare to the fully implemented 
        Marine Corps program.
            (3) The number of installations that the four Armed Forces 
        have each scheduled to receive support for the New Parent 
        Support Program.
            (4) The number of installations delayed in providing the 
        program.
            (5) The number of programs terminated.
            (6) The number of programs with reduced support.

[[Page 112 STAT. 2035]]

            (7) The funding provided for those programs for each of the 
        four Armed Forces for each of fiscal years 1994 through 1999 and 
        the amount projected to be provided for those programs for 
        fiscal year 2000 and, if the amount provided for any of those 
        programs for any such year is less that the amount needed to 
        fully fund that program for that year, an explanation of the 
        reasons for the shortfall.

SEC. 573. ADVANCEMENT OF BENJAMIN O. DAVIS, JUNIOR, TO GRADE OF GENERAL 
            ON THE RETIRED LIST OF THE AIR FORCE.

    (a) <<NOTE: President.>>  Authority.--The President is authorized to 
advance Lieutenant General Benjamin O. Davis, Junior, United States Air 
Force, retired, to the grade of general on the retired list of the Air 
Force.

    (b) Additional Benefits Not To Accrue.--An advancement of Benjamin 
O. Davis, Junior, to the grade of general on the retired list of the Air 
Force under subsection (a) shall not increase or change the compensation 
or benefits from the United States to which any person is now or may in 
the future be entitled based upon the military service of the said 
Benjamin O. Davis, Junior.

SEC. 574. SENSE OF THE HOUSE OF REPRESENTATIVES CONCERNING ADHERENCE BY 
            CIVILIANS IN MILITARY CHAIN OF COMMAND TO THE STANDARD OF 
            EXEMPLARY CONDUCT REQUIRED OF COMMANDING OFFICERS AND OTHERS 
            IN AUTHORITY IN THE ARMED FORCES.

    It is the sense of the House of Representatives that civilians in 
the military chain of command (as provided in section 162(b) of title 
10, United States Code) should (in the same manner as is required by law 
of commanding officers and others in authority in the Armed Forces)--
            (1) show in themselves a good example of virtue, honor, and 
        patriotism and subordinate themselves to those ideals;
            (2) be vigilant in inspecting the conduct of all persons who 
        are placed under their command;
            (3) guard against and put an end to all dissolute and 
        immoral practices and correct, according to the laws and 
        regulations of the Armed Forces, all persons who are guilty of 
        them; and
            (4) take all necessary and proper measures, under the laws, 
        regulations, and customs of the Armed Forces, to promote and 
        safeguard the morale, the physical well-being, and the general 
        welfare of the officers and enlisted persons under their command 
        or charge.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1999.
Sec. 602. Rate of pay for cadets and midshipmen at the service 
           academies.
Sec. 603. Basic allowance for housing outside the United States.
Sec. 604. Basic allowance for subsistence for reserves.

           Subtitle B--Bonuses and Special and Incentive Pays

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

[[Page 112 STAT. 2036]]

Sec. 612. Three-month extension of certain bonuses and special pay 
           authorities for nurse officer candidates, registered nurses, 
           and nurse anesthetists.
Sec. 613. Three-month extension of authorities relating to payment of 
           other bonuses and special pays.
Sec. 614. Increased hazardous duty pay for aerial flight crewmembers in 
           certain pay grades.
Sec. 615. Aviation career incentive pay and aviation officer retention 
           bonus.
Sec. 616. Diving duty special pay for divers having diving duty as a 
           nonprimary duty.
Sec. 617. Hardship duty pay.
Sec. 618. Selective reenlistment bonus eligibility for Reserve members 
           performing active Guard and Reserve duty.
Sec. 619. Repeal of 10 percent limitation on certain selective 
           reenlistment bonuses.
Sec. 620. Increase in maximum amount authorized for Army enlistment 
           bonus.
Sec. 621. Equitable treatment of Reserves eligible for special pay for 
           duty subject to hostile fire or imminent danger.
Sec. 622. Retention incentives initiative for critically short military 
           occupational specialties.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Payments for movements of household goods arranged by members.
Sec. 632. Exception to maximum weight allowance for baggage and 
           household 
           effects.
Sec. 633. Travel and transportation allowances for travel performed by 
           members in connection with rest and recuperative leave from 
           overseas stations.
Sec. 634. Storage of baggage of certain dependents.
Sec. 635. Commercial travel of Reserves at Federal supply schedule rates 
           for attendance at inactive-duty training assemblies.

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

Sec. 641. Paid-up coverage under Survivor Benefit Plan.
Sec. 642. Survivor Benefit Plan open enrollment period.
Sec. 643. Effective date of court-required former spouse Survivor 
           Benefit Plan 
           coverage effectuated through elections and deemed elections.
Sec. 644. Presentation of United States flag to members of the Armed 
           Forces upon retirement.
Sec. 645. Recovery, care, and disposition of remains of medically 
           retired member who dies during hospitalization that begins 
           while on active duty.
Sec. 646. Revision to computation of retired pay for certain members.
Sec. 647. Elimination of backlog of unpaid retired pay.

                        Subtitle E--Other Matters

Sec. 651. Definition of possessions of the United States for pay and 
           allowances 
           purposes.
Sec. 652. Accounting of advance payments.
Sec. 653. Reimbursement of rental vehicle costs when motor vehicle 
           transported at Government expense is late.
Sec. 654. Education loan repayment program for health professions 
           officers serving in Selected Reserve.
Sec. 655. Federal employees' compensation coverage for students 
           participating in certain officer candidate programs.
Sec. 656. Relationship of enlistment bonuses to eligibility to receive 
           Army college fund supplement under Montgomery GI Bill 
           Educational Assistance 
           Program.
Sec. 657. Authority to provide financial assistance for education of 
           certain defense dependents overseas.
Sec. 658. Clarifications concerning payments to certain persons captured 
           or interned by North Vietnam.

                     Subtitle A--Pay and Allowances

SEC. 601. <<NOTE: 37 USC 1009 note.>>  INCREASE IN BASIC PAY FOR FISCAL 
            YEAR 1999.

    (a) Waiver of Section 1009 Adjustment.--Except as provided in 
subsection (b), the adjustment to become effective during fiscal year 
1999 required by section 1009 of title 37, United States Code, in the 
rate of monthly basic pay authorized members of the uniformed services 
by section 203(a) of such title shall not be made.

[[Page 112 STAT. 2037]]

    (b) Increase in Basic Pay.--Effective on January 1, 1999, the rates 
of basic pay of members of the uniformed services shall be increased by 
the greater of--
            (1) 3.6 percent; or
            (2) the percentage increase determined under subsection (c) 
        of section 1009 of title 37, United States Code, by which the 
        monthly basic pay of members would be adjusted under subsection 
        (a) of that section on that date in the absence of subsection 
        (a) of this section.

SEC. 602. RATE OF PAY FOR CADETS AND MIDSHIPMEN AT THE SERVICE 
            ACADEMIES.

    (a) Increased Rate.--Section 203(c) of title 37, United States Code, 
is amended by striking out ``$558.04'' and inserting in lieu thereof 
``$600.00''.
    (b) <<NOTE: 37 USC 203 note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect on January 1, 1999.

SEC. 603. BASIC ALLOWANCE FOR HOUSING OUTSIDE THE UNITED STATES.

    (a) Payment of Certain Expenses Related to Overseas Housing.--
Section 403(c) of title 37, United States Code, is amended by adding at 
the end the following new paragraph:
    ``(3)(A) In the case of a member of the uniformed services 
authorized to receive an allowance under paragraph (1), the Secretary 
concerned may make a lump-sum payment to the member for required 
deposits and advance rent, and for expenses relating thereto, that are--
            ``(i) incurred by the member in occupying private housing 
        outside of the United States; and
            ``(ii) authorized or approved under regulations prescribed 
        by the Secretary concerned.

    ``(B) Expenses for which a member may be reimbursed under this 
paragraph may include losses relating to housing that are sustained by 
the member as a result of fluctuations in the relative value of the 
currencies of the United States and the foreign country in which the 
housing is located.
    ``(C) The Secretary concerned shall recoup the full amount of any 
deposit or advance rent payments made by the Secretary under 
subparagraph (A), including any gain resulting from currency 
fluctuations between the time of payment and the time of recoupment.''.
    (b) Conforming Amendment.--Section 405 of title 37, United States 
Code, is amended by striking out subsection (c).
    (c) <<NOTE: 37 USC 403 note.>>  Retroactive Application.--The 
reimbursement authority provided by section 403(c)(3)(B) of title 37, 
United States Code, as added by subsection (a), applies with respect to 
losses relating to housing that are sustained, on or after July 1, 1997, 
by a member of the uniformed services as a result of fluctuations in the 
relative value of the currencies of the United States and the foreign 
country in which the housing is located.

SEC. 604. BASIC ALLOWANCE FOR SUBSISTENCE FOR RESERVES.

    (a) In General.--Section 402 of title 37, United States Code, is 
amended--
            (1) by redesignating subsections (e) and (f ) as subsections 
        (f ) and (g), respectively; and

[[Page 112 STAT. 2038]]

            (2) by inserting after subsection (d) the following new 
        subsection:

    ``(e) Special Rule for Certain Enlisted Reserve Members.--Unless 
entitled to basic pay under section 204 of this title, an enlisted 
member of a reserve component may receive, at the discretion of the 
Secretary concerned, rations in kind, or a part thereof, when the 
member's instruction or duty periods, as described in section 206(a) of 
this title, total at least 8 hours in a calendar day. The Secretary 
concerned may provide an enlisted member who could be provided rations 
in kind under the preceding sentence with a commutation when rations in 
kind are not available.''.
    (b) Application During Transitional Period.--Section 602(d)(1) of 
the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 37 U.S.C. 402 note) is amended by adding at the end the 
following new subparagraph:
                    ``(D) Special rule for certain enlisted reserve 
                members.--Unless entitled to basic pay under section 204 
                of title 37, United States Code, an enlisted member of a 
                reserve component (as defined in section 101(24) of such 
                title) may receive, at the discretion of the Secretary 
                concerned (as defined in section 101(5) of such title), 
                rations in kind, or a part thereof, when the member's 
                instruction or duty periods (as described in section 
                206(a) of such title) total at least 8 hours in a 
                calendar day. The Secretary concerned may provide an 
                enlisted member who could be provided rations in kind 
                under the preceding sentence with a commutation when 
                rations in kind are not available.''.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. THREE-MONTH EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
            AUTHORITIES FOR RESERVE FORCES.

    (a) Special Pay for Health Professionals in Critically Short Wartime 
Specialties.--Section 302g(f ) of title 37, United States Code, is 
amended by striking out ``September 30, 1999'' and inserting in lieu 
thereof ``December 31, 1999''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f ) of title 
37, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``December 31, 1999''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 37, 
United States Code, is amended by striking out ``September 30, 1999'' 
and inserting in lieu thereof ``December 31, 1999''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of title 37, United States Code, is 
amended by striking out ``September 30, 1999'' and inserting in lieu 
thereof ``December 31, 1999''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``December 31, 1999''.
    (f ) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of title 37, United States Code, is amended by striking out 
``September 30, 1999'' and inserting in lieu thereof ``December 31, 
1999''.
    (g) Prior Service Enlistment Bonus.--Section 308i(f ) of title 37, 
United States Code, as redesignated by section 622, is amended

[[Page 112 STAT. 2039]]

by striking out ``September 30, 1999'' and inserting in lieu thereof 
``December 31, 1999''.
    (h) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of title 10, United 
States Code, is amended by striking out ``October 1, 1999'' and 
inserting in lieu thereof ``January 1, 2000''.

SEC. 612. THREE-MONTH EXTENSION OF CERTAIN BONUSES AND 
            SPECIAL PAY AUTHORITIES FOR NURSE OFFICER CANDIDATES, 
            REGISTERED NURSES, AND NURSE ANESTHETISTS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking out ``September 
30, 1999'' and inserting in lieu thereof ``December 31, 1999''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``December 31, 1999''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking out 
``September 30, 1999'' and inserting in lieu thereof ``December 31, 
1999''.

SEC. 613. THREE-MONTH EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
            OTHER BONUSES AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking out ``September 30, 1999,'' 
and inserting in lieu thereof ``December 31, 1999,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of title 
37, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``December 31, 1999''.
    (c) Enlistment Bonuses for Members With Critical Skills.--Sections 
308a(c) and 308f(c) of title 37, United States Code, are each amended by 
striking out ``September 30, 1999'' and inserting in lieu thereof 
``December 31, 1999''.
    (d) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking out ``September 30, 1999'' and inserting in lieu 
thereof ``December 31, 1999''.
    (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37, 
United States Code, is amended by striking out ``September 30, 1999'' 
and inserting in lieu thereof ``December 31, 1999''.
    (f ) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of 
title 37, United States Code, is amended by striking out ``October 1, 
1999'' and inserting in lieu thereof ``October 1, 1998, and the 15-month 
period beginning on that date and ending on December 31, 1999''.

SEC. 614. INCREASED HAZARDOUS DUTY PAY FOR AERIAL FLIGHT CREWMEMBERS IN 
            CERTAIN PAY GRADES.

    (a) Rates.--The table in section 301(b) of title 37, United States 
Code, is amended by striking out the items relating to pay grades E-4, 
E-5, E-6, E-7, E-8, and E-9, and inserting in lieu thereof the 
following:


[[Page 112 STAT. 2040]]


        ``E-9.....................................................  240 
        E-8.......................................................  240 
        E-7.......................................................  240 
        E-6.......................................................  215 
        E-5.......................................................  190 
        E-4.......................................................165''.

    (b) <<NOTE: 37 USC 301 note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect on October 1, 1998, and shall apply 
with respect to months beginning on or after that date.

SEC. 615. AVIATION CAREER INCENTIVE PAY AND AVIATION OFFICER RETENTION 
            BONUS.

    (a) Definition of Aviation Service.--(1) Section 301a(a)(6) of title 
37, United States Code, is amended--
            (A) by redesignating subparagraphs (A), (B), and (C) as 
        subparagraphs (B), (C), and (D), respectively; and
            (B) by inserting before subparagraph (B) (as so 
        redesignated) the following new subparagraph:
            ``(A) The term `aviation service' means service performed by 
        an officer (except a flight surgeon or other medical officer) 
        while holding an aeronautical rating or designation or while in 
        training to receive an aeronautical rating or designation.''.

    (2) Section 301b( j) of such title is amended by striking out 
paragraph (1) and inserting in lieu thereof the following new paragraph:
            ``(1) The term `aviation service' means service performed by 
        an officer (except a flight surgeon or other medical officer) 
        while holding an aeronautical rating or designation or while in 
        training to receive an aeronautical rating or designation.''.

    (b) Amount of Incentive Pay.--Subsection (b) of section 301a of such 
title is amended to read as follows:
    ``(b)(1) A member who satisfies the requirements described in 
subsection (a) is entitled to monthly incentive pay as follows:

``Years of aviation service (iMonthly...................................
  flight training) as an officrate......................................
        2 or less.................................................  $125
        Over 2....................................................  $156
        Over 3....................................................  $188
        Over 4....................................................  $206
        Over 6....................................................  $650
        Over 14...................................................  $840
        Over 22...................................................  $585
        Over 23...................................................  $495
        Over 24...................................................  $385
        Over 25...................................................  $250

    ``(2) An officer in a pay grade above O-6 is entitled, until the 
officer completes 25 years of aviation service, to be paid at the rates 
set forth in the table in paragraph (1), except that--
            ``(A) an officer in pay grade O-7 may not be paid at a rate 
        greater than $200 a month; and
            ``(B) an officer in pay grade O-8 or above may not be paid 
        at a rate greater than $206 a month.

    ``(3) For a warrant officer with over 22, 23, 24, or 25 years of 
aviation service who is qualified under subsection (a), the rate 
prescribed in the table in paragraph (1) for officers with over 14 years 
of aviation service shall continue to apply to the warrant officer.''.
    (c) References to Aviation Service.--(1) Section 301a of such title 
is further amended--

[[Page 112 STAT. 2041]]

            (A) in subsection (a)(4)--
                    (i) by striking out ``22 years of the officer's 
                service as an officer'' and inserting in lieu thereof 
                ``22 years of aviation service of the officer''; and
                    (ii) by striking out ``25 years of service as an 
                officer (as computed under section 205 of this title)'' 
                and inserting in lieu thereof ``25 years of aviation 
                service''; and
            (B) in subsection (d), by striking out ``subsection (b)(1) 
        or (2), as the case may be, for the performance of that duty by 
        a member of corresponding years of aviation or officer service, 
        as appropriate,'' and inserting in lieu thereof ``subsection (b) 
        for the performance of that duty by a member with corresponding 
        years of aviation service''.

    (2) Section 301b(b)(5) of such title is amended by striking out 
``active duty'' and inserting in lieu thereof ``aviation service''.
    (d) Conforming Amendment.--Section 615 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1787) <<NOTE: 37 USC 301a and note.>>  is repealed.

SEC. 616. DIVING DUTY SPECIAL PAY FOR DIVERS HAVING DIVING DUTY AS A 
            NONPRIMARY DUTY.

    (a) Eligibility for Maintaining Proficiency.--Section 304(a)(3) of 
title 37, United States Code, is amended to read as follows:
            ``(3) either--
                    ``(A) actually performs diving duty while serving in 
                an assignment for which diving is a primary duty; or
                    ``(B) meets the requirements to maintain proficiency 
                as described in paragraph (2) while serving in an 
                assignment that includes diving duty other than as a 
                primary duty.''.

    (b) <<NOTE: 37 USC 304 note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect on October 1, 1998, and shall apply 
with respect to months beginning on or after that date.

SEC. 617. HARDSHIP DUTY PAY.

    (a) Duty for Which Pay Authorized.--Section 305 of title 37, United 
States Code, is amended--
            (1) in subsection (a), by striking out ``on duty at a 
        location'' and all that follows through the period at the end of 
        the subsection and inserting in lieu thereof ``performing duty 
        in the United States or outside the United States that is 
        designated by the Secretary of Defense as hardship duty.'';
            (2) by striking out subsections (b) and (c);
            (3) in subsection (d), by striking out ``hardship duty 
        location pay'' and inserting in lieu thereof ``hardship duty 
        pay''; and
            (4) by redesignating subsection (d) as subsection (b).

    (b) Conforming Amendment.--Section 907(d) of such title is amended 
by striking out ``duty at a hardship duty location'' and inserting in 
lieu thereof ``hardship duty''.
    (c) Clerical Amendments.--(1) The heading for section 305 of such 
title is amended to read as follows:

``Sec. 305. Special pay: hardship duty pay''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 5 of such title is amended to read as follows:

``305. Special pay: hardship duty pay.''.

[[Page 112 STAT. 2042]]

SEC. 618. SELECTIVE REENLISTMENT BONUS ELIGIBILITY FOR RESERVE MEMBERS 
            PERFORMING ACTIVE GUARD AND RESERVE DUTY.

    Section 308(a)(1)(D) of title 37, United States Code, is amended to 
read as follows:
            ``(D) reenlists or voluntarily extends the member's 
        enlistment for a period of at least three years--
                    ``(i) in a regular component of the service 
                concerned; or
                    ``(ii) in a reserve component of the service 
                concerned, if the member is performing active Guard and 
                Reserve duty (as defined in section 101(d)(6) of title 
                10).''.

SEC. 619. REPEAL OF TEN PERCENT LIMITATION ON CERTAIN SELECTIVE 
            REENLISTMENT BONUSES.

    Section 308(b) of title 37, United States Code, is amended--
            (1) by striking out paragraph (2); and
            (2) by striking out ``(1)'' after ``(b)''.

SEC. 620. INCREASE IN MAXIMUM AMOUNT AUTHORIZED FOR ARMY ENLISTMENT 
            BONUS.

    Section 308f(a) of title 37, United States Code, is amended by 
striking out ``$4,000'' and inserting in lieu thereof ``$6,000''.

SEC. 621. EQUITABLE TREATMENT OF RESERVES ELIGIBLE FOR SPECIAL PAY FOR 
            DUTY SUBJECT TO HOSTILE FIRE OR IMMINENT DANGER.

    Section 310(b) of title 37, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following new paragraph:

    ``(2) A member of a reserve component who is eligible for special 
pay under this section for a month shall receive the full amount 
authorized in subsection (a) for that month regardless of the number of 
days during that month on which the member satisfies the eligibility 
criteria specified in such subsection.''.

SEC. 622. <<NOTE: 37 USC 301 note.>>  RETENTION INCENTIVES INITIATIVE 
            FOR CRITICALLY SHORT MILITARY OCCUPATIONAL SPECIALTIES.

    (a) Requirement for New Incentives.--The Secretary of Defense shall 
establish and provide for members of the Armed Forces qualified in 
critically short military occupational specialties a series of new 
incentives that the Secretary considers potentially effective for 
increasing the rates at which those members are retained in the Armed 
Forces for service in such specialties.
    (b) Critically Short Military Occupational Specialties.--For the 
purposes of this section, a military occupational specialty is a 
critically short military occupational specialty for an Armed Force if 
the number of members retained in that Armed Force in fiscal year 1998 
for service in that specialty is less than 50 percent of the number of 
members of that Armed Force that were projected to be retained in that 
Armed Force for service in the specialty by the Secretary of the 
military department concerned as of October 1, 1997.
    (c) Incentives.--It is the sense of Congress that, among the new 
incentives established and provided under this section, the Secretary of 
Defense should include the following incentives:
            (1) Family support and leave allowances.
            (2) Increased special reenlistment or retention bonuses.

[[Page 112 STAT. 2043]]

            (3) Repayment of educational loans.
            (4) Priority of selection for assignment to preferred 
        permanent duty station or for extension at permanent duty 
        station.
            (5) Modified leave policies.
            (6) Special consideration for Government housing or 
        additional housing allowances.

    (d) Relationship to Other Incentives.--Incentives provided under 
this section are in addition to any special pay or other benefit that is 
authorized under any other provision of law.
    (e) Reports.--(1) Not later than December 1, 1998, the Secretary of 
Defense shall submit to the congressional defense committees a report 
that identifies, for each of the Armed Forces, the critically short 
military occupational specialties to which incentives under this section 
are to apply.
    (2) Not later than April 15, 1999, the Secretary of Defense shall 
submit to the congressional defense committees a report that specifies, 
for each of the Armed Forces, the incentives that are to be provided 
under this section.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. PAYMENTS FOR MOVEMENTS OF HOUSEHOLD GOODS ARRANGED BY MEMBERS.

    (a) Monetary Allowance Authorized.--Subsection (b)(1) of section 406 
of title 37, United States Code, is amended--
            (1) in subparagraph (A)--
                    (A) by striking out ``, or reimbursement 
                therefor,''; and
                    (B) by inserting after the second sentence the 
                following new sentence: ``Alternatively, the member may 
                be paid reimbursement or a monetary allowance under 
                subparagraph (F).''; and
            (2) by adding at the end the following new subparagraph:

    ``(F) A member entitled to transportation of baggage and household 
effects under subparagraph (A) may, as an alternative to the provision 
of transportation, be paid reimbursement or, at the member's request, a 
monetary allowance in advance for the cost of transportation of the 
baggage and household effects. The monetary allowance may be paid only 
if the amount of the allowance does not exceed the cost that would be 
incurred by the Government under subparagraph (A) for the transportation 
of the baggage and household effects. Appropriations available to the 
Department of Defense, the Department of Transportation, and the 
Department of Health and Human Services for providing transportation of 
baggage or household effects of members of the uniformed services shall 
be available to pay a reimbursement or monetary allowance under this 
subparagraph. The Secretary concerned may prescribe the manner in which 
the risk of liability for damage, destruction, or loss of baggage or 
household effects arranged, packed, crated, or loaded by a member is 
allocated among the member, the United States, and any contractor when a 
reimbursement or monetary allowance is elected under this 
subparagraph.''.
    (b) Repeal of Superseded Provision.--(1) Such section is further 
amended--
            (A) by striking out subsection ( j); and

[[Page 112 STAT. 2044]]

            (B) by redesignating subsections (k), (l), and (m) as 
        subsections ( j), (k), and (l), respectively.

    (2) Section 2634(d) of title 10, United States Code, is amended by 
striking out ``section 406(k)'' and inserting in lieu thereof ``section 
406( j)''.

SEC. 632. EXCEPTION TO MAXIMUM WEIGHT ALLOWANCE FOR BAGGAGE AND 
            HOUSEHOLD EFFECTS.

    Section 406(b)(1)(D) of title 37, United States Code, is amended in 
the second sentence by inserting before the period the following: ``, 
unless the additional weight allowance in excess of such maximum is 
intended to permit the shipping of consumables that cannot be reasonably 
obtained at the new station of the member''.

SEC. 633. TRAVEL AND TRANSPORTATION ALLOWANCES FOR TRAVEL PERFORMED BY 
            MEMBERS IN CONNECTION WITH REST AND RECUPERATIVE LEAVE FROM 
            OVERSEAS STATIONS.

    (a) Provision of Transportation.--Section 411c of title 37, United 
States Code, is amended by striking out subsection (b) and inserting in 
lieu thereof the following new subsection:
    ``(b) When the transportation authorized by subsection (a) is 
provided by the Secretary concerned, the Secretary may use Government or 
commercial carriers. The Secretary concerned may limit the amount of 
payments made to members under subsection (a).''.
    (b) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

``Sec. 411c. Travel and transportation allowances: travel performed in 
                        connection with rest and recuperative leave from 
                        certain stations in foreign countries''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 7 of such title is amended to read as follows:

``411c. Travel and transportation allowances: travel performed in 
           connection with rest and recuperative leave from certain 
           stations in foreign countries.''.

SEC. 634. STORAGE OF BAGGAGE OF CERTAIN DEPENDENTS.

    Section 430(b) of title 37, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following new paragraph:

    ``(2) At the option of the member, in lieu of the transportation of 
baggage of a dependent child under paragraph (1) from the dependent's 
school in the continental United States, the Secretary concerned may pay 
or reimburse the member for costs incurred to store the baggage at or in 
the vicinity of the school during the dependent's annual trip between 
the school and the member's duty station. The amount of the payment or 
reimbursement may not exceed the cost that the Government would incur to 
transport the baggage.''.

SEC. 635. COMMERCIAL TRAVEL OF RESERVES AT FEDERAL SUPPLY SCHEDULE RATES 
            FOR ATTENDANCE AT INACTIVE-DUTY TRAINING ASSEMBLIES.

    (a) Authority.--Chapter 1217 of title 10, United States Code, is 
amended by adding at the end the following new section:

[[Page 112 STAT. 2045]]

``Sec. 12603. Attendance at inactive-duty training assemblies: 
                        commercial travel at Federal supply schedule 
                        rates

    ``(a) Federal Supply Schedule Travel.--Commercial travel under 
Federal supply schedules is authorized for the travel of a Reserve to 
the location of inactive duty training to be performed by the Reserve 
and from that location upon completion of the training.
    ``(b) Regulations.--The Secretary of Defense shall prescribe in 
regulations such requirements, conditions, and restrictions for travel 
under the authority of subsection (a) as the Secretary considers 
appropriate. The regulations shall include policies and procedures for 
preventing abuses of that travel authority.
    ``(c) Reimbursement Not Authorized.--A Reserve is not entitled to 
Government reimbursement for the cost of travel authorized under 
subsection (a).
    ``(d) Treatment of Transportation as Use by Military Departments.--
For the purposes of section 201(a) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481(a)), travel 
authorized under subsection (a) shall be treated as transportation for 
the use of a military department.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``12603. Attendance at inactive-duty training assemblies: commercial 
           travel at Federal supply schedule rates.''.

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

SEC. 641. PAID-UP COVERAGE UNDER SURVIVOR BENEFIT PLAN.

    Section 1452 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``( j) <<NOTE: Effective date.>>  Coverage Paid Up at 30 Years and 
Age 70.--Effective October 1, 2008, no reduction may be made under this 
section in the retired pay of a participant in the Plan for any month 
after the later of--
            ``(1) the 360th month for which the participant's retired 
        pay is reduced under this section; and
            ``(2) the month during which the participant attains 70 
        years of age.''.

SEC. 642. <<NOTE: 10 USC 1448 note.>>  SURVIVOR BENEFIT PLAN OPEN 
            ENROLLMENT PERIOD.

    (a) Persons Not Currently Participating in Survivor Benefit Plan.--
            (1) Election of sbp coverage.--An eligible retired or former 
        member may elect to participate in the Survivor Benefit Plan 
        during the open enrollment period specified in subsection (d).
            (2) Election of supplemental annuity coverage.--An eligible 
        retired or former member who elects under paragraph (1) to 
        participate in the Survivor Benefit Plan may also elect during 
        the open enrollment period to participate in the Supplemental 
        Survivor Benefit Plan.

[[Page 112 STAT. 2046]]

            (3) Eligible retired or former member.--For purposes of 
        paragraphs (1) and (2), an eligible retired or former member is 
        a member or former member of the uniformed services who on the 
        day before the first day of the open enrollment period is not a 
        participant in the Survivor Benefit Plan and--
                    (A) is entitled to retired pay; or
                    (B) would be entitled to retired pay under chapter 
                1223 of title 10, United States Code (or chapter 67 of 
                such title as in effect before October 5, 1994), but for 
                the fact that such member or former member is under 60 
                years of age.
            (4) Status under sbp of persons making elections.--
                    (A) Standard annuity.--A person making an election 
                under paragraph (1) by reason of eligibility under 
                paragraph (3)(A) shall be treated for all purposes as 
                providing a standard annuity under the Survivor Benefit 
                Plan.
                    (B) Reserve-component annuity.--A person making an 
                election under paragraph (1) by reason of eligibility 
                under paragraph (3)(B) shall be treated for all purposes 
                as providing a reserve-component annuity under the 
                Survivor Benefit Plan.

    (b) Manner of Making Elections.--
            (1) In general.--An election under this section must be made 
        in writing, signed by the person making the election, and 
        received by the Secretary concerned before the end of the open 
        enrollment period. Except as provided in paragraph (2), any such 
        election shall be made subject to the same conditions, and with 
        the same opportunities for designation of beneficiaries and 
        specification of base amount, that apply under the Survivor 
        Benefit Plan or the Supplemental Survivor Benefit Plan, as the 
        case may be. A person making an election under subsection (a) to 
        provide a reserve-component annuity shall make a designation 
        described in section 1448(e) of title 10, United States Code.
            (2) Election must be voluntary.--An election under this 
        section is not effective unless the person making the election 
        declares the election to be voluntary. An election to 
        participate in the Survivor Benefit Plan under this section may 
        not be required by any court. An election to participate or not 
        to participate in the Survivor Benefit Plan is not subject to 
        the concurrence of a spouse or former spouse of the person.

    (c) Effective Date for Elections.--Any such election shall be 
effective as of the first day of the first calendar month following the 
month in which the election is received by the Secretary concerned.
    (d) Open Enrollment Period Defined.--The open enrollment period is 
the 1-year period beginning on March 1, 1999.
    (e) Effect of Death of Person Making Election Within Two Years of 
Making Election.--If a person making an election under this section dies 
before the end of the 2-year period beginning on the effective date of 
the election, the election is void and the amount of any reduction in 
retired pay of the person that is attributable to the election shall be 
paid in a lump sum to the person who would have been the deceased 
person's beneficiary under the voided election if the deceased person 
had died after the end of such 2-year period.

[[Page 112 STAT. 2047]]

    (f ) Applicability of Certain Provisions of Law.--The provisions of 
sections 1449, 1453, and 1454 of title 10, United States Code, are 
applicable to a person making an election, and to an election, under 
this section in the same manner as if the election were made under the 
Survivor Benefit Plan or the Supplemental Survivor Benefit Plan, as the 
case may be.
    (g) Premiums for Open Enrollment Election.--
            (1) <<NOTE: Regulations.>>  Premiums to be charged.--The 
        Secretary of Defense shall prescribe in regulations premiums 
        which a person electing under this section shall be required to 
        pay for participating in the Survivor Benefit Plan pursuant to 
        the election. The total amount of the premiums to be paid by a 
        person under the regulations shall be equal to the sum of--
                    (A) the total amount by which the retired pay of the 
                person would have been reduced before the effective date 
                of the election if the person had elected to participate 
                in the Survivor Benefit Plan (for the same base amount 
                specified in the election) at the first opportunity that 
                was afforded the member to participate under chapter 73 
                of title 10, United States Code;
                    (B) interest on the amounts by which the retired pay 
                of the person would have been so reduced, computed from 
                the dates on which the retired pay would have been so 
                reduced at such rate or rates and according to such 
                methodology as the Secretary of Defense determines 
                reasonable; and
                    (C) any additional amount that the Secretary 
                determines necessary to protect the actuarial soundness 
                of the Department of Defense Military Retirement Fund 
                against any increased risk for the fund that is 
                associated with the election.
            (2) Premiums to be credited to retirement fund.--Premiums 
        paid under the regulations shall be credited to the Department 
        of Defense Military Retirement Fund.

    (h) Definitions.--In this section:
            (1) The term ``Survivor Benefit Plan'' means the program 
        established under subchapter II of chapter 73 of title 10, 
        United States Code.
            (2) The term ``Supplemental Survivor Benefit Plan'' means 
        the program established under subchapter III of chapter 73 of 
        title 10, United States Code.
            (3) The term ``retired pay'' includes retainer pay paid 
        under section 6330 of title 10, United States Code.
            (4) The terms ``uniformed services'' and ``Secretary 
        concerned'' have the meanings given those terms in section 101 
        of title 37, United States Code.
            (5) The term ``Department of Defense Military Retirement 
        Fund'' means the Department of Defense Military Retirement Fund 
        established under section 1461(a) of title 10, United States 
        Code.

SEC. 643. EFFECTIVE DATE OF COURT-REQUIRED FORMER SPOUSE SURVIVOR 
            BENEFIT PLAN COVERAGE EFFECTUATED THROUGH ELECTIONS AND 
            DEEMED ELECTIONS.

    (a) Elimination of Disparity in Effective Date Provisions.--Section 
1448(b)(3) of title 10, United States Code, is 
amended--

[[Page 112 STAT. 2048]]

            (1) in subparagraph (C)--
                    (A) by striking out the second sentence; and
                    (B) by striking out ``effective date,'' in the 
                heading; and
            (2) by adding at the end the following new subparagraph:
                    ``(E) Effective date of election.--An election under 
                this paragraph is effective as of--
                          ``(i) the first day of the first month 
                      following the month in which the election is 
                      received by the Secretary concerned; or
                          ``(ii) in the case of a person required (as 
                      described in section 1450(f )(3)(B) of this title) 
                      to make the election by reason of a court order or 
                      filing the date of which is on or after the date 
                      of the enactment of the subparagraph, the first 
                      day of the first month which begins after the date 
                      of that court order or filing.''.

    (b) Conformity by Cross Reference.--Section 1450(f )(3)(D) of such 
title is amended by striking out ``the first day of the first month 
which begins after the date of the court order or filing involved'' and 
inserting in lieu thereof ``the day referred to in section 
1448(b)(3)(E)(ii) of this title''.

SEC. 644. PRESENTATION OF UNITED STATES FLAG TO MEMBERS OF THE ARMED 
            FORCES UPON RETIREMENT.

    (a) Army.--(1) Chapter 353 of title 10, United States Code, is 
amended by inserting after the table of sections the following new 
section:

``Sec. 3681. Presentation of United States flag upon retirement

    ``(a) Presentation of Flag.--Upon the release of a member of the 
Army from active duty for retirement, the Secretary of the Army shall 
present a United States flag to the member.
    ``(b) Multiple Presentations Not Authorized.--A member is not 
eligible for a presentation of a flag under subsection (a) if the member 
has previously been presented a flag under this section or section 6141 
or 8681 of this title or section 516 of title 14.
    ``(c) No Cost to Recipient.--The presentation of a flag under this 
section shall be at no cost to the recipient.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting before the item relating to section 3684 the 
following new item:

``3681. Presentation of United States flag upon retirement.''.

    (b) Navy and Marine Corps.--(1) Chapter 561 of title 10, United 
States Code, is amended by inserting after the table of sections the 
following new section:

``Sec. 6141. Presentation of United States flag upon retirement

    ``(a) Presentation of Flag.--Upon the release of a member of the 
Navy or Marine Corps from active duty for retirement or transfer to the 
Fleet Reserve or the Fleet Marine Corps Reserve, the Secretary of the 
Navy shall present a United States flag to the member.
    ``(b) Multiple Presentations Not Authorized.--A member is not 
eligible for a presentation of a flag under subsection (a) if the member 
has previously been presented a flag under this

[[Page 112 STAT. 2049]]

section or section 3681 or 8681 of this title or section 516 of title 
14.
    ``(c) No Cost to Recipient.--The presentation of a flag under this 
section shall be at no cost to the recipient.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting before the item relating to section 6151 the 
following new item:

``6141. Presentation of United States flag upon retirement.''.

    (c) Air Force.--(1) Chapter 853 of title 10, United States Code, is 
amended by inserting after the table of sections the following new 
section:

``Sec. 8681. Presentation of United States flag upon retirement

    ``(a) Presentation of Flag.--Upon the release of a member of the Air 
Force from active duty for retirement, the Secretary of the Air Force 
shall present a United States flag to the member.
    ``(b) Multiple Presentations Not Authorized.--A member is not 
eligible for a presentation of a flag under subsection (a) if the member 
has previously been presented a flag under this section or section 3681 
or 6141 of this title or section 516 of title 14.
    ``(c) No Cost to Recipient.--The presentation of a flag under this 
section shall be at no cost to the recipient.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting before the item relating to section 8684 the 
following new item:

``8681. Presentation of United States flag upon retirement.''.

    (d) Coast Guard.--(1) Chapter 13 of title 14, United States Code, is 
amended by adding at the end the following new section:

``Sec. 516. Presentation of United States flag upon retirement

    ``(a) Presentation of Flag.--Upon the release of a member of the 
Coast Guard from active duty for retirement, the Secretary of 
Transportation shall present a United States flag to the member.
    ``(b) Multiple Presentations Not Authorized.--A member is not 
eligible for a presentation of a flag under subsection (a) if the member 
has previously been presented a flag under this section or section 3681, 
6141, and 8681 of title 10.
    ``(c) No Cost to Recipient.--The presentation of a flag under his 
section shall be at no cost to the recipient.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``516. Presentation of United States flag upon retirement.''.

    (e) <<NOTE: 10 USC 3681 note.>>  Effective Date.--Sections 3681, 
6141, and 8681 of title 10, United States Code (as added by this 
section), and section 516 of title 14, United States Code (as added by 
subsection (d)), shall apply with respect to releases from active duty 
described in those sections on or after October 1, 1998.

SEC. 645. RECOVERY, CARE, AND DISPOSITION OF REMAINS OF MEDICALLY 
            RETIRED MEMBER WHO DIES DURING HOSPITALIZATION THAT BEGINS 
            WHILE ON ACTIVE DUTY.

    (a) In General.--Paragraph (7) of section 1481(a) of title 10, 
United States Code, is amended to read as follows:
            ``(7) A person who--

[[Page 112 STAT. 2050]]

                    ``(A) dies as a retired member of an armed force 
                under the Secretary's jurisdiction during a continuous 
                hospitalization of the member as a patient in a United 
                States hospital that began while the member was on 
                active duty for a period of more than 30 days; or
                    ``(B) is not covered by subparagraph (A) and, while 
                in a retired status by reason of eligibility to retire 
                under chapter 61 of this title, dies during a continuous 
                hospitalization of the person that began while the 
                person was on active duty as a Regular of an armed force 
                under the Secretary's jurisdiction.''.

    (b) Repeal of Obsolete Terminology.--Paragraph (1) of such section 
is amended by striking out ``, or a member of an armed force without 
component,''.
    (c) <<NOTE: 10 USC 1481 note.>>  Effective Date.--The amendment made 
by subsection (a) applies with respect to deaths occurring on or after 
the date of the enactment of this Act.

SEC. 646. REVISION TO COMPUTATION OF RETIRED PAY FOR CERTAIN MEMBERS.

    Section 1406(i) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2) Exception for members reduced in grade or who do not 
        serve satisfactorily.--Paragraph (1) does not apply in the case 
        of a member who, while or after serving in a position specified 
        in that paragraph and by reason of conduct occurring on or after 
        the date of the enactment of the Strom Thurmond National Defense 
        Authorization Act for Fiscal Year 1999--
                    ``(A) in the case of an enlisted member, is reduced 
                in grade as the result of a court-martial sentence, 
                nonjudicial punishment, or other administrative process; 
                or
                    ``(B) in the case an officer, is not certified by 
                the Secretary of Defense under section 1370(c) of this 
                title as having served on active duty satisfactorily in 
                the grade of general or admiral, as the case may be, 
                while serving in that position.''.

SEC. 647. ELIMINATION OF BACKLOG OF UNPAID RETIRED PAY.

    (a) Requirement.--The Secretary of the Army shall take such actions 
as are necessary to eliminate, by December 31, 1998, the backlog of 
unpaid retired pay for members and former members of the Army (including 
members and former members of the Army Reserve and the Army National 
Guard).
    (b) Report.--Not later than 30 days after the date of the enactment 
of this Act, the Secretary of the Army shall submit to Congress a report 
on the backlog of unpaid retired pay. The report shall include the 
following:
            (1) The actions taken under subsection (a).
            (2) The extent of the remaining backlog.
            (3) A discussion of any additional actions that are 
        necessary to ensure that retired pay is paid in a timely manner.

[[Page 112 STAT. 2051]]

                        Subtitle E--Other Matters

SEC. 651. DEFINITION OF POSSESSIONS OF THE UNITED STATES FOR PAY AND 
            ALLOWANCES PURPOSES.

    Section 101(2) of title 37, United States Code, is amended by 
striking out ``the Canal Zone,''.

SEC. 652. ACCOUNTING OF ADVANCE PAYMENTS.

    Section 1006(e) of title 37, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(e)''; and
            (2) by adding at the end the following new paragraph:

    ``(2)(A) Notwithstanding any other provision of law, an obligation 
for an advance of pay made pursuant to this section shall be recorded as 
an obligation only in the fiscal year in which the entitlement of the 
member to the pay accrues.
    ``(B) Current appropriations available for advance payments under 
this section may be transferred to the prior fiscal year appropriation 
available for the same purpose in the amount of any unliquidated advance 
payments that remain at the end of such prior fiscal year. Such 
unliquidated advance payments shall then be credited to the current 
appropriation.''.

SEC. 653. REIMBURSEMENT OF RENTAL VEHICLE COSTS WHEN MOTOR VEHICLE 
            TRANSPORTED AT GOVERNMENT EXPENSE IS LATE.

    (a) Transportation in Connection With Change of Permanent Station.--
Section 2634 of title 10, United States Code, is amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f ) the following new 
        subsection:

    ``(g) If a motor vehicle of a member (or a dependent of the member) 
that is transported at the expense of the United States under this 
section does not arrive at the authorized destination of the vehicle by 
the designated delivery date, the Secretary concerned shall reimburse 
the member for expenses incurred after that date to rent a motor vehicle 
for the member's use, or for the use of the dependent for whom the 
delayed vehicle was transported. The amount reimbursed may not exceed 
$30 per day, and the rental period for which reimbursement may be 
provided expires after 7 days or on the date on which the delayed 
vehicle arrives at the authorized destination (whichever occurs 
first).''.
    (b) Transportation in Connection With Other Moves.--Section 406(h) 
of title 37, United States Code, is amended by adding at the end the 
following new paragraph:
    ``(3) If a motor vehicle of a member (or a dependent of the member) 
that is transported at the expense of the United States under this 
subsection does not arrive at the authorized destination of the vehicle 
by the designated delivery date, the Secretary concerned shall reimburse 
the member for expenses incurred after that date to rent a motor vehicle 
for the dependent's use. The amount reimbursed may not exceed $30 per 
day, and the rental period for which reimbursement may be provided 
expires after 7 days or on the date on which the delayed vehicle arrives 
at the authorized destination (whichever occurs first).''.

[[Page 112 STAT. 2052]]

    (c) Transportation in Connection With Departure Allowances for 
Dependents.--Section 405a(b) of title 37, United States Code, is 
amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following new paragraph:

    ``(2) If a motor vehicle of a member (or a dependent of the member) 
that is transported at the expense of the United States under paragraph 
(1) does not arrive at the authorized destination of the vehicle by the 
designated delivery date, the Secretary concerned shall reimburse the 
member for expenses incurred after that date to rent a motor vehicle for 
the dependent's use. The amount reimbursed may not exceed $30 per day, 
and the rental period for which reimbursement may be provided expires 
after 7 days or on the date on which the delayed vehicle arrives at the 
authorized destination (whichever occurs first).''.
    (d) Transportation in Connection With Effects of Missing Persons.--
Section 554 of title 37, United States Code, is amended--
            (1) by redesignating subsection (i) as subsection ( j); and
            (2) by inserting after subsection (h) the following new 
        subsection:

    ``(i) If a motor vehicle of a member (or a dependent of the member) 
that is transported at the expense of the United States under this 
section does not arrive at the authorized destination of the vehicle by 
the designated delivery date, the Secretary concerned shall reimburse 
the dependent for expenses incurred after that date to rent a motor 
vehicle for the dependent's use. The amount reimbursed may not exceed 
$30 per day, and the rental period for which reimbursement may be 
provided expires after 7 days or on the date on which the delayed 
vehicle arrives at the authorized destination (whichever occurs 
first).''.
    (e) <<NOTE: 10 USC 2634 note.>>  Application of Amendments.--(1) 
Reimbursement for motor vehicle rental expenses may not be provided 
under the amendments made by this section until after the date on which 
the Secretary of Defense submits to Congress a report containing a 
certification that the Department of Defense has in place and 
operational a system to recover the cost of providing such reimbursement 
from commercial carriers that are responsible for the delay in the 
delivery of the motor vehicles of members of the Armed Forces and their 
dependents. <<NOTE: Reports.>>  The Secretary of Defense shall prepare 
the report in consultation with the Secretary of Transportation, with 
respect to the Coast Guard.

    (2) The amendments shall apply with respect to rental expenses 
described in such amendments that are incurred on or after the date of 
the submission of the report. The report shall be submitted not later 
than six months after the date of the enactment of this Act and shall 
include, in addition to the certification, a description of the system 
to be used to recover from commercial carriers the costs incurred under 
such amendments.

SEC. 654. EDUCATION LOAN REPAYMENT PROGRAM FOR HEALTH PROFESSIONS 
            OFFICERS SERVING IN SELECTED RESERVE.

    (a) Eligible Persons.--Subsection (b)(2) of section 16302 of title 
10, United States Code, is amended by inserting ``, or is enrolled in a 
program of education leading to professional qualifications,'' after 
``possesses professional qualifications''.

[[Page 112 STAT. 2053]]

    (b) Increased Benefits.--Subsection (c) of such section is amended--
            (1) in paragraph (2), by striking out ``$3,000'' and 
        inserting in lieu thereof ``$20,000''; and
            (2) in paragraph (3), by striking out ``$20,000'' and 
        inserting in lieu thereof ``$50,000''.

SEC. 655. FEDERAL EMPLOYEES' COMPENSATION COVERAGE FOR 
            STUDENTS PARTICIPATING IN CERTAIN OFFICER CANDIDATE 
            PROGRAMS.

    (a) Periods of Coverage.--Subsection (a)(2) of section 8140 of title 
5, United States Code, is amended to read as follows:
            ``(2) during the period of the member's attendance at 
        training or a practice cruise under chapter 103 of title 10, 
        United States Code, beginning when the authorized travel to the 
        training or practice cruise begins and ending when authorized 
        travel from the training or practice cruise ends.''.

    (b) Line of Duty.--Subsection (b) of such section is amended to read 
as follows:
    ``(b) For the purpose of this section, an injury, disability, death, 
or illness of a member referred to in subsection (a) may be considered 
as incurred or contracted in line of duty only if the injury, 
disability, or death is incurred, or the illness is contracted, by the 
member during a period described in that subsection. Subject to review 
by the Secretary of Labor, the Secretary of the military department 
concerned (under regulations prescribed by that Secretary), shall 
determine whether an injury, disability, or death was incurred, or an 
illness was contracted, by a member in line of duty.''.
    (c) Clarification of Casualties Covered.--Subsection (a) of such 
section, as amended by subsection (a) of this section, is further 
amended by inserting ``, or an illness contracted,'' after ``death 
incurred'' in the matter preceding paragraph (1).
    (d) <<NOTE: 5 USC 8140 note.>>  Effective Date and Applicability.--
The amendments made by subsections (a) and (b) shall take effect on the 
date of the enactment of this Act and apply with respect to injuries, 
illnesses, disabilities, and deaths incurred or contracted on or after 
that date.

SEC. 656. RELATIONSHIP OF ENLISTMENT BONUSES TO ELIGIBILITY TO RECEIVE 
            ARMY COLLEGE FUND SUPPLEMENT UNDER MONTGOMERY GI BILL 
            EDUCATIONAL ASSISTANCE PROGRAM.

    (a) Enlistement Bonuses and GI Bill Supplement Not Exclusive.--
Section 3015(d) of title 38, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(d)''; and
            (2) by adding at the end the following:

    ``(2) In the case of an individual who after October 7, 1997, 
receives an enlistment bonus under section 308a or 308f of title 37, 
receipt of that bonus does not affect the eligibility of that individual 
for an increase under paragraph (1) in the rate of the basic educational 
assistance allowance applicable to that individual, and the Secretary 
concerned may provide such an increase for that individual (and enter 
into an agreement with that individual that the United States agrees to 
make payments pursuant to such an increase) without regard to any 
provision of law (enacted before,

[[Page 112 STAT. 2054]]

on, or after the date of the enactment of this paragraph) that limits 
the authority to make such payments.''.
    (b) Repeal of Related Limitations.--(1) Section 8013(a) of the 
Department of Defense Appropriations Act, 1998 (111 Stat. 1222), is 
amended--
            (A) by striking out ``on or after the date of enactment of 
        this Act--'' and all that follows through ``nor shall any 
        amounts'' and inserting in lieu thereof ``after October 7, 1997, 
        enlists in the armed services for a period of active duty of 
        less than three years, nor shall any amounts''; and
            (B) in the first proviso, by striking out ``in the case of a 
        member covered by clause (1),''.

    (2) Section 8013(a) of the Department of Defense Appropriations Act, 
1999, is amended--
            (A) by striking out ``of this Act--'' and all that follows 
        through ``nor shall any amounts'' and inserting in lieu thereof 
        ``of this Act, enlists in the armed services for a period of 
        active duty of less than 3 years, nor shall any amounts''; and
            (B) in the first proviso, by striking out ``in the case of a 
        member covered by clause (1),''.

    (3) The amendments made by paragraph (2) shall take effect on the 
later of the following:
            (A) The date of the enactment of this Act.
            (B) The date of the enactment of the Department of Defense 
        Appropriations Act, 1999.

SEC. 657. AUTHORITY TO PROVIDE FINANCIAL ASSISTANCE FOR EDUCATION OF 
            CERTAIN DEFENSE DEPENDENTS OVERSEAS.

    Section 1407(b) of the Defense Dependents' Education Act of 1978 (20 
U.S.C. 926(b)) is amended--
            (1) by striking out ``(b) Under such circumstances as he may 
        by regulation prescribe, the Secretary of Defense'' and 
        inserting in lieu thereof ``(b) Tuition and Assistance When 
        Schools Unavailable.--(1) Under such circumstances as the 
        Secretary of Defense may prescribe in regulations, the 
        Secretary''; and
            (2) by adding at the end the following new paragraph:

    ``(2)(A) The Secretary of Defense, and the Secretary of 
Transportation with respect to the Coast Guard when it is not operating 
as a service of the Navy, may provide financial assistance to sponsors 
of dependents in overseas areas where schools operated by the Secretary 
of Defense under subsection (a) are not reasonably available in order to 
assist the sponsors to defray the costs incurred by the sponsors for the 
attendance of the dependents at schools in such areas other than schools 
operated by the Secretary of Defense.
    ``(B) <<NOTE: Regulations.>>  The Secretary of Defense and the 
Secretary of Transportation shall each prescribe regulations relating to 
the availability of financial assistance under subparagraph (A). Such 
regulations shall, to the maximum extent practicable, be consistent with 
Department of State regulations relating to the availability of 
financial assistance for the education of dependents of Department of 
State personnel overseas.''.

SEC. 658. CLARIFICATIONS CONCERNING PAYMENTS TO CERTAIN PERSONS CAPTURED 
            OR INTERNED BY NORTH VIETNAM.

    (a) Eligibile Survivors.--Subsection (b) of section 657 of the 
National Defense Authorization Act for Fiscal Year 1997 (Public

[[Page 112 STAT. 2055]]

Law 104-201; 110 Stat. 2585) is amended by adding at the end the 
following new paragraphs:
            ``(3) If there is no surviving spouse or surviving child, to 
        the parents of the decedent, in equal shares, or, if one parent 
        of the decedent has died, to the surviving parent.
            ``(4) If there is no surviving spouse, surviving child, or 
        surviving parent, to the surviving siblings by blood of the 
        decedent, in equal shares.''.

    (b) Permitted Recipients of Payment Disbursement.--
Subsection (f )(1) of such section is amended by striking out ``The 
actual disbursement'' and inserting in lieu thereof ``Notwithstanding 
any agreement (including a power of attorney) to the contrary, the 
actual disbursement''.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Dependents' dental program.
Sec. 702. Expansion of dependent eligibility under retiree dental 
           program.
Sec. 703. Plan for redesign of military pharmacy system.
Sec. 704. Transitional authority to provide continued health care 
           coverage for 
           certain persons unaware of loss of CHAMPUS eligibility.

                       Subtitle B--TRICARE Program

Sec. 711. Payment of claims for provision of health care under the 
           TRICARE 
           program for which a third party may be liable.
Sec. 712. TRICARE Prime automatic enrollments and retiree payment 
           options.
Sec. 713. System for tracking data and measuring performance in meeting 
           TRICARE access standards.
Sec. 714. Establishment of appeals process for claimcheck denials.
Sec. 715. Reviews relating to accessibility of health care under 
           TRICARE.

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

Sec. 721. Demonstration project to include certain covered beneficiaries 
           within 
           Federal Employees Health Benefits Program.
Sec. 722. TRICARE as Supplement to Medicare demonstration.
Sec. 723. Implementation of redesign of pharmacy system.
Sec. 724. Comprehensive evaluation of implementation of demonstration 
           projects and TRICARE pharmacy redesign.

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

Sec. 731. Process for waiving informed consent requirement for 
           administration of certain drugs to members of Armed Forces 
           for purposes of a particular military operation.
Sec. 732. Health benefits for abused dependents of members of the Armed 
           Forces.
Sec. 733. Provision of health care at military entrance processing 
           stations and elsewhere outside medical treatment facilities.
Sec. 734. Professional qualifications of physicians providing military 
           health care.

                        Subtitle E--Other Matters

Sec. 741. Enhanced Department of Defense Organ and Tissue Donor program.
Sec. 742. Authorization to establish a Level 1 Trauma Training Center.
Sec. 743. Authority to establish center for study of post-deployment 
           health concerns of members of the Armed Forces.
Sec. 744. Report on implementation of enrollment-based capitation for 
           funding for military medical treatment facilities.
Sec. 745. Joint Department of Defense and Department of Veterans Affairs 
           reports relating to interdepartmental cooperation in the 
           delivery of medical care.
Sec. 746. Report on research and surveillance activities regarding lyme 
           disease and other tick-borne diseases.

[[Page 112 STAT. 2056]]

                    Subtitle A--Health Care Services

SEC. 701. DEPENDENTS' DENTAL PROGRAM.

    (a) Premium Increase.--Section 1076a(b)(2) of title 10, United 
States Code, is amended--
            (A) by inserting ``(A)'' after ``(2)''; and
            (B) by adding at the end the following:

    ``(B) Effective as of January 1 of each year, the amount of the 
premium required under subparagraph (A) shall be increased by the 
percent equal to the lesser of--
            ``(i) the percent by which the rates of basic pay of members 
        of the uniformed services are increased on such date; or
            ``(ii) the sum of one-half percent and the percent computed 
        under section 5303(a) of title 5 for the increase in rates of 
        basic pay for statutory pay systems for pay periods beginning on 
        or after such date.''.

    (2) <<NOTE: 10 USC 1076a note.>>  The amendment made by subparagraph 
(B) of paragraph (1) shall take effect on January 1, 1999, and shall 
apply to months after 1998 as if such subparagraph had been in effect 
since December 31, 1993.

    (b) Limitation on Reduction of Benefits.--Section 1076a is further 
amended by adding at the end the following new subsection:
    ``( j) Limitation on Reduction of Benefits.--The Secretary of 
Defense may not reduce benefits provided under this section until--
            ``(1) <<NOTE: Notice.>>  the Secretary provides notice of 
        the Secretary's intent to reduce such benefits to the Committee 
        on National Security of the House of Representatives and the 
        Committee on Armed Services of the Senate; and
            ``(2) 1 year has elapsed following the date of such 
        notice.''.

SEC. 702. EXPANSION OF DEPENDENT ELIGIBILITY UNDER RETIREE DENTAL 
            PROGRAM.

    (a) In General.--Subsection (b) of section 1076c of title 10, United 
States Code, is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Eligible dependents of a member described in paragraph 
        (1) or (2) who is not enrolled in the plan and who--
                    ``(A) is enrolled under section 1705 of title 38 to 
                receive dental care from the Secretary of Veterans 
                Affairs;
                    ``(B) is enrolled in a dental plan that--
                          ``(i) is available to the member as a result 
                      of employment by the member that is separate from 
                      the military service of the member; and
                          ``(ii) is not available to dependents of the 
                      member as a result of such separate employment by 
                      the member; or
                    ``(C) is prevented by a medical or dental condition 
                from being able to obtain benefits under the plan.''.

    (b) Conforming Amendment.--Subsection (f )(3) of such section is 
amended by striking out ``(b)(4)'' and inserting in lieu thereof 
``(b)(5)''.

[[Page 112 STAT. 2057]]

SEC. 703. <<NOTE: 10 USC 1073 note.>>  PLAN FOR REDESIGN OF MILITARY 
            PHARMACY SYSTEM.

    (a) Plan Required.--The Secretary of Defense shall submit to 
Congress a plan that would provide for a system-wide redesign of the 
military and contractor retail and mail-order pharmacy system of the 
Department of Defense by incorporating ``best business practices'' of 
the private sector. The Secretary shall work with contractors of TRICARE 
retail pharmacy and national mail-order pharmacy programs to develop a 
plan for the redesign of the pharmacy system that--
            (1) may include a plan for an incentive-based formulary for 
        military medical treatment facilities and contractors of TRICARE 
        retail pharmacies and the national mail-order pharmacy; and
            (2) shall include a plan for each of the following:
                    (A) A uniform formulary for such facilities and 
                contractors.
                    (B) A centralized database that integrates the 
                patient databases of pharmacies of military medical 
                treatment facilities and contractor retail and mail-
                order programs to implement automated prospective drug 
                utilization review systems.
                    (C) A system-wide drug benefit for covered 
                beneficiaries under chapter 55 of title 10, United 
                States Code, who are entitled to hospital insurance 
                benefits under part A of title XVIII of the Social 
                Security Act (42 U.S.C. 1395c et seq.).

    (b) Submission of Plan.--The Secretary shall submit the plan 
required under subsection (a) not later than March 1, 1999.
    (c) Suspension of Implementation of Program.--The 
Secretary shall suspend any plan to establish a national retail pharmacy 
program for the Department of Defense until--
            (1) the plan required under subsection (a) is submitted; and
            (2) the Secretary implements cost-saving reforms with 
        respect to the military and contractor retail and mail order 
        pharmacy system.

SEC. 704. <<NOTE: 10 USC 1086 note.>>  TRANSITIONAL AUTHORITY TO PROVIDE 
            CONTINUED HEALTH CARE COVERAGE FOR CERTAIN PERSONS UNAWARE 
            OF LOSS OF CHAMPUS ELIGIBILITY.

    (a) Transitional Coverage.--The administering Secretaries may 
continue eligibility of a person described in subsection (b) for health 
care coverage under the Civilian Health and Medical Program of the 
Uniformed Services based on a determination that such continuation is 
appropriate to assure health care coverage for any such person who may 
have been unaware of the loss of eligibility to receive health benefits 
under that program.
    (b) Persons Eligible.--A person shall be eligible for transitional 
health care coverage under subsection (a) if the person--
            (1) is a person described in paragraph (1) of subsection (d) 
        of section 1086 of title 10, United States Code;
            (2) in the absence of such paragraph, would be eligible for 
        health benefits under such section; and
            (3) satisfies the criteria specified in subparagraphs (A) 
        and (B) of paragraph (2) of such subsection.

    (c) Extent of Transitional Authority.--The authority to continue 
eligibility under this section shall apply with respect to

[[Page 112 STAT. 2058]]

health care services provided between October 1, 1998, and July 1, 1999.
    (d) Definition.--In this section, the term ``administering 
Secretaries'' has the meaning given that term in section 1072(3) of 
title 10, United States Code.

                       Subtitle B--TRICARE Program

SEC. 711. PAYMENT OF CLAIMS FOR PROVISION OF HEALTH CARE UNDER THE 
            TRICARE PROGRAM FOR WHICH A THIRD PARTY MAY BE LIABLE.

    (a) In General.--(1) Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1095a the following new section:

``Sec. 1095b. TRICARE program: contractor payment of certain claims

    ``(a) Payment of Claims.--(1) The Secretary of Defense may authorize 
a contractor under the TRICARE program to pay a claim described in 
paragraph (2) before seeking to recover from a third-party payer the 
costs incurred by the contractor to provide health care services that 
are the basis of the claim to a beneficiary under such program.
    ``(2) A claim under this paragraph is a claim--
            ``(A) that is submitted to the contractor by a provider 
        under the TRICARE program for payment for services for health 
        care provided to a covered beneficiary; and
            ``(B) that is identified by the contractor as a claim for 
        which a third-party payer may be liable.

    ``(b) Recovery From Third-Party Payers.--A contractor for the 
provision of health care services under the TRICARE program that pays a 
claim described in subsection (a)(2) shall have the right to collect 
from the third-party payer the costs incurred by such contractor on 
behalf of the covered beneficiary. The contractor shall have the same 
right to collect such costs under this subsection as the right of the 
United States to collect costs under section 1095 of this title.
    ``(c) Definition of Third-Party Payer.--In this section, the term 
`third-party payer' has the meaning given that term in section 1095(h) 
of this title, except that such term excludes primary medical 
insurers.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1095a the following new item:

``1095b. TRICARE program: contractor payment of certain claims.''.

SEC. 712. TRICARE PRIME AUTOMATIC ENROLLMENTS AND RETIREE PAYMENT 
            OPTIONS.

    (a) Procedures.--(1) Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1097 the following new section:

``Sec. 1097a. TRICARE Prime: automatic enrollments; payment options

    ``(a) Automatic Enrollment of Certain Dependents.--Each dependent of 
a member of the uniformed services in grade E4

[[Page 112 STAT. 2059]]

or below who is entitled to medical and dental care under section 
1076(a)(2)(A) of this title and resides in the catchment area of a 
facility of a uniformed service offering TRICARE Prime shall be 
automatically enrolled in TRICARE Prime at the facility. The Secretary 
concerned shall provide written notice of the enrollment to the member. 
The enrollment of a dependent of the member may be terminated by the 
member or the dependent at any time.
    ``(b) Automatic Renewal of Enrollments of Covered Beneficiaries.--
(1) An enrollment of a covered beneficiary in TRICARE Prime shall be 
automatically renewed upon the expiration of the enrollment unless the 
renewal is declined.
    ``(2) Not later than 15 days before the expiration date for an 
enrollment of a covered beneficiary in TRICARE Prime, the Secretary 
concerned shall--
            ``(A) transmit a written notification of the pending 
        expiration and renewal of enrollment to the covered beneficiary 
        or, in the case of a dependent of a member of the uniformed 
        services, to the member; and
            ``(B) afford the beneficiary or member, as the case may be, 
        an opportunity to decline the renewal of enrollment.

    ``(c) Payment Options for Retirees.--A member or former member of 
the uniformed services eligible for medical care and dental care under 
section 1074(b) of this title may elect to have any fee payable by the 
member or former member for an enrollment in TRICARE Prime withheld from 
the member's retired pay, retainer pay, or equivalent pay, as the case 
may be, or to be paid from a financial institution through electronic 
transfers of funds. The fee shall be paid in accordance with the 
election. A member may elect under this section to pay the fee in full 
at the beginning of the enrollment period or to make payments on a 
monthly or quarterly basis.
    ``(d) Regulations and Exceptions.--The Secretary of Defense shall 
prescribe regulations, including procedures, to carry out this section. 
Regulations prescribed to carry out the automatic enrollment 
requirements under this section may include such exceptions to the 
automatic enrollment procedures as the Secretary determines appropriate 
for the effective operation of TRICARE Prime.
    ``(e) Definitions.--In this section:
            ``(1) The term `TRICARE Prime' means the managed care option 
        of the TRICARE program.
            ``(2) The term `catchment area', with respect to a facility 
        of a uniformed service, means the service area of the facility, 
        as designated under regulations prescribed by the administering 
        Secretaries.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1097 the 
following new item:

``1097a. TRICARE Prime: automatic enrollments; payment options.''.

     <<NOTE: 10 USC 1097a note.>> (b) Deadline for Implementation.--The 
regulations required under subsection (d) of section 1097a of title 10, 
United States Code (as added by subsection (a)), shall be prescribed to 
take effect not later than September 30, 1999. The section shall be 
applied under TRICARE Prime on and after the date on which the 
regulations take effect.

[[Page 112 STAT. 2060]]

SEC. 713. <<NOTE: 10 USC 1073 note.>>  SYSTEM FOR TRACKING DATA AND 
            MEASURING PERFORMANCE IN MEETING TRICARE ACCESS STANDARDS.

    (a) Requirement To Establish System.--(1) The Secretary of Defense 
shall establish a system--
            (A) to track data regarding access of covered beneficiaries 
        under chapter 55 of title 10, United States Code, to primary 
        health care under the TRICARE program; and
            (B) to measure performance in increasing such access against 
        the primary care access standards established by the Secretary 
        under the TRICARE program.

    (2) In implementing the system described in paragraph (1), the 
Secretary shall collect data on the timeliness of appointments and 
precise waiting times for appointments in order to measure performance 
in meeting the primary care access standards established under the 
TRICARE program.
    (b) Deadline for Establishment.--The Secretary shall establish the 
system described in subsection (a) not later than April 1, 1999.

SEC. 714. ESTABLISHMENT OF APPEALS PROCESS FOR CLAIMCHECK DENIALS.

    (a) Establishment of Appeals Process.--Not later than January 1, 
1999, the Secretary of Defense shall establish an appeals process in 
cases of denials through the ClaimCheck computer software system (or any 
other claims processing system that may be used by the Secretary) of 
claims by civilian providers for payment for health care services 
provided under the TRICARE program.
    (b) Report.--Not later than March 1, 1999, the Secretary shall 
submit to Congress a report on the implementation of this section.

SEC. 715. <<NOTE: 10 USC 1106 note.>>  REVIEWS RELATING TO ACCESSIBILITY 
            OF HEALTH CARE UNDER TRICARE.

    (a) Review of Rehabilitative Services for Head Injuries.--The 
Secretary of Defense shall review policies under the TRICARE program 
(including a review of the TRICARE policy manual) to determine if 
policies addressing the availability of rehabilitative services for 
TRICARE patients suffering from head injuries are adequate and 
appropriately address consideration of certification by an attending 
physician that such services would be beneficial for such a patient.
    (b) Review of Adequacy of Provider Network.--The Secretary of 
Defense shall review the administration of the TRICARE Prime health 
plans to determine whether, for each region covered by such a plan, 
there is a sufficient number, distribution, and variety of qualified 
participating health care providers to ensure that covered health care 
services, including specialty services and rehabilitative services, are 
accessible in the vicinity of the residence of the enrollees and 
available in a timely manner to such enrollees, regardless of where such 
enrollees are located within the TRICARE region.
    (c) Report.--Not later than April 1, 1999, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the results of the reviews required by subsections (a) and (b), 
together with a description of any actions taken or directed as a result 
of those reviews.

[[Page 112 STAT. 2061]]

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

SEC. 721. DEMONSTRATION PROJECT TO INCLUDE CERTAIN COVERED BENEFICIARIES 
            WITHIN FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM.

    (a) FEHBP Demonstration Project.--(1) Chapter 55 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 1108. Health care coverage through Federal Employees Health 
                        Benefits program: demonstration project

    ``(a) FEHBP Option Demonstration.--The Secretary of Defense, after 
consulting with the other administering Secretaries, shall enter into an 
agreement with the Office of Personnel Management to conduct a 
demonstration project (in this section referred to as the `demonstration 
project') under which eligible beneficiaries described in subsection (b) 
and residing within one of the areas covered by the demonstration 
project may enroll in health benefits plans offered through the Federal 
Employees Health Benefits program under chapter 89 of title 5. The 
number of eligible beneficiaries and family members of such 
beneficiaries under subsection (b)(2) who may be enrolled in health 
benefits plans during the enrollment period under subsection (d)(2) may 
not exceed 66,000.
    ``(b) Eligible Beneficiaries; Coverage.--(1) An eligible beneficiary 
under this subsection is--
            ``(A) a member or former member of the uniformed services 
        described in section 1074(b) of this title who is entitled to 
        hospital insurance benefits under part A of title XVIII of the 
        Social Security Act (42 U.S.C. 1395c et seq.);
            ``(B) an individual who is an unremarried former spouse of a 
        member or former member described in section 1072(2)(F) or 
        1072(2)(G));
            ``(C) an individual who is--
                    ``(i) a dependent of a deceased member or former 
                member described in section 1076(b) or 1076(a)(2)(B) of 
                this title or of a member who died while on active duty 
                for a period of more than 30 days; and
                    ``(ii) a member of family as defined in section 
                8901(5) of title 5; or
            ``(D) an individual who is--
                    ``(i) a dependent of a living member or former 
                member described in section 1076(b)(1) of this title who 
                is entitled to hospital insurance benefits under part A 
                of title XVIII of the Social Security Act, regardless of 
                the member's or former member's eligibility for such 
                hospital insurance benefits; and
                    ``(ii) a member of family as defined in section 
                8901(5) of title 5.

    ``(2) Eligible beneficiaries may enroll in a Federal Employees 
Health Benefit plan under chapter 89 of title 5 under this section for 
self-only coverage or for self and family coverage which includes any 
dependent of the member or former member who is a family member for 
purposes of such chapter.

[[Page 112 STAT. 2062]]

    ``(3) A person eligible for coverage under this subsection shall not 
be required to satisfy any eligibility criteria specified in chapter 89 
of title 5 (except as provided in paragraph (1)(C) or (1)(D)) as a 
condition for enrollment in health benefits plans offered through the 
Federal Employees Health Benefits program under the demonstration 
project.
    ``(4) For purposes of determining whether an individual is a member 
of family under paragraph (5) of section 8901 of title 5 for purposes of 
paragraph (1)(C) or (1)(D), a member or former member described in 
section 1076(b) or 1076(a)(2)(B) of this title shall be deemed to be an 
employee under such section.
    ``(5) An eligible beneficiary who is eligible to enroll in the 
Federal Employees Health Benefits program as an employee under chapter 
89 of title 5 is not eligible to enroll in a Federal Employees Health 
Benefits plan under this section.
    ``(c) Area of Demonstration Project.--The Secretary of Defense and 
the Director of the Office of Personnel Management shall jointly 
identify and select the geographic areas in which the demonstration 
project will be conducted. The Secretary and the Director shall 
establish at least six, but not more than ten, such demonstration areas. 
In establishing the areas, the Secretary and Director shall include--
            ``(1) an area that includes the catchment area of one or 
        more military medical treatment facilities;
            ``(2) an area that is not located in the catchment area of a 
        military medical treatment facility;
            ``(3) an area in which there is a Medicare Subvention 
        Demonstration project area under section 1896 of title XVIII of 
        the Social Security Act (42 U.S.C. 1395ggg); and
            ``(4) not more than one area for each TRICARE region.

    ``(d) Duration of Demonstration Project.--(1) The Secretary of 
Defense shall conduct the demonstration project during three contract 
years under the Federal Employees Health Benefits program.
    ``(2) Eligible beneficiaries shall, as provided under the agreement 
pursuant to subsection (a), be permitted to enroll in the demonstration 
project during an open enrollment period for the year 2000 (conducted in 
the fall of 1999). The demonstration project shall terminate on December 
31, 2002.
    ``(e) Prohibition Against Use of MTFs and Enrollment Under 
TRICARE.--Covered beneficiaries under this chapter who are provided 
coverage under the demonstration project shall not be eligible to 
receive care at a military medical treatment facility or to enroll in a 
heath care plan under the TRICARE program.
    ``(f ) Term of Enrollment in Project.--(1) Subject to paragraphs (2) 
and (3), the period of enrollment of an eligible beneficiary who enrolls 
in the demonstration project during the open enrollment period for the 
year 2000 shall be three years unless the beneficiary disenrolls before 
the termination of the project.
    ``(2) A beneficiary who elects to enroll in the project, and who 
subsequently discontinues enrollment in the project before the end of 
the period described in paragraph (1), shall not be eligible to reenroll 
in the project.
    ``(3) An eligible beneficiary enrolled in a Federal Employees Health 
Benefits plan under this section may change health benefits plans and 
coverage in the same manner as any other Federal

[[Page 112 STAT. 2063]]

Employees Health Benefits program beneficiary may change such plans.
    ``(g) Effect of Cancellation.--The cancellation by an eligible 
beneficiary of coverage under the Federal Employee Health Benefits 
program shall be irrevocable during the term of the demonstration 
project.
    ``(h) Separate Risk Pools; Charges.--(1) The Director of the Office 
of Personnel Management shall require health benefits plans under 
chapter 89 of title 5 that participate in the demonstration project to 
maintain a separate risk pool for purposes of establishing premium rates 
for eligible beneficiaries who enroll in such a plan in accordance with 
this section.
    ``(2) The Director shall determine total subscription charges for 
self only or for family coverage for eligible beneficiaries who enroll 
in a health benefits plan under chapter 89 of title 5 in accordance with 
this section. The subscription charges shall include premium charges 
paid to the plan and amounts described in section 8906(c) of title 5 for 
administrative expenses and contingency reserves.
    ``(i) Government Contributions.--The Secretary of Defense shall be 
responsible for the Government contribution for an eligible beneficiary 
who enrolls in a health benefits plan under chapter 89 of title 5 in 
accordance with this section, except that the amount of the contribution 
may not exceed the amount of the Government contribution which would be 
payable if the electing beneficiary were an employee (as defined for 
purposes of such chapter) enrolled in the same health benefits plan and 
level of benefits.
    ``( j) Report Requirements.--(1) The Secretary of Defense and the 
Director of the Office of Personnel Management shall jointly submit to 
Congress two reports containing the information described in paragraph 
(2). The first report shall be submitted not later than the date that is 
15 months after the date that the Secretary begins to implement the 
demonstration project. The second report shall be submitted not later 
than December 31, 2002.
    ``(2) The reports required by paragraph (1) shall include the 
following:
            ``(A) Information on the number of eligible beneficiaries 
        who elect to participate in the demonstration project.
            ``(B) An analysis of the percentage of eligible 
        beneficiaries who participate in the demonstration project as 
        compared to the percentage of covered beneficiaries under this 
        chapter who elect to enroll in a health care plan under such 
        chapter.
            ``(C) Information on eligible beneficiaries who elect to 
        participate in the demonstration project and did not have 
        Medicare Part B coverage before electing to participate in the 
        project.
            ``(D) An analysis of the enrollment rates and cost of health 
        services provided to eligible beneficiaries who elect to 
        participate in the demonstration project as compared with 
        similarly situated enrollees in the Federal Employees Health 
        Benefits program under chapter 89 of title 5.
            ``(E) An analysis of how the demonstration project affects 
        the accessibility of health care in military medical treatment 
        facilities, and a description of any unintended effects on the 
        treatment priorities in those facilities in the demonstration 
        area.
            ``(F) An analysis of any problems experienced by the 
        Department of Defense in managing the demonstration project.

[[Page 112 STAT. 2064]]

            ``(G) A description of the effects of the demonstration 
        project on medical readiness and training of the Armed Forces at 
        military medical treatment facilities located in the 
        demonstration area, and a description of the probable effects 
        that making the project permanent would have on the medical 
        readiness and training.
            ``(H) An examination of the effects that the demonstration 
        project, if made permanent, would be expected to have on the 
        overall budget of the Department of Defense, the budget of the 
        Office of Personnel Management, and the budgets of individual 
        military medical treatment facilities.
            ``(I) An analysis of whether the demonstration project 
        affects the cost to the Department of Defense of prescription 
        drugs or the accessibility, availability, and cost of such drugs 
        to eligible beneficiaries.
            ``(J) Any additional information that the Secretary of 
        Defense or the Director of the Office of Personnel Management 
        considers appropriate to assist Congress in determining the 
        viability of expanding the project to all Medicare-eligible 
        members of the uniformed services and their dependents.
            ``(K) Recommendations on whether eligible beneficiaries--
                    ``(i) should be given more than one chance to enroll 
                in the demonstration project under this section;
                    ``(ii) should be eligible to enroll in the project 
                only during the first year following the date that the 
                eligible beneficiary becomes eligible to receive 
                hospital insurance benefits under part A of title XVIII 
                of the Social Security Act; or
                    ``(iii) should be eligible to enroll in the project 
                only during the 2-year period following the date on 
                which the beneficiary first becomes eligible to enroll 
                in the project.

    ``(k) Comptroller General Report.--Not later than December 31, 2002, 
the Comptroller General shall submit to Congress a report addressing the 
same matters required to be addressed under subsection ( j)(2). The 
report shall describe any limitations with respect to the data contained 
in the report as a result of the size and design of the demonstration 
project.
    ``(l) Application of Medigap Protections to Demonstration Project 
Enrollees.--(1) Subject to paragraph (2), the provisions of section 
1882(s)(3) (other than clauses (i) through (iv) of subparagraph (B)) and 
1882(s)(4) of the Social Security Act shall apply to enrollment (and 
termination of enrollment) in the demonstration project under this 
section, in the same manner as they apply to enrollment (and termination 
of enrollment) with a Medicare+Choice organization in a Medicare+Choice 
plan.
    ``(2) In applying paragraph (1)--
            ``(A) any reference in clause (v) or (vi) of section 
        1882(s)(3)(B) of such Act to 12 months is deemed a reference to 
        36 months; and
            ``(B) the notification required under section 1882(s)(3)(D) 
        of such Act shall be provided in a manner specified by the 
        Secretary of Defense in consultation with the Director of the 
        Office of Personnel Management.''.

[[Page 112 STAT. 2065]]

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

``1108. Health care coverage through Federal Employees Health Benefits 
           program: demonstration project.''.

    (b) Conforming Amendments.--Chapter 89 of title 5, United States 
Code, is amended--
            (1) in section 8905--
                    (A) by redesignating subsections (d) through (f ) as 
                subsections (e) through (g), respectively; and
                    (B) by inserting after subsection (c) the following 
                new subsection:

    ``(d) An individual whom the Secretary of Defense determines is an 
eligible beneficiary under subsection (b) of section 1108 of title 10 
may enroll, as part of the demonstration project under such section, in 
a health benefits plan under this chapter in accordance with the 
agreement under subsection (a) of such section between the Secretary and 
the Office and applicable regulations under this chapter.'';
            (2) in section 8906(b)--
                    (A) in paragraph (1), by striking ``paragraphs (2) 
                and (3)'' and inserting in lieu thereof ``paragraphs 
                (2), (3), and (4)''; and
                    (B) by adding at the end the following new 
                paragraph:

    ``(4) In the case of persons who are enrolled in a health benefits 
plan as part of the demonstration project under section 1108 of title 
10, the Government contribution shall be subject to the limitation set 
forth in subsection (i) of that section.'';
            (3) in section 8906(g)--
                    (A) in paragraph (1), by striking ``paragraph (2)'' 
                and inserting in lieu thereof ``paragraphs (2) and 
                (3)''; and
                    (B) by adding at the end the following new 
                paragraph:

    ``(3) The Government contribution for persons enrolled in a health 
benefits plan as part of the demonstration project under section 1108 of 
title 10 shall be paid as provided in subsection (i) of that section.''; 
and
            (4) in section 8909, by adding at the end the following new 
        subsection:

    ``(g) The fund described in subsection (a) is available to pay costs 
that the Office incurs for activities associated with implementation of 
the demonstration project under section 1108 of title 10.''.

SEC. 722. <<NOTE: 10 USC 1073 note.>>  TRICARE AS SUPPLEMENT TO MEDICARE 
            DEMONSTRATION.

    (a) In General.--(1) The Secretary of Defense shall, after 
consultation with the other administering Secretaries, carry out a 
demonstration project in order to assess the feasibility and 
advisability of providing medical care coverage under the TRICARE 
program to the individuals described in subsection (c). The 
demonstration project shall be known as the ``TRICARE Senior 
Supplement''.
    (2) The Secretary shall commence the demonstration project not later 
than January 1, 2000, and shall terminate the demonstration project not 
later than December 31, 2002.
    (3) Under the demonstration project, the Secretary shall permit 
eligible individuals described in subsection (c) to enroll in the 
TRICARE program.

[[Page 112 STAT. 2066]]

    (4) Payment for care and services received by eligible individuals 
who enroll in the TRICARE program under the demonstration project shall 
be made as follows:
            (A) First, under title XVIII of the Social Security Act, but 
        only to the extent that payment for such care and services is 
        provided for under that title.
            (B) Second, under the TRICARE program, but only to the 
        extent that payment for such care and services is provided under 
        that program and is not provided for under subparagraph (A).
            (C) Third, by the eligible individual concerned, but only to 
        the extent that payment for such care and services is not 
        provided for under subparagraph (A) or (B).

    (5)(A) The Secretary shall require each eligible individual who 
enrolls in the TRICARE program under the demonstration project to pay an 
enrollment fee. The Secretary shall provide, to the extent feasible, the 
option of payment of the enrollment fee through electronic transfers of 
funds and through withholding of such payment from the pay of a member 
or former member of the Armed Forces, and shall provide the option that 
payment of the enrollment fee be made in full at the beginning of the 
enrollment period or that payments be made on a monthly or quarterly 
basis.
    (B) The amount of the enrollment fee charged an eligible individual 
under subparagraph (A) for self-only or family enrollment in any year 
may not exceed the amount equal to 75 percent of the total subscription 
charges in that year for self-only or family, respectively, fee-for-
service coverage under the health benefits plan under the Federal 
Employees Health Benefits program under chapter 89 of title 5, United 
States Code, that is most similar in coverage to the TRICARE program.
    (6) A covered beneficiary who enrolls in TRICARE Senior Supplement 
under this subsection shall not be eligible to receive health care at a 
facility of the uniformed services during the period such enrollment is 
in effect.
    (b) Evaluation; Review.--(1) The Secretary shall provide for an 
evaluation of the demonstration project conducted under this subsection 
by an appropriate person or entity that is independent of the Department 
of Defense. The evaluation shall include the following:
            (A) An analysis of the costs of the demonstration project to 
        the United States and to the eligible individuals who 
        participate in such demonstration project.
            (B) An assessment of the extent to which the demonstration 
        project satisfies the requirements of such eligible individuals 
        for the health care services available under the demonstration 
        project.
            (C) An assessment of the effect, if any, of the 
        demonstration project on military medical readiness.
            (D) A description of the rate of the enrollment in the 
        demonstration project of the individuals who were eligible to 
        enroll in the demonstration project.
            (E) An assessment of whether the demonstration project 
        provides the most suitable model for a program to provide 
        adequate health care services to the population of individuals 
        consisting of the eligible individuals.
            (F) An evaluation of any other matters that the Secretary 
        considers appropriate.

[[Page 112 STAT. 2067]]

    (2) The Comptroller General shall review the evaluation conducted 
under paragraph (1). In carrying out the review, the Comptroller General 
shall--
            (A) assess the validity of the processes used in the 
        evaluation; and
            (B) assess the validity of any findings under the 
        evaluation, including any limitations with respect to the data 
        contained in the evaluation as a result of the size and design 
        of the demonstration project.

    (3)(A) The Secretary shall submit a report on the results of the 
evaluation under paragraph (1), together with the evaluation, to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives not later than December 31, 
2002.
    (B) <<NOTE: Reports.>>  The Comptroller General shall submit a 
report on the results of the review under paragraph (2) to the 
committees referred to in subparagraph (A) not later than February 15, 
2003.

    (c) Eligible Individuals.--(1) An individual is eligible to 
participate under this section if the individual is a member or former 
member of the uniformed services described in section 1074(b) of title 
10, United States Code, a dependent of the member described in section 
1076(a)(2)(B) or 1076(b) of that title, or a dependent of a member of 
the uniformed services who died while on active duty for a period of 
more than 30 days, who--
            (A) is 65 years of age or older;
            (B) is entitled to hospital insurance benefits under part A 
        of title XVIII of the Social Security Act (42 U.S.C. 1395c et 
        seq.);
            (C) is enrolled in the supplemental medical insurance 
        program under part B of such title XVIII (42 U.S.C. 1395j et 
        seq.); and
            (D) resides in an area selected by the Secretary under 
        subsection (c).

    (d) Areas of Implementation.--(1) The Secretary shall carry out the 
demonstration project under this section in two separate areas selected 
by the Secretary.
    (2) The areas selected by the Secretary under paragraph (1) shall be 
as follows:
            (A) One area shall be an area outside the catchment area of 
        a military medical treatment facility in which--
                    (i) no eligible organization has a contract in 
                effect under section 1876 of the Social Security Act (42 
                U.S.C. 1395mm) and no Medicare+Choice organization has a 
                contract in effect under part C of title XVIII of that 
                Act (42 U.S.C. 1395w-21); or
                    (ii) the aggregate number of enrollees with an 
                eligible organization with a contract in effect under 
                section 1876 of that Act or with a Medicare+Choice 
                organization with a contract in effect under part C of 
                title XVIII of that Act is less than 2.5 percent of the 
                total number of individuals in the area who are entitled 
                to hospital insurance benefits under part A of title 
                XVIII of that Act.
            (B) The other area shall be an area outside the catchment 
        area of a military medical treatment facility in which--
                    (i) at least one eligible organization has a 
                contract in effect under section 1876 of that Act or one

[[Page 112 STAT. 2068]]

                Medicare+Choice organization has a contract in effect 
                under part C of title XVIII of that Act; and
                    (ii) the aggregate number of enrollees with an 
                eligible organization with a contract in effect under 
                section 1876 of that Act or with a Medicare+Choice 
                organization with a contract in effect under part C of 
                title XVIII of that Act exceeds 10 percent of the total 
                number of individuals in the area who are entitled to 
                hospital insurance benefits under part A of title XVIII 
                of that Act.

    (e) Definitions.--In this section:
            (1) The term ``administering Secretaries'' has the meaning 
        given that term in section 1072(3) of title 10, United States 
        Code.
            (2) The term ``TRICARE program'' has the meaning given that 
        term in section 1072(7) of title 10, United States Code.

SEC. 723. <<NOTE: 10 USC 1073 note.>>  IMPLEMENTATION OF REDESIGN OF 
            PHARMACY SYSTEM.

    (a) In General.--Not later than October 1, 1999, the Secretary of 
Defense shall implement, with respect to eligible individuals described 
in subsection (e) who reside in an area selected under subsection (f ), 
the redesign of the pharmacy system under TRICARE (including the mail-
order and retail pharmacy benefit under TRICARE) to incorporate ``best 
business practices'' of the private sector in providing pharmaceuticals, 
as developed under the plan described in section 703.
    (b) Collection of Premiums and Other Charges.--The Secretary of 
Defense may collect from eligible individuals described in subsection 
(e) who participate in the redesigned pharmacy system any premiums, 
deductibles, copayments, or other charges that the Secretary would 
otherwise collect from individuals similar to such individuals.
    (c) Evaluation.--The Secretary shall provide for an evaluation of 
the implementation of the redesign of the pharmacy system under TRICARE 
under this section by an appropriate person or entity that is 
independent of the Department of Defense. The evaluation shall include 
the following:
            (1) An analysis of the costs of the implementation of the 
        redesign of the pharmacy system under TRICARE and to the 
        eligible individuals who participate in the system.
            (2) An assessment of the extent to which the implementation 
        of such system satisfies the requirements of the eligible 
        individuals for the health care services available under 
        TRICARE.
            (3) An assessment of the effect, if any, of the 
        implementation of the system on military medical readiness.
            (4) A description of the rate of the participation in the 
        system of the individuals who were eligible to participate.
            (5) An evaluation of any other matters that the Secretary 
        considers appropriate.

    (d) Reports.--The Secretary shall submit two reports on the results 
of the evaluation under subsection (c), together with the evaluation, to 
the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives. The first report 
shall be submitted not later than December 31, 2000, and the second 
report shall be submitted not later than December 31, 2002.

[[Page 112 STAT. 2069]]

    (e) Eligible Individuals.--(1) An individual is eligible to 
participate under this section if the individual is a member or former 
member of the uniformed services described in section 1074(b) of title 
10, United States Code, a dependent of the member described in section 
1076(a)(2)(B) or 1076(b) of that title, or a dependent of a member of 
the uniformed services who died while on active duty for a period of 
more than 30 days, who--
            (A) is 65 years of age or older;
            (B) is entitled to hospital insurance benefits under part A 
        of title XVIII of the Social Security Act (42 U.S.C. 1395c et 
        seq.);
            (C) except as provided in paragraph (2), is enrolled in the 
        supplemental medical insurance program under part B of such 
        title XVIII (42 U.S.C. 1395j et seq.); and
            (D) resides in an area selected by the Secretary under 
        subsection (f ).

    (2) Paragraph (1)(C) shall not apply in the case of an individual 
who at the time of attaining the age of 65 lived within 100 miles of the 
catchment area of a military medical treatment facility.
    (f ) Areas of Implementation.--(1) The Secretary shall carry out the 
implementation of the redesign of the pharmacy system under TRICARE in 
two separate areas selected by the Secretary.
    (2) The areas selected by the Secretary under paragraph (1) shall be 
as follows:
            (A) One area shall be an area outside the catchment area of 
        a military medical treatment facility in which--
                    (i) no eligible organization has a contract in 
                effect under section 1876 of the Social Security Act (42 
                U.S.C. 1395mm) and no Medicare+Choice organization has a 
                contract in effect under part C of title XVIII of that 
                Act (42 U.S.C. 1395w-21); or
                    (ii) the aggregate number of enrollees with an 
                eligible organization with a contract in effect under 
                section 1876 of that Act or with a Medicare+Choice 
                organization with a contract in effect under part C of 
                title XVIII of that Act is less than 2.5 percent of the 
                total number of individuals in the area who are entitled 
                to hospital insurance benefits under part A of title 
                XVIII of that Act.
            (B) The other area shall be an area outside the catchment 
        area of a military medical treatment facility in which--
                    (i) at least one eligible organization has a 
                contract in effect under section 1876 of that Act or one 
                Medicare+Choice organization has a contract in effect 
                under part C of title XVIII of that Act; and
                    (ii) the aggregate number of enrollees with an 
                eligible organization with a contract in effect under 
                section 1876 of that Act or with a Medicare+Choice 
                organization with a contract in effect under part C of 
                title XVIII of that Act exceeds 10 percent of the total 
                number of individuals in the area who are entitled to 
                hospital insurance benefits under part A of title XVIII 
                of that Act.

SEC. 724. <<NOTE: 10 USC 1108 note.>>  COMPREHENSIVE EVALUATION OF 
            IMPLEMENTATION OF DEMONSTRATION PROJECTS AND TRICARE 
            PHARMACY REDESIGN.

    Not later than March 31, 2003, the Comptroller General shall submit 
to the Committee on Armed Services of the Senate and

[[Page 112 STAT. 2070]]

the Committee on National Security of the House of Representatives a 
report containing a comprehensive comparative analysis of the FEHBP 
demonstration project conducted under section 1108 of title 10, United 
States Code (as added by section 721), the TRICARE Senior Supplement 
under section 722, and the redesign of the TRICARE pharmacy system under 
section 723. The comprehensive analysis shall incorporate the findings 
of the evaluation submitted under section 723(c) and the report 
submitted under subsection ( j) of such section 1108.

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

SEC. 731. <<NOTE: President.>>  PROCESS FOR WAIVING INFORMED CONSENT 
            REQUIREMENT FOR ADMINISTRATION OF CERTAIN DRUGS TO MEMBERS 
            OF ARMED FORCES FOR PURPOSES OF A PARTICULAR MILITARY 
            OPERATION.

    (a) Limitation and Waiver.--(1) Section 1107 of title 10, United 
States Code, is amended--
            (A) by redesignating subsection (f ) as subsection (g); and
            (B) by inserting after subsection (e) the following new 
        subsection (f ):

    ``(f ) Limitation and Waiver.--(1) In the case of the administration 
of an investigational new drug or a drug unapproved for its applied use 
to a member of the armed forces in connection with the member's 
participation in a particular military operation, the requirement that 
the member provide prior consent to receive the drug in accordance with 
the prior consent requirement imposed under section 505(i)(4) of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)(4)) may be waived 
only by the President. The President may grant such a waiver only if the 
President determines, in writing, that obtaining consent--
            ``(A) is not feasible;
            ``(B) is contrary to the best interests of the member; or
            ``(C) is not in the interests of national security.

    ``(2) In making a determination to waive the prior consent 
requirement on a ground described in subparagraph (A) or (B) of 
paragraph (1), the President shall apply the standards and criteria that 
are set forth in the relevant FDA regulations for a waiver of the prior 
consent requirement on that ground.
    ``(3) The Secretary of Defense may request the President to waive 
the prior consent requirement with respect to the administration of an 
investigational new drug or a drug unapproved for its applied use to a 
member of the armed forces in connection with the member's participation 
in a particular military operation. With respect to any such 
administration--
            ``(A) the Secretary may not delegate to any other official 
        the authority to request the President to waive the prior 
        consent requirement for the Department of Defense; and
            ``(B) <<NOTE: Notification.>>  if the President grants the 
        requested waiver, the Secretary shall submit to the chairman and 
        ranking minority member of each congressional defense committee 
        a notification of the waiver, together with the written 
        determination of the President under paragraph (1) and the 
        Secretary's justification for the request or requirement under 
        subsection (a) for the member to receive the drug covered by the 
        waiver.

[[Page 112 STAT. 2071]]

    ``(4) In this subsection:
            ``(A) The term `relevant FDA regulations' means the 
        regulations promulgated under section 505(i) of the Federal 
        Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)).
            ``(B) The term `prior consent requirement' means the 
        requirement included in the relevant FDA regulations pursuant to 
        section 505(i)(4) of the Federal Food, Drug, and Cosmetic Act 
        (21 U.S.C. 355(i)(4)).
            ``(C) The term `congressional defense committee' means each 
        of the following:
                    ``(i) The Committee on Armed Services and the 
                Committee on Appropriations of the Senate.
                    ``(ii) The Committee on National Security and the 
                Committee on Appropriations of the House of 
                Representatives.''.

    (2) <<NOTE: Applicability. 10 USC 1107 note.>>  Subsection (f ) of 
section 1107 of title 10, United States Code (as added by paragraph 
(1)), shall apply to the administration of an investigational new drug 
or a drug unapproved for its applied use to a member of the Armed Forces 
in connection with the member's participation in a particular military 
operation on or after the date of the enactment of this Act.

    (3) <<NOTE: 10 USC 1107 note.>>  A waiver of the requirement for 
prior consent imposed under the regulations required under paragraph (4) 
of section 505(i) of the Federal Food, Drug, and Cosmetic Act (or under 
any antecedent provision of law or regulations) that has been granted 
under that section (or antecedent provision of law or regulations) 
before the date of the enactment of this Act for the administration of a 
drug to a member of the Armed Forces in connection with the member's 
participation in a particular military operation may be applied in that 
case after that date only if--
            (A) the Secretary of Defense personally determines that the 
        waiver is justifiable on each ground on which the waiver was 
        granted;
            (B) the President concurs in that determination in writing; 
        and
            (C) the Secretary submits to the chairman and ranking 
        minority member of each congressional committee referred to in 
        section 1107(f )(4)(C) of title 10, United States Code (as added 
        by paragraph (1))--
                    (i) a notification of the waiver;
                    (ii) the President's written concurrence; and
                    (iii) the Secretary's justification for the request 
                or for the requirement under subsection 1107(a) of such 
                title for the member to receive the drug covered by the 
                waiver.

    (b) Time and Form of Notice.--(1) Subsection (b) of such section is 
amended by striking out ``, if practicable'' and all that follows 
through ``first administered to the member''.
    (2) Subsection (c) of such section is amended by striking out 
``unless the Secretary of Defense determines'' and all that follows 
through ``alternative method''.

SEC. 732. HEALTH BENEFITS FOR ABUSED DEPENDENTS OF MEMBERS OF THE ARMED 
            FORCES.

    Section 1076(e) of title 10, United States Code, is amended--
            (1) by amending paragraph (1) to read as follows:

    ``(1) Subject to paragraph (3), the administering Secretary shall 
furnish an abused dependent of a former member of a uniformed

[[Page 112 STAT. 2072]]

service described in paragraph (4), during that period that the abused 
dependent is in receipt of transitional compensation under section 1059 
of this title, with medical and dental care, including mental health 
services, in facilities of the uniformed services in accordance with the 
same eligibility and benefits as were applicable for that abused 
dependent during the period of active service of the former member.''; 
and
            (2) in paragraph (3)--
                    (A) by adding ``and'' at the end of subparagraph 
                (A);
                    (B) by striking ``; and'' at the end of subparagraph 
                (B) and inserting a period; and
                    (C) by striking subparagraph (C).

SEC. 733. PROVISION OF HEALTH CARE AT MILITARY ENTRANCE PROCESSING 
            STATIONS AND ELSEWHERE OUTSIDE MEDICAL TREATMENT FACILITIES.

    (a) Extension of Authorization for Use of Personal Services 
Contracts.--Section 1091(a)(2) of title 10, United States Code, is 
amended in the second sentence by striking out ``the end of the one-year 
period beginning on the date of the enactment of this paragraph'' and 
inserting in lieu thereof ``December 31, 2000''.
     <<NOTE: 10 USC 1091 note.>> (b) Test of Alternative Process for 
Conducting Medical Screenings for Enlistment Qualification.--(1) The 
Secretary of Defense shall conduct a test to--
            (A) determine whether the use of an alternative to the 
        system currently used by the Department of Defense of employing 
        fee-basis physicians for determining the medical qualifications 
        for enlistment of applicants for military service would reduce 
        the number of disqualifying medical conditions that are detected 
        during the initial entry training of such applicants;
            (B) determine whether any savings or cost avoidance may be 
        achieved through use of an alternative system as a result of any 
        increased detection of disqualifying medical conditions before 
        entry by applicants into initial entry training; and
            (C) compare the capability of an alternative system to meet 
        or exceed the cost, responsiveness, and timeliness standards of 
        the system currently used by the Department.

    (2) The alternative system described in paragraph (1) may include 
the system used under the TRICARE system, the health-care system of the 
Department of Veterans Affairs, or any other system, or combination of 
systems, considered appropriate by the Secretary.
    (3) <<NOTE: Deadline. Reports.>>  Not later than March 1, 2000, the 
Secretary shall submit to the Committee on National Security of the 
House of Representatives and the Committee on Armed Services of the 
Senate a report on the results and findings of the test conducted under 
paragraph (1).

SEC. 734. PROFESSIONAL QUALIFICATIONS OF PHYSICIANS PROVIDING MILITARY 
            HEALTH CARE.

    (a) Requirement for Unrestricted License.--Section 1094(a)(1) of 
title 10, United States Code, is amended by adding at the end the 
following: ``In the case of a physician, the physician may not provide 
health care as a physician under this chapter unless the current license 
is an unrestricted license that is not subject to limitation on the 
scope of practice ordinarily granted to other physicians for a similar 
specialty by the jurisdiction that granted the license.''.

[[Page 112 STAT. 2073]]

    (b) Satisfaction of Continuing Medical Education Requirements.--(1) 
Chapter 55 of title 10, United States Code, is amended by inserting 
after section 1094 the following new section:

``Sec. 1094a. Continuing medical education requirements: system for 
                        monitoring physician compliance

    ``The Secretary of Defense shall establish a mechanism for ensuring 
that each person under the jurisdiction of the Secretary of a military 
department who provides health care under this chapter as a physician 
satisfies the continuing medical education requirements applicable to 
the physician.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1094 the 
following new item:

``1094a. Continuing medical education requirements: system for 
           monitoring physician compliance.''.

     <<NOTE: 10 USC 1094 note.>> (c) Effective Dates.--(1) The amendment 
made by subsection (a) shall take effect on October 1, 1999.

    (2) <<NOTE: 10 USC 1094a note.>>  The system required by section 
1094a of title 10, United States Code (as added by subsection (b)), 
shall take effect on the date that is three years after the date of the 
enactment of this Act.

                        Subtitle E--Other Matters

SEC. 741. <<NOTE: 10 USC 1109 note.>>  ENHANCED DEPARTMENT OF DEFENSE 
            ORGAN AND TISSUE DONOR PROGRAM.

    (a) Findings.--Congress makes the following findings:
            (1) Organ and tissue transplantation is one of the most 
        remarkable medical success stories in the history of medicine.
            (2) Each year, the number of people waiting for organ or 
        tissue transplantation increases. It is estimated that there are 
        approximately 39,000 patients, ranging in age from babies to 
        those in retirement, awaiting transplants of kidneys, hearts, 
        livers, and other solid organs.
            (3) The Department of Defense has made significant progress 
        in increasing the awareness of the importance of organ and 
        tissue donations among members of the Armed Forces.
            (4) The inclusion of organ and tissue donor elections in the 
        Defense Enrollment Eligibility Reporting System (DEERS) central 
        database represents a major step in ensuring that organ and 
        tissue donor elections are a matter of record and are accessible 
        in a timely manner.

    (b) Responsibilities Regarding Organ and Tissue Donation.--(1) 
Chapter 55 of title 10, United States Code, is amended by adding after 
section 1108, as added by section 721(a)(1), the following new section:

``Sec. 1109. Organ and tissue donor program

    `` <<NOTE: Records.>> (a) Responsibilities of the Secretary of 
Defense.--The Secretary of Defense shall ensure that the advanced 
systems developed for recording armed forces members' personal data and 
information (such as the SMARTCARD, MEDITAG, and Personal Information 
Carrier) include the capability to record organ and tissue donation 
elections.

[[Page 112 STAT. 2074]]

    ``(b) Responsibilities of the Secretaries of the Military 
Departments.--(1) The Secretaries of the military departments shall 
ensure that--
            ``(1) appropriate information about organ and tissue 
        donation is provided--
                    ``(A) to each officer candidate during initial 
                training; and
                    ``(B) to each recruit--
                          ``(i) after completion by the recruit of basic 
                      training; and
                          ``(ii) before arrival of the recruit at the 
                      first duty assignment of the recruit;
            ``(2) members of the armed forces are given recurring, 
        specific opportunities to elect to be organ or tissue donors 
        during service in the armed forces and upon retirement; and
            ``(3) members of the armed forces electing to be organ or 
        tissue donors are encouraged to advise their next of kin 
        concerning the donation decision and any subsequent change of 
        that decision.

    ``(c) Responsibilities of the Surgeons General of the 
Military Departments.--The Surgeons General of the military departments 
shall ensure that--
            ``(1) appropriate training is provided to enlisted and 
        officer medical personnel to facilitate the effective operation 
        of organ and tissue donation activities under garrison 
        conditions and, to the extent possible, under operational 
        conditions; and
            ``(2) medical logistical activities can, to the extent 
        possible without jeopardizing operational requirements, support 
        an effective organ and tissue donation program.''.

    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 1108, as added by 
section 721(a)(2), the following new item:

``1109. Organ and tissue donor program.''.

     <<NOTE: Deadline. 10 USC 1109 note.>> (c) Report.--Not later than 
September 1, 1999, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on the implementation 
of section 1109 of title 10, United States Code (as added by subsection 
(b)).

SEC. 742. AUTHORIZATION TO ESTABLISH A LEVEL 1 TRAUMA TRAINING CENTER.

    The Secretary of the Army is hereby authorized to establish a Level 
1 Trauma Training Center (as designated by the American College of 
Surgeons) in order to provide the Army with a trauma center capable of 
training forward surgical teams.

SEC. 743. AUTHORITY TO ESTABLISH CENTER FOR STUDY OF POST-DEPLOYMENT 
            HEALTH CONCERNS OF MEMBERS OF THE ARMED FORCES.

    The Secretary of Defense is hereby authorized to establish a center 
devoted to a longitudinal study to evaluate data on the health 
conditions of members of the Armed Forces upon their return from 
deployment on military operations for purposes of ensuring the rapid 
identification of any trends in diseases, illnesses, or injuries among 
such members as a result of such operations.

[[Page 112 STAT. 2075]]

SEC. 744. REPORT ON IMPLEMENTATION OF ENROLLMENT-BASED CAPITATION FOR 
            FUNDING FOR MILITARY MEDICAL TREATMENT FACILITIES.

    (a) Report Required.--The Secretary of Defense shall submit to 
Congress a report on the potential impact of using an enrollment-based 
capitation methodology to allocate funds for military medical treatment 
facilities. The report shall address the following:
            (1) A description of the plans of the Secretary to implement 
        an enrollment-based capitation methodology for military medical 
        treatment facilities and with respect to contracts for the 
        delivery of health care under the TRICARE program.
            (2) The justifications for implementing an enrollment-based 
        capitation methodology without first conducting a demonstration 
        project for implementation of such methodology.
            (3) The impact that implementation of an enrollment-based 
        capitation methodology would have on the provision of space-
        available care at military medical treatment facilities, 
        particularly in the case of care for--
                    (A) military retirees who are entitled to hospital 
                insurance benefits under part A of title XVIII of the 
                Social Security Act (42 U.S.C. 1395c et seq.); and
                    (B) covered beneficiaries under chapter 55 of title 
                10, United States Code, who reside outside the catchment 
                area of a military medical treatment facility.
            (4) The impact that implementation of an enrollment-based 
        capitation methodology would have with respect to the pharmacy 
        benefits provided at military medical treatment facilities, 
        given that the enrollment-based capitation methodology would 
        fund military medical treatment facilities based on the number 
        of members at such facilities enrolled in TRICARE Prime, but all 
        covered beneficiaries may fill prescriptions at military medical 
        treatment facility pharmacies.
            (5) An explanation of how additional funding will be 
        provided for a military medical treatment facility if an 
        enrollment-based capitation methodology is implemented to ensure 
        that space-available care and pharmacy coverage can be provided 
        to covered beneficiaries who are not enrolled at the military 
        medical treatment facility, and the amount of funding that will 
        be available.
            (6) An explanation of how implementation of an enrollment-
        based capitation methodology would impact the provision of 
        uniform benefits under TRICARE Prime, and how the Secretary 
        would ensure, if such methodology were implemented, that the 
        provision of health care under TRICARE Prime would not be 
        bifurcated between the provision of such care at military 
        medical treatment facilities and the provision of such care from 
        civilian providers.

    (b) Deadline for Submission.--The Secretary shall submit the report 
required by subsection (a) not later than March 1, 1999.

SEC. 745. <<NOTE: 10 USC 1071 note.>>  JOINT DEPARTMENT OF DEFENSE AND 
            DEPARTMENT OF VETERANS AFFAIRS REPORTS RELATING TO 
            INTERDEPARTMENTAL COOPERATION IN THE DELIVERY OF MEDICAL 
            CARE.

    (a) Findings.--Congress makes the following findings:
            (1) The military health care system of the Department of 
        Defense and the Veterans Health Administration of the

[[Page 112 STAT. 2076]]

        Department of Veterans Affairs are national institutions that 
        collectively manage more than 1,500 hospitals, clinics, and 
        health care facilities worldwide to provide services to more 
        than 11,000,000 beneficiaries.
            (2) In the post-Cold War era, these institutions are in a 
        profound transition that involves challenging opportunities.
            (3) During the period from 1988 to 1998, the number of 
        military medical personnel has declined by 15 percent and the 
        number of military hospitals has been reduced by one-third.
            (4) During the 2 years since 1996, the Department of 
        Veterans Affairs has revitalized its structure by decentralizing 
        authority into 22 Veterans Integrated Service Networks.
            (5) In the face of increasing costs of medical care, 
        increased demands for health care services, and increasing 
        budgetary constraints, the Department of Defense and the 
        Department of Veterans Affairs have embarked on a variety of 
        dynamic and innovative cooperative programs ranging from shared 
        services to joint venture operations of medical facilities.
            (6) In 1984, there was a combined total of 102 Department of 
        Veterans Affairs and Department of Defense facilities with 
        sharing agreements. By 1997, that number had grown to 420. 
        During the six years from fiscal year 1992 through fiscal year 
        1997, shared services increased from slightly over 3,000 
        services to more than 6,000 services, ranging from major medical 
        and surgical services, laundry, blood, and laboratory services 
        to unusual speciality care services.
            (7) The Department of Defense and the Department of Veterans 
        Affairs are conducting four health care joint ventures in New 
        Mexico, Nevada, Texas, and Oklahoma, and are planning to conduct 
        four more such ventures in Alaska, Florida, Hawaii, and 
        California.

    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Department of Defense and the Department of Veterans 
        Affairs should be commended for the cooperation between the two 
        departments in the delivery of medical care, of which the 
        cooperation involved in the establishment and operation of the 
        Department of Defense and the Department of Veterans Affairs 
        Executive Council is a praiseworthy example;
            (2) the Department of Defense and the Department of Veterans 
        Affairs are encouraged to continue to explore new opportunities 
        to enhance the availability and delivery of medical care to 
        beneficiaries by further enhancing the cooperative efforts of 
        the departments; and
            (3) enhanced cooperation between the Department of Defense 
        and the Department of Veterans Affairs is encouraged regarding--
                    (A) the general areas of access to quality medical 
                care, identification and elimination of impediments to 
                enhanced cooperation, and joint research and program 
                development; and
                    (B) the specific areas in which there is significant 
                potential to achieve progress in cooperation in a short 
                term, including computerization of patient records 
                systems, participation of the Department of Veterans 
                Affairs in the

[[Page 112 STAT. 2077]]

                TRICARE program, pharmaceutical programs, and joint 
                physical examinations.

    (c) Joint Survey of Populations Served.--(1) The Secretary of 
Defense and the Secretary of Veterans Affairs shall jointly conduct a 
survey of their respective medical care beneficiary populations to 
identify, by category of beneficiary (defined as the Secretaries 
consider appropriate), the expectations of, requirements for, and 
behavior patterns of the beneficiaries with respect to medical care. The 
two Secretaries shall develop the protocol for the survey jointly, but 
shall obtain the services of an entity independent of the Department of 
Defense and the Department of Veterans Affairs to carry out the survey.
    (2) The survey shall include the following:
            (A) Demographic characteristics, economic characteristics, 
        and geographic location of beneficiary populations with regard 
        to catchment or service areas.
            (B) The types and frequency of care required by veterans, 
        retirees, and dependents within catchment or service areas of 
        Department of Defense and Department of Veterans Affairs medical 
        facilities and outside those areas.
            (C) The numbers of, characteristics of, and types of medical 
        care needed by the veterans, retirees, and dependents who, 
        though eligible for medical care in Department of Defense or 
        Department of Veterans Affairs treatment facilities or through 
        other federally funded medical programs, choose not to seek 
        medical care from those facilities or under those programs, and 
        the reasons for that choice.
            (D) The obstacles or disincentives for seeking medical care 
        from such facilities or under such programs that are perceived 
        by veterans, retirees, and dependents.
            (E) Any other matters that the Secretary of Defense and the 
        Secretary of Veterans Affairs consider appropriate for the 
        survey.

    (3) The Secretary of Defense or the Secretary of Veterans Affairs 
may waive the survey requirements under this subsection with respect to 
information that can be better obtained from a source other than the 
survey.
    (4) <<NOTE: Reports.>>  The Secretary of Defense and the Secretary 
of Veterans Affairs shall submit a report on the results of the survey 
to the appropriate committees of Congress. The report shall contain the 
matters described in paragraph (2) and any proposals for legislation 
that the Secretaries recommend for enhancing Department of Defense and 
Department of Veterans Affairs cooperative efforts with respect to the 
delivery of medical care.

    (d) Review of Law and Policies.--(1) The Secretary of Defense and 
the Secretary of Veterans Affairs shall jointly conduct a review to 
identify impediments to cooperation between the Department of Defense 
and the Department of Veterans Affairs regarding the delivery of medical 
care. The matters reviewed shall include the following:
            (A) All laws, policies, and regulations, and any attitudes 
        of beneficiaries of the health care systems of the two 
        departments, that have the effect of preventing the 
        establishment, or limiting the effectiveness, of cooperative 
        health care programs of the departments.
            (B) The requirements and practices involved in the 
        credentialling and licensure of health care providers.

[[Page 112 STAT. 2078]]

            (C) The perceptions of beneficiaries in a variety of 
        categories (defined as the Secretaries consider appropriate) 
        regarding the various Federal health care systems available for 
        their use.
            (D) The types and frequency of medical services furnished by 
        the Department of Defense and the Department of Veterans Affairs 
        through cooperative arrangements to each category of beneficiary 
        (including active-duty members, retirees, dependents, veterans 
        in the health-care eligibility categories referred to as 
        Category A and Category C, and persons authorized to receive 
        medical care under section 1713 of title 38, United States Code) 
        of the other department.
            (E) The extent to which health care facilities of the 
        Department of Defense and Department of Veterans Affairs have 
        sufficient capacity, or could jointly or individually create 
        sufficient capacity, to provide services to beneficiaries of the 
        other department without diminution of access or services to 
        their primary beneficiaries.
            (F) The extent to which the recruitment of scarce medical 
        specialists and allied health personnel by the Department of 
        Defense and the Department of Veterans Affairs could be enhanced 
        through cooperative arrangements for providing health care 
        services.
            (G) The obstacles and disincentives to providing health care 
        services through cooperative arrangements between the Department 
        of Defense and the Department of Veterans Affairs.

    (2) <<NOTE: Reports.>>  The Secretaries shall jointly submit a 
report on the results of the review to the appropriate committees of 
Congress. The report shall include any proposals for legislation that 
the Secretaries recommend for eliminating or reducing impediments to 
interdepartmental cooperation that are identified during the review.

    (e) Participation in TRICARE.--(1) The Secretary of Defense shall 
review the TRICARE program to identify opportunities for increased 
participation by the Department of Veterans Affairs in that program. The 
ongoing collaboration between Department of Defense officials and 
Department of Veterans Affairs officials regarding increased 
participation shall be included among the matters reviewed.
    (2) <<NOTE: Reports.>>  The Secretary of Defense and the Secretary 
of Veterans Affairs shall jointly submit to the appropriate committees 
of Congress a semiannual report on the status of the review under this 
subsection and on efforts to increase the participation of the 
Department of Veterans Affairs in the TRICARE program. No report is 
required under this paragraph after the submission of a semiannual 
report in which the Secretaries declare that the Department of Veterans 
Affairs is participating in the TRICARE program to the extent that can 
reasonably be expected to be attained.

    (f ) Pharmaceutical Benefits and Programs.--(1) The Department of 
Defense-Department of Veterans Affairs Federal Pharmacy Executive 
Steering Committee shall--
            (A) undertake a comprehensive examination of existing 
        pharmaceutical benefits and programs for beneficiaries of 
        Department of Defense medical care programs, including matters 
        relating to the purchasing, distribution, and dispensing of 
        pharmaceuticals and the management of mail order pharmaceuticals 
        programs; and

[[Page 112 STAT. 2079]]

            (B) review the existing methods for contracting for and 
        distributing medical supplies and services.

    (2) <<NOTE: Reports.>>  The committee shall submit a report on the 
results of the examination to the appropriate committees of Congress.

     <<NOTE: Reports.>> (g) Standardization of Physical Examinations for 
Disability.--The Secretary of Defense and the Secretary of Veterans 
Affairs shall jointly submit to the appropriate committees of Congress a 
report on the status of the efforts of the Department of Defense and the 
Department of Veterans Affairs to standardize physical examinations 
administered by the two departments for the purpose of determining or 
rating disabilities.

    (h) Appropriate Committees of Congress Defined.--For the purposes of 
this section, the appropriate committees of Congress are as follows:
            (1) The Committee on Armed Services and the Committee on 
        Veterans' Affairs of the Senate.
            (2) The Committee on National Security and the Committee on 
        Veterans' Affairs of the House of Representatives.

    (i) Deadlines for Submission of Reports.--(1) The report required by 
subsection (c)(3) shall be submitted not later than January 1, 2000.
    (2) The report required by subsection (d)(2) shall be submitted not 
later than March 1, 1999.
    (3) The semiannual report required by subsection (e)(2) shall be 
submitted not later than March 1 and September 1 of each year.
    (4) The report on the examination required under subsection (f ) 
shall be submitted not later than 60 days after the completion of the 
examination.
    (5) The report required by subsection (g) shall be submitted not 
later than March 1, 1999.

SEC. 746. REPORT ON RESEARCH AND SURVEILLANCE ACTIVITIES REGARDING LYME 
            DISEASE AND OTHER TICK-BORNE DISEASES.

    Not <<NOTE: Deadline.>>  later than April 1, 1999, the Secretary of 
Defense shall submit to the Committee on National Security of the House 
of Representatives and the Committee on Armed Services of the Senate a 
report on the current and recommended levels of research and 
surveillance activities regarding Lyme disease and other tick-borne 
diseases among members of the Armed Forces. The report shall include the 
following:
            (1) An analysis of the current and projected threat to the 
        operational readiness of the Armed Forces posed by Lyme disease 
        and other tick-borne diseases in the United States and in 
        overseas locations at which members of the Armed Forces might be 
        deployed.
            (2) A review of the current research efforts being 
        implemented to prevent the contraction of Lyme disease and other 
        tick-borne diseases by members of the Armed Forces, and to 
        enhance the early identification of such diseases once they have 
        been contracted.
            (3) An assessment of the adequacy of existing and projected 
        funding levels for research and surveillance activities relating 
        to Lyme disease and other tick-borne diseases among members of 
        the Armed Forces.

[[Page 112 STAT. 2080]]

            (4) The recommended funding levels necessary to address the 
        threats posed to the operational readiness of the Armed Forces 
        by Lyme disease and other tick-borne diseases.

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

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

Sec. 801. Limitation on use of price preference upon achievement of 
           contract goal for small and disadvantaged businesses.
Sec. 802. Distribution of assistance under the Procurement Technical 
           Assistance 
           Cooperative Agreement Program.
Sec. 803. Defense commercial pricing management improvement.
Sec. 804. Modification of senior executives covered by limitation on 
           allowability of compensation for certain contractor 
           personnel.
Sec. 805. Separate determinations of exceptional waivers of truth in 
           negotiation 
           requirements for prime contracts and subcontracts.
Sec. 806. Procurement of conventional ammunition.
Sec. 807. Para-aramid fibers and yarns.
Sec. 808. Clarification of responsibility for submission of information 
           on prices previously charged for property or services 
           offered.
Sec. 809. Amendments and study relating to procurement from firms in 
           industrial base for production of small arms.

                        Subtitle B--Other Matters

Sec. 811. Eligibility of involuntarily downgraded employee for 
           membership in an 
           acquisition corps.
Sec. 812. Time for submission of annual report relating to Buy American 
           Act.
Sec. 813. Procurement of travel services for official and unofficial 
           travel under one contract.
Sec. 814. Department of Defense purchases through other agencies.
Sec. 815. Supervision of defense acquisition university structure by 
           Under Secretary of Defense for Acquisition and Technology.
Sec. 816. Pilot programs for testing program manager performance of 
           product 
           support oversight responsibilities for life cycle of 
           acquisition programs.
Sec. 817. Scope of protection of certain information from disclosure.
Sec. 818. Plan for rapid transition from completion of small business 
           innovation 
           research into defense acquisition programs.
Sec. 819. Five-year authority for Secretary of the Navy to exchange 
           certain items.
Sec. 820. Permanent authority for use of major range and test facility 
           installations by commercial entities.
Sec. 821. Inventory exchange authorized for certain fuel delivery 
           contract.

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

SEC. 801. LIMITATION ON USE OF PRICE PREFERENCE UPON ACHIEVEMENT OF 
            CONTRACT GOAL FOR SMALL AND DISADVANTAGED BUSINESSES.

    Section 2323(e)(3) of title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(3)'';
            (2) by inserting ``, except as provided in subparagraph 
        (B),'' after ``the head of an agency may'' in the first 
        sentence; and
            (3) by adding at the end the following:
            ``(B)(i) The Secretary of Defense may not exercise the 
        authority under subparagraph (A) to enter into a contract for

[[Page 112 STAT. 2081]]

        a price exceeding fair market cost if the regulations 
        implementing that authority are suspended under clause (ii) with 
        respect to that contract.
            ``(ii) At the beginning of each fiscal year, the Secretary 
        shall determine, on the basis of the most recent data, whether 
        the Department of Defense achieved the 5 percent goal described 
        in subsection (a) during the fiscal year to which the data 
        relates. <<NOTE: Regulations.>>  Upon determining that the 
        Department achieved the goal for the fiscal year to which the 
        data relates, the Secretary shall issue a suspension, in 
        writing, of the regulations that implement the authority under 
        subparagraph (A). Such a suspension shall be in 
        effect <<NOTE: Applicability.>> for the one-year period 
        beginning 30 days after the date on which the suspension is 
        issued and shall apply with respect to contracts awarded 
        pursuant to solicitations issued during that period.
            ``(iii) For purposes of clause (ii), the term `most recent 
        data' means data relating to the most recent fiscal year for 
        which data are available.''.

SEC. 802. DISTRIBUTION OF ASSISTANCE UNDER THE PROCUREMENT TECHNICAL 
            ASSISTANCE COOPERATIVE AGREEMENT PROGRAM.

    (a) Correction of Description of Geographic Unit.--(1) Section 
2413(c) of title 10, United States Code, is amended by striking out 
``region'' and inserting in lieu thereof ``district''.
    (2) Section 2415 of such title is amended--
            (A) by striking out ``region'' and inserting in lieu thereof 
        ``district'' each place it appears; and
            (B) by striking out ``regions'' and inserting in lieu 
        thereof ``districts''.

    (b) Technical Amendment.--Section 2415 of such title is amended by 
striking out ``Defense Contract Administrative Services'' and inserting 
in lieu thereof ``Department of Defense contract administrative 
services''.

SEC. 803. <<NOTE: 10 USC 2306a note.>>  DEFENSE COMMERCIAL PRICING 
            MANAGEMENT IMPROVEMENT.

    (a) Modification of Pricing Regulations for Certain Commercial Items 
Exempt From Cost or Pricing Data Certification Requirements.--(1) The 
Federal Acquisition Regulation issued in accordance with sections 6 and 
25 of the Office of Federal Procurement Policy Act (41 U.S.C. 405, 421) 
shall be revised to clarify the procedures and methods to be used for 
determining the reasonableness of prices of exempt commercial items (as 
defined in subsection (d)).
    (2) The regulations shall, at a minimum, provide specific guidance 
on--
            (A) the appropriate application and precedence of such price 
        analysis tools as catalog-based pricing, market-based pricing, 
        historical pricing, parametric pricing, and value analysis;
            (B) the circumstances under which contracting officers 
        should require offerors of exempt commercial items to provide--
                    (i) information on prices at which the offeror has 
                previously sold the same or similar items; or
                    (ii) other information other than certified cost or 
                pricing data;

[[Page 112 STAT. 2082]]

            (C) the role and responsibility of Department of Defense 
        support organizations in procedures for determining price 
        reasonableness; and
            (D) the meaning and appropriate application of the term 
        ``purposes other than governmental purposes'' in section 4(12) 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 
        403(12)).

    (3) <<NOTE: Termination date.>> This subsection shall cease to be 
effective 1 year after the date on which final regulations prescribed 
pursuant to paragraph (1) take effect.

     <<NOTE: Procedures.>> (b) Unified Management of Procurement of 
Exempt Commercial Items.--The Secretary of Defense shall develop and 
implement procedures to ensure that, whenever appropriate, a single item 
manager or contracting officer is responsible for negotiating and 
entering into all contracts from a single contractor for the procurement 
of exempt commercial items or for the procurement of items in a category 
of exempt commercial items.

    (c) Commercial <<NOTE: Procedures.>> Price Trend Analysis.--(1) The 
Secretary of Defense shall develop and implement procedures that, to the 
maximum extent that is practicable and consistent with the efficient 
operation of the Department of Defense, provide for the collection and 
analysis of information on price trends for categories of exempt 
commercial items described in paragraph (2).

    (2) A category of exempt commercial items referred to in paragraph 
(1) consists of exempt commercial items--
            (A) that are in a single Federal Supply Group or Federal 
        Supply Class, are provided by a single contractor, or are 
        otherwise logically grouped for the purpose of analyzing 
        information on price trends; and
            (B) for which there is a potential for the price paid to be 
        significantly higher (on a percentage basis) than the prices 
        previously paid in procurements of the same or similar items for 
        the Department of Defense, as determined by the head of the 
        procuring Department of Defense agency or the Secretary of the 
        procuring military department on the basis of criteria 
        prescribed by the Secretary of Defense.

    (3) The head of a Department of Defense agency or the Secretary of a 
military department shall take appropriate action to address any 
unreasonable escalation in prices being paid for items procured by that 
agency or military department as identified in an analysis conducted 
pursuant to paragraph (1).
    (4) <<NOTE: Deadline. Reports.>> Not later than April 1 of each of 
fiscal years 2000, 2001, and 2002, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a report on the 
analyses of price trends that were conducted for categories of exempt 
commercial items during the preceding fiscal year under the procedures 
prescribed pursuant to paragraph (1). The report shall include a 
description of the actions taken to identify and address any 
unreasonable price escalation for the categories of items.

    (d) Exempt Commercial Items Defined.--For the purposes of this 
section, the term ``exempt commercial item'' means a commercial item 
that is exempt under subsection (b)(1)(B) of section 2306a of title 10, 
United States Code, or subsection (b)(1)(B) of section 304A of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
254b), from the requirements for submission of certified cost or pricing 
data under that section.

[[Page 112 STAT. 2083]]

SEC. 804. MODIFICATION OF SENIOR EXECUTIVES COVERED BY LIMITATION ON 
            ALLOWABILITY OF COMPENSATION FOR CERTAIN CONTRACTOR 
            PERSONNEL.

    (a) Armed Services Acquisitions.--Section 2324(l)(5) of title 10, 
United States Code, is amended to read as follows:
            ``(5) The term `senior executives', with respect to a 
        contractor, means the five most highly compensated employees in 
        management positions at each home office and each segment of the 
        contractor.''.

    (b) Civilian Agency Acquisitions.--Section 306(m)(2) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 256(m)(2)) 
is amended to read as follows:
            ``(2) The term `senior executives', with respect to a 
        contractor, means the five most highly compensated employees in 
        management positions at each home office and each segment of the 
        contractor.''.

    (c) Conforming Amendments.--(1) Section 39(c)(2) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 435(c)(2)) is amended to read 
as follows:
            ``(2) The term `senior executives', with respect to a 
        contractor, means the five most highly compensated employees in 
        management positions at each home office and each segment of the 
        contractor.''.

    (2) Section 808(g)(2) of the National Defense Authorization Act for 
Fiscal Year 1998 <<NOTE: 41 USC 435 note.>>  (Public Law 105-85; 111 
Stat. 1838) is amended by striking out ``senior executive'' and 
inserting in lieu thereof ``senior executives''.

     <<NOTE: Applicability. 10 USC 2324 note.>> (d) Effective Date.--The 
amendments made by this section shall apply with respect to costs of 
compensation of senior executives incurred after January 1, 1999, under 
covered contracts (as defined in section 2324(l) of title 10, United 
States Code, and section 306(l) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C.256(l)) entered into 
before, on, or after the date of the enactment of this Act.

SEC. 805. SEPARATE DETERMINATIONS OF EXCEPTIONAL WAIVERS OF TRUTH IN 
            NEGOTIATION REQUIREMENTS FOR PRIME CONTRACTS AND 
            SUBCONTRACTS.

    (a) Armed Services Acquisitions.--Section 2306a(a)(5) of title 10, 
United States Code, is amended to read as follows:
    ``(5) A waiver of requirements for submission of certified cost or 
pricing data that is granted under subsection (b)(1)(C) in the case of a 
contract or subcontract does not waive the requirement under paragraph 
(1)(C) for submission of cost or pricing data in the case of 
subcontracts under that contract or subcontract unless the head of the 
procuring activity granting the waiver determines that the requirement 
under that paragraph should be waived in the case of such subcontracts 
and justifies in writing the reasons for the determination.''.
    (b) Civilian Agency Acquisitions.--Section 304A(a)(5) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 254b(a)(5)) 
is amended to read as follows:
    ``(5) A waiver of requirements for submission of certified cost or 
pricing data that is granted under subsection (b)(1)(C) in the case of a 
contract or subcontract does not waive the requirement under paragraph 
(1)(C) for submission of cost or pricing data in the case of 
subcontracts under that contract or subcontract unless

[[Page 112 STAT. 2084]]

the head of the procuring activity granting the waiver determines that 
the requirement under that paragraph should be waived in the case of 
such subcontracts and justifies in writing the reasons for the 
determination.''.

SEC. 806. <<NOTE: 10 USC 2304 note.>>  PROCUREMENT OF CONVENTIONAL 
            AMMUNITION.

    (a) Authority.--The official in the Department of Defense designated 
as the single manager for conventional ammunition in the Department 
shall have the authority to restrict the procurement of conventional 
ammunition to sources within the national technology and industrial base 
in accordance with the authority in section 2304(c) of title 10, United 
States Code.
    (b) Requirement.--The official in the Department of Defense 
designated as the single manager for conventional ammunition in the 
Department of Defense shall limit a specific procurement of ammunition 
to sources within the national technology and industrial base in 
accordance with section 2304(c)(3) of title 10, United States Code, in 
any case in which that manager determines that such limitation is 
necessary to maintain a facility, producer, manufacturer, or other 
supplier available for furnishing an essential item of ammunition or 
ammunition component in cases of national emergency or to achieve 
industrial mobilization.
    (c) Conventional Ammunition Defined.--For purposes of this section, 
the term ``conventional ammunition'' has the meaning given that term in 
Department of Defense Directive 5160.65, dated March 8, 1995.

SEC. 807. PARA-ARAMID FIBERS AND YARNS.

    (a) Authority.--The Secretary of Defense may procure articles 
containing para-aramid fibers and yarns manufactured in a foreign 
country referred to in subsection (d) if the Secretary determines that--
            (1) procuring articles that contain only para-aramid fibers 
        and yarns manufactured from suppliers within the national 
        technology and industrial base would result in sole-source 
        contracts or subcontracts for the supply of such para-aramid 
        fibers and yarns; and
            (2) such sole-source contracts or subcontracts would not be 
        in the best interests of the Government or consistent with the 
        objectives of section 2304 of title 10, United States Code.

    (b) Submission to Congress.--Not later than 30 days after making a 
determination under subsection (a), the Secretary shall submit to 
Congress a copy of the determination.
    (c) Applicability to Subcontracts.--The authority under subsection 
(a) applies with respect to subcontracts under Department of Defense 
contracts as well as to such contracts.
     <<NOTE: Applicability.>> (d) Foreign Countries Covered.--The 
authority under subsection (a) applies with respect to a foreign country 
that--
            (1) is a party to a defense memorandum of understanding 
        entered into under section 2531 of this title; and
            (2) permits United States firms that manufacture para-aramid 
        fibers and yarns to compete with foreign firms for the sale of 
        para-aramid fibers and yarns in that country, as determined by 
        the Secretary of Defense.

    (e) Definition.--In this section, the term ``national technology and 
industrial base'' has the meaning given that term in section 2500 of 
title 10, United States Code.

[[Page 112 STAT. 2085]]

SEC. 808. CLARIFICATION OF RESPONSIBILITY FOR SUBMISSION OF INFORMATION 
            ON PRICES PREVIOUSLY CHARGED FOR PROPERTY OR SERVICES 
            OFFERED.

    (a) Armed Services Procurements.--Section 2306a(d)(1) of title 10, 
United States Code, is amended by striking out ``the data submitted 
shall'' in the second sentence and inserting in lieu thereof the 
following: ``the contracting officer shall require that the data 
submitted''.
    (b) Civilian Agency Procurements.--Section 304A(d)(1) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 254b(d)(1)), 
is amended by striking out ``the data submitted shall'' in the second 
sentence and inserting in lieu thereof the following: ``the contracting 
officer shall require that the data submitted''.
     <<NOTE: Deadline. 41 USC 254b note.>> (c) Eligibility for Contracts 
and Subcontracts To Be Conditioned on Compliance.--Not later than 180 
days after the date of the enactment of this Act, the Federal 
Acquisition Regulation shall be amended to provide that an offeror's 
compliance with a requirement to submit data for a contract or 
subcontract in accordance with section 2306a(d)(1) of title 10, United 
States Code, or section 304A(d)(1) of the Federal Property and 
Administrative Services Act of 1949 shall be a condition for the offeror 
to be eligible to enter into the contract or subcontract, subject to 
such exceptions as the Federal Acquisition Regulatory Council determines 
appropriate.

     <<NOTE: Deadline. 41 USC 254b note.>> (d) Criteria for Certain 
Determinations.--Not later than 180 days after the date of the enactment 
of this Act, the Federal Acquisition Regulation shall be amended to 
include criteria for contracting officers to apply for determining the 
specific price information that an offeror should be required to submit 
under section 2306a(d) of title 10, United States Code, or section 
304A(d) of the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 254b(d)).

SEC. 809. AMENDMENTS AND STUDY RELATING TO PROCUREMENT FROM FIRMS IN 
            INDUSTRIAL BASE FOR PRODUCTION OF SMALL ARMS.

    (a) Requirement To Limit Procurements to Certain Sources.--
Subsection (a) of section 2473 of title 10, United States Code, is 
amended--
            (1) in the heading, by striking out the first word and 
        inserting in lieu thereof ``Requirement'';
            (2) by striking out ``To the extent that the Secretary of 
        Defense determines necessary to preserve the small arms 
        production industrial base, the Secretary may'' and inserting in 
        lieu thereof ``In order to preserve the small arms production 
        industrial base, the Secretary of Defense shall''; and
            (3) by inserting before the period at the end the following: 
        ``, unless the Secretary determines, with regard to a particular 
        procurement, that such requirement is not necessary to preserve 
        the small arms production industrial base''.

    (b) Specification of Included Repair Parts.--Subsection (b) of such 
section is amended in paragraph (1) by inserting before the period the 
following: ``, including repair parts consisting of barrels, receivers, 
and bolts''.
    (c) Applicability of Requirement.--Such section is further amended--

[[Page 112 STAT. 2086]]

            (1) in subsection (b), by striking out ``Subsection'' and 
        inserting in lieu thereof ``Subject to subsection (d), 
        subsection''; and
            (2) by adding at the end the following new subsection:

    ``(d) Applicability.--This section applies only to procurements of 
covered property and services involving the following small arms:
            ``(1) M16 series rifle.
            ``(2) MK19 grenade machine gun.
            ``(3) M4 series carbine.
            ``(4) M240 series machine gun.
            ``(5) M249 squad automatic weapon.''.

    (d) Submission of Certified Cost or Pricing Data.--Such section is 
further amended by adding at the end the following new subsection:
    ``(e) Submission of Certified Cost or Pricing Data.--If a 
procurement under subsection (a) is a procurement of a commercial item, 
the Secretary may, notwithstanding section 2306a(b)(1)(B) of this title, 
require the submission of certified cost or pricing data under section 
2306a(a) of this title.''.
     <<NOTE: Deadline. 10 USC 2473 note.>> (e) Study.--Not later than 60 
days after the date of the enactment of this Act, the Secretary of the 
Army shall conduct a study, to be carried out by the Army Science Board, 
to examine whether the requirements of section 2473 of title 10, United 
States Code, should be extended to small arms (as specified in 
subsection (d) of such section) and the parts manufactured under a 
contract with the Department of Defense to produce such small arms.

     <<NOTE: 10 USC 2473 note.>> (f ) Authority to Extend Requirements 
of Section 2473.--Based upon recommendations of the Army Science Board 
resulting from the study conducted under subsection (e), the Secretary 
of the Army may apply the requirements of section 2473 of title 10, 
United States Code, to the small arms and parts referred to in 
subsection (e).

                        Subtitle B--Other Matters

SEC. 811. ELIGIBILITY OF INVOLUNTARILY DOWNGRADED EMPLOYEE FOR 
            MEMBERSHIP IN AN ACQUISITION CORPS.

    Section 1732(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3) Paragraph (1) of subsection (b) shall not apply to an employee 
who--
            ``(A) having previously served in a position within a grade 
        referred to in subparagraph (A) of that paragraph, is currently 
        serving in the same position within a grade below GS-13 of the 
        General Schedule, or in another position within that grade, by 
        reason of a reduction in force or the closure or realignment of 
        a military installation, or for any other reason other than by 
        reason of an adverse personnel action for cause; and
            ``(B) except as provided in paragraphs (1) and (2), 
        satisfies the educational, experience, and other requirements 
        prescribed under paragraphs (2), (3), and (4) of that 
        subsection.''.

SEC. 812. TIME FOR SUBMISSION OF ANNUAL REPORT RELATING TO BUY AMERICAN 
            ACT.

    Section 827 of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2611; 41 U.S.C. 10b-

[[Page 112 STAT. 2087]]

3) is amended by striking out ``90 days'' and inserting in lieu thereof 
``60 days''.

SEC. 813. PROCUREMENT OF TRAVEL SERVICES FOR OFFICIAL AND UNOFFICIAL 
            TRAVEL UNDER ONE CONTRACT.

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

``Sec. 2646. Travel services: procurement for official and unofficial 
                        travel under one contract

    ``(a) Authority.--The head of an agency may enter into a contract 
for travel-related services that provides for the contractor to furnish 
services for both official travel and unofficial travel.
    ``(b) Credits, Discounts, Commissions, Fees.--(1) A contract entered 
into under this section may provide for credits, discounts, or 
commissions or other fees to accrue to the Department of Defense. The 
accrual and amounts of credits, discounts, or commissions or other fees 
may be determined on the basis of the volume (measured in the number or 
total amount of transactions or otherwise) of the travel-related sales 
that are made by the contractor under the contract.
    ``(2) The evaluation factors applicable to offers for a contract 
under this section may include a factor that relates to the estimated 
aggregate value of any credits, discounts, commissions, or other fees 
that would accrue to the Department of Defense for the travel-related 
sales made under the contract.
    ``(3) Commissions or fees received by the Department of Defense as a 
result of travel-related sales made under a contract entered into under 
this section shall be distributed as follows:
            ``(A) For amounts relating to sales for official travel, 
        credit to appropriations available for official travel for the 
        fiscal year in which the amounts were charged.
            ``(B) For amounts relating to sales for unofficial travel, 
        deposit in nonappropriated fund accounts available for morale, 
        welfare, and recreation programs.

    ``(c) Definitions.--In this section:
            ``(1) The term `head of an agency' has the meaning given 
        that term in section 2302(1) of this title.
            ``(2) The term `official travel' means travel at the expense 
        of the Federal Government.
            ``(3) The term `unofficial travel' means personal travel or 
        other travel that is not paid for or reimbursed by the Federal 
        Government out of appropriated funds.

    ``(d) Inapplicability to Coast Guard and NASA.--This section does 
not apply to the Coast Guard when it is not operating as a service in 
the Navy, nor to the National Aeronautics and Space Administration.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2646. Travel services: procurement for official and unofficial travel 
           under one contract.''.

SEC. 814. <<NOTE: 31 USC 1535 note.>>  DEPARTMENT OF DEFENSE PURCHASES 
            THROUGH OTHER AGENCIES.

     <<NOTE: Deadline.>> (a) Extension of Regulations.--Not later than 
90 days after the date of the enactment of this Act, the Secretary of 
Defense shall revise the regulations issued pursuant to section 844 of 
the

[[Page 112 STAT. 2088]]

National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
160; 107 Stat. 1720; 31 U.S.C. 1535 note) to--
            (1) cover any purchase described in subsection (b) that is 
        greater than the micro-purchase threshold; and
            (2) provide for a streamlined method of compliance for any 
        such purchase that is not greater than the simplified 
        acquisition threshold.

    (b) Description of Purchases.--A purchase referred to in subsection 
(a) is a purchase of goods or services for one agency of the Department 
of Defense by any other agency under a task or delivery order contract 
entered into by the other agency under section 2304a of title 10, United 
States Code, or section 303H of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253h).
    (c) Definitions.--In this section:
            (1) The term ``micro-purchase threshold'' has the meaning 
        provided in section 32 of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 428).
            (2) The term ``simplified acquisition threshold'' has the 
        meaning provided in section 4 of such Act (41 U.S.C. 403).

    (d) Termination.--This section shall cease to be effective 1 year 
after the date on which final regulations prescribed pursuant to 
subsection (a) take effect.

SEC. 815. SUPERVISION OF DEFENSE ACQUISITION UNIVERSITY STRUCTURE BY 
            UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND TECHNOLOGY.

    Section 1702 of title 10, United States Code, is amended by adding 
at the end the following: ``The Under Secretary shall prescribe policies 
and requirements for the educational programs of the defense acquisition 
university structure established under section 1746 of this title.''.

SEC. 816. <<NOTE: 10 USC 2220 note.>>  PILOT PROGRAMS FOR TESTING 
            PROGRAM MANAGER PERFORMANCE OF PRODUCT SUPPORT OVERSIGHT 
            RESPONSIBILITIES FOR LIFE CYCLE OF ACQUISITION PROGRAMS.

    (a) Designation of Pilot Programs.--The Secretary of Defense, acting 
through the Secretaries of the military departments, shall designate 10 
acquisition programs of the military departments as pilot programs on 
program manager responsibility for product support.
    (b) Responsibilities of Program Managers.--The program manager for 
each acquisition program designated as a pilot program under this 
section shall have the responsibility for ensuring that the product 
support functions for the program are properly carried out over the 
entire life cycle of the program.
     <<NOTE: Deadline.>> (c) Report.--Not later than February 1, 1999, 
the Secretary of Defense shall submit to the congressional defense 
committees a report on the pilot programs. The report shall contain the 
following:
            (1) A description of the acquisition programs designated as 
        pilot programs under subsection (a).
            (2) For each such acquisition program, the specific 
        management actions taken to ensure that the program manager has 
        the responsibility for oversight of the performance of the 
        product support functions.

[[Page 112 STAT. 2089]]

            (3) Any proposed change to law, policy, regulation, or 
        organization that the Secretary considers desirable, and 
        determines feasible to implement, for ensuring that the program 
        managers are fully responsible under the pilot programs for the 
        performance of all such responsibilities.

SEC. 817. SCOPE OF PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.

    Section 2371(i)(2)(A) of title 10, United States Code, is amended by 
striking out ``cooperative agreement that includes a clause described in 
subsection (d)'' and inserting in lieu thereof ``cooperative agreement 
for performance of basic, applied, or advanced research authorized by 
section 2358 of this title''.

SEC. 818. PLAN FOR RAPID TRANSITION FROM COMPLETION OF SMALL BUSINESS 
            INNOVATION RESEARCH INTO DEFENSE ACQUISITION PROGRAMS.

     <<NOTE: Deadline.>> (a) Plan Required.--(1) Not later than February 
1, 1999, the Secretary of Defense, in consultation with the 
Administrator of the Small Business Administration, shall develop a plan 
for facilitating the rapid transition into Department of Defense 
acquisition programs of successful first phase and second phase 
activities under the Small Business Innovation Research program under 
section 9 of the Small Business Act (15 U.S.C. 638).

    (2) The Secretary shall submit the plan developed under paragraph 
(1) to--
            (A) the Committee on Armed Services and the Committee on 
        Small Business of the Senate; and
            (B) the Committee on National Security and the Committee on 
        Small Business of the House of Representatives.

    (b) Conditions.--The plan developed under subsection (a) shall--
            (1) be consistent with the Small Business Innovation 
        Research program and with the provisions of division D of the 
        Clinger-Cohen Act of 1996 (division D of Public Law 104-106; 110 
        Stat. 642) and the Federal Acquisition Streamlining Act of 1994 
        (Public Law 103-355; 108 Stat. 3243) that are applicable to the 
        Department of Defense; and
            (2) provide for favorable consideration, in the acquisition 
        planning process, for funding projects under the Small Business 
        Innovation Research program that have successfully completed the 
        second phase or are subject to a third phase agreement entered 
        into pursuant to section 9(r) of the Small Business Act (15 
        U.S.C. 638(r)).

SEC. 819. FIVE-YEAR AUTHORITY FOR SECRETARY OF THE NAVY TO EXCHANGE 
            CERTAIN ITEMS.

    (a) Barter Authority.--The Secretary of the Navy may enter into a 
barter agreement to convey trucks and other tactical vehicles in 
exchange for the repair and remanufacture of ribbon bridges for the 
Marine Corps. The Secretary shall enter into any such agreement in 
accordance with section 201(c) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481(c)), and the 
regulations issued under such section, except that the requirement that 
the items to be exchanged be similar shall not apply to the authority 
provided under this subsection.
    (b) Period of Authority.--The authority to enter into agreements 
under subsection (a) and to make exchanges under any

[[Page 112 STAT. 2090]]

such agreement is effective during the 5-year period beginning on 
October 1, 1998.

SEC. 820. PERMANENT AUTHORITY FOR USE OF MAJOR RANGE AND TEST FACILITY 
            INSTALLATIONS BY COMMERCIAL ENTITIES.

    (a) Permanent Authority.--Subsection (g) of section 2681 of title 
10, United States Code, is repealed.
    (b) Repeal of Executed Reporting Requirement.--Subsection (h) of 
such section is repealed.

SEC. 821. INVENTORY EXCHANGE AUTHORIZED FOR CERTAIN FUEL DELIVERY 
            CONTRACT.

    (a) Exchange of Barrels Authorized.--(1) The Secretary of Defense 
shall provide, under a contract described in subsection (f ), that the 
contract may be performed, during the period described in paragraph (2), 
by means of delivery of fuel obtained by the refiner concerned in an 
inventory exchange of barrels of fuel, in any case in which--
            (A) the refiner is unable to physically deliver fuel in 
        compliance with the contract requirements because of ice 
        conditions in Cook Inlet, as determined by the Coast Guard; and
            (B) the Secretary determines that such inability will result 
        in an inequity to the refiner.

    (2) The period referred to in paragraph (1) is the period beginning 
on the date of the enactment of this Act and ending on February 28, 
1999.
    (b) Limitation.--The number of barrels of fuel exchanged pursuant to 
a contract described in subsection (f ) may contain up to 15 percent of 
the total quantity of fuel required to be delivered under the contract.
    (c) Effect on Status as Small Disadvantaged Business.--Nothing in 
this section, and no action taken pursuant to this section, may be 
construed as affecting the status of the refiner as a small 
disadvantaged business.
    (d) Effect on Contractual Obligations.--Nothing in this section may 
be construed as affecting the requirement of a refiner to fulfill its 
contractual obligations under a contract described in subsection (e), 
other than as provided under subsection (b).
    (e) Small Disadvantaged Business Defined.--For the purposes of this 
section, the term ``small disadvantaged business'' means a socially and 
economically disadvantaged small business concern, a small business 
concern owned and controlled by socially and economically disadvantaged 
individuals, and a qualified HUBZone small business concern, as those 
terms are defined in sections 8(a)(4)(A), 8(d)(3)(C), and 3(p) of the 
Small Business Act (15 U.S.C. 637(a)(4)(A)), 637(d)(3)(C), and 632(p)), 
respectively.
    (f ) Applicability.--This section applies to any contract between 
the Defense Energy Supply Center of the Department of Defense and a 
refiner that qualifies as a small disadvantaged business for the 
delivery of fuel by barge to Defense Energy Supply Point-Anchorage.

[[Page 112 STAT. 2091]]

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

       Subtitle A--Department of Defense Officers and Organization

Sec. 901. Reduction in number of Assistant Secretary of Defense 
           positions.
Sec. 902. Repeal of statutory requirement for position of Assistant 
           Secretary of 
           Defense for Command, Control, Communications, and 
           Intelligence.
Sec. 903. Independent task force on transformation and Department of 
           Defense 
           organization.
Sec. 904. Authority to expand the National Defense University.
Sec. 905. Center for Hemispheric Defense Studies.
Sec. 906. Restructuring of administration of Fisher Houses.
Sec. 907. Management reform for research, development, test, and 
           evaluation activities.

         Subtitle B--Department of Defense Financial Management

Sec. 911. Improved accounting for defense contract services.
Sec. 912. Report on Department of Defense financial management 
           improvement plan.
Sec. 913. Study of feasibility of performance of Department of Defense 
           finance and accounting functions by private sector sources or 
           other Federal sources.
Sec. 914. Limitation on reorganization and consolidation of operating 
           locations of the Defense Finance and Accounting Service.
Sec. 915. Annual report on resources allocated to support and mission 
           activities.

              Subtitle C--Joint Warfighting Experimentation

Sec. 921. Findings concerning joint warfighting experimentation.
Sec. 922. Sense of Congress concerning joint warfighting 
           experimentation.
Sec. 923. Reports on joint warfighting experimentation.

                        Subtitle D--Other Matters

Sec. 931. Further reductions in defense acquisition and support 
           workforce.
Sec. 932. Limitation on operation and support funds for the Office of 
           the Secretary of Defense.
Sec. 933. Clarification and simplification of responsibilities of 
           Inspectors General 
           regarding whistleblower protections.
Sec. 934. Repeal of requirement relating to assignment of tactical 
           airlift mission to Reserve components.
Sec. 935. Consultation with Marine Corps on major decisions directly 
           concerning Marine Corps aviation.

       Subtitle A--Department of Defense Officers and Organization

SEC. 901. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF DEFENSE 
            POSITIONS.

    (a) Reduction to Nine Positions.--Section 138(a) of title 10, United 
States Code, is amended by striking out ``ten'' and insert in lieu 
thereof ``nine''.
    (b) Conforming Amendment.--Section 5315 of title 5, United States 
Code, is amended by striking out ``(10)'' after ``Assistant Secretaries 
of Defense'' and inserting in lieu thereof ``(9)''.

SEC. 902. REPEAL OF STATUTORY REQUIREMENT FOR POSITION OF ASSISTANT 
            SECRETARY OF DEFENSE FOR COMMAND, CONTROL, COMMUNICATIONS, 
            AND INTELLIGENCE.

    Section 138(b) of title 10, United States Code is amended by 
striking out paragraph (3).

SEC. 903. INDEPENDENT TASK FORCE ON TRANSFORMATION AND DEPARTMENT OF 
            DEFENSE ORGANIZATION.

    (a) Findings.--Congress finds the following:

[[Page 112 STAT. 2092]]

            (1) The post-Cold War era is marked by geopolitical 
        uncertainty and by accelerating technological change, 
        particularly with regard to information technologies.
            (2) The combination of that geopolitical uncertainty and 
        accelerating technological change portends a transformation in 
        the conduct of war, particularly in ways that are likely to 
        increase the effectiveness of joint operations.
            (3) The Department of Defense must be organized 
        appropriately in order to fully exploit the opportunities 
        offered by, and to meet the challenges posed by, this 
        anticipated transformation in the conduct of war.
            (4) The basic organization of the Department of Defense was 
        established by the National Security Act of 1947 and the 1949 
        amendments to that Act.
            (5) The Goldwater-Nichols Department of Defense 
        Reorganization Act of 1986 (Public Law 99-433) dramatically 
        improved the capability of the Department of Defense to carry 
        out operations involving joint forces, but did not specifically 
        address issues pertaining to the development of joint 
        operations.
            (6) In the future, the ability to achieve improved 
        operations of joint forces, particularly under rapidly changing 
        technological conditions, will depend on improved force 
        development for joint operations.

     <<NOTE: Establishment.>> (b) Independent Task Force on 
Transformation and Department of Defense Organization.--The Secretary of 
Defense shall establish a task force of the Defense Science Board to 
examine the current organization of the Department of Defense with 
regard to the appropriateness of that organization for preparing for a 
transformation in the conduct of war. <<NOTE: Deadline.>>  The task 
force shall be established not later than November 1, 1998.

    (c) Duties of the Task Force.--The task force shall assess, and 
shall make recommendations for the appropriate organization of, the 
Office of the Secretary of Defense, the Joint Chiefs of Staff, the 
individual Armed Forces, and the executive parts of the military 
departments for the purpose of preparing the Department of Defense for a 
transformation in the conduct of war. In making those assessments and 
developing those recommendations, the task force shall review the 
following:
            (1) The general organization of the Department of Defense, 
        including whether responsibility and authority for issues 
        relating to a transformation in the conduct of war are 
        appropriately allocated, especially among the Office of the 
        Secretary of Defense, the Joint Chiefs of Staff, and the 
        individual Armed Forces.
            (2) The joint requirements process and the requirements 
        processes for each of the Armed Forces, including the 
        establishment of measures of effectiveness and methods for 
        resource allocation.
            (3) The process and organizations responsible for doctrinal 
        development, including the appropriate relationship between 
        joint force and service doctrine and doctrinal development 
        organizations.
            (4) The current programs and organizations under the Office 
        of the Secretary of Defense, the Joint Chiefs of Staff, and the 
        Armed Forces devoted to innovation and experimentation related 
        to a transformation in the conduct of war, including the 
        appropriateness of--

[[Page 112 STAT. 2093]]

                    (A) conducting joint field tests;
                    (B) establishing a separate unified command as a 
                joint forces command to serve, as its sole function, as 
                the trainer, provider, and developer of forces for joint 
                operations and for conducting joint warfighting 
                experimentation;
                    (C) establishing a separate Joint Concept 
                Development Center to monitor exercises and develop 
                measures of effectiveness, analytical concepts, models, 
                and simulations appropriate for understanding the 
                transformation in the conduct of war;
                    (D) establishing a Joint Battle Laboratory to 
                conduct joint experimentation and to integrate the 
                similar efforts of the Armed Forces; and
                    (E) establishing an Assistant Secretary of Defense 
                responsible for transformation in the conduct of war.
            (5) Joint training establishments and training 
        establishments of the Armed Forces, including those devoted to 
        professional military education, and the appropriateness of 
        establishing national training centers.
            (6) Other issues relating to a transformation in the conduct 
        of war that the Secretary considers appropriate.

     <<NOTE: Deadlines.>> (d) Report.--The task force shall submit to 
the Secretary of Defense a report containing its assessments and 
recommendations not later than February 1, 1999. The Secretary shall 
submit the report to the Committee on National Security of the House of 
Representatives and the Committee on Armed Services of the Senate not 
later than March 1, 1999, together with the recommendations and comments 
of the Secretary of Defense.

SEC. 904. AUTHORITY TO EXPAND THE NATIONAL DEFENSE UNIVERSITY.

    Section 2165(b) of title 10, United States Code, is amended by 
adding at the end the following:
            ``(7) Any other educational institution of the Department of 
        Defense that the Secretary considers appropriate and designates 
        as an institution of the university.''.

SEC. 905. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

    (a) Funding for Center.--Section 2165 of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(c) Source of Funds for Center for Hemispheric Defense Studies.--
Funds available for the payment of personnel expenses under the Latin 
American cooperation authority set forth in section 1050 of this title 
are also available for the costs of the operation of the Center for 
Hemispheric Defense Studies.''.
    (b) Conforming Amendment.--Section 1050 of such title is amended by 
inserting ``Secretary of Defense or the'' before ``Secretary of a 
military department''.

SEC. 906. RESTRUCTURING OF ADMINISTRATION OF FISHER HOUSES.

    (a) Administration as Nonappropriated Fund Instrumentality.--(1) 
Chapter 147 of title 10, United States Code, is amended by inserting 
after section 2492 (as added by section 365) the following new section:

[[Page 112 STAT. 2094]]

``Sec. 2493. Fisher Houses: administration as nonappropriated fund 
                        instrumentality

    ``(a) Fisher Houses and Suites Defined.--In this section:
            ``(1) The term `Fisher House' means a housing facility 
        that--
                    ``(A) is located in proximity to a health care 
                facility of the Army, the Air Force, or the Navy;
                    ``(B) is available for residential use on a 
                temporary basis by patients of that health care 
                facility, members of the families of such patients, and 
                others providing the equivalent of familial support for 
                such patients; and
                    ``(C) is constructed and donated by--
                          ``(i) <<NOTE: Zachary Fisher. Elizabeth 
                      Fisher.>>  the Zachary and Elizabeth M. Fisher 
                      Armed Services Foundation; or
                          ``(ii) another source, if the Secretary of the 
                      military department concerned designates the 
                      housing facility as a Fisher House.
            ``(2) The term `Fisher Suite' means one or more rooms that--
                    ``(A) meet the requirements of subparagraphs (A) and 
                (B) of paragraph (1);
                    ``(B) are constructed, altered, or repaired and 
                donated by a source described in subparagraph (C) of 
                that paragraph; and
                    ``(C) are designated by the Secretary of the 
                military department concerned as a Fisher Suite.

    ``(b) Nonappropriated Fund Instrumentality.--The Secretary of each 
military department shall administer all Fisher Houses and Fisher Suites 
associated with health care facilities of that military department as a 
nonappropriated fund instrumentality of the United States.
    ``(c) Governance.--The Secretary of each military department shall 
establish a system for the governance of the nonappropriated fund 
instrumentality required by subsection (b) for that military department.
    ``(d) Central Fund.--The Secretary of each military department shall 
establish a single fund as the source of funding for the operation, 
maintenance, and improvement of all Fisher Houses and Fisher Suites of 
the nonappropriated fund instrumentality required by subsection (b) for 
that military department.
    ``(e) Acceptance of Contributions; Imposition of Fees.--(1) The 
Secretary of a military department may--
            ``(A) accept money, property, and services donated for the 
        support of a Fisher House or Fisher Suite associated with health 
        care facilities of that military department; and
            ``(B) may impose fees relating to the use of such Fisher 
        Houses and Fisher Suites.

    ``(2) All monetary donations, and the proceeds of the disposal of 
any other donated property, accepted by the Secretary of a military 
department under this subsection shall be credited to the fund 
established under subsection (d) for the Fisher Houses and Fisher Suites 
associated with health care facilities of that military department and 
shall be available to that Secretary to support all such Fisher Houses 
and Fisher Suites.
    ``(f ) <<NOTE: Deadline.>>  Annual Report.--Not later than January 
15 of each year, the Secretary of each military department shall submit 
to Congress a report describing the operation of Fisher Houses and 
Fisher

[[Page 112 STAT. 2095]]

Suites associated with health care facilities of that military 
department. The report shall include, at a minimum, the following:
            ``(1) The amount in the fund established by that Secretary 
        under subsection (d) as of October 1 of the previous year.
            ``(2) The operation of the fund during the preceding fiscal 
        year, including--
                    ``(A) all gifts, fees, and interest credited to the 
                fund; and
                    ``(B) all disbursements from the fund.
            ``(3) The budget for the operation of the Fisher Houses and 
        Fisher Suites for the fiscal year in which the report is 
        submitted.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2492 (as added 
by section 365) the following new item:

``2493. Fisher Houses: administration as nonappropriated fund 
           instrumentality.''.

    (b) <<NOTE: Deadline. 10 USC 2493 note.>>  Establishment of Funds.--
Not later than 90 days after the date of the enactment of this Act, the 
Secretary of each military department shall--
            (1) establish the fund required under section 2493(d) of 
        title 10, United States Code (as added by subsection (a)); and
            (2) close the Fisher House Trust Fund established for that 
        department under section 2221 of such title and transfer the 
        amounts in the closed fund to the newly established fund.

    (c) Funding Transition.--(1) Of the amount authorized to be 
appropriated pursuant to section 301(2) for operation and maintenance 
for the Navy, the Secretary of the Navy shall transfer to the fund 
established by that Secretary under section 2493(d) of title 10, United 
States Code (as added by subsection (a)), such amount as that Secretary 
considers appropriate for establishing in the fund a corpus sufficient 
for operating Fisher Houses and Fisher Suites associated with health 
care facilities of the Department of the Navy.
    (2) Of the amount authorized to be appropriated pursuant to section 
301(4) for operation and maintenance for the Air Force, the Secretary of 
the Air Force shall transfer to the fund established by that Secretary 
under section 2493(d) of title 10, United States Code (as added by 
subsection (a)), such amount as that Secretary considers appropriate for 
establishing in the fund a corpus sufficient for operating Fisher Houses 
and Fisher Suites associated with health care facilities of the 
Department of the Air Force.
    (d) Reporting Requirements.--The Secretary of each military 
department, upon completing the actions required of the Secretary under 
subsections (b) and (c), shall submit to Congress a report containing--
            (1) the certification of that Secretary that those actions 
        have been completed; and
            (2) a statement of the amount deposited in the fund 
        established by that Secretary under section 2493(d) of title 10, 
        United States Code (as added by subsection (a)).

    (e) Availability of Transferred Amounts.--Amounts transferred under 
subsection (b) or (c) to a fund established under section 2493(d) of 
title 10, United States Code (as added by subsection (a)), shall be 
available without fiscal year limitation for the purposes for which the 
fund is established and shall be administered as nonappropriated funds.

[[Page 112 STAT. 2096]]

    (f ) Conforming Repeals.--(1) Section 2221 of title 10, United 
States Code, and the item relating to that section in the table of 
sections at the beginning of chapter 131 of such title, are repealed.
    (2) Section 1321(a) of title 31, United States Code, is amended by 
striking out paragraphs (92), (93), and (94).
    (3) <<NOTE: Effective date.>>  The amendments made by this 
subsection shall take effect 90 days after the date of the enactment of 
this Act.

SEC. 907. MANAGEMENT REFORM FOR RESEARCH, DEVELOPMENT, TEST, AND 
            EVALUATION ACTIVITIES.

    (a) Analysis and Plan for Reform of Management of RDTE Activities.--
(1) The Secretary of Defense, acting through the Under Secretary of 
Defense for Acquisition and Technology, shall analyze the structures and 
processes of the Department of Defense for management of its 
laboratories and test and evaluation centers. Taking into consideration 
the results of that analysis, the Secretary shall develop a plan for 
improving the management of those laboratories and centers. The plan 
shall include such reorganizations and reforms as the Secretary 
considers appropriate.
    (2) The analysis under paragraph (1) shall include an analysis of 
each of the following with respect to Department of Defense laboratories 
and test and evaluation centers:
            (A) Opportunities to improve efficiency and reduce 
        duplication of efforts by those laboratories and centers by 
        designating a lead agency or executive agent by area or function 
        or other methods of streamlining management.
            (B) Reform of the management processes of those laboratories 
        and centers that would reduce costs and increase efficiency in 
        the conduct of research, development, test, and evaluation 
        activities.
            (C) Opportunities for those laboratories and centers to 
        enter into partnership arrangements with laboratories in 
        industry, academia, and other Federal agencies that demonstrate 
        leadership, initiative, and innovation in research, development, 
        test, and evaluation activities.
            (D) The extent to which there is disseminated within those 
        laboratories and centers information regarding initiatives that 
        have successfully improved efficiency through reform of 
        management processes and other means.
            (E) Any cost savings that can be derived directly from 
        reorganization of management structures of those laboratories 
        and centers.
            (F) Options for reinvesting any such cost savings in those 
        laboratories and centers.

    (3) <<NOTE: Deadline.>>  The Secretary shall submit the plan 
required under paragraph (1) to the congressional defense committees not 
later than 180 days after the date of the enactment of this Act.

    (b) Cost-Based Management Information System.--(1) The Secretary of 
Defense shall develop a plan, including a schedule, for establishing a 
cost-based management information system for Department of Defense 
laboratories and test and evaluation centers. The system shall provide 
for accurately identifying and comparing the costs of operating each 
laboratory and each center.
    (2) In preparing the plan, the Secretary shall assess the 
feasibility and desirability of establishing a common methodology for 
assessing costs. The Secretary shall consider the use of a revolving 
fund as one potential methodology.

[[Page 112 STAT. 2097]]

    (3) <<NOTE: Deadline.>>  The Secretary shall submit the plan 
required under paragraph (1) to the congressional defense committees not 
later than 90 days after the date of the enactment of this Act.

         Subtitle B--Department of Defense Financial Management

SEC. 911. IMPROVED ACCOUNTING FOR DEFENSE CONTRACT SERVICES.

    (a) In General.--(1) Chapter 131 of title 10, United States Code, is 
amended by inserting after section 2211 the following new section:

``Sec. 2212. Obligations for contract services: reporting in budget 
                        object classes

    ``(a) Limitation on Reporting in Miscellaneous Services Object 
Class.--The Secretary of Defense shall ensure that, in reporting to the 
Office of Management and Budget (pursuant to OMB Circular A-11 (relating 
to preparation and submission of budget estimates)) obligations of the 
Department of Defense for any period of time for contract services, no 
more than 15 percent of the total amount of obligations so reported is 
reported in the miscellaneous services object class.
    ``(b) Definition of Reporting Categories for Advisory and Assistance 
Services.--In carrying out section 1105(g) of title 31 for the 
Department of Defense (and in determining what services are to be 
reported to the Office of Management and Budget in the advisory and 
assistance services object class), the Secretary of Defense shall apply 
to the terms used for the definition of `advisory and assistance 
services' in paragraph (2)(A) of that section the following meanings 
(subject to the authorized exemptions):
            ``(1) Management and professional support services.--The 
        term `management and professional support services' (used in 
        clause (i) of section 1105(g)(2)(A) of title 31) means services 
        that provide engineering or technical support, assistance, 
        advice, or training for the efficient and effective management 
        and operation of organizations, activities, or systems. Those 
        services--
                    ``(A) are closely related to the basic 
                responsibilities and mission of the using organization; 
                and
                    ``(B) include efforts that support or contribute to 
                improved organization or program management, logistics 
                management, project monitoring and reporting, data 
                collection, budgeting, accounting, auditing, and 
                administrative or technical support for conferences and 
                training programs.
            ``(2) Studies, analyses, and evaluations.--The term 
        `studies, analyses, and evaluations' (used in clause (ii) of 
        section 1105(g)(2)(A) of title 31) means services that provide 
        organized, analytic assessments to understand or evaluate 
        complex issues to improve policy development, decisionmaking, 
        management, or administration and that result in documents 
        containing data or leading to conclusions or recommendations. 
        Those services may include databases, models, methodologies, and 
        related software created in support of a study, analysis, or 
        evaluation.

[[Page 112 STAT. 2098]]

            ``(3) Engineering and technical services.--The term 
        `engineering and technical services' (used in clause (iii) of 
        section 1105(g)(2)(A) of title 31) means services that take the 
        form of advice, assistance, training, or hands-on training 
        necessary to maintain and operate fielded weapon systems, 
        equipment, and components (including software when applicable) 
        at design or required levels of effectiveness.

    ``(c) Proper Classification of Advisory and Assistance Services.--
Before the submission to the Office of Management and Budget of the 
proposed Department of Defense budget for inclusion in the President's 
budget for a fiscal year pursuant to section 1105 of title 31, the 
Secretary of Defense, acting through the Under Secretary of Defense 
(Comptroller), shall conduct a review of Department of Defense services 
expected to be performed as contract services during the fiscal year for 
which that budget is to be submitted in order to ensure that those 
services that are advisory and assistance services (as defined in 
accordance with subsection (b)) are in fact properly classified, in 
accordance with that subsection, in the advisory and assistance services 
object class.
    ``(d) <<NOTE: Deadlines.>>  Report to Congress.--The Secretary shall 
submit to Congress each year, not later than 30 days after the date on 
which the budget for the next fiscal year is submitted pursuant to 
section 1105 of title 31, a report containing the information derived 
from the review under subsection (c).

    ``(e) Assessment by Comptroller General.--(1) The Comptroller 
General shall conduct a review of the report of the Secretary of Defense 
under subsection (d) each year and shall--
            ``(A) assess the methodology used by the Secretary in 
        obtaining the information submitted to Congress in that report; 
        and
            ``(B) assess the information submitted to Congress in that 
        report.

    ``(2) Not later than 120 days after the date on which the Secretary 
submits to Congress the report required under subsection (d) for any 
year, the Comptroller General shall submit to Congress the Comptroller 
General's report containing the results of the review for that year 
under paragraph (1).
    ``(f ) Definitions.--In this section:
            ``(1) The term `contract services' means all services that 
        are reported to the Office of Management and Budget pursuant to 
        OMB Circular A-11 (relating to preparation and submission of 
        budget estimates) in budget object classes that are designated 
        in the Object Class 25 series.
            ``(2) The term `advisory and assistance services object 
        class' means those contract services constituting the budget 
        object class that is denominated `Advisory and Assistance 
        Service' and designated (as of the date of the enactment of this 
        section) as Object Class 25.1 (or any similar object class 
        established after the date of the enactment of this section for 
        the reporting of obligations for advisory and assistance 
        contract services).
            ``(3) The term `miscellaneous services object class' means 
        those contract services constituting the budget object class 
        that is denominated `Other Services (services not otherwise 
        specified in the 25 series)' and designated (as of the date of 
        the enactment of this section) as Object Class 25.2 (or any 
        similar object class established after the date of the enactment 
        of this section

[[Page 112 STAT. 2099]]

        for the reporting of obligations for miscellaneous or 
        unspecified contract services).
            ``(4) The term `authorized exemptions' means those 
        exemptions authorized (as of the date of the enactment of this 
        section) under Department of Defense Directive 4205.2, captioned 
        `Acquiring and Managing Contracted Advisory and Assistance 
        Services (CAAS)' and issued by the Under Secretary of Defense 
        for Acquisition and Technology on February 10, 1992, such 
        exemptions being set forth in Enclosure 3 to that directive 
        (captioned `CAAS Exemptions').''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2211 the 
following new item:

``2212. Obligations for contract services: reporting in budget object 
           classes.''.

    (b) <<NOTE: Applicability. 10 USC 2212 note.>>  Transition.--For the 
budget for fiscal year 2000, and the reporting of information to the 
Office of Management and Budget in connection with the preparation of 
that budget, section 2212 of title 10, United States Code, as added by 
subsection (a), shall be applied by substituting ``30 percent'' in 
subsection (a) for ``15 percent''.

    (c) <<NOTE: Deadline.>>  Initial Classification of Advisory and 
Assistance Services.--Not later than February 1, 1999, the Secretary of 
Defense, acting through the Under Secretary of Defense (Comptroller), 
shall conduct a review of Department of Defense services performed or 
expected to be performed as contract services during fiscal year 1999 in 
order to ensure that those services that are advisory and assistance 
services (as defined in accordance with subsection (b) of section 2212 
of title 10, United States Code, as added by subsection (a)) are in fact 
properly classified, in accordance with that subsection, in the advisory 
and assistance services object class (as defined in subsection (f )(2) 
of that section).

    (d) Fiscal Year 1999 Reduction.--The total amount that may be 
obligated by the Secretary of Defense for contracted advisory and 
assistance services from amounts appropriated for fiscal year 1999 is 
the amount programmed for those services resulting from the review 
referred to in subsection (c) reduced by $240,000,000.

SEC. 912. <<NOTE: Deadline.>>  REPORT ON DEPARTMENT OF DEFENSE FINANCIAL 
            MANAGEMENT IMPROVEMENT PLAN.

    Not later than 60 days after the date on which the Secretary of 
Defense submits the first biennial financial management improvement plan 
required by section 2222 of title 10, United States Code, the 
Comptroller General shall submit to Congress an analysis of the plan. 
The analysis shall include a discussion of the content of the plan and 
the extent to which the plan--
            (1) complies with the requirements of such section 2222; and
            (2) is a workable plan for addressing the financial 
        management problems of the Department of Defense.

SEC. 913. STUDY OF FEASIBILITY OF PERFORMANCE OF DEPARTMENT OF DEFENSE 
            FINANCE AND ACCOUNTING FUNCTIONS BY PRIVATE SECTOR SOURCES 
            OR OTHER FEDERAL SOURCES.

    (a) Study Required.--(1) The Secretary of Defense shall carry out a 
study of the feasibility and advisability of selecting on a competitive 
basis the source or sources for performing the finance

[[Page 112 STAT. 2100]]

and accounting functions of the Department of Defense from among the 
Defense Finance and Accounting Service of the Department of Defense and 
non-DFAS sources.
    (2) For the purposes of this section, the term ``non-DFAS sources'' 
means--
            (A) the military departments;
            (B) Federal agencies outside the Department of Defense; and
            (C) private sector sources.

    (b) <<NOTE: Deadline.>>  Report.--Not later than October 1, 1999, 
the Secretary shall submit to Congress a report in writing on the 
results of the study. The report shall include the following:
            (1) A discussion of how the finance and accounting functions 
        of the Department of Defense are performed, including the 
        necessary operations, the operations actually performed, the 
        personnel required for the operations, and the core competencies 
        that are necessary for the performance of those functions.
            (2) A comparison of the performance of the finance and 
        accounting functions by the Defense Finance and Accounting 
        Service with the performance of finance and accounting functions 
        by non-DFAS sources that exemplify the best finance and 
        accounting practices and results, together with a comparison of 
        the costs of the performance of those functions by the Defense 
        Finance and Accounting Service and the estimated costs of the 
        performance of those functions by non-DFAS sources.
            (3) The finance and accounting functions, if any, that are 
        appropriate for performance by non-DFAS sources, together with a 
        concept of operations that--
                    (A) specifies the mission;
                    (B) identifies the finance and accounting operations 
                to be performed;
                    (C) describes the work force that is necessary to 
                perform those operations;
                    (D) discusses where the operations are to be 
                performed;
                    (E) describes how the operations are to be 
                performed; and
                    (F) discusses the relationship between how the 
                operations are to be performed and the mission.
            (4) An analysis of how Department of Defense programs or 
        processes would be affected by the performance of the finance 
        and accounting functions of the Department of Defense by one or 
        more non-DFAS source.
            (5) The status of the efforts within the Department of 
        Defense to consolidate and eliminate redundant finance and 
        accounting systems and to better integrate the automated and 
        manual systems of the department that provide input to financial 
        management or accounting systems of the department.
            (6) A description of a feasible and effective process for 
        selecting, on a competitive basis, sources to perform the 
        finance and accounting functions of the Department of Defense 
        from among the Defense Finance and Accounting Service and non-
        DFAS sources, including a discussion of the selection criteria 
        the Secretary considers appropriate.
            (7) An analysis of the costs and benefits of the various 
        policies and actions recommended.

[[Page 112 STAT. 2101]]

            (8) A discussion of any findings, analyses, and 
        recommendations on the performance of the finance and accounting 
        functions of the Department of Defense that have been made by 
        the Task Force on Defense Reform appointed by the Secretary of 
        Defense on May 14, 1997.
            (9) Any additional information and recommendations the 
        Secretary considers appropriate.

    (c) Market Research.--In carrying out the study, the Secretary shall 
conduct market research to determine whether or not an efficient and 
competitive domestic market for finance and accounting services exists. 
In conducting that research, the Secretary shall consider whether the 
domestic market for finance and accounting services could be reasonably 
expected to generate responsive private sector competitors for the 
provision of the finance and accounting services, or a portion of such 
services, of the Department of Defense and whether there are any 
substantial barriers to entry or expansion in that market. In conducting 
such research, the Secretary shall consider not only the current state 
of the domestic market for finance and accounting services, but also the 
potential effects that the entry of the Department of Defense as a 
large, long-term consumer of such services might have on that market.

SEC. 914. LIMITATION ON REORGANIZATION AND CONSOLIDATION OF OPERATING 
            LOCATIONS OF THE DEFENSE FINANCE AND ACCOUNTING SERVICE.

    (a) Limitation.--The Secretary of Defense may not close any 
operating location of the Defense Finance and Accounting Service before 
the date that is 90 days after the date on which the Secretary submits 
to the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives the plan required by 
subsection (b).
    (b) Plan Required.--The Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a strategic plan for improving 
the financial management operations at each of the operating locations 
of the Defense Finance and Accounting Service.
    (c) Content of Plan.--The plan shall include the following:
            (1) The workloads that it is necessary to perform at those 
        operating locations each fiscal year.
            (2) The capacity and number of operating locations that are 
        necessary for performing those workloads.
            (3) A discussion of the costs and benefits that could result 
        from reorganizing the operating locations of the Defense Finance 
        and Accounting Service on the basis of function performed, 
        together with the Secretary's assessment of the feasibility of 
        carrying out such a reorganization.

    (d) Submittal of Plan.--The plan shall be submitted to the Committee 
on Armed Services of the Senate and the Committee on National Security 
of the House of Representatives not later than January 15, 1999.

SEC. 915. ANNUAL REPORT ON RESOURCES ALLOCATED TO SUPPORT AND MISSION 
            ACTIVITIES.

    (a) Requirement.--Section 113 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(l) The Secretary shall include in the annual report to Congress 
under subsection (c) the following:

[[Page 112 STAT. 2102]]

            ``(1) A comparison of the amounts provided in the defense 
        budget for support and for mission activities for each of the 
        preceding five fiscal years.
            ``(2) A comparison of the number of military and civilian 
        personnel, shown by major occupational category, assigned to 
        support positions and to mission positions for each of the 
        preceding five fiscal years.
            ``(3) An accounting, shown by service and by major 
        occupational category, of the number of military and civilian 
        personnel assigned to support positions during each of the 
        preceding five fiscal years.
            ``(4) <<NOTE: Records.>>  A listing of the number of 
        military and civilian personnel assigned to management 
        headquarters and headquarters support activities as a percentage 
        of military end-strength for each of the preceding five fiscal 
        years.''.

    (b) <<NOTE: Deadline. 10 USC 113 note.>>  Report on Terminology.--
Not later than 90 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House of 
Representatives a report setting forth the definitions of the terms 
``support'' and ``mission'' that the Secretary proposes to use for 
purposes of the report requirement under section 113(l) of title 10, 
United States Code, as added by subsection (a).

              Subtitle C--Joint Warfighting Experimentation

SEC. 921. <<NOTE: 10 USC 485 note.>>  FINDINGS CONCERNING JOINT 
            WARFIGHTING EXPERIMENTATION.

    Congress makes the following findings:
            (1) The assessments of the Quadrennial Defense Review and 
        the National Defense Panel provide a compelling argument--
                    (A) that the security environment in the early 21st 
                century will include fundamentally different military 
                challenges than the security environment in the late 
                20th century; and
                    (B) reinforce the premise of the Goldwater-Nichols 
                Department of Defense Reorganization Act of 1986 that 
                future warfare will require more effective joint 
                operational concepts.
            (2) Joint experimentation is necessary for--
                    (A) integrating advances in technology with changes 
                in organizational structure and joint operational 
                concepts; and
                    (B) determining the interdependent aspects of joint 
                warfare that are key for transforming the conduct of 
                military operations to meet future challenges 
                successfully.
            (3) It is essential that an energetic and innovative 
        organization be established in the Department of Defense with 
        the authority (subject to the authority and guidance of the 
        Secretary of Defense and Chairman of the Joint Chiefs of Staff) 
        to design and implement a process of joint experimentation to 
        investigate and test technologies and alternative forces and 
        concepts in field environments under realistic conditions

[[Page 112 STAT. 2103]]

        against the full range of future challenges to assist in 
        developing and validating new joint warfighting concepts and 
        transforming the Armed Forces to meet the threats to national 
        security anticipated for the early 21st century.

SEC. 922. <<NOTE: 10 USC 485 note.>>  SENSE OF CONGRESS CONCERNING JOINT 
            WARFIGHTING EXPERIMENTATION.

    (a) Designation of Commander To Have Joint Warfighting 
Experimentation Mission.--It is the sense of Congress that the 
initiative of the Secretary of Defense to designate the commander of a 
combatant command to have the mission of joint warfighting 
experimentation is a key step in exploiting the potential of advanced 
technologies, new organizational structures, and new joint operational 
concepts to transform the conduct of military operations by the Armed 
Forces.
    (b) Resources and Authority of Commander.--It is, further, the sense 
of Congress that the commander of the combatant command referred to in 
subsection (a) should be provided with appropriate and sufficient 
resources for joint warfighting experimentation and with the appropriate 
authority to execute the commander's assigned responsibilities and that 
such authority should include the following:
            (1) Planning, preparing, and conducting the program of joint 
        warfighting experimentation, which program should include 
        analyses, simulations, wargames, experiments, advanced concept 
        technology demonstrations, joint exercises conducted in virtual 
        and field environments, and, as a particularly critical aspect, 
        assessments of ``red team'' vulnerability.
            (2) Developing scenarios and measures of effectiveness to 
        meet the operational challenges expected to be encountered in 
        the early 21st century and assessing the effectiveness of 
        current and new organizational structures, operational concepts, 
        and technologies in addressing those challenges.
            (3) Integrating and testing in joint experimentation the 
        systems and concepts that result from warfighting 
        experimentation conducted by the Armed Forces and the Defense 
        Agencies.
            (4) Coordinating with each of the Armed Forces and Defense 
        Agencies regarding the development and acquisition of equipment 
        (including surrogate or real technologies, platforms, and 
        systems), supplies, and services necessary for joint 
        experimentation.
            (5) Providing the Secretary of Defense and the Chairman of 
        the Joint Chiefs of Staff with recommendations, based on the 
        conduct of joint warfighting experimentation, for--
                    (A) improving interoperability;
                    (B) reducing unnecessary redundancy;
                    (C) synchronizing technology fielding;
                    (D) developing joint operational concepts;
                    (E) prioritizing the most promising joint 
                capabilities for future experimentation; and
                    (F) prioritizing joint requirements and acquisition 
                programs.
            (6) Making recommendations to the Chairman of the Joint 
        Chiefs of Staff on mission needs statements and operational 
        requirements documents.

[[Page 112 STAT. 2104]]

    (c) Congressional Review.--It is, further, the sense of Congress 
that Congress--
            (1) should review the adequacy of the process of 
        transformation to meet future challenges to the national 
        security; and
            (2) if progress is determined inadequate, should consider 
        legislation to--
                    (A) establish an appropriate organization to conduct 
                the mission described in subsection (a); and
                    (B) provide to the commander given the 
                responsibility for that mission appropriate and 
                sufficient resources for joint warfighting 
                experimentation and the appropriate authority to execute 
                that commander's assigned responsibilities for that 
                mission, including the authorities specified in 
                subsection (b).

SEC. 923. <<NOTE: 10 USC 485 note.>> REPORTS ON JOINT WARFIGHTING 
            EXPERIMENTATION.

    (a) Initial Report.--(1) The commander of the combatant command 
assigned by the Secretary of Defense to have the mission for joint 
warfighting experimentation shall submit to the Secretary an initial 
report on the implementation of joint experimentation. 
Not <<NOTE: Deadline.>> later than April 1, 1999, the Secretary shall 
submit that report, together with any comments that the Secretary 
considers appropriate and any comments that the Chairman of the Joint 
Chiefs of Staff considers appropriate, to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives.

    (2) The report of the commander under paragraph (1) shall include 
the commander's assessment of the following:
            (A) The authority and responsibilities of the commander as 
        described in section 922(b).
            (B) The organization of the commander's combatant command, 
        and of its staff, for carrying out the joint warfighting 
        experimentation mission.
            (C) The process established for tasking forces to 
        participate in experimentation and the commander's specific 
        authority over those forces, including forces designated as 
        joint experimentation forces.
            (D) The resources provided for initial implementation of 
        joint warfighting experimentation, the process for providing 
        those resources to the commander, the categories of the funding, 
        and the authority of the commander for budget execution.
            (E) The process established for the development and 
        acquisition of the materiel, supplies, services, and equipment 
        necessary for the conduct of joint warfighting experimentation.
            (F) The process established for designing, preparing, and 
        conducting joint experiments.
            (G) The role assigned the commander for--
                    (i) integrating and testing in joint warfighting 
                experimentation the systems that emerge from warfighting 
                experimentation by the Armed Forces or the Defense 
                Agencies;
                    (ii) assessing the effectiveness of organizational 
                structures, operational concepts, and technologies; and
                    (iii) assisting the Secretary of Defense and 
                Chairman of the Joint Chiefs of Staff to prioritize 
                requirements or acquisition programs.

[[Page 112 STAT. 2105]]

    (b) Annual Report.--(1) Chapter 23 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 485. Joint warfighting experimentation

    ``(a) Annual Report.--The commander of the combatant command 
assigned by the Secretary of Defense to have the mission for joint 
warfighting experimentation shall submit to the Secretary an annual 
report on the conduct of joint experimentation activities for the fiscal 
year ending in the year of the report. <<NOTE: Deadline.>>  Not later 
than December 1 of each year, the Secretary shall submit that report, 
together with any comments that the Secretary considers appropriate and 
any comments that the Chairman of the Joint Chiefs of Staff considers 
appropriate, to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives.

    ``(b) Matters To Be Included.--Each report under this section shall 
include, for the fiscal year covered by the report, the following:
            ``(1) Any changes in the assessments of the matters 
        described in section 923(a)(2) of the Strom Thurmond National 
        Defense Authorization Act for Fiscal Year 1999 since the 
        preparation of the assessments of those matters set forth in the 
        latest report submitted under this section.
            ``(2) A description of the conduct of joint experimentation 
        activities, including the number of activities, the forces 
        involved, the national security challenges addressed, the 
        operational concepts assessed, and the scenarios and measures of 
        effectiveness used.
            ``(3) An assessment of the results of joint warfighting 
        experimentation within the Department of Defense.
            ``(4) With respect to joint warfighting experimentation, any 
        recommendations that the commander considers appropriate 
        regarding--
                    ``(A) the development or acquisition of advanced 
                technologies;
                    ``(B) changes in organizational structure, 
                operational concepts, or joint doctrine;
                    ``(C) the conduct of experiments;
                    ``(D) the adequacy of resources; or
                    ``(E) changes in authority of the commander to 
                develop or acquire materiel, supplies, services, or 
                equipment directly for the conduct of joint warfighting 
                experimentation.''.

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

``485. Joint warfighting experimentation.''.

    (c) First Annual Report.--The first report under section 485 of 
title 10, United States Code, as added by subsection (b), shall be made 
with respect to fiscal year 1999. In the case of the report under that 
section for fiscal year 1999, the reference in subsection (b)(1) of that 
section to the most recent report under that section shall be treated as 
referring to the report under subsection (a) of this section.

[[Page 112 STAT. 2106]]

                        Subtitle D--Other Matters

SEC. 931. FURTHER REDUCTIONS IN DEFENSE ACQUISITION AND SUPPORT 
            WORKFORCE.

    (a) Reduction of Defense Acquisition and Support Workforce.--The 
Secretary of Defense shall accomplish reductions in defense acquisition 
and support personnel positions during fiscal year 1999 so that the 
total number of such personnel as of October 1, 1999, is less than the 
total number of such personnel as of October 1, 1998, by at least the 
applicable number determined under subsection (b).
    (b) Required Reduction.--(1) The applicable number for purposes of 
subsection (a) is 25,000. However, the Secretary of Defense may specify 
a lower number, which may not be less than 12,500, as the applicable 
number for purposes of subsection (a) if the Secretary determines, and 
certifies to Congress not later than May 1, 1999, that an applicable 
number greater than the number specified by the Secretary would be 
inconsistent with the cost-effective management of the defense 
acquisition system to obtain best value equipment and with ensuring 
military readiness.
    (2) The Secretary shall include with such a certification a report 
setting forth a detailed explanation of each of the matters certified. 
The report shall include--
            (A) a detailed explanation of all matters incorporated in 
        the Secretary's determination;
            (B) a definition of the components of the defense 
        acquisition and support positions; and
            (C) the allocation of the reductions under this section 
        among the occupational elements of those positions.

    (3) The authority of the Secretary under paragraph (1) may only be 
delegated to the Deputy Secretary of Defense.
    (c) Limitation on Reduction of Core Acquisition Workforce.--The 
Secretary shall implement this section so that the core defense 
acquisition workforce identified by the Secretary in the report 
submitted pursuant to section 912(b) of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1860) is reduced proportionally no more than the other occupational 
elements included as defense acquisition and support positions in that 
report.
    (d) Defense Acquisition and Support Personnel Defined.--For purposes 
of this section, the term ``defense acquisition and support personnel'' 
means military and civilian personnel (other than civilian personnel who 
are employed at a maintenance depot) who are assigned to, or employed 
in, acquisition organizations of the Department of Defense (as specified 
in Department of Defense Instruction numbered 5000.58 dated January 14, 
1992), and any other organizations which the Secretary may determine to 
have a predominantly acquisition mission.

SEC. 932. LIMITATION ON OPERATION AND SUPPORT FUNDS FOR THE OFFICE OF 
            THE SECRETARY OF DEFENSE.

    Of the amount available for fiscal year 1999 for operation and 
support activities of the Office of the Secretary of Defense, not more 
than 90 percent may be obligated until each of the following reports has 
been submitted:

[[Page 112 STAT. 2107]]

            (1) The report required to be submitted to the congressional 
        defense committees by section 904(b) of the National Defense 
        Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
        Stat. 2619).
            (2) The reports required to be submitted to Congress by 
        sections 911(b) and 911(c) of the National Defense Authorization 
        Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1858, 
        1859).

SEC. 933. CLARIFICATION AND SIMPLIFICATION OF RESPONSIBILITIES OF 
            INSPECTORS GENERAL REGARDING WHISTLEBLOWER PROTECTIONS.

    (a) Roles of Inspectors General of the Armed Forces.--(1) Subsection 
(c) of section 1034 of title 10, United States Code, is amended--
            (A) by striking out paragraph (1) and inserting in lieu 
        thereof the following:

    ``(1) If a member of the armed forces submits to an Inspector 
General an allegation that a personnel action prohibited by subsection 
(b) has been taken (or threatened) against the member with respect to a 
communication described in paragraph (2), the Inspector General shall 
take the action required under paragraph (3).''; and
            (B) by striking out paragraph (3) and inserting in lieu 
        thereof the following:

    ``(3)(A) An Inspector General receiving an allegation as described 
in paragraph (1) shall expeditiously determine whether there is 
sufficient evidence to warrant an investigation of the allegation.
    ``(B) If the Inspector General receiving such an allegation is an 
Inspector General within a military department, that Inspector General 
shall promptly notify the Inspector General of the Department of Defense 
of the allegation. Such notification shall be made in accordance with 
regulations prescribed under subsection (h).
    ``(C) If an allegation under paragraph (1) is submitted to an 
Inspector General within a military department and if the determination 
of that Inspector General under subparagraph (A) is that there is not 
sufficient evidence to warrant an investigation of the allegation, that 
Inspector General shall forward the matter to the Inspector General of 
the Department of Defense for review.
    ``(D) Upon determining that an investigation of an allegation under 
paragraph (1) is warranted, the Inspector General making the 
determination shall expeditiously investigate the allegation. In the 
case of a determination made by the Inspector General of the Department 
of Defense, that Inspector General may delegate responsibility for the 
investigation to an appropriate Inspector General within a military 
department.
    ``(E) In the case of an investigation under subparagraph (D) within 
the Department of Defense, the results of the investigation shall be 
determined by, or approved by, the Inspector General of the Department 
of Defense (regardless of whether the investigation itself is conducted 
by the Inspector General of the Department of Defense or by an Inspector 
General within a military department).
    ``(4) Neither an initial determination under paragraph (3)(A) nor an 
investigation under paragraph (3)(D) is required in the case of an 
allegation made more than 60 days after the date

[[Page 112 STAT. 2108]]

on which the member becomes aware of the personnel action that is the 
subject of the allegation.
    ``(5) The Inspector General of the Department of Defense, or the 
Inspector General of the Department of Transportation (in the case of a 
member of the Coast Guard when the Coast Guard is not operating as a 
service in the Navy), shall ensure that the Inspector General conducting 
the investigation of an allegation under this subsection is outside the 
immediate chain of command of both the member submitting the allegation 
and the individual or individuals alleged to have taken the retaliatory 
action.''.
    (2) Subsection (d) of such section is <<NOTE: 10 USC 1034.>>  
amended--
            (A) by inserting ``receiving the allegation'' after ``the 
        Inspector General'' the first place it appears; and
            (B) by adding at the end the following: ``In the case of an 
        allegation received by the Inspector General of the Department 
        of Defense, the Inspector General may delegate that 
        responsibility to the Inspector General of the armed force 
        concerned.''.

    (b) Mismanagement Covered by Protected Communications.--Subsection 
(c)(2)(B) of such section is amended by striking out ``Mismanagement'' 
and inserting in lieu thereof ``Gross mismanagement''.
    (c) Simplified Reporting and Notice Requirements.--(1) Paragraph (1) 
of subsection (e) of such section is amended--
            (A) by striking out ``Not later than 30 days after 
        completion of an investigation under subsection (c) or (d),'' 
        and inserting in lieu thereof ``After completion of an 
        investigation under subsection (c) or (d) or, in the case of an 
        investigation under subsection (c) by an Inspector General 
        within a military department, after approval of the report of 
        that investigation under subsection (c)(3)(E),''
            (B) by striking out ``the Inspector General shall submit a 
        report on'' and inserting in lieu thereof ``the Inspector 
        General conducting the investigation shall submit a report on'';
            (C) by inserting ``shall transmit a copy of the report on 
        the results of the investigation to'' before ``the member of the 
        armed forces''; and
            (D) by adding at the end the following new 
        sentence: <<NOTE: Deadline.>>  ``The report shall be transmitted 
        to the Secretary, and the copy of the report shall be 
        transmitted to the member, not later than 30 days after the 
        completion of the investigation or, in the case of an 
        investigation under subsection (c) by an Inspector General 
        within a military department, after approval of the report of 
        that investigation under subsection (c)(3)(E).''.

    (2) Paragraph (2) of such subsection is amended--
            (A) by striking out ``submitted'' after ``In the copy of the 
        report'' and inserting in lieu thereof ``transmitted''; and
            (B) by adding at the end the following new sentence: 
        ``However, the copy need not include summaries of interviews 
        conducted, nor any document acquired, during the course of the 
        investigation. Such items shall be transmitted to the member, if 
        the member requests the items, with the copy of the report or 
        after the transmittal to the member of the copy of the report, 
        regardless of whether the request for those items is made before 
        or after the copy of the report is transmitted to the member.''.

[[Page 112 STAT. 2109]]

    (3) Paragraph (3) of such subsection is amended by striking out ``90 
days'' and inserting in lieu thereof ``180 days''.
    (d) Repeal of Post-Investigation Interview Requirement.--Subsection 
(h) of such section is repealed.
    (e) Definition of Inspector General Defined.--Subsection ( j)(2) of 
such section is amended--
            (1) by redesignating subparagraph (B) as subparagraph (G) 
        and, in that subparagraph, by striking out ``an officer'' and 
        inserting in lieu thereof ``An officer'';
            (2) by striking out subparagraph (A) and inserting in lieu 
        thereof the following:
                    ``(A) The Inspector General of the Department of 
                Defense.
                    ``(B) The Inspector General of the Department of 
                Transportation, in the case of a member of the Coast 
                Guard when the Coast Guard is not operating as a service 
                in the Navy.
                    ``(C) The Inspector General of the Army, in the case 
                of a member of the Army.
                    ``(D) The Naval Inspector General, in the case of a 
                member of the Navy.
                    ``(E) The Inspector General of the Air Force, in the 
                case of a member of the Air Force.
                    ``(F) The Deputy Naval Inspector General for Marine 
                Corps Matters, in the case of a member of the Marine 
                Corps.''; and
            (3) in the matter preceding subparagraph (A), by striking 
        out ``means--'' and inserting in lieu thereof ``means the 
        following:''.

    (f ) Technical and Conforming Amendments.--(1) Subsections (i) and ( 
j) of such section are redesignated as subsections (h) and (i), 
respectively.
    (2) Subsection (b)(1)(B)(ii) of such section is amended by striking 
out ``subsection ( j))'' and inserting in lieu thereof ``subsection (i)) 
or any other Inspector General appointed under the Inspector General Act 
of 1978''.

SEC. 934. REPEAL OF REQUIREMENT RELATING TO ASSIGNMENT OF TACTICAL 
            AIRLIFT MISSION TO RESERVE COMPONENTS.

    Section 1438 of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 104 Stat. 1689), as amended by section 
1023 of the National Defense Authorization Act for Fiscal Years 1992 and 
1993 (Public Law 102-190; 105 Stat. 1460), is repealed.

SEC. 935. CONSULTATION WITH MARINE CORPS ON MAJOR DECISIONS DIRECTLY 
            CONCERNING MARINE CORPS AVIATION.

    (a) In General.--Chapter 503 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 5026. Consultation with Commandant of the Marine Corps on major 
                        decisions directly concerning Marine Corps 
                        aviation

    ``The Secretary of the Navy shall ensure that the views of the 
Commandant of the Marine Corps are given appropriate consideration 
before a major decision is made by an element of the Department of the 
Navy outside the Marine Corps on a matter that directly concerns Marine 
Corps aviation.''.

[[Page 112 STAT. 2110]]

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

``5026. Consultation with Commandant of the Marine Corps on major 
           decisions directly concerning Marine Corps aviation.''.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of prior emergency supplemental appropriations 
           for fiscal year 1998.
Sec. 1004. Authorization of appropriations for Bosnia peacekeeping 
           operations for fiscal year 1999.
Sec. 1005. Partnership for Peace Information Management System.
Sec. 1006. United States contribution to NATO common-funded budgets in 
           fiscal year 1999.
Sec. 1007. Liquidity of working-capital funds.
Sec. 1008. Termination of authority to manage working-capital funds and 
           certain 
           activities through the Defense Business Operations Fund.
Sec. 1009. Clarification of authority to retain recovered costs of 
           disposals in working-capital funds.
Sec. 1010. Crediting of amounts recovered from third parties for loss or 
           damage to personal property shipped or stored at Government 
           expense.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Revision to requirement for continued listing of two Iowa-
           class battleships on the Naval Vessel Register.
Sec. 1012. Transfer of U.S.S. NEW JERSEY.
Sec. 1013. Homeporting of the U.S.S. IOWA in San Francisco, California.
Sec. 1014. Sense of Congress concerning the naming of an LPD-17 vessel.
Sec. 1015. Reports on naval surface fire-support capabilities.
Sec. 1016. Long-term charter of three vessels in support of submarine 
           rescue, escort, and towing.
Sec. 1017. Transfer of obsolete Army tugboat.

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

Sec. 1021. Department of Defense support to other agencies for counter-
           drug activities.
Sec. 1022. Department of Defense support of National Guard drug 
           interdiction and counter-drug activities.
Sec. 1023. Department of Defense counter-drug activities in transit 
           zone.

        Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1031. Repeal of unnecessary and obsolete reporting provisions.
Sec. 1032. Report regarding use of tagging system to identify 
           hydrocarbon fuels used by Department of Defense.

                Subtitle E--Armed Forces Retirement Home

Sec. 1041. Appointment of Director and Deputy Director of the Naval 
           Home.
Sec. 1042. Revision of inspection requirements relating to Armed Forces 
           Retirement Home.
Sec. 1043. Clarification of land conveyance authority, Armed Forces 
           Retirement Home.

            Subtitle F--Matters Relating to Defense Property

Sec. 1051. Plan for improved demilitarization of excess and surplus 
           defense property.
Sec. 1052. Transfer of F-4 Phantom II aircraft to foundation.

             Subtitle G--Other Department of Defense Matters

Sec. 1061. Pilot program on alternative notice of receipt of legal 
           process for garnishment of Federal pay for child support and 
           alimony.
Sec. 1062. Training of special operations forces with friendly foreign 
           forces.

[[Page 112 STAT. 2111]]

Sec. 1063. Research grants competitively awarded to service academies.
Sec. 1064. Department of Defense use of frequency spectrum.
Sec. 1065. Department of Defense aviation accident investigations.
Sec. 1066. Investigation of actions relating to 174th Fighter Wing of 
           New York Air National Guard.
Sec. 1067. Program to commemorate 50th anniversary of the Korean War.
Sec. 1068. Designation of America's National Maritime Museum.
Sec. 1069. Technical and clerical amendments.

                        Subtitle H--Other Matters

Sec. 1071. Act constituting presidential approval of vessel war risk 
           insurance 
           requested by the Secretary of Defense.
Sec. 1072. Extension and reauthorization of Defense Production Act of 
           1950.
Sec. 1073. Requirement that burial flags furnished by the Secretary of 
           Veterans Affairs be wholly produced in the United States.
Sec. 1074. Sense of Congress concerning tax treatment of principal 
           residence of members of Armed Forces while away from home on 
           active duty.
Sec. 1075. Clarification of State authority to tax compensation paid to 
           certain employees.

                      Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination by 
the Secretary of Defense that such action is necessary in the national 
interest, the Secretary may transfer amounts of authorizations made 
available to the Department of Defense in this division for fiscal year 
1999 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the authorization 
to which transferred.
    (2) The total amount of authorizations that the Secretary may 
transfer under the authority of this section may not exceed 
$2,000,000,000.
    (b) Limitations.--The authority provided by this section to transfer 
authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.

    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount is 
transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. <<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. 3616 of the One Hundred Fifth Congress and transmitted to the 
President is hereby incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts 
specified in the Classified Annex are not in addition to amounts 
authorized to be appropriated by other provisions of this Act.

[[Page 112 STAT. 2112]]

    (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) <<NOTE: President.>>  Distribution of Classified Annex.--The 
President shall provide for appropriate distribution of the Classified 
Annex, or of appropriate portions of the annex, within the executive 
branch of the Government.

SEC. 1003. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
            FOR FISCAL YEAR 1998.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 1998 in the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) are hereby adjusted, with respect 
to any such authorized amount, by the amount by which appropriations 
pursuant to such authorization were increased (by a supplemental 
appropriation) or decreased (by a rescission), or both, in the 1998 
Supplemental Appropriations and Rescissions Act (Public Law 105-174).

SEC. 1004. AUTHORIZATION OF APPROPRIATIONS FOR BOSNIA PEACEKEEPING 
            OPERATIONS FOR FISCAL YEAR 1999.

    (a) Authorization of Appropriations.--Funds are hereby authorized to 
be appropriated for the Department of Defense for fiscal year 1999 for 
incremental costs of the Armed Forces for Bosnia peacekeeping operations 
in the total amount of $1,858,600,000, as follows:
            (1) For military personnel, in addition to the amounts 
        authorized to be appropriated in title IV of this Act:
                    (A) For the Army, $297,700,000.
                    (B) For the Navy, $9,700,000.
                    (C) For the Marine Corps, $2,700,000.
                    (D) For the Air Force, $33,900,000.
                    (E) For the Naval Reserve, $2,200,000.
            (2) For operation and maintenance for the Overseas 
        Contingency Operations Transfer Fund, in addition to the total 
        amount authorized to be appropriated for that fund in section 
        301(24) of this Act, $1,512,400,000.

    (b) Designation as Emergency.--Funds authorized to be appropriated 
in accordance with subsection (a) are designated as emergency 
requirements pursuant to section 251(b)(2)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(A)).
    (c) Limitation.--(1) Funds available for the Department of Defense 
for fiscal year 1999 for military personnel for the Army, Navy, Marine 
Corps, Air Force, or Naval Reserve or for operation and maintenance for 
the Overseas Contingency Operations Transfer Fund may not be obligated 
or expended for Bosnia peacekeeping operations in excess of the amount 
authorized to be appropriated for that purpose under subsection (a).
    (2) The President may waive the limitation in paragraph (1) after 
submitting to Congress the following:
            (A) The President's written certification that the waiver is 
        necessary in the national security interests of the United 
        States.

[[Page 112 STAT. 2113]]

            (B) The President's written certification that exercising 
        the waiver will not adversely affect the readiness of United 
        States military forces.
            (C) A report setting forth the following:
                    (i) The reasons that the waiver is necessary in the 
                national security interests of the United States.
                    (ii) The specific reasons that additional funding is 
                required for the continued presence of United States 
                military forces participating in, or supporting, Bosnia 
                peacekeeping operations for fiscal year 1999.
                    (iii) A discussion of the impact on the military 
                readiness of United States Armed Forces of the 
                continuing deployment of United States military forces 
                participating in, or supporting, Bosnia peacekeeping 
                operations.
            (D) A supplemental appropriations request for the Department 
        of Defense for such amounts as are necessary for the additional 
        fiscal year 1999 costs associated with United States military 
        forces participating in, or supporting, Bosnia peacekeeping 
        operations.

    (d) Transfer Authority.--The Secretary of Defense may transfer 
amounts of authorizations made available to the Department of Defense in 
subsection (a)(2) for fiscal year 1999 to any of the authorizations for 
that fiscal year in section 301. Amounts of authorizations so 
transferred shall be merged with and be available for the same purposes 
as the authorization to which transferred. The transfer authority under 
this subsection is in addition to any other transfer authority provided 
in this Act.
    (e) Bosnia Peacekeeping Operations Defined.--For the purposes of 
this section, the term ``Bosnia peacekeeping operations''--
            (1) means the operation designated as Operation Joint Forge 
        and any other operation involving the participation of any of 
        the Armed Forces in peacekeeping or peace enforcement activities 
        in and around the Republic of Bosnia and Herzegovina; and
            (2) includes, with respect to Operation Joint Forge or any 
        such other operation, each activity that is directly related to 
        the support of the operation.

SEC. 1005. PARTNERSHIP FOR PEACE INFORMATION SYSTEM MANAGEMENT.

    Funds authorized to be appropriated under titles II and III of this 
Act shall be available for the Partnership for Peace Information 
Management System as follows:
            (1) Of the amount authorized to be appropriated under 
        section 201(4) for Defense-wide activities, $2,000,000.
            (2) Of the amount authorized to be appropriated under 
        section 301(5) for Defense-wide activities, $3,000,000.

SEC. 1006. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
            FISCAL YEAR 1999.

    (a) Fiscal Year 1999 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 1999 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:

[[Page 112 STAT. 2114]]

            (1) The amounts of unexpended balances, as of the end of 
        fiscal year 1998, of funds appropriated for fiscal years before 
        fiscal year 1999 for payments for those budgets.
            (2) The amount authorized to be appropriated under section 
        301(1) that is available for contributions for the NATO common-
        funded military budget under section 314.
            (3) The amount authorized to be appropriated under section 
        201 that is available for contribution for the NATO common-
        funded civil budget under section 243.
            (4) The total amount of the contributions authorized to be 
        made under section 2501.

    (c) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term ``common-funded 
        budgets of NATO'' means the Military Budget, the Security 
        Investment Program, and the Civil Budget of the North Atlantic 
        Treaty Organization (and any successor or additional account or 
        program of NATO).
            (2) Fiscal year 1998 baseline limitation.--The term ``fiscal 
        year 1998 baseline limitation'' means the maximum annual amount 
        of Department of Defense contributions for common-funded budgets 
        of NATO that is set forth as the annual limitation in section 
        3(2)(C)(ii) of the resolution of the Senate giving the advice 
        and consent of the Senate to the ratification of the Protocols 
        to the North Atlantic Treaty of 1949 on the Accession of Poland, 
        Hungary, and the Czech Republic (as defined in section 4(7) of 
        that resolution), approved by the Senate on April 30, 1998.

SEC. 1007. LIQUIDITY OF WORKING-CAPITAL FUNDS.

    (a) Increased Cash Balances.--The Secretary of Defense shall 
administer the working-capital funds of the Department of Defense during 
fiscal year 1999 so as to ensure that the total amount of the cash 
balances in such funds on September 30, 1999, exceeds the total amount 
of the cash balances in such funds on September 30, 1998, by 
$1,300,000,000.
    (b) Actions Regarding Unbudgeted Losses.--The Under Secretary of 
Defense (Comptroller) shall take such actions regarding unbudgeted 
losses for the working-capital funds as may be necessary in order to 
ensure that such unbudgeted losses do not preclude the Secretary of 
Defense from achieving the increase in cash balances in working-capital 
funds required under subsection (a).
    (c) Waiver.--(1) The Secretary of Defense may waive the requirements 
of this section upon certifying to Congress, in writing, that the waiver 
is necessary to meet requirements associated with--
            (A) a contingency operation (as defined in section 
        101(a)(13) of title 10, United States Code); or
            (B) an operation of the Armed Forces that commenced before 
        October 1, 1998, and continues during fiscal year 1999.

    (2) The waiver authority under paragraph (1) may not be delegated to 
any official other than the Deputy Secretary of Defense.
    (3) The waiver authority under paragraph (1) does not apply to the 
limitation in subsection (d) or the limitation in section 2208(l)(3) of 
title 10, United States Code (as added by subsection (e)).
    (d) Fiscal Year 1999 Limitation on Advance Billings.--(1) The total 
amount of the advance billings rendered or imposed

[[Page 112 STAT. 2115]]

for the working-capital funds of the Department of Defense and the 
Defense Business Operations Fund in fiscal year 1999--
            (A) for the Department of the Navy, may not exceed 
        $400,000,000; and
            (B) for the Department of the Air Force, may not exceed 
        $400,000,000.

    (2) In paragraph (1), the term ``advance billing'' has the meaning 
given such term in section 2208(l) of title 10, United States Code.
    (e) Permanent Limitation on Advance Billings.--(1) Section 2208(l) 
of title 10, United States Code, is amended--
            (A) by redesignating paragraph (3) as paragraph (4); and
            (B) by inserting after paragraph (2) the following new 
        paragraph (3):

    ``(3) The total amount of the advance billings rendered or imposed 
for all working-capital funds of the Department of Defense in a fiscal 
year may not exceed $1,000,000,000.''.
    (2) <<NOTE: Applicability. 10 USC 2208 note.>>  Section 2208(l)(3) 
of such title, as added by paragraph (1), applies to fiscal years after 
fiscal year 1999.

    (f ) <<NOTE: Deadlines.>>  Semiannual Report.--(1) The Under 
Secretary shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives--
            (A) not later than May 1, 1999, a report on the 
        administration of this section for the six-month period ending 
        on March 31, 1999; and
            (B) not later than November 1, 1999, a report on the 
        administration of this section for the six-month period ending 
        on September 30, 1999.

    (2) Each report shall include, for the period covered by the report, 
the following:
            (A) The profit and loss status of each working-capital fund 
        activity.
            (B) The actions taken by the Secretary of each military 
        department to use assessments of surcharges to correct for 
        unbudgeted losses.

SEC. 1008. TERMINATION OF AUTHORITY TO MANAGE WORKING-CAPITAL FUNDS AND 
            CERTAIN ACTIVITIES THROUGH THE DEFENSE BUSINESS OPERATIONS 
            FUND.

    (a) Revision of Certain DBOF Provisions and Reenactment To Apply to 
Working-Capital Funds Generally.--Section 2208 of title 10, United 
States Code, is amended by adding at the end the following:
    ``(m) Capital Asset Subaccounts.--Amounts charged for depreciation 
of capital assets shall be credited to a separate capital asset 
subaccount established within a working-capital fund.
    ``(n) Separate Accounting, Reporting, and Auditing of Funds and 
Activities.--The Secretary of Defense, with respect to the working-
capital funds of each Defense Agency, and the Secretary of each military 
department, with respect to the working-capital funds of the military 
department, shall provide for separate accounting, reporting, and 
auditing of funds and activities managed through the working-capital 
funds.
    ``(o) Charges for Goods and Services Provided Through the Fund.--(1) 
Charges for goods and services provided for an activity through a 
working-capital fund shall include the following:
            ``(A) Amounts necessary to recover the full costs of the 
        goods and services provided for that activity.

[[Page 112 STAT. 2116]]

            ``(B) Amounts for depreciation of capital assets, set in 
        accordance with generally accepted accounting principles.

    ``(2) Charges for goods and services provided through a working-
capital fund may not include the following:
            ``(A) Amounts necessary to recover the costs of a military 
        construction project (as defined in section 2801(b) of this 
        title), other than a minor construction project financed by the 
        fund pursuant to section 2805(c)(1) of this title.
            ``(B) Amounts necessary to cover costs incurred in 
        connection with the closure or realignment of a military 
        installation.
            ``(C) Amounts necessary to recover the costs of functions 
        designated by the Secretary of Defense as mission critical, such 
        as ammunition handling safety, and amounts for ancillary tasks 
        not directly related to the mission of the function or activity 
        managed through the fund.

    ``(p) Procedures For Accumulation of Funds.--The Secretary of 
Defense, with respect to each working-capital fund of a Defense Agency, 
and the Secretary of a military department, with respect to each 
working-capital fund of the military department, shall establish billing 
procedures to ensure that the balance in that working-capital fund does 
not exceed the amount necessary to provide for the working-capital 
requirements of that fund, as determined by the Secretary.
    ``(q) Annual Reports and Budget.--The Secretary of Defense, with 
respect to each working-capital fund of a Defense Agency, and the 
Secretary of each military department, with respect to each working-
capital fund of the military department, shall annually submit to 
Congress, at the same time that the President submits the budget under 
section 1105 of title 31, the following:
            ``(1) A detailed report that contains a statement of all 
        receipts and disbursements of the fund (including such a 
        statement for each subaccount of the fund) for the fiscal year 
        ending in the year preceding the year in which the budget is 
        submitted.
            ``(2) A detailed proposed budget for the operation of the 
        fund for the fiscal year for which the budget is submitted.
            ``(3) A comparison of the amounts actually expended for the 
        operation of the fund for the fiscal year referred to in 
        paragraph (1) with the amount proposed for the operation of the 
        fund for that fiscal year in the President's budget.
            ``(4) A report on the capital asset subaccount of the fund 
        that contains the following information:
                    ``(A) The opening balance of the subaccount as of 
                the beginning of the fiscal year in which the report is 
                submitted.
                    ``(B) The estimated amounts to be credited to the 
                subaccount in the fiscal year in which the report is 
                submitted.
                    ``(C) The estimated amounts of outlays to be paid 
                out of the subaccount in the fiscal year in which the 
                report is submitted.
                    ``(D) The estimated balance of the subaccount at the 
                end of the fiscal year in which the report is submitted.
                    ``(E) A statement of how much of the estimated 
                balance at the end of the fiscal year in which the 
                report is submitted will be needed to pay outlays in the 
                immediately following fiscal year that are in excess of 
                the amount to be credited to the subaccount in the 
                immediately following fiscal year.''.

[[Page 112 STAT. 2117]]

    (b) Repeal of Authority To Manage Through the Defense Business 
Operations Fund.--Section 2216a of title 10, United States Code, and the 
item relating to that section in the table of sections at the beginning 
of chapter 131 of such title, are repealed.

SEC. 1009. CLARIFICATION OF AUTHORITY TO RETAIN RECOVERED COSTS OF 
            DISPOSALS IN WORKING-CAPITAL FUNDS.

    Section 2210(a) of title 10, United States Code, is amended to read 
as follows:
    ``(a)(1) A working-capital fund established pursuant to section 2208 
of this title may retain so much of the proceeds of disposals of 
property referred to in paragraph (2) as is necessary to recover the 
expenses incurred by the fund in disposing of such property. Proceeds 
from the sale or disposal of such property in excess of amounts 
necessary to recover the expenses may be credited to current applicable 
appropriations of the Department of Defense.
    ``(2) <<NOTE: Applicability.>>  Paragraph (1) applies to disposals 
of supplies, material, equipment, and other personal property that were 
not financed by stock funds established under section 2208 of this 
title.''.

SEC. 1010. CREDITING OF AMOUNTS RECOVERED FROM THIRD PARTIES FOR LOSS OR 
            DAMAGE TO PERSONAL PROPERTY SHIPPED OR STORED AT GOVERNMENT 
            EXPENSE.

    (a) In General.--(1) Chapter 163 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2739. Amounts recovered from third parties for loss or damage to 
                        personal property shipped or stored at 
                        Government expense: crediting to appropriations

    ``(a) Crediting of Collections.--Any qualifying military department 
third-party collection shall be credited to the appropriate current 
appropriation. Amounts so credited shall be merged with the funds in 
that appropriation and shall be available for the same period and 
purposes as the funds with which merged.
    ``(b) Appropriate Current Appropriation.--For purposes of subsection 
(a), the appropriate current appropriation with respect to a qualifying 
military department third-party collection is the appropriation 
currently available, as of the date of the collection, for the payment 
of claims by that military department for loss or damage of personal 
property shipped or stored at Government expense.
    ``(c) Qualifying Military Department Third-Party Collections.--For 
purposes of subsection (a), a qualifying military 
department third-party collection is any amount that a military 
department collects under sections 3711, 3716, 3717, and 3721 of title 
31 from a third party for a loss or damage to personal property that 
occurred during shipment or storage of the property at Government 
expense and for which the Secretary of the military department paid the 
owner in settlement of a claim.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2739. Amounts recovered from third parties for loss or damage to 
           personal property shipped or stored at Government expense: 
           crediting to appropriations.''.

    (b) <<NOTE: Applicability. 10 USC 2739 note.>>  Effective Date.--
Section 2739 of title 10, United States Code, as added by subsection 
(a), applies with respect to amounts

[[Page 112 STAT. 2118]]

collected by a military department on or after the date of the enactment 
of this Act.

                 Subtitle B--Naval Vessels and Shipyards

SEC. 1011. <<NOTE: Records.>>  REVISION TO REQUIREMENT FOR CONTINUED 
            LISTING OF TWO IOWA-CLASS BATTLESHIPS ON THE NAVAL VESSEL 
            REGISTER.

    In carrying out section 1011 of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 421), the 
Secretary of the Navy shall list on the Naval Vessel Register, and 
maintain on that register, the following two Iowa-class battleships: the 
U.S.S. IOWA (BB-61) and the U.S.S. WISCONSIN (BB-64).

SEC. 1012. TRANSFER OF U.S.S. NEW JERSEY.

    The Secretary of the Navy shall strike the U.S.S. NEW JERSEY (BB-62) 
from the Naval Vessel Register and shall transfer that vessel to a non-
for-profit entity in accordance with section 7306 of title 10, United 
States Code. The Secretary shall require as a condition of the transfer 
of that vessel that the transferee locate the vessel in the State of New 
Jersey.

SEC. 1013. HOMEPORTING OF THE U.S.S. IOWA IN SAN FRANCISCO, CALIFORNIA.

    It is the sense of Congress that the U.S.S. IOWA (BB-61) should be 
homeported at the Port of San Francisco, California.

SEC. 1014. <<NOTE: Clifton B. Cates.>>  SENSE OF CONGRESS CONCERNING THE 
            NAMING OF AN LPD-17 VESSEL.

    It is the sense of Congress that, consistent with section 1018 of 
the National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 425), the Secretary of the Navy should name the next 
vessel of the LPD-17 class of amphibious vessels to be named after the 
date of the enactment of this Act as the U.S.S. Clifton B. Cates, in 
honor of former Commandant of the Marine Corps Clifton B. Cates (1893-
1970), a native of Tennessee whose distinguished career of service in 
the Marine Corps included combat service in World War I so heroic that 
he became the most decorated Marine Corps officer of that war, exemplary 
combat leadership in the Pacific theater during World War II from 
Guadalcanal to Tinian and Iwo Jima and beyond, and appointment in 1948 
as the 19th Commandant of the Marine Corps with the rank of lieutenant 
general, a position from which he led the efficient and alacritous 
response of the Marine Corps to the invasion of the Republic of South 
Korea by Communist North Korea.

SEC. 1015. REPORTS ON NAVAL SURFACE FIRE-SUPPORT CAPABILITIES.

    (a) <<NOTE: Deadline.>>  Navy Report.--(1) Not later than March 31, 
1999, the Secretary of the Navy shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report on battleship readiness for meeting 
requirements of the Armed Forces for naval surface fire support.

    (2) The report shall contain the following:

[[Page 112 STAT. 2119]]

            (A) The reasons for the Secretary's failure to comply with 
        the requirements of section 1011 of the National Defense 
        Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
        Stat. 421) until February 1998.
            (B) The requirements for specialized air-naval gunfire 
        liaison units.
            (C) The plans of the Navy for retaining and maintaining 16-
        inch ammunition for the main guns of battleships.
            (D) The plans of the Navy for retaining the hammerhead crane 
        essential for lifting battleship turrets.
            (E) An estimate of the cost of reactivating Iowa-class 
        battleships for listing on the Naval Vessel Register, restoring 
        the vessels to seaworthiness with operational capabilities 
        necessary to meet requirements for naval surface fire-support, 
        and maintaining the battleships in that condition for continued 
        listing on the register, together with an estimate of the time 
        necessary to reactivate and restore the vessels to that 
        condition.
            (F) An assessment of the short-term costs and the long-term 
        costs associated with alternative methods for executing the 
        naval surface fire-support mission of the Navy, including the 
        alternative of reactivating two battleships.

    (3) The Secretary shall act through the Director of Expeditionary 
Warfare Division (N85) of the Office of the Chief of Naval Operations in 
preparing the report.
    (b) GAO Report.--(1) The Comptroller General shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on the naval surface 
fire-support capabilities of the Navy.
    (2) The report shall contain the following:
            (A) An assessment of the extent of the compliance by the 
        Secretary of the Navy with the requirements of section 1011 of 
        the National Defense Authorization Act for Fiscal Year 1996 
        (Public Law 104-106; 110 Stat. 421).
            (B) The plans of the Navy for executing the naval surface 
        fire-support mission of the Navy.
            (C) An assessment of the short-term costs and the long-term 
        costs associated with the plans.
            (D) An analysis of the assessment required under subsection 
        (a)(2)(F).

SEC. 1016. LONG-TERM CHARTER OF THREE VESSELS IN SUPPORT OF SUBMARINE 
            RESCUE, ESCORT, AND TOWING.

    The Secretary of the Navy may enter into contracts in accordance 
with section 2401 of title 10, United States Code, for the charter 
through September 30, 2003, of the following vessels:
            (1) The CAROLYN CHOUEST (United States official number 
        D102057).
            (2) The KELLIE CHOUEST (United States official number 
        D1038519).
            (3) The DOLORES CHOUEST (United States official number 
        D600288).

SEC. 1017. TRANSFER OF OBSOLETE ARMY TUGBOAT.

    In carrying out section 1023 of the National Defense Authorization 
Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1876), the 
Secretary of the Army may substitute the obsolete, decommissioned 
tugboat Attleboro (LT-1977) for the tugboat Normandy (LT-

[[Page 112 STAT. 2120]]

1971) as one of the two obsolete tugboats authorized to be transferred 
by the Secretary under that section.

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

SEC. 1021. DEPARTMENT OF DEFENSE SUPPORT TO OTHER AGENCIES FOR COUNTER-
            DRUG ACTIVITIES.

    (a) Continuation of Authority.--Subsection (a) of section 1004 of 
the National Defense Authorization Act for Fiscal Year 1991 (Public Law 
101-510; 10 U.S.C. 374 note) is amended by striking out ``through 1999'' 
and inserting in lieu thereof ``through 2002''.
    (b) Bases and Facilities Support.--Subsection (b)(4) of such section 
is amended--
            (1) by striking out ``unspecified minor construction'' and 
        inserting in lieu thereof ``an unspecified minor military 
        construction project'';
            (2) by inserting ``of the Department of Defense or any 
        Federal, State, or local law enforcement agency'' after 
        ``counter-drug activities''; and
            (3) by inserting before the period at the end the following: 
        ``or counter-drug activities of a foreign law enforcement agency 
        outside the United States''.

    (c) Congressional Notification of Facilities Projects.--Such section 
is further amended by adding at the end the following new subsection:
    ``(h) Congressional Notification of Facilities Projects.--(1) When a 
decision is made to carry out a military construction project described 
in paragraph (2), the Secretary of Defense shall submit to the 
congressional defense committees written notice of the decision, 
including the justification for the project and the estimated cost of 
the project. The project may be commenced only after the end of the 21-
day period beginning on the date on which the written notice is received 
by Congress.
    ``(2) <<NOTE: Applicability.>>  Paragraph (1) applies to an 
unspecified minor military construction project that--
            ``(A) is intended for the modification or repair of a 
        Department of Defense facility for the purpose set forth in 
        subsection (b)(4); and
            ``(B) has an estimated cost of more than $500,000.''.

SEC. 1022. DEPARTMENT OF DEFENSE SUPPORT OF NATIONAL GUARD DRUG 
            INTERDICTION AND COUNTER-DRUG ACTIVITIES.

    (a) Procurement of Equipment.--Subsection (a)(3) of section 112 of 
title 32, United States Code, is amended--
            (1) by striking out ``and leasing of equipment'' and 
        inserting in lieu thereof ``and equipment, and the leasing of 
        equipment,''; and
            (2) by adding at the end the following new sentence: 
        ``However, the use of such funds for the procurement of 
        equipment may not exceed $5,000 per purchase order, unless 
        approval for procurement of equipment in excess of that amount 
        is granted in advance by the Secretary of Defense.''.

[[Page 112 STAT. 2121]]

    (b) Training and Readiness.--Subsection (b)(2) of such section is 
amended to read as follows:
    ``(2)(A) A member of the National Guard serving on full-time 
National Guard duty under orders authorized under paragraph (1) shall 
participate in the training required under section 502(a) of this title 
in addition to the duty performed for the purpose authorized under that 
paragraph. The pay, allowances, and other benefits of the member while 
participating in the training shall be the same as those to which the 
member is entitled while performing duty for the purpose of carrying out 
drug interdiction and counter-drug activities. The member is not 
entitled to additional pay, allowances, or other benefits for 
participation in training required under section 502(a)(1) of this 
title.
    ``(B) Appropriations available for the Department of Defense for 
drug interdiction and counter-drug activities may be used for paying 
costs associated with a member's participation in training described in 
subparagraph (A). The appropriation shall be reimbursed in full, out of 
appropriations available for paying those costs, for the amounts paid. 
Appropriations available for paying those costs shall be available for 
making the reimbursements.
    ``(C) To ensure that the use of units and personnel of the National 
Guard of a State pursuant to a State drug interdiction and counter-drug 
activities plan does not degrade the training and readiness of such 
units and personnel, the following requirements shall apply in 
determining the drug interdiction and counter-drug activities that units 
and personnel of the National Guard of a State may perform:
            ``(i) The performance of the activities may not adversely 
        affect the quality of that training or otherwise interfere with 
        the ability of a member or unit of the National Guard to perform 
        the military functions of the member or unit.
            ``(ii) National Guard personnel will not degrade their 
        military skills as a result of performing the activities.
            ``(iii) The performance of the activities will not result in 
        a significant increase in the cost of training.
            ``(iv) In the case of drug interdiction and counter-drug 
        activities performed by a unit organized to serve as a unit, the 
        activities will support valid unit training requirements.''.

    (c) Assistance to Youth and Charitable Organizations.--Subsection 
(b)(3) of such section is amended to read as follows:

    ``(3) A unit or member of the National Guard of a State may be used, 
pursuant to a State drug interdiction and counter-drug activities plan 
approved by the Secretary of Defense under this section, to provide 
services or other assistance (other than air transportation) to an 
organization eligible to receive services under section 508 of this 
title if--
            ``(A) the State drug interdiction and counter-drug 
        activities plan specifically recognizes the organization as 
        being eligible to receive the services or assistance;
            ``(B) in the case of services, the performance of the 
        services meets the requirements of paragraphs (1) and (2) of 
        subsection (a) of section 508 of this title; and
            ``(C) the services or assistance is authorized under 
        subsection (b) or (c) of such section or in the State drug 
        interdiction and counter-drug activities plan.''.

[[Page 112 STAT. 2122]]

    (d) Definition of Drug Interdiction and Counter-Drug Activities.--
Subsection (i)(1) of such section is amended by inserting after ``drug 
interdiction and counter-drug law enforcement activities'' the 
following: ``, including drug demand reduction activities,''.
    (e) Conforming Amendments.--Subsection (a) of such section is 
further amended--
            (1) by striking out ``for--'' and inserting in lieu thereof 
        ``for the following:'';
            (2) by striking out ``the'' at the beginning of paragraphs 
        (1), (2), and (3) and inserting in lieu thereof ``The'';
            (3) in paragraph (1), by striking out the semicolon at the 
        end and inserting in lieu thereof a period; and
            (4) in paragraph (2), by striking out ``; and'' and 
        inserting in lieu thereof a period.

SEC. 1023. DEPARTMENT OF DEFENSE COUNTER-DRUG ACTIVITIES IN TRANSIT 
            ZONE.

    (a) Sense of Congress Regarding Priority of Drug Interdiction and 
Counter-Drug Activities.--It is the sense of Congress that the Secretary 
of Defense should--
            (1) ensure that the international drug interdiction and 
        counter-drug activities of the Department of Defense are 
        accorded adequate resources within the budget allocation of the 
        Department to execute the drug interdiction and counter-drug 
        mission under the Global Military Force Policy of the 
        Department; and
            (2) make such changes to that policy as the Secretary 
        considers necessary.

    (b) Support for Counter-Drug Operation Caper Focus.--(1) During 
fiscal year 1999, the Secretary of Defense shall make available, to the 
maximum extent practicable, such surface vessels, maritime patrol 
aircraft, and personnel of the Navy as may be necessary to conduct the 
final phase of the counter-drug operation known as Caper Focus, which 
targets the maritime movement of cocaine on vessels in the eastern 
Pacific Ocean.
    (2) Of the amount authorized to be appropriated pursuant to section 
301(20) for drug interdiction and counter-drug activities, $10,500,000 
shall be available for the purpose of conducting the counter-drug 
operation known as Caper Focus.
    (c) Patrol Coastal Craft for Drug Interdiction by Southern 
Command.--Of the amount authorized to be appropriated pursuant to 
section 301(20) for drug interdiction and counter-drug activities, 
$14,500,000 shall be available for the purpose of equipping and 
operating six of the Cyclone-class coastal defense ships of the 
Department of Defense in the Caribbean Sea and eastern Pacific Ocean in 
support of the drug interdiction efforts of the United States Southern 
Command.
    (d) Resulting Availability of Funds for Counterproliferation and 
Counterterrorism Activities.--(1) In light of subsection (c), of the 
amount authorized to be appropriated pursuant to section 301(5) for the 
Special Operations Command, $4,500,000 shall be available for the 
purpose of increased training and related operations in support of the 
activities of the Special Operations Command regarding 
counterproliferation of weapons of mass destruction and 
counterterrorism.

[[Page 112 STAT. 2123]]

    (2) The amount made available under this subsection is in addition 
to other funds authorized to be appropriated under section 301(5) for 
the Special Operations Command for such purpose.

        Subtitle D--Miscellaneous Report Requirements and Repeals

SEC. 1031. REPEAL OF UNNECESSARY AND OBSOLETE REPORTING PROVISIONS.

    (a) Health and Medical Care Studies and Demonstrations.--Section 
1092(a) of title 10, United States Code, is amended by striking out 
paragraph (3).
    (b) Executed Requirement for Biannual Reports on Alternative 
Utilization of Military Facilities.--Section 2819 of the National 
Defense Authorization Act, Fiscal Year 1989 (10 U.S.C. 2391 note), 
relating to the Commission on Alternative Utilization of Military 
Facilities, is repealed.

SEC. 1032. REPORT REGARDING USE OF TAGGING SYSTEM TO IDENTIFY 
            HYDROCARBON FUELS USED BY DEPARTMENT OF DEFENSE.

    (a) <<NOTE: Deadline.>>  Report Required.--Not later than March 30, 
1999, the Secretary of Defense shall submit to Congress a report 
evaluating the following:
            (1) The feasibility of tagging hydrocarbon fuels used by the 
        Department of Defense for the purposes of analyzing and 
        identifying such fuels.
            (2) The deterrent effect of such tagging on the theft and 
        misuse of fuels purchased by the Department.
            (3) The extent to which such tagging would assist in 
        determining the source of surface and underground pollution in 
        locations having separate fuel storage facilities of the 
        Department and of civilian companies.

    (b) System Elements.--In preparing the report, the Secretary shall 
ensure that any tagging system for the Department of Defense considered 
by the Secretary satisfies the following requirements:
            (1) The tagging system would not harm the environment.
            (2) Each chemical that would be used in the tagging system 
        is--
                    (A) approved for use under the Toxic Substances 
                Control Act (15 U.S.C. 2601 et seq.); and
                    (B) substantially similar to the fuel to which 
                added, as determined in accordance with criteria 
                established by the Environmental Protection Agency for 
                the introduction of additives into hydrocarbon fuels.
            (3) The tagging system would permit a determination if a tag 
        is present and a determination if the concentration of a tag has 
        changed in order to facilitate identification of tagged fuels 
        and detection of dilution of tagged fuels.
            (4) The tagging system would not impair or degrade the 
        suitability of tagged fuels for their intended use.

    (c) Recommendations.--The report shall include any recommendations 
for legislation relating to the tagging of hydrocarbon fuels by the 
Department of Defense that the Secretary considers appropriate.

[[Page 112 STAT. 2124]]

                Subtitle E--Armed Forces Retirement Home

SEC. 1041. APPOINTMENT OF DIRECTOR AND DEPUTY DIRECTOR OF THE NAVAL 
            HOME.

    (a) Appointment and Qualifications of Director and Deputy 
Director.--Subsection (a) of section 1517 of the Armed Forces Retirement 
Home Act of 1991 (24 U.S.C. 417) is amended--
            (1) in paragraph (2)--
                    (A) by striking out ``Each Director'' and inserting 
                in lieu thereof ``The Director of the United States 
                Soldiers' and Airmen's Home''; and
                    (B) by striking out subparagraph (B) and inserting 
                in lieu thereof the following:
            ``(B) meet the requirements of paragraph (4).'';
            (2) by redesignating paragraph (3) as paragraph (5); and
            (3) by inserting after paragraph (2) the following new 
        paragraphs (3) and (4):

    ``(3) The Director, and any Deputy Director, of the Naval Home shall 
be appointed by the Secretary of Defense from among persons recommended 
by the Secretaries of the military departments who--
            ``(A) in the case of the position of Director, are 
        commissioned officers of the Armed Forces serving on active duty 
        in a pay grade above O-5;
            ``(B) in the case of the position of Deputy Director, are 
        commissioned officers of the Armed Forces serving on active duty 
        in a pay grade above O-4; and
            ``(C) meet the requirements of paragraph (4).

    ``(4) Each Director shall have appropriate leadership and management 
skills, an appreciation and understanding of the culture and norms 
associated with military service, and significant military 
background.''.
    (b) Term of Director and Deputy Director.--Subsection (c) of such 
section is amended--
            (1) by striking out ``(c) Term of Director.--'' and all that 
        follows through ``A Director'' in the second sentence and 
        inserting in lieu thereof ``(c) Terms of Directors.--(1) The 
        term of office of the Director of the United States Soldiers' 
        and Airmen's Home shall be five years. The Director''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The Director and the Deputy Director of the Naval Home shall 
serve at the pleasure of the Secretary of Defense.''.
    (c) Definitions.--Such section is further amended by adding at the 
end the following new subsection:
    ``(g) Definitions.--In this section:
            ``(1) The term `United States Soldiers' and Airmen's Home' 
        means the separate facility of the Retirement Home that is known 
        as the United States Soldiers' and Airmen's Home.
            ``(2) The term `Naval Home' means the separate facility of 
        the Retirement Home that is known as the Naval Home.''.

    (d) <<NOTE: 24 USC 417 note.>>  Effective Date.--The amendments made 
by this section shall take effect on October 1, 1998.

[[Page 112 STAT. 2125]]

SEC. 1042. REVISION OF INSPECTION REQUIREMENTS RELATING TO ARMED FORCES 
            RETIREMENT HOME.

    (a) Inspection by Inspectors General of the Military Departments.--
Section 1518 of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 
418) is amended to read as follows:

``SEC. 1518. INSPECTION OF RETIREMENT HOME.

    ``(a) <<NOTE: Records.>>  Triennial Inspection.--Every three years 
the Inspector General of a military department shall inspect the 
Retirement Home, including the records of the Retirement Home.

    ``(b) Alternating Duty Among Inspectors General.--The duty to 
inspect the Retirement Home shall alternate among the Inspector General 
of the Army, the Naval Inspector General, and the Inspector General of 
the Air Force on such schedule as the Secretary of Defense shall direct.
    ``(c) <<NOTE: Deadline.>>  Reports.--Not later than 45 days after 
completing an inspection under subsection (a), the Inspector General 
carrying out the inspection shall submit to the Retirement Home Board, 
the Secretary of Defense, and Congress a report describing the results 
of the inspection and containing such recommendations as the Inspector 
General considers appropriate.''.

    (b) <<NOTE: 24 USC 418 note.>>  First Inspection.--The first 
inspection under section 1518 of the Armed Forces Retirement Home Act of 
1991, as amended by subsection (a), shall be carried out during fiscal 
year 1999.

SEC. 1043. CLARIFICATION OF LAND CONVEYANCE AUTHORITY, ARMED FORCES 
            RETIREMENT HOME.

    Section 1053 of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2650) is amended--
            (1) in subsection (a), by striking out ``may convey, by sale 
        or otherwise,'' and inserting in lieu thereof ``shall convey by 
        sale''; and
            (2) by striking out subsection (b) and inserting in lieu 
        thereof the following new subsection (b):

    ``(b) Manner, Terms and Conditions of Disposal.--(1) The sale under 
subsection (a) shall be made to a neighboring nonprofit organization 
from whose extensive educational and charitable services the public 
benefits and has benefited from for more than 100 years, or an entity or 
entities related to such organization, and whose substantial investment 
in the neighborhood is consistent with the continued existence and 
purpose of the Armed Forces Retirement Home.
    ``(2) As consideration for the real property conveyance under 
subsection (a), the purchaser selected under paragraph (1) shall pay to 
the United States an amount equal to the fair market value of the real 
property at its highest and best economic use, as determined by the 
Armed Forces Retirement Home Board, based on an independent 
appraisal.''.

            Subtitle F--Matters Relating to Defense Property

SEC. 1051. PLAN FOR IMPROVED DEMILITARIZATION OF EXCESS AND SURPLUS 
            DEFENSE PROPERTY.

    (a) <<NOTE: Deadline.>>  Plan Required.--Not later than March 1, 
1999, the Secretary of Defense shall submit to Congress a plan to 
address the

[[Page 112 STAT. 2126]]

problems with the sale or other disposal of excess and surplus defense 
materials identified in the report submitted to Congress by the 
Secretary of Defense on June 5, 1998, pursuant to section 1067 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 1896). The plan shall provide for the following:
            (1) Implementation for all appropriate Department personnel 
        of the mandatory demilitarization training specified in 
        Department of Defense revised manual 4160.21-M-1.
            (2) Improvement of oversight of the performance of 
        demilitarization functions and the maintenance of 
        demilitarization codes throughout the life cycle of defense 
        materials.
            (3) Assignment of accurate demilitarization codes and the 
        issuance of accurate demilitarization execution instructions 
        during the system planning phases of the acquisition process.
            (4) Implementation of such recommendations of the Defense 
        Science Board task force appointed by the Under Secretary of 
        Defense for Acquisition and Technology to consider the control 
        of military excess and surplus property as the Secretary of 
        Defense considers to be appropriate.

    (b) Demilitarization Training.--In connection with the 
demilitarization training that is required to be addressed in the plan, 
the Secretary shall indicate the time frame for full implementation of 
such training and the number of Department of Defense personnel to be 
trained.
    (c) Centralized Demilitarization Functions.--In connection with the 
matters specified in paragraphs (2) and (3) of subsection (a) that are 
required to be addressed in the plan, the Secretary shall consider 
options for the centralization of demilitarization functions and 
responsibilities in a single office or agency. The Secretary shall 
specify in the plan the responsible office or agency, and indicate the 
time frame for centralizing demilitarization functions and 
responsibilities, unless the Secretary determines that it is not 
practical or appropriate to centralize demilitarization functions and 
responsibilities, in which case the Secretary shall provide the reasons 
for the determination.
    (d) Draft Legislation.--The Secretary shall include in the plan any 
draft legislation that the Secretary considers appropriate to clarify 
the authority of the Government to recover critical and sensitive 
defense property that has been inadequately demilitarized.
    (e) Related Reports.--(1) The Secretary shall submit with the plan--
            (A) a copy of recommendations of the Defense Science Board 
        task force referred to in subsection (a)(4); and
            (B) a copy of the report prepared by an independent 
        contractor in accordance with the Secretary's report referred to 
        in subsection (a), at the request of the Defense Logistics 
        Agency, to address options for centralizing demilitarization 
        responsibilities, including a central demilitarization office 
        and a central system for coding and maintaining demilitarization 
        codes through the life cycle of the property involved.

    (2) With respect to the report of the independent contractor 
described in paragraph (1)(B), the Secretary shall provide an evaluation 
of the recommendations contained in the report and any plans by the 
Secretary for implementing the recommendations.

[[Page 112 STAT. 2127]]

SEC. 1052. TRANSFER OF F-4 PHANTOM II AIRCRAFT TO FOUNDATION.

    (a) Authority.--The Secretary of the Air Force may convey, without 
consideration, to the Collings Foundation, Stow, Massachusetts (in this 
section referred to as the ``foundation''), all right, title, and 
interest of the United States in and to one surplus F-4 Phantom II 
aircraft. The conveyance shall be made by means of a conditional deed of 
gift.
    (b) Condition of Aircraft.--The Secretary may not convey ownership 
of the aircraft under subsection (a) until the Secretary determines that 
the foundation has altered the aircraft in such manner as the Secretary 
determines necessary to ensure that the aircraft does not have any 
capability for use as a platform for launching or releasing munitions or 
any other combat capability that it was designed to have. The Secretary 
is not required to repair or alter the condition of the aircraft before 
conveying ownership of the aircraft.
    (c) Reverter Upon Breach of Conditions.--The Secretary shall include 
in the instrument of conveyance of the aircraft--
            (1) a condition that the foundation not convey any ownership 
        interest in, or transfer possession of, the aircraft to any 
        other party without the prior approval of the Secretary;
            (2) a condition that the foundation operate and maintain the 
        aircraft in compliance with all applicable limitations and 
        maintenance requirements imposed by the Administrator of the 
        Federal Aviation Administration; and
            (3) a condition that if the Secretary determines at any time 
        that the foundation has conveyed an ownership interest in, or 
        transferred possession of, the aircraft to any other party 
        without the prior approval of the Secretary, or has failed to 
        comply with the condition set forth in paragraph (2), all right, 
        title, and interest in and to the aircraft, including any repair 
        or alteration of the aircraft, shall revert to the United 
        States, and the United States shall have the right of immediate 
        possession of the aircraft.

    (d) Conveyance at No Cost to the United States.--The conveyance of 
an aircraft authorized by this section shall be made at no cost to the 
United States. Any costs associated with such conveyance, costs of 
determining compliance with subsection (b), and costs of operation and 
maintenance of the aircraft conveyed shall be borne by the foundation.
    (e) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
this section as the Secretary considers appropriate to protect the 
interests of the United States.
    (f ) Clarification of Liability.--Notwithstanding any other 
provision of law, upon the conveyance of ownership of the F-4 Phantom II 
aircraft to the foundation under subsection (a), the United States shall 
not be liable for any death, injury, loss, or damage that results from 
any use of that aircraft by any person other than the United States.

[[Page 112 STAT. 2128]]

             Subtitle G--Other Department of Defense Matters

SEC. 1061. <<NOTE: 5 USC 5520a note.>>  PILOT PROGRAM ON ALTERNATIVE 
            NOTICE OF RECEIPT OF LEGAL PROCESS FOR GARNISHMENT OF 
            FEDERAL PAY FOR CHILD SUPPORT AND ALIMONY.

    (a) Program Required.--The Secretary of Defense shall conduct a 
pilot program on alternative notice procedures for withholding or 
garnishment of pay for the payment of child support and alimony under 
section 459 of the Social Security Act (42 U.S.C. 659).
    (b) Purpose.--The purpose of the pilot program is to test the 
efficacy of providing notice in accordance with subsection (c) to the 
person whose pay is to be withheld or garnished.
    (c) Authorization of Alternative To Providing Copy of Notice or 
Service Received by the Secretary.--(1) Under the pilot program, 
whenever the Secretary of Defense (acting through the DOD section 459 
agent) provides a section 459 notice to an individual, the Secretary may 
include as part of that notice the information specified in subsection 
(e) in lieu of sending with that notice a copy (otherwise required 
pursuant to the parenthetical phrase in section 459(c)(2)(A) of the 
Social Security Act) of the notice or service received by the DOD 
section 459 agent with respect to that individual's child support or 
alimony payment obligations.
    (2) Under the pilot program, whenever the Secretary of Defense 
(acting through the DOD section 5520a agent) provides a section 5520a 
notice to an individual, the Secretary may include as part of that 
notice the information specified in subsection (e) in lieu of sending 
with that notice a copy (otherwise required pursuant to the second 
parenthetical phrase in section 5520a(c) of title 5, United States Code) 
of the legal process received by the DOD section 5520a agent with 
respect to that individual.
    (d) Definitions.--For purposes of this section:
            (1) DOD section 459 agent.--The term ``DOD section 459 
        agent'' means the agent or agents designated by the Secretary of 
        Defense under subsection (c)(1)(A) of section 459 of the Social 
        Security Act (42 U.S.C. 659) to receive orders and accept 
        service of process in matters related to child support or 
        alimony.
            (2) Section 459 notice.--The term ``section 459 notice'' 
        means, with respect to the Department of Defense, the notice 
        required by subsection (c)(2)(A) of section 459 of the Social 
        Security Act (42 U.S.C. 659) to be sent to an individual in 
        writing upon the receipt by the DOD section 459 agent of notice 
        or service with respect to the individual's child support or 
        alimony payment obligations.
            (3) DOD section 5520a agent.--The term ``DOD section 5520a 
        agent'' means a person who is designated by law or regulation to 
        accept service of process to which the Department of Defense is 
        subject under section 5520a of title 5, United States Code 
        (including the regulations promulgated under subsection (k) of 
        that section).
            (4) Section 5520a notice.--The term ``section 5520a notice'' 
        means, with respect to the Department of Defense, the notice 
        required by subsection (c) of section 5520a of title 5, United 
        States Code, to be sent in writing to an employee (or, pursuant

[[Page 112 STAT. 2129]]

        to the regulations promulgated under subsection (k) of that 
        section, to a member of the Armed Forces) upon the receipt by 
        the DOD section 5520a agent of legal process covered by that 
        section.

    (e) Alternative Requirements.--The information referred to in 
subsection (c) that is to be included as part of a section 459 notice or 
section 5520a notice sent to an individual (in lieu of sending with that 
notice a copy of the notice or service received by the DOD section 459 
agent or the DOD section 5520a agent) is the following:
            (1) A description of the pertinent court order, notice to 
        withhold, or other order, process, or interrogatory received by 
        the DOD section 459 agent or the DOD section 5520a agent.
            (2) The identity of the court or judicial forum involved and 
        (in the case of a notice or process concerning the ordering of a 
        support or alimony obligation) the case number, the amount of 
        the obligation, and the name of the beneficiary.
            (3) Information on how the individual may obtain from the 
        Department of Defense a copy of the notice, service, or legal 
        process, including an address and telephone number that the 
        individual may be contacted for the purpose of obtaining such a 
        copy.

    (f ) Period of Pilot Program.--The Secretary shall commence the 
pilot program not later than 90 days after the date of the enactment of 
this Act. The pilot program shall terminate on September 30, 2001.
    (g) <<NOTE: Deadline.>>  Report.--Not later than January 1, 2001, 
the Secretary shall submit to Congress a report describing the 
experience of the Department of Defense under the authority provided by 
this section. The report shall include the following:
            (1) The number of section 459 notices provided by the DOD 
        section 459 agent during the period the authority provided by 
        this section was in effect.
            (2) The number of individuals who requested the DOD section 
        459 agent to provide to them a copy of the actual notice or 
        service.
            (3) Any complaint the Secretary received by reason of not 
        having provided the actual notice or service in the section 459 
        notice.
            (4) The number of section 5520a notices provided by the DOD 
        section 5520a agent during the period the authority provided by 
        this section was in effect.
            (5) The number of individuals who requested the DOD section 
        5520a agent to provide to them a copy of the actual legal 
        process.
            (6) Any complaint the Secretary received by reason of not 
        having provided the actual legal process in the section 5520a 
        notice.

SEC. 1062. TRAINING OF SPECIAL OPERATIONS FORCES WITH FRIENDLY FOREIGN 
            FORCES.

    (a) Requirement for Prior Approval of Secretary of Defense.--
Subsection (c) of section 2011 of title 10, United States Code, is 
amended by inserting after the first sentence the following new 
sentence: ``The regulations shall require that training activities may 
be carried out under this section only with the prior approval of the 
Secretary of Defense.''.

[[Page 112 STAT. 2130]]

    (b) <<NOTE: 10 USC 2011.>>  Elements of Annual Report.--Subsection 
(e) of such section is amended by adding at the end the following new 
paragraphs:
            ``(5) A summary of the expenditures under this section 
        resulting from the training for which expenses were paid under 
        this section.
            ``(6) A discussion of the unique military training benefit 
        to United States special operations forces derived from the 
        training activities for which expenses were paid under this 
        section.''.

SEC. 1063. RESEARCH GRANTS COMPETITIVELY AWARDED TO SERVICE ACADEMIES.

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

``Sec. 4358. Grants for faculty research for scientific, literary, and 
                        educational purposes: acceptance; authorized 
                        grantees

    ``(a) Acceptance of Research Grants.--The Secretary of the Army may 
authorize the Superintendent of the Academy to accept qualifying 
research grants under this section. Any such grant may only be accepted 
if the work under the grant is to be carried out by a professor or 
instructor of the Academy for a scientific, literary, or educational 
purpose.
    ``(b) Qualifying Grants.--A qualifying research grant under this 
section is a grant that is awarded on a competitive basis by an entity 
referred to in subsection (c) for a research project with a scientific, 
literary, or educational purpose.
    ``(c) Entities From Which Grants May be Accepted.--A grant may be 
accepted under this section only from a corporation, fund, foundation, 
educational institution, or similar entity that is organized and 
operated primarily for scientific, literary, or educational purposes.
    ``(d) Administration of Grant Funds.--The Secretary shall establish 
an account for administering funds received as research grants under 
this section. The Superintendent shall use the funds in the account in 
accordance with applicable regulations and the terms and conditions of 
the grants received.
    ``(e) Related Expenses.--Subject to such limitations as may be 
provided in appropriations Acts, appropriations available for the 
Academy may be used to pay expenses incurred by the Academy in applying 
for, and otherwise pursuing, award of a qualifying research grant.
    ``(f ) Regulations.--The Secretary of the Army shall prescribe 
regulations for the administration of this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``4358. Grants for faculty research for scientific, literary, and 
           educational purposes: acceptance; authorized grantees.''.

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

[[Page 112 STAT. 2131]]

``Sec. 6977. Grants for faculty research for scientific, literary, and 
                        educational purposes: acceptance; authorized 
                        grantees

    ``(a) Acceptance of Research Grants.--The Secretary of the Navy may 
authorize the Superintendent of the Academy to accept qualifying 
research grants under this section. Any such grant may only be accepted 
if the work under the grant is to be carried out by a professor or 
instructor of the Academy for a scientific, literary, or educational 
purpose.
    ``(b) Qualifying Grants.--A qualifying research grant under this 
section is a grant that is awarded on a competitive basis by an entity 
referred to in subsection (c) for a research project with a scientific, 
literary, or educational purpose.
    ``(c) Entities From Which Grants May be Accepted.--A grant may be 
accepted under this section only from a corporation, fund, foundation, 
educational institution, or similar entity that is organized and 
operated primarily for scientific, literary, or educational purposes.
    ``(d) Administration of Grant Funds.--The Secretary shall establish 
an account for administering funds received as research grants under 
this section. The Superintendent shall use the funds in the account in 
accordance with applicable regulations and the terms and conditions of 
the grants received.
    ``(e) Related Expenses.--Subject to such limitations as may be 
provided in appropriations Acts, appropriations available for the 
Academy may be used to pay expenses incurred by the Academy in applying 
for, and otherwise pursuing, award of a qualifying research grant.
    ``(f ) Regulations.--The Secretary of the Navy shall prescribe 
regulations for the administration of this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``6977. Grants for faculty research for scientific, literary, and 
           educational purposes: acceptance; authorized grantees.''.

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

``Sec. 9357. Grants for faculty research for scientific, literary, and 
                        educational purposes: acceptance; authorized 
                        grantees

    ``(a) Acceptance of Research Grants.--The Secretary of the Air Force 
may authorize the Superintendent of the Academy to accept qualifying 
research grants under this section. Any such grant may only be accepted 
if the work under the grant is to be carried out by a professor or 
instructor of the Academy for a scientific, literary, or educational 
purpose.
    ``(b) Qualifying Grants.--A qualifying research grant under this 
section is a grant that is awarded on a competitive basis by an entity 
referred to in subsection (c) for a research project with a scientific, 
literary, or educational purpose.
    ``(c) Entities From Which Grants May be Accepted.--A grant may be 
accepted under this section only from a corporation, fund, foundation, 
educational institution, or similar entity that is organized and 
operated primarily for scientific, literary, or educational purposes.

[[Page 112 STAT. 2132]]

    ``(d) Administration of Grant Funds.--The Secretary shall establish 
an account for administering funds received as research grants under 
this section. The Superintendent shall use the funds in the account in 
accordance with applicable regulations and the terms and conditions of 
the grants received.
    ``(e) Related Expenses.--Subject to such limitations as may be 
provided in appropriations Acts, appropriations available for the 
Academy may be used to pay expenses incurred by the Academy in applying 
for, and otherwise pursuing, award of a qualifying research grant.
    ``(f ) Regulations.--The Secretary of the Air Force shall prescribe 
regulations for the administration of this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``9357. Grants for faculty research for scientific, literary, and 
           educational purposes: acceptance; authorized grantees.''.

SEC. 1064. DEPARTMENT OF DEFENSE USE OF FREQUENCY SPECTRUM.

    (a) Finding.--Congress finds that the report submitted to Congress 
by the Secretary of Defense on April 2, 1998, regarding the reallocation 
of the frequency spectrum used or dedicated to the Department of Defense 
and the intelligence community does not include a discussion of the 
costs to the Department of Defense that are associated with past and 
potential future reallocations of the frequency spectrum, although such 
a discussion was to be included in the report as directed in connection 
with the enactment of the National Defense Authorization Act for Fiscal 
Year 1998.
    (b) <<NOTE: Deadline.>>  Additional Report.--The Secretary of 
Defense shall, not later than October 31, 1998, submit to the Committee 
on Armed Services of the Senate and the Committee on National Security 
of the House of Representatives a report that discusses the costs 
referred to in subsection (a).

    (c) Relocation of Federal Frequencies.--Section 113(g)(1) of the 
National Telecommunications and Information Administration Organization 
Act (47 U.S.C. 923(g)(1)) is amended--
            (1) by striking out ``(1) In general.--In order'' and 
        inserting in lieu thereof the following:
            ``(1) In general.--
                    ``(A) Authority of federal entities to accept 
                compensation.--In order'';
            (2) in subparagraph (A), as so designated, by striking out 
        the second, third, and fourth sentences and inserting in lieu 
        thereof the following: <<NOTE: Notification.>>  ``Any such 
        Federal entity which proposes to so relocate shall notify the 
        NTIA, which in turn shall notify the Commission, before the 
        auction concerned of the marginal costs anticipated to be 
        associated with such relocation or with modifications necessary 
        to accommodate prospective licensees. The Commission in turn 
        shall notify potential bidders of the estimated relocation or 
        modification costs based on the geographic area covered by the 
        proposed licenses before the auction.''; and
            (3) by adding at the end the following:
                    ``(B) Requirement to compensate federal entities.--
                Any person on whose behalf a Federal entity incurs costs 
                under subparagraph (A) shall compensate the Federal 
                entity in advance for such costs. Such compensation may 
                take the form of a cash payment or in-kind compensation.

[[Page 112 STAT. 2133]]

                    ``(C) Disposition of payments.--
                          ``(i) Payment by electronic funds transfer.--A 
                      person making a cash payment under this paragraph 
                      shall make the cash payment by depositing the 
                      amount of the payment by electronic funds transfer 
                      in the account of the Federal entity concerned in 
                      the Treasury of the United States or in another 
                      account as authorized by law.
                          ``(ii) Availability.--Subject to the 
                      provisions of authorization Acts and 
                      appropriations Acts, amounts deposited under this 
                      subparagraph shall be available to the Federal 
                      entity concerned to pay directly the costs of 
                      relocation under this paragraph, to repay or make 
                      advances to appropriations or funds which do or 
                      will initially bear all or part of such costs, or 
                      to refund excess sums when necessary.
                    ``(D) Application to certain other relocations.--The 
                provisions of this paragraph also apply to any Federal 
                entity that operates a Federal Government station 
                assigned to used electromagnetic spectrum identified for 
                reallocation under subsection (a) if before August 5, 
                1997, the Commission has not identified that spectrum 
                for service or assigned licenses or otherwise authorized 
                service for that spectrum.
                    ``(E) Implementation procedures.--The NTIA and the 
                Commission shall develop procedures for the 
                implementation of this paragraph, which procedures shall 
                include a process for resolving any differences that 
                arise between the Federal Government and commercial 
                licensees regarding estimates of relocation or 
                modification costs under this paragraph.
                    ``(F) Inapplicability to certain relocations.--With 
                the exception of the band of frequencies located at 
                1710-1755 megahertz, the provisions of this paragraph 
                shall not apply to Federal spectrum identified for 
                reallocation in the first reallocation report submitted 
                to the President and Congress under subsection (a).''.

    (d) <<NOTE: 47 USC 923 note.>>  Reports on Costs of Relocations.--
The head of each department or agency of the Federal Government shall 
include in the annual budget submission of such department or agency to 
the Director of the Office of Management and Budget a report assessing 
the costs to be incurred by such department or agency as a result of any 
frequency relocations of such department or agency that are anticipated 
under section 113 of the National Telecommunications Information 
Administration Organization Act (47 U.S.C. 923) as of the date of such 
report.

SEC. 1065. DEPARTMENT OF DEFENSE AVIATION ACCIDENT INVESTIGATIONS.

    (a) <<NOTE: Deadline.>>  Report Required.--Not later than March 31, 
1999, the Secretary of Defense shall submit to Congress a report on the 
roles of the Office of the Secretary of Defense and of the Joint Staff 
in the investigation of Department of Defense aviation accidents.

    (b) Content of Report.--The report shall include the 
following:

[[Page 112 STAT. 2134]]

            (1) An assessment of whether the Office of the Secretary of 
        Defense and the Joint Staff should have more direct involvement 
        in the investigation of military aviation accidents.
            (2) The advisability of the Office of the Secretary of 
        Defense, the Joint Staff, or another Department of Defense 
        entity independent of the military departments supervising the 
        conduct of aviation accident investigations.
            (3) An assessment of the minimum training and experience 
        required for aviation accident investigation board presidents 
        and board members.
            (4) An assessment whether or not the procedures for sharing 
        the results of military aviation accident investigations among 
        the military departments should be improved.
            (5) An assessment of the advisability of centralized 
        training and instruction for military aircraft accident 
        investigators.

    (c) <<NOTE: 10 USC 2254 note.>>  Uniform Regulations for Provision 
of Accident Investigation Update Information.--The Secretary of Defense 
shall prescribe regulations, which shall be applied uniformly across the 
Department of Defense, establishing procedures by which the military 
departments shall provide to the family members of any person involved 
in a military aviation accident periodic update reports on the conduct 
and progress of investigations into the accident.

SEC. 1066. INVESTIGATION OF ACTIONS RELATING TO 174TH FIGHTER WING OF 
            NEW YORK AIR NATIONAL GUARD.

    (a) Investigation.--The Inspector General of the Department of 
Defense shall conduct a new investigation into the circumstances that 
led to the December 1, 1995, grounding of the 174th Fighter Wing of the 
New York Air National Guard. The investigation shall review those 
circumstances, examine the administrative and disciplinary actions taken 
against members of that wing, and determine whether those administrative 
and disciplinary measures were appropriate.
    (b) <<NOTE: Deadline.>>  Report.--Not later than 180 days after the 
date of the enactment of this Act, the Inspector General shall submit to 
the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a report describing 
the results of the investigation under subsection (a).

SEC. 1067. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE KOREAN WAR.

    (a) Limitation on Expenditures.--Subsection (f ) of section 1083 of 
the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1918; 10 U.S.C. 113 note) is amended to read as 
follows:
    ``(f ) Limitation on Expenditures.--The total amount expended by the 
Department of Defense to carry out the commemorative program for fiscal 
year 1999 may not exceed $1,820,000.''.
    (b) <<NOTE: 10 USC 113 note.>>  Redesignation of Commemoration 
Account.--The account in the Treasury known as the ``Department of 
Defense Korean Conflict Commemoration Account'' is redesignated as the 
``Department of Defense Korean War Commemoration Account''.

    (c) <<NOTE: 10 USC 113 note.>>  Other References to Korean War.--
Such section is further amended--
            (1) in the section heading, by striking out ``korean 
        conflict'' and inserting in lieu thereof ``korean war'';
            (2) by striking out ``Korean conflict'' each place it 
        appears and inserting in lieu thereof ``Korean War'';

[[Page 112 STAT. 2135]]

            (3) in subsection (c), by striking out ``names `The 
        Department of Defense Korean Conflict Commemoration','' and 
        inserting in lieu thereof ``name the `Department of Defense 
        Korean War Commemoration',''; and
            (4) in subsection (d)(1), by striking out ``Korean 
        Conflict'' and inserting in lieu thereof ``Korean War''.

    (d) <<NOTE: 10 USC 113 note.>>  Cross References.--Any reference to 
the Department of Defense Korean Conflict Commemoration or the 
Department of Defense Korean Conflict Commemoration Account in any law, 
regulation, document, record, or other paper of the United States shall 
be considered to be a reference to the Department of Defense Korean War 
Commemoration or the Department of Defense Korean War Commemoration 
Account, respectively.

SEC. 1068. <<NOTE: 16 USC 5409.>>  DESIGNATION OF AMERICA'S NATIONAL 
            MARITIME MUSEUM.

    (a) In General.--America's National Maritime Museum is comprised of 
those museums designated by law to be museums of America's National 
Maritime Museum on the basis that they--
            (1) house a collection of maritime artifacts clearly 
        representing the Nation's maritime heritage; and
            (2) provide outreach programs to educate the public about 
        the Nation's maritime heritage.

    (b) Initial Designation of Museums.--The following museums (meeting 
the criteria specified in subsection (a)) are hereby designated as 
museums of America's National Maritime Museum:
            (1) <<NOTE: Virginia.>>  The Mariners' Museum, located at 
        100 Museum Drive, Newport News, Virginia.
            (2) <<NOTE: New York.>>  The South Street Seaport Museum, 
        located at 207 Front Street, New York, New York.

    (c) Future Designation of Other Museums Not Precluded.--The 
designation of the museums referred to in subsection (b) as museums of 
America's National Maritime Museum does not preclude the designation by 
law after the date of the enactment of this Act of any other museum that 
meets the criteria specified in subsection (a) as a museum of America's 
National Maritime Museum.
    (d) Reference to Museums.--Any reference in any law, map, 
regulation, document, paper, or other record of the United States to a 
museum designated by law to be a museum of America's National Maritime 
Museum shall be deemed to be a reference to that museum as a museum of 
America's National Maritime Museum.

SEC. 1069. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
            (1) <<NOTE: 10 USC 484.>>  The item relating to section 484 
        in the table of sections at the beginning of chapter 23 is 
        amended to read as follows:

``484. Annual report on aircraft inventory.''.

            (2) Section 517(a) is amended by striking out ``Except as 
        provided in section 307 of title 37, the'' and inserting in lieu 
        thereof ``The''.
            (3) The item relating to section 2302c in the table of 
        sections at the beginning of chapter 137 is amended to read as 
        follows:

``2302c. Implementation of electronic commerce capability.''.


[[Page 112 STAT. 2136]]


            (4) The table of subchapters at the beginning of chapter 148 
        is amended--
                    (A) by striking out ``2491'' in the item relating to 
                subchapter I and inserting in lieu thereof ``2500''; and
                    (B) by striking out the item relating to subchapter 
                IV and inserting in lieu thereof the following:

``IV. Manufacturing Technology.................................. 2521''.

            (5) The subchapter heading for subchapter IV of chapter 148 
        is amended to read as follows:

               ``SUBCHAPTER IV--MANUFACTURING TECHNOLOGY''

            (6) Section 7045(c) is amended by striking out ``the'' after 
        ``are subject to''.
            (7) Section 7572(b) is repealed.
            (8) Section 12683(b)(2) is amended by striking out ``; or'' 
        at the end and inserting in lieu thereof a period.

    (b) <<NOTE: Effective date.>>  Public Law 105-85.--Effective as of 
November 18, 1997, and as if included therein as enacted, the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85) is 
amended as follows:
            (1) Section 389(g) (111 Stat. 1715) <<NOTE: 10 USC 2461 
        note.>>  is amended by striking out ``Secretary of Defense'' and 
        inserting in lieu thereof ``Comptroller General''.
            (2) Section 1006(a) (111 Stat. 1869) <<NOTE: 10 USC 2221.>>  
        is amended by striking out ``or'' in the quoted matter and 
        inserting in lieu thereof ``and''.
            (3) Section 3133(b)(3) (111 Stat. 2036) is amended by 
        striking out ``III'' and inserting in lieu thereof ``XIV''.

    (c)  Defense Against Weapons of Mass Destruction Act of 1996.--The 
Defense Against Weapons of Mass Destruction Act of 1996 (title XIV of 
Public Law 104-201) is amended as follows:
            (1) Section 1423(b)(4) (50 U.S.C. 2332(b)(4); 110 Stat. 
        2726) is amended by striking out ``(22 U.S.C. 2156a(c))'' and 
        inserting in lieu thereof ``(42 U.S.C. 2139a(c))''.
            (2) Section 1441(b)(2) (50 U.S.C. 2351(b)(2); 110 Stat. 
        2727) is amended by striking out ``established under section 
        1342'' and inserting in lieu thereof ``of the National Security 
        Council''.
            (3) Section 1444 (50 U.S.C. 2354; 110 Stat. 2730) is amended 
        by striking out ``1341'' and ``1342'' and inserting in lieu 
        thereof ``1441'' and ``1442'', respectively.
            (4) Section 1453(1) (50 U.S.C. 2363(1); 110 Stat. 2730) is 
        amended by striking out ``the National Defense Authorization Act 
        for Fiscal Years 1993 and 1994'' and inserting in lieu thereof 
        ``title XIV of the National Defense Authorization Act for Fiscal 
        Year 1993 (Public Law 102-484; 22 U.S.C. 5901 et seq.)''.

    (d) Other Acts.--
            (1) Section 18(c)(1) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 416(c)(1)) is amended by striking out the 
        period at the end of subparagraph (A) and inserting in lieu 
        thereof a semicolon.
            (2) Section 3(c)(2) of Public Law 101-533 (22 U.S.C. 
        3142(c)(2)) is amended by striking out ``included in the most 
        recent plan submitted to the Congress under section 2506 of 
        title 10'' and inserting in lieu thereof ``identified in the 
        most recent assessment prepared under section 2505 of title 
        10''.

[[Page 112 STAT. 2137]]

    (e) <<NOTE: 10 USC 101 note.>>  Coordination With Other 
Amendments.--For purposes of applying amendments made by provisions of 
this Act other than provisions of this section, this section shall be 
treated as having been enacted immediately before the other provisions 
of this Act.

                        Subtitle H--Other Matters

SEC. 1071. ACT CONSTITUTING PRESIDENTIAL APPROVAL OF VESSEL WAR RISK 
            INSURANCE REQUESTED BY THE SECRETARY OF DEFENSE.

    (a) In General.--Section 1205(b) of the Merchant Marine Act, 1936 
(46 U.S.C. App. 1285(b)), is amended by adding at the end the following 
new sentence: ``The signature of the President (or of an official 
designated by the President) on the agreement shall be treated as an 
expression of the approval required under section 1202(a) to provide the 
insurance.''.
    (b) <<NOTE: Applicability. 46 USC app. 1285 note.>>  Effective 
Date.--The amendment made by subsection (a) shall apply only to a 
signature of the President (or of an official designated by the 
President) on or after the date of the enactment of this Act.

SEC. 1072. EXTENSION AND REAUTHORIZATION OF DEFENSE PRODUCTION ACT OF 
            1950.

    (a) Extension of Termination Date.--Section 717(a) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2166(a)) is amended by striking 
``September 30, 1998'' and inserting ``September 30, 1999''.
    (b) Extension of Authorization.--Section 711(b) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2161(b)) is amended by striking 
``and 1998'' and inserting ``1998, and 1999''.

SEC. 1073. REQUIREMENT THAT BURIAL FLAGS FURNISHED BY THE SECRETARY OF 
            VETERANS AFFAIRS BE WHOLLY PRODUCED IN THE UNITED STATES.

    (a) Requirement.--Section 2301 of title 38, United States Code, as 
amended by section 517, is further amended by adding at the end the 
following new subsection:
    ``(g)(1) The Secretary may not procure any flag for the purposes of 
this section that is not wholly produced in the United States.
    ``(2)(A) The Secretary may waive the requirement of paragraph (1) if 
the Secretary determines--
            ``(i) that the requirement cannot be reasonably met; or
            ``(ii) that compliance with the requirement would not be in 
        the national interest of the United States.

    ``(B) <<NOTE: Notice.>>  The Secretary shall submit to Congress in 
writing notice of a determination under subparagraph (A) not later than 
30 days after the date on which such determination is made.

    ``(3) For the purpose of paragraph (1), a flag shall be considered 
to be wholly produced in the United States only if--
            ``(A) the materials and components of the flag are entirely 
        grown, manufactured, or created in the United States;
            ``(B) the processing (including spinning, weaving, dyeing, 
        and finishing) of such materials and components is entirely 
        performed in the United States; and
            ``(C) the manufacture and assembling of such materials and 
        components into the flag is entirely performed in the United 
        States.''.

[[Page 112 STAT. 2138]]

    (b) <<NOTE: Applicability. 10 USC 2301 note.>>  Effective Date.--
Subsection (g) of section 2301 of title 38, United States Code, as added 
by subsection (a), shall apply to flags procured by the Secretary of 
Veterans Affairs for the purposes of section 2301 of title 38, United 
States Code, after the end of the 30-day period beginning on the date of 
the enactment of this Act.

SEC. 1074. <<NOTE: 26 USC 121 note.>> SENSE OF CONGRESS CONCERNING TAX 
            TREATMENT OF PRINCIPAL RESIDENCE OF MEMBERS OF ARMED FORCES 
            WHILE AWAY FROM HOME ON ACTIVE DUTY.

    It is the sense of Congress that a member of the Armed Forces should 
be treated for purposes of section 121 of the Internal Revenue Code of 
1986 as using property as a principal residence during any continuous 
period that the member is serving on active duty for 180 days or more 
with the Armed Forces, but only if the member used the property as a 
principal residence for any period during or immediately before that 
period of active duty.

SEC. 1075. CLARIFICATION OF STATE AUTHORITY TO TAX COMPENSATION PAID TO 
            CERTAIN EMPLOYEES.

    (a) Limitation on State Authority To Tax Compensation Paid to 
Individuals Performing Services at Fort Campbell, Kentucky.--
            (1) In general.--Chapter 4 of title 4, United States Code, 
        is amended by adding at the end the following:

``Sec. 115. Limitation on State authority to tax compensation paid to 
                        individuals performing services at Fort 
                        Campbell, Kentucky

    ``Pay and compensation paid to an individual for personal services 
at Fort Campbell, Kentucky, shall be subject to taxation by the State or 
any political subdivision thereof of which such employee is a 
resident.''.
            (2) Conforming amendment.--The table of sections for chapter 
        4 of title 4, United States Code, is amended by adding at the 
        end the following:

``115. Limitation on State authority to tax compensation paid to 
           individuals performing services at Fort Campbell, 
           Kentucky.''.

             <<NOTE: Applicability. 4 USC 115 note.>> (3) Effective 
        date.--The amendments made by this subsection shall apply to pay 
        and compensation paid after the date of the enactment of this 
        Act.

    (b) Clarification of State Authority To Tax Compensation Paid to 
Certain Federal Employees.--
            (1) In general.--Section 111 of title 4, United States Code, 
        is amended--
                    (A) by inserting ``(a) General Rule.--'' before 
                ``The United States'' the first place it appears; and
                    (B) by adding at the end the following:

    `` <<NOTE: Oregon. Washington.>> (b) Treatment of Certain Federal 
Employees Employed at Federal Hydroelectric Facilities Located on the 
Columbia River.--Pay or compensation paid by the United States for 
personal services as an employee of the United States at a hydroelectric 
facility--
            ``(1) which is owned by the United States;
            ``(2) which is located on the Columbia River; and
            ``(3) portions of which are within the States of Oregon and 
        Washington,

[[Page 112 STAT. 2139]]

shall be subject to taxation by the State or any political subdivision 
thereof of which such employee is a resident.
     <<NOTE: South Dakota. Nebraska.>> ``(c) Treatment of Certain 
Federal Employees Employed at Federal Hydroelectric Facilities Located 
on the Missouri River.--Pay or compensation paid by the United States 
for personal services as an employee of the United States at a 
hydroelectric facility--
            ``(1) which is owned by the United States;
            ``(2) which is located on the Missouri River; and
            ``(3) portions of which are within the States of South 
        Dakota and Nebraska,

shall be subject to taxation by the State or any political subdivision 
thereof of which such employee is a resident.''.
             <<NOTE: 4 USC 111 note.>> (2) Effective date.--The 
        amendment made by this subsection shall apply to pay and 
        compensation paid after the date of the enactment of this Act.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Defense Advanced Research Projects Agency experimental 
           personnel management program for technical personnel.
Sec. 1102. Maximum pay rate comparability for faculty members of the 
           United States Air Force Institute of Technology.
Sec. 1103. Authority for release to Coast Guard of drug test results of 
           civil service mariners of the Military Sealift Command.
Sec. 1104. Limitations on back pay awards.
Sec. 1105. Restoration of annual leave accumulated by civilian employees 
           at installations in the Republic of Panama to be closed 
           pursuant to the Panama Canal Treaty of 1977.
Sec. 1106. Repeal of program providing preference for employment of 
           military spouses in military child care facilities.
Sec. 1107. Observance of certain holidays at duty posts outside the 
           United States.
Sec. 1108. Continuation of random drug testing program for certain 
           Department of Defense employees.
Sec. 1109. Department of Defense employee voluntary early retirement 
           authority.

SEC. 1101. <<NOTE: 5 USC 3104 note.>> DEFENSE ADVANCED RESEARCH PROJECTS 
            AGENCY EXPERIMENTAL PERSONNEL MANAGEMENT PROGRAM FOR 
            TECHNICAL PERSONNEL.

    (a) Program Authorized.--During the 5-year period beginning on the 
date of the enactment of this Act, the Secretary of Defense may carry 
out a program of experimental use of the special personnel management 
authority provided in subsection (b) in order to facilitate recruitment 
of eminent experts in science or engineering for research and 
development projects administered by the Defense Advanced Research 
Projects Agency.
    (b) Special Personnel Management Authority.--Under the program, the 
Secretary may--
            (1) appoint scientists and engineers from outside the civil 
        service and uniformed services (as such terms are defined in 
        section 2101 of title 5, United States Code) to not more than 20 
        scientific and engineering positions in the Defense Advanced 
        Research Projects Agency without regard to any provision of 
        title 5, United States Code, governing the appointment of 
        employees in the civil service;
            (2) prescribe the rates of basic pay for positions to which 
        employees are appointed under paragraph (1) at rates not in 
        excess of the maximum rate of basic pay authorized for senior-

[[Page 112 STAT. 2140]]

        level positions under section 5376 of title 5, United States 
        Code, notwithstanding any provision of such title governing the 
        rates of pay or classification of employees in the executive 
        branch; and
            (3) pay any employee appointed under paragraph (1) payments 
        in addition to basic pay within the limit applicable to the 
        employee under subsection (d)(1).

    (c) Limitation on Term of Appointment.--(1) Except as provided in 
paragraph (2), the service of an employee under an appointment under 
subsection (b)(1) may not exceed 4 years.
    (2) The Secretary may, in the case of a particular employee, extend 
the period to which service is limited under paragraph (1) by up to 2 
years if the Secretary determines that such action is necessary to 
promote the efficiency of the Defense Advanced Research Projects Agency.
    (d) Limitations on Additional Payments.--(1) The total amount of the 
additional payments paid to an employee under subsection (b)(3) for any 
12-month period may not exceed the least of the following amounts:
            (A) $25,000.
            (B) The amount equal to 25 percent of the employee's annual 
        rate of basic pay.
            (C) The amount of the limitation that is applicable for a 
        calendar year under section 5307(a)(1) of title 5, United States 
        Code.

    (2) An employee appointed under subsection (b)(1) is not eligible 
for any bonus, monetary award, or other monetary incentive for service 
except for payments authorized under subsection (b)(3).
    (e) Period of Program.--(1) The program authorized under this 
section shall terminate at the end of the 5-year period referred to in 
subsection (a).
    (2) After the termination of the program--
            (A) no appointment may be made under paragraph (1) of 
        subsection (b);
            (B) a rate of basic pay prescribed under paragraph (2) of 
        that subsection may not take effect for a position; and
            (C) no period of service may be extended under subsection 
        (c)(1).

    (f ) Savings Provisions.--In the case of an employee who, on the day 
before the termination of the program, is serving in a position pursuant 
to an appointment under subsection (b)(1)--
            (1) the termination of the program does not terminate the 
        employee's employment in that position before the expiration of 
        the lesser of--
                    (A) the period for which the employee was appointed; 
                or
                    (B) the period to which the employee's service is 
                limited under subsection (c), including any extension 
                made under paragraph (2) of that subsection before the 
                termination of the program; and
            (2) the rate of basic pay prescribed for the position under 
        subsection (b)(2) may not be reduced for so long (within the 
        period applicable to the employee under paragraph (1)) as the 
        employee continues to serve in the position without a break in 
        service.

     <<NOTE: Deadine.>> (g) Annual Report.--(1) Not later than October 
15 of each year, beginning in 1999 and ending in 2004, the Secretary of

[[Page 112 STAT. 2141]]

Defense shall submit a report on the program to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives. The report submitted in a year shall cover the 
12-month period ending on the day before the anniversary, in that year, 
of the date of the enactment of this Act.

    (2) The annual report shall contain, for the period covered by the 
report, the following:
Termination date.
            (A) A detailed discussion of the exercise of authority under 
        this section.
            (B) The sources from which individuals appointed under 
        subsection (b)(1) were recruited.
            (C) The methodology used for identifying and selecting such 
        individuals.
            (D) Any additional information that the Secretary considers 
        helpful for assessing the utility of the authority under this 
        section.

SEC. 1102. MAXIMUM PAY RATE COMPARABILITY FOR FACULTY MEMBERS OF THE 
            UNITED STATES AIR FORCE INSTITUTE OF TECHNOLOGY.

    Section 9314(b)(2)(B) of title 10, United States Code, is amended by 
striking out ``section 5306(e)'' and inserting in lieu thereof ``section 
5373''.

SEC. 1103. AUTHORITY FOR RELEASE TO COAST GUARD OF DRUG TEST RESULTS OF 
            CIVIL SERVICE MARINERS OF THE MILITARY SEALIFT COMMAND.

    (a) In General.--Chapter 643 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 7479. Civil service mariners of Military Sealift Command: release 
                        of drug test results to Coast Guard

    ``(a) Release of Drug Test Results to Coast Guard.--The Secretary of 
the Navy may release to the Commandant of the Coast Guard the results of 
a drug test of any employee of the Department of the Navy who is 
employed in any capacity on board a vessel of the Military Sealift 
Command. Any such release shall be in accordance with the standards and 
procedures applicable to the disclosure and reporting to the Coast Guard 
of drug tests results and drug test records of individuals employed on 
vessels documented under the laws of the United States.
    ``(b) Waiver.--The results of a drug test of an employee may be 
released under subsection (a) without the prior written consent of the 
employee that is otherwise required under section 503(e) of the 
Supplemental Appropriations Act, 1987 (5 U.S.C. 7301 note).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``7479. Civil service mariners of Military Sealift Command: release of 
           drug test 
           results to Coast Guard.''.

SEC. 1104. LIMITATIONS ON BACK PAY AWARDS.

    (a) In General.--Section 5596(b) of title 5, United States Code, is 
amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:

[[Page 112 STAT. 2142]]

    ``(4) The pay, allowances, or differentials granted under this 
section for the period for which an unjustified or unwarranted personnel 
action was in effect shall not exceed that authorized by the applicable 
law, rule, regulations, or collective bargaining agreement under which 
the unjustified or unwarranted personnel action is found, except that in 
no case may pay, allowances, or differentials be granted under this 
section for a period beginning more than 6 years before the date of the 
filing of a timely appeal or, absent such filing, the date of the 
administrative determination.''.
    (b) Conforming Amendment.--Section 7121 of title 5, United States 
Code, is amended by adding at the end the following new subsection:
    ``(h) Settlements and awards under this chapter shall be subject to 
the limitations in section 5596(b)(4) of this title.''.

SEC. 1105. RESTORATION OF ANNUAL LEAVE ACCUMULATED BY CIVILIAN EMPLOYEES 
            AT INSTALLATIONS IN THE REPUBLIC OF PANAMA TO BE CLOSED 
            PURSUANT TO THE PANAMA CANAL TREATY OF 1977.

    Section 6304(d)(3)(A) of title 5, United States Code, is amended by 
inserting ``the closure of an installation of the Department of Defense 
in the Republic of Panama in accordance with the Panama Canal Treaty of 
1977,'' after ``2687 note) during any period,''.

SEC. 1106. REPEAL OF PROGRAM PROVIDING PREFERENCE FOR EMPLOYMENT OF 
            MILITARY SPOUSES IN MILITARY CHILD CARE FACILITIES.

    Section 1792 of title 10, United States Code, is amended--
            (1) by striking out subsection (d); and
            (2) by redesignating subsection (e) as subsection (d).

SEC. 1107. OBSERVANCE OF CERTAIN HOLIDAYS AT DUTY POSTS OUTSIDE THE 
            UNITED STATES.

    Section 6103(b) of title 5, United States Code, is amended by 
inserting after paragraph (2) the following new paragraph:
            ``(3) Instead of a holiday that is designated under 
        subsection (a) to occur on a Monday, for an employee at a duty 
        post outside the United States whose basic workweek is other 
        than Monday through Friday, and for whom Monday is a regularly 
        scheduled workday, the legal public holiday is the first workday 
        of the workweek in which the Monday designated for the 
        observance of such holiday under subsection (a) occurs.''.

SEC. 1108. <<NOTE: 5 USC 7301 note.>> CONTINUATION OF RANDOM DRUG 
            TESTING PROGRAM FOR CERTAIN DEPARTMENT OF DEFENSE EMPLOYEES.

    (a) Continuation of Existing Program.--The Secretary of Defense 
shall continue to actively carry out the drug testing program, 
originally required by section 3(a) of Executive Order No. 12564 (51 
Fed. Reg. 32889; September 15, 1986), involving civilian employees of 
the Department of Defense who are considered to be employees in 
sensitive positions. The Secretary shall comply with the drug testing 
procedures prescribed pursuant to section 4 of the Executive order.
    (b) Testing Upon Reasonable Suspicion of Illegal Drug Use.--The 
Secretary of Defense shall ensure that the drug testing program referred 
to in subsection (a) authorizes the testing of a civilian employee of 
the Department of Defense for illegal drug

[[Page 112 STAT. 2143]]

use when there is a reasonable suspicion that the employee uses illegal 
drugs.
    (c) Notification to Applicants.--The Secretary of Defense shall 
notify persons who apply for employment with the Department of Defense 
that, as a condition of employment by the Department, the person may be 
required to submit to drug testing under the drug testing program 
required by Executive Order No. 12564 (51 Fed. Reg. 32889; September 15, 
1986) pursuant to the terms of the Executive order.
    (d) Definitions.--In this section, the terms ``illegal drugs'' and 
``employee in a sensitive position'' have the meanings given such terms 
in section 7 of Executive Order No. 12564 (51 Fed. Reg. 32889; September 
15, 1986).

SEC. 1109. DEPARTMENT OF DEFENSE EMPLOYEE VOLUNTARY EARLY RETIREMENT 
            AUTHORITY.

    (a) Civil Service Retirement System.--Section 8336 of title 5, 
United States Code, is amended--
            (1) in subsection (d)(2), by inserting ``except in the case 
        of an employee described in subsection (o)(1),'' after ``(2)''; 
        and
            (2) by adding at the end the following:

    ``(o)(1) An employee of the Department of Defense who is separated 
from the service under conditions described in paragraph (2) after 
completing 25 years of service or after becoming 50 years of age and 
completing 20 years of service is entitled to an annuity.
    ``(2) Paragraph (1) applies to an employee who--
            ``(A) has been employed continuously by the Department of 
        Defense for more than 30 days before the date on which the 
        Secretary concerned requests the determinations required under 
        subparagraph (D)(i);
            ``(B) is serving under an appointment that is not limited by 
        time;
            ``(C) has not received a decision notice of involuntary 
        separation for misconduct or unacceptable performance that is 
        pending decision; and
            ``(D) is separated from the service voluntarily during a 
        period in which--
                    ``(i) the Department of Defense or the military 
                department or subordinate organization within the 
                Department of Defense or military department in which 
                the employee is serving is undergoing a major 
                reorganization, a major reduction in force, or a major 
                transfer of function, and employees comprising a 
                significant percentage of the employees serving in that 
                department or organization are to be separated or 
                subject to an immediate reduction in the rate of basic 
                pay (without regard to subchapter VI of chapter 53, or 
                comparable provisions of law), as determined by the 
                Office of Personnel Management (under regulations 
                prescribed by the Office) upon the request of the 
                Secretary concerned; and
                    ``(ii) the employee is within the scope of an offer 
                of voluntary early retirement (as defined by 
                organizational unit, occupational series or level, 
                geographical location, any other similar factor that the 
                Office of Personnel Management determines appropriate, 
                or any combination of such definitions of scope), as 
                determined by the Secretary concerned under regulations 
                prescribed by the Office.

[[Page 112 STAT. 2144]]

    ``(3) In this subsection, the term `Secretary concerned' means--
            ``(A) the Secretary of Defense, with respect to an employee 
        of the Department of Defense not employed in a position in a 
        military department;
            ``(B) the Secretary of the Army, with respect to an employee 
        of the Department of the Army;
            ``(C) the Secretary of the Navy, with respect to an employee 
        of the Department of the Navy; and
            ``(D) the Secretary of the Air Force, with respect to an 
        employee of the Department of the Air Force.''.

    (b) Federal Employees' Retirement System.--Section 8414 of such 
title is amended--
            (1) in subsection (b)(1)(B), by inserting ``except in the 
        case of an employee described in subsection (d)(1),'' after 
        ``(B)''; and
            (2) by adding at the end the following:

    ``(d)(1) An employee of the Department of Defense who is separated 
from the service under conditions described in paragraph (2) after 
completing 25 years of service or after becoming 50 years of age and 
completing 20 years of service is entitled to an annuity.
    ``(2) <<NOTE: Applicability.>> Paragraph (1) applies to an employee 
who--
            ``(A) has been employed continuously by the Department of 
        Defense for more than 30 days before the date on which the 
        Secretary concerned requests the determinations required under 
        subparagraph (D)(i);
            ``(B) is serving under an appointment that is not limited by 
        time;
            ``(C) has not received a decision notice of involuntary 
        separation for misconduct or unacceptable performance that is 
        pending decision; and
            ``(D) is separated from the service voluntarily during a 
        period in which--
                    ``(i) the Department of Defense or the military 
                department or subordinate organization within the 
                Department of Defense or military department in which 
                the employee is serving is undergoing a major 
                reorganization, a major reduction in force, or a major 
                transfer of function, and employees comprising a 
                significant percentage of the employees serving in that 
                department or organization are to be separated or 
                subject to an immediate reduction in the rate of basic 
                pay (without regard to subchapter VI of chapter 53, or 
                comparable provisions of law), as determined by the 
                Office of Personnel Management (under regulations 
                prescribed by the Office) upon the request of the 
                Secretary concerned; and
                    ``(ii) the <<NOTE: Regulations.>> employee is within 
                the scope of an offer of voluntary early retirement (as 
                defined by organizational unit, occupational series or 
                level, geographical location, any other similar factor 
                that the Office of Personnel Management determines 
                appropriate, or any combination of such definitions of 
                scope), as determined by the Secretary concerned under 
                regulations prescribed by the Office.

    ``(3) In this subsection, the term `Secretary concerned' means--
            ``(A) the Secretary of Defense, with respect to an employee 
        of the Department of Defense not employed in a position in a 
        military department;
            ``(B) the Secretary of the Army, with respect to an employee 
        of the Department of the Army;

[[Page 112 STAT. 2145]]

            ``(C) the Secretary of the Navy, with respect to an employee 
        of the Department of the Navy; and
            ``(D) the Secretary of the Air Force, with respect to an 
        employee of the Department of the Air Force.''.

    (c) Conforming Amendments.--(1) Section 8339(h) of such title is 
amended by striking out ``or ( j)'' in the first sentence and inserting 
in lieu thereof ``( j), or (o)''.
    (2) Section 8464(a)(1)(A)(i) of such title is amended by striking 
out ``or (b)(1)(B)'' and inserting in lieu thereof ``, (b)(1)(B), or 
(d)''.
     <<NOTE: 5 USC 8336 note.>> (d) Effective Date; Applicability.--The 
amendments made by this section--
            (1) shall take effect on October 1, 2000; and
            (2) shall apply with respect to an approval for voluntary 
        early retirement made on or after that date.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

Sec. 1201. Findings.
Sec. 1202. Sense of Congress.
Sec. 1203. Presidential reports.
Sec. 1204. Secretary of Defense reports on operations in Bosnia and 
           Herzegovina.
Sec. 1205. Definitions.

         Subtitle B--Matters Relating to Contingency Operations

Sec. 1211. Report on involvement of Armed Forces in contingency and 
           ongoing operations.
Sec. 1212. Submission of report on objectives of a contingency operation 
           with 
           requests for funding for the operation.

             Subtitle C--Matters Relating to NATO and Europe

Sec. 1221. Limitation on United States share of costs of NATO expansion.
Sec. 1222. Report on military capabilities of an expanded NATO alliance.
Sec. 1223. Reports on the development of the European security and 
           defense 
           identity.

                        Subtitle D--Other Matters

Sec. 1231. Limitation on assignment of United States forces for certain 
           United 
           Nations purposes.
Sec. 1232. Prohibition on restriction of Armed Forces under Kyoto 
           Protocol to the United Nations Framework Convention on 
           Climate Change.
Sec. 1233. Defense burdensharing.
Sec. 1234. Transfer of excess UH-1 Huey and AH-1 Cobra helicopters to 
           foreign countries.
Sec. 1235. Transfers of naval vessels to certain foreign countries.
Sec. 1236. Repeal of landmine moratorium.
Sec. 1237. Application of authorities under the International Emergency 
           Economic Powers Act to Communist Chinese military companies.

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

SEC. 1201. FINDINGS.

    Congress makes the following findings:
            (1) The contributions of the people of the United States and 
        other nations have, in large measure, resulted in the suspension 
        of fighting and alleviated the suffering of the people of Bosnia 
        and Herzegovina since December 1995.
            (2) The United States has expended approximately 
        $9,500,000,000 between 1992 and mid-1998 just in support

[[Page 112 STAT. 2146]]

        of the United States military operations in Bosnia to achieve 
        those results.
            (3) Efforts to restore the economy and political structure 
        in Bosnia and Herzegovina have achieved some success in 
        accordance with the Dayton Accords.
            (4) On March 3, 1998, the President certified to Congress 
        (A) that the continued presence of United States forces in 
        Bosnia and Herzegovina after June 30, 1998, was required in 
        order to meet the national security interests of the United 
        States, and (B) that United States Armed Forces will not serve 
        as, or be used as, civil police in Bosnia and Herzegovina.
            (5) With that certification, the President submitted to 
        Congress a report stating that the goal of the military presence 
        in Bosnia and Herzegovina is to establish the conditions under 
        which implementation of the Dayton Accords can continue without 
        the support of a major NATO-led military force and setting forth 
        the criteria for determining when that goal has been 
        accomplished.
            (6) Since the administration has not specified how long 
        achievement of that goal is expected to take, the mission of 
        United States ground combat forces in Bosnia and Herzegovina is 
        essentially of indefinite duration.
            (7) The NATO operations plan for the Stabilization Force 
        (Operations Plan 10407, which went into effect on June 20, 1998, 
        after approval by allied foreign ministers) incorporates all of 
        the benchmarks set forth in the report referred to in paragraph 
        (5) and states that the Stabilization Force will develop 
        detailed criteria for assessing progress in achieving those 
        benchmarks in close coordination with key international 
        organizations participating in civilian implementation of the 
        Dayton Accords.
            (8) The military representatives of NATO member nations have 
        been tasked by the North Atlantic Council to provide estimates 
        of the time likely to be required for implementation of the 
        Dayton Accords.
            (9) NATO has decided to conduct formal reviews when 
        appropriate (but at intervals of not more than 6 months) to 
        assess the security situation and the progress being made in the 
        implementation of the civil aspects of the Dayton Accords. Those 
        reviews will enable the Alliance to make decisions as to 
        reductions in the size or the Stabilization Force, leading to 
        its eventual full withdrawal.
            (10) NATO has approved the creation of a multinational 
        specialized unit of gendarmes or paramilitary police composed of 
        European security forces to help promote public security in 
        Bosnia and Herzegovina as a part of the post-June 1998 mission 
        for the Stabilization Force.
            (11) The limit established for spending by the United States 
        for the defense discretionary budget category for fiscal year 
        1998 in the Balanced Budget and Emergency Deficit Control Act of 
        1985 does not take into account the continued deployment of 
        United States forces in Bosnia and Herzegovina after June 30, 
        1998, leading to the request by the President for emergency 
        supplemental appropriations for the Bosnia and Herzegovina 
        mission through September 30, 1998.
            (12) Amounts for Department of Defense operations in Bosnia 
        and Herzegovina during fiscal year 1999 were not

[[Page 112 STAT. 2147]]

        included in the budget of the President for fiscal year 1999, as 
        submitted to Congress on February 2, 1998.
            (13) The President requested $1,858,600,000 in emergency 
        appropriations in his March 4, 1998, amendment to the fiscal 
        year 1999 budget to cover the shortfall in funding in fiscal 
        year 1999 for the costs of extending the mission in Bosnia.

SEC. 1202. SENSE OF CONGRESS.

    (a) Sense of Congress Concerning United States Forces and 
Accomplishment of Tasks in Bosnia and Herzegovina.--It is the sense of 
Congress that--
            (1) United States ground combat forces should not remain in 
        Bosnia and Herzegovina indefinitely in view of the worldwide 
        commitments of the Armed Forces of the United States;
            (2) the President should work with NATO allies and the other 
        nations whose military forces are participating in the NATO-led 
        Stabilization Force to withdraw United States ground combat 
        forces from Bosnia and Herzegovina within a reasonable period of 
        time, consistent with the safety of those forces and the 
        accomplishment of the Stabilization Force's military tasks;
            (3) a NATO-led force without the participation of United 
        States ground combat forces in Bosnia and Herzegovina might be 
        suitable for a follow-on force for Bosnia and Herzegovina if the 
        European Security and Defense Identity is not sufficiently 
        developed or is otherwise considered inappropriate for such a 
        mission; and
            (4) the United States may decide to provide appropriate 
        support to a Western European Union-led or NATO-led follow-on 
        force for Bosnia and Herzegovina, including command and control, 
        intelligence, logistics, and, if necessary, a ready reserve 
        force in the region.

    (b) Sense of Congress Concerning Presidential Actions.--It is the 
sense of Congress that the President--
            (1) should inform the European NATO allies of the expression 
        of the sense of Congress in subsection (a) and should strongly 
        urge them to undertake preparations for establishing a Western 
        European Union-led or a NATO-led force as a follow-on force to 
        the Stabilization Force if needed to maintain peace and 
        stability in Bosnia and Herzegovina; and
            (2) should consult closely with the congressional leadership 
        and the congressional defense committees with respect to the 
        progress being made toward achieving a sustainable peace in 
        Bosnia and Herzegovina and the progress being made toward a 
        reduction and ultimate withdrawal of United States ground combat 
        forces from Bosnia and Herzegovina.

    (c) Sense of Congress Concerning Defense Budget.--It is the sense of 
Congress that--
            (1) the President should include in the budget for the 
        Department of Defense that the President submits to Congress 
        under section 1105(a) of title 31, United States Code, for each 
        fiscal year sufficient amounts to pay for any proposed 
        continuation of the participation of United States forces in 
        NATO operations in Bosnia and Herzegovina during that fiscal 
        year; and

[[Page 112 STAT. 2148]]

            (2) amounts included in the budget for the purpose stated in 
        paragraph (1) should be over and above the defense discretionary 
        estimates as identified in the Bipartisan Budget Agreement of 
        May 16, 1997 and the fiscal year 1998 concurrent budget 
        resolution and not be transferred from amounts in the budget of 
        any other agency of the executive branch, but instead should be 
        an overall increase in the budget for the Department of Defense 
        and the discretionary spending limits in the Balanced Budget Act 
        of 1997.

SEC. 1203. PRESIDENTIAL REPORTS.

    (a) Required Reports.--The President shall ensure that the 
semiannual reports required by section 7(b) of the general provisions of 
chapter I of the 1998 Supplemental Appropriations and Rescissions Act 
(Public Law 105-174; 112 Stat. 64) are submitted to Congress in a timely 
manner as long as United States ground combat forces continue to 
participate in the Stabilization Force (SFOR). In addition, whenever the 
President submits to Congress a request for funds for continued 
operations of United States forces in Bosnia and Herzegovina, the 
President shall submit a supplemental report providing information to 
update Congress on developments since the last semiannual report.
    (b) Required Information.--In addition to the information required 
by the section referred to in subsection (a) to be included in a report 
under that section, each report under that section or under subsection 
(a) shall include the following:
            (1) The expected duration of the deployment of United States 
        ground combat forces in Bosnia and Herzegovina in support of 
        implementation of the benchmarks set forth in the President's 
        report of March 3, 1998 (referred to in section 1201(5)) for 
        achieving a sustainable peace process.
            (2) The percentage of those benchmarks that have been 
        completed as of the date of the report, the percentage that are 
        expected to be completed within the next reporting period, and 
        the expected time for completion of the remaining tasks.
            (3) The status of the NATO force of gendarmes or 
        paramilitary police, including the mission of the force, the 
        composition of the force, and the extent, if any, to which 
        members of the Armed Forces of the United States are 
        participating (or are to participate) in the force.
            (4) The military and nonmilitary missions that the President 
        has directed for United States forces in Bosnia and Herzegovina, 
        including a specific discussion of--
                    (A) the mission of those forces, if any, in 
                connection with the pursuit and apprehension of war 
                criminals;
                    (B) the mission of those forces, if any, in 
                connection with civilian police functions;
                    (C) the mission of those forces, if any, in 
                connection with the resettlement of refugees; and
                    (D) the missions undertaken by those forces, if any, 
                in support of international and local civilian 
                authorities.
            (5) An assessment of the risk for the United States forces 
        in Bosnia and Herzegovina, including, for each mission 
        identified pursuant to paragraph (4), the assessment of the 
        Chairman of the Joint Chiefs of Staff regarding the nature and 
        level of risk of the mission for the safety and well-being of 
        United States military personnel.

[[Page 112 STAT. 2149]]

            (6) An assessment of the cost to the United States, by 
        fiscal year, of carrying out the missions identified pursuant to 
        paragraph (4) and a detailed projection of any additional 
        funding that will be required by the Department of Defense to 
        meet mission requirements for those operations for the remainder 
        of the fiscal year.
            (7) A joint assessment by the Secretary of Defense and the 
        Secretary of State of the status of planning for--
                    (A) the assumption of all remaining military 
                missions inside Bosnia and Herzegovina by European 
                military and paramilitary forces; and
                    (B) the establishment and support of a forward-based 
                United States rapid response force outside of Bosnia and 
                Herzegovina that would be capable of deploying rapidly 
                to defeat military threats to a European follow-on force 
                inside Bosnia and Herzegovina and of providing whatever 
                logistical, intelligence, and air support is needed to 
                ensure that a European follow-on force is fully capable 
                of accomplishing its missions under the Dayton Accords.

SEC. 1204. SECRETARY OF DEFENSE REPORTS ON OPERATIONS IN BOSNIA AND 
            HERZEGOVINA.

     <<NOTE: Deadline.>> (a) Report on Effects on Capabilities of United 
States Military Forces.--Not later than December 15, 1998, the Secretary 
of Defense shall submit to the congressional defense committees a report 
on the effects of military operations in Bosnia and Herzegovina and the 
Balkans region on the capabilities of United States military forces. The 
report shall, in particular, describe the effects of those operations on 
the capability of United States military forces to conduct successfully 
two nearly simultaneous major theater wars as specified in current 
Defense Planning Guidance and in accordance with the deployment 
timelines called for in the war plans of the commanders of the unified 
combatant commands.

    (b) Additional Reports.--Whenever the number of United States ground 
combat forces in Bosnia and Herzegovina increases or decreases by 20 
percent or more compared to the number of such forces as of the most 
recent previous report under this section, the Secretary shall submit an 
additional report as specified in subsection (a). Any such additional 
report shall be submitted within 30 days of the date on which the 
requirement to submit the report becomes effective under the preceding 
sentence.
    (c) Matters To Be Included.--The Secretary shall include in each 
report under this section information with respect to the effects of 
military operations in Bosnia and Herzegovina and the Balkans region on 
the capabilities of United States military forces to conduct 
successfully two nearly simultaneous major theater wars as specified in 
current Defense Planning Guidance and in accordance with the deployment 
timelines called for in the war plans of the commanders of the unified 
combatant commands. Such information shall include information on the 
effects of those operations on anticipated deployment plans for major 
theater wars in Southwest Asia or on the Korean peninsula, including the 
following:
            (1) Deficiencies or delays in deployment of strategic lift, 
        logistics support and infrastructure, ammunition (including 
        precision guided munitions), support forces, intelligence 
        assets,

[[Page 112 STAT. 2150]]

        follow-on forces used for planned counteroffensives, and similar 
        forces.
            (2) Additional planned reserve component mobilization, 
        including specific units to be ordered to active duty and 
        required dates for activation of presidential call-up authority.
            (3) Specific plans and timelines for redeployment of United 
        States forces from Bosnia and Herzegovina, the Balkans region, 
        or supporting forces in the region, to both the first and second 
        major theater war.
            (4) Preventative actions or deployments involving United 
        States forces in Bosnia and Herzegovina and the Balkans region 
        that would be taken in the event of a single theater war to 
        deter the outbreak of a second theater war.
            (5) Specific plans and timelines to replace forces deployed 
        to Bosnia and Herzegovina, the Balkans region, or the 
        surrounding region to maintain United States military presence.
            (6) An assessment, undertaken in consultation with the 
        Chairman of the Joint Chiefs of Staff and the commanders of the 
        unified combatant commands, of the level of increased risk to 
        successful conduct of the major theater wars and the maintenance 
        of security and stability in Bosnia and Herzegovina and the 
        Balkans region, by the requirement to redeploy forces from 
        Bosnia and the Balkans in the event of a major theater war.

SEC. 1205. DEFINITIONS.

    As used in this subtitle:
            (1) Dayton peace accords.--The term ``Dayton Peace Accords'' 
        means the General Framework Agreement for Peace in Bosnia and 
        Herzegovina, initialed by the parties in Dayton, Ohio, on 
        November 21, 1995, and signed in Paris on December 14, 1995.
            (2) Stabilization force.--The term ``Stabilization Force'' 
        means the NATO-led force in Bosnia and Herzegovina and other 
        countries in the region (referred to as ``SFOR''), authorized 
        under United Nations Security Council Resolution 1088 (December 
        12, 1996).
            (3) NATO.--The term ``NATO'' means the North Atlantic Treaty 
        Organization.

         Subtitle B--Matters Relating to Contingency Operations

SEC. 1211. REPORT ON INVOLVEMENT OF ARMED FORCES IN CONTINGENCY AND 
            ONGOING OPERATIONS.

     <<NOTE: Deadline.>> (a) Report Required.--Not later than January 
31, 1999, the Secretary of Defense shall submit to the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives a report on the involvement of the Armed 
Forces in major contingency operations and major ongoing operations 
since the end of the Persian Gulf War. The report shall include the 
following:
            (1) A discussion of the effects of the involvement of the 
        Armed Forces in those operations on retention of personnel

[[Page 112 STAT. 2151]]

        in the Armed Forces, shown in the aggregate and separately for 
        officers and enlisted personnel.
            (2) The extent to which the use of combat support and combat 
        service support personnel and equipment of the Armed Forces in 
        those operations has resulted in shortages of Armed Forces 
        personnel and equipment in other regions of the world.
            (3) The accounts from which funds have been drawn to pay for 
        those operations and the specific programs for which those funds 
        were available until diverted to pay for those operations.
            (4) For each such operation--
                    (A) a statement of the vital interests of the United 
                States that are involved in the operation or, if none, 
                the interests of the United States that are involved in 
                the operation and a characterization of those interests;
                    (B) a statement of what clear and distinct 
                objectives guide the activities of United States forces 
                in the operation; and
                    (C) a statement of what the President has identified 
                on the basis of those objectives as the date, or the set 
                of conditions, that defines the end of the operation.

    (b) Form of Report.--The report shall be submitted in unclassified 
form, but may also be submitted in a classified form if necessary.
    (c) Major Operation Defined.--For the purposes of this section, a 
contingency operation or an ongoing operation is a major contingency 
operation or a major ongoing operation, respectively, if the operation 
involves the deployment of more than 500 members of the Armed Forces.

SEC. 1212. SUBMISSION OF REPORT ON OBJECTIVES OF A CONTINGENCY OPERATION 
            WITH REQUESTS FOR FUNDING FOR THE OPERATION.

    (a) Findings.--Congress makes the following findings:
            (1) On May 3, 1994, the President issued Presidential 
        Decision Directive 25 declaring that American participation in 
        United Nations and other peace operations would depend in part 
        on whether the role of United States forces is tied to clear 
        objectives and an endpoint for United States participation can 
        be identified.
            (2) Between that date and mid-1998, the President and other 
        executive branch officials have obligated or requested 
        appropriations of approximately $9,400,000,000 for military-
        related operations throughout Bosnia and Herzegovina without 
        providing to Congress, in conjunction with the budget submission 
        for any fiscal year, a strategic plan for such operations under 
        the criteria set forth in that Presidential Decision Directive.
            (3) Between November 27, 1995, and mid-1998 the President 
        has established three deadlines, since elapsed, for the 
        termination of United States military-related operations 
        throughout Bosnia and Herzegovina.
            (4) On December 17, 1997, the President announced that 
        United States ground combat forces would remain in Bosnia and 
        Herzegovina for an unknown period of time.
            (5) Approximately 47,880 United States military personnel 
        (excluding personnel serving in units assigned to the Republic

[[Page 112 STAT. 2152]]

        of Korea) have participated in 14 international contingency 
        operations between fiscal years 1991 and 1998.
            (6) The 1998 posture statements of the Navy and Air Force 
        included declarations that the pace of military operations over 
        fiscal year 1997 adversely affected the readiness of non-
        deployed forces, personnel retention rates, and spare parts 
        inventories of the Navy and Air Force.

    (b) Information To Be Reported With Funding Requests.--Section 113 
of title 10, United States Code, is amended by adding after subsection 
(l), as added by section 915, the following new subsection:
    ``(m) Information To Accompany Funding Request for Contingency 
Operation.--Whenever the President submits to Congress a request for 
appropriations for costs associated with a contingency operation that 
involves, or likely will involve, the deployment of more than 500 
members of the armed forces, the Secretary of Defense shall submit to 
Congress a report on the objectives of the operation. The report shall 
include a discussion of the following:
            ``(1) What clear and distinct objectives guide the 
        activities of United States forces in the operation.
            ``(2) What the President has identified on the basis of 
        those objectives as the date, or the set of conditions, that 
        defines the endpoint of the operation.''.

             Subtitle C--Matters Relating to NATO and Europe

SEC. 1221. <<NOTE: 22 USC 1928 note.>> LIMITATION ON UNITED STATES SHARE 
            OF COSTS OF NATO EXPANSION.

    (a) Limitation.--The United States share of defined NATO expansion 
costs may not exceed the lesser of--
            (1) the amount equal to 25 percent of those costs; or
            (2) $2,000,000,000.

    (b) Defined NATO Expansion Costs.--For purposes of subsection (a), 
the term ``defined NATO expansion costs'' means the commonly funded 
costs of the North Atlantic Treaty Organization (NATO) during fiscal 
years 1999 through 2011 for enlargement of NATO due to the admission to 
NATO of Poland, Hungary, and the Czech Republic.

SEC. 1222. REPORT ON MILITARY CAPABILITIES OF AN EXPANDED NATO ALLIANCE.

    (a) Report.--The Secretary of Defense shall prepare a report, in 
both classified and unclassified form, on the planned future military 
capabilities of the North Atlantic Treaty Organization (NATO) with the 
anticipated accession of Poland, the Czech Republic, and Hungary to the 
NATO alliance. The report shall set forth the following:
            (1) An assessment of the tactical, operational, and 
        strategic military requirements, including interoperability, 
        reinforcement, and force modernization issues, as well as 
        strategic and territorial issues, that are raised by the 
        inclusion of Poland, the Czech Republic, and Hungary in the NATO 
        alliance.

[[Page 112 STAT. 2153]]

            (2) The minimum military requirements to be satisfied by 
        those countries before accession to the NATO alliance in April 
        1999.
            (3) The improvements to common alliance military assets that 
        are necessary as a result of expanding the NATO alliance to 
        include those nations.
            (4) The improvements to national capabilities of current 
        NATO members that would be necessitated by the inclusion of 
        those nations in the alliance.
            (5) The necessary improvements to national capabilities of 
        the military forces of those new member nations.
            (6) Any additional necessary improvements to common alliance 
        military assets of the military forces of those new members for 
        which funds are not planned to be included in the NATO budget.
            (7) The additional requirements, related to NATO expansion, 
        that the United States would agree to assist each new member 
        nation to meet on a bilateral basis.

    (b) Matters To Be Included.--The report shall include the following:
            (1) An assessment of the tactical and operational 
        capabilities of the military forces of Poland, the Czech 
        Republic, and Hungary.
            (2) An assessment of the ability of each such new member 
        nation to meet the minimum military requirements upon accession 
        to the NATO alliance in April 1999, and the ability of that 
        nation to provide logistical, command and control, and other 
        vital infrastructure required for alliance defense (as specified 
        in Article V of the NATO Charter), including a description in 
        general terms of alliance plans for reinforcing each new NATO 
        member nation during a crisis or war and detailing means for 
        deploying both United States and other NATO forces from current 
        member states and from the continental United States or other 
        United States bases worldwide and, in particular, describing 
        plans for ground reinforcement of Hungary.
            (3) An assessment of the ability of the current and new 
        alliance members to deploy and sustain combat forces in alliance 
        defense missions conducted in the territory of any of the new 
        member nations, as specified in Article V of the NATO Charter.
            (4) A description of projected defense programs through 2009 
        (shown on an annual basis and cumulatively) of each current and 
        new alliance member nation--
                    (A) including planned investments in capabilities 
                pursuant to Article V to ensure that--
                          (i) the nation's military force structure, 
                      defense planning, command structures, and force 
                      goals promote NATO's capacity to project power 
                      when the security of a NATO member is threatened; 
                      and
                          (ii) NATO members possess national military 
                      capabilities to rapidly deploy forces over long 
                      distances, sustain operations for extended 
                      periods, and operate jointly with the United 
                      States in high intensity conflicts as well as 
                      potential alliance contingency operations;
                    (B) showing both planned national efforts as well as 
                planned alliance common efforts; and

[[Page 112 STAT. 2154]]

                    (C) describing any deficiencies in investments by 
                current or new alliance member nations.
            (5) A detailed comparison and description of the differences 
        in scope, methodology, and assessments of common alliance or 
        national responsibilities, or any other factor related to 
        alliance capabilities between (A) the report on alliance 
        expansion costs prepared by the Department of Defense (in the 
        report submitted to Congress in February 1998 entitled ``Report 
        to the Congress on the Military Requirements and Costs of NATO 
        Enlargement''), and (B) the report on alliance expansion costs 
        prepared by NATO collectively and referred to as the ``NATO 
        estimate'', issued at Brussels in November 1997.
            (6) Any other factor that, in the judgment of the Secretary 
        of Defense, bears upon the strategic, operational, or tactical 
        military capabilities of an expanded NATO alliance.

     <<NOTE: Deadline.>> (c) Submission of Report.--The report shall be 
submitted to Congress not later than March 15, 1999.

SEC. 1223. <<NOTE: 22 USC 1928 note.>> REPORTS ON THE DEVELOPMENT OF THE 
            EUROPEAN SECURITY AND DEFENSE IDENTITY.

    (a) Requirement for Reports.--The Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives in accordance with 
this section reports on the development of the European Security and 
Defense Identity (ESDI) within the NATO Alliance that would enable the 
Western European Union (WEU), with the consent of the NATO Alliance, to 
assume the political control and strategic direction of NATO assets and 
capabilities made available by the Alliance.
    (b) Reports To Be Submitted.--The reports required to be submitted 
under subsection (a) are as follows:
            (1) An initial report, submitted not later than December 15, 
        1998, that contains a discussion of the actions taken, and the 
        plans for future actions, to build the European Security and 
        Defense Identity, together with the matters required under 
        subsection (c).
            (2) A semiannual report on the progress made toward 
        establishing the European Security and Defense Identity, 
        submitted not later than June 15 and December 15 of each year 
        after 1998.

    (c) Content of Reports.--The Secretary shall include in each report 
under this section the following:
            (1) A discussion of the arrangements between NATO and the 
        Western European Union for the release, transfer, monitoring, 
        return, and recall of NATO assets and capabilities.
            (2) A discussion of the development of such planning and 
        other capabilities by the Western European Union that are 
        necessary to provide political control and strategic direction 
        of NATO assets and capabilities.
            (3) A discussion of the development of terms of reference 
        for the Deputy Supreme Allied Commander, Europe, with respect to 
        the European Security and Defense Identity.
            (4) A discussion of the arrangements for the assignment or 
        appointment of NATO officers to serve in two positions 
        concurrently (commonly referred to as ``dual-hatting'').

[[Page 112 STAT. 2155]]

            (5) A discussion of the development of the Combined Joint 
        Task Force (CJTF) concept, including lessons-learned from the 
        NATO-led Stabilization Force in Bosnia.
            (6) Identification within the NATO Alliance of the types of 
        separable but not separate capabilities, assets, and support 
        assets for Western European Union-led operations.
            (7) Identification of separable but not separate 
        headquarters, headquarters elements, and command positions for 
        command and conduct of Western European Union-led operations.
            (8) The conduct by NATO, at the request of and in 
        coordination with the Western European Union, of military 
        planning and exercises for illustrative missions.
            (9) A discussion of the arrangements between NATO and the 
        Western European Union for the sharing of information, including 
        intelligence.
            (10) Such other information as the Secretary considers 
        useful for a complete understanding of the establishment of the 
        European Security and Defense Identity within the NATO Alliance.

    (d) Termination of Reporting Requirement.--The requirement to submit 
reports under subsection (b)(2) terminates upon the submission by the 
Secretary under that subsection of a report in which the Secretary 
states that the European Security and Defense Identity has been fully 
established.

                        Subtitle D--Other Matters

SEC. 1231. LIMITATION ON ASSIGNMENT OF UNITED STATES FORCES FOR CERTAIN 
            UNITED NATIONS PURPOSES.

    (a) Limitation on Participation in United Nations Rapidly Deployable 
Mission Headquarters.--If members of the Armed Forces are assigned 
during fiscal year 1999 to the United Nations Rapidly Deployable Mission 
Headquarters, the number of members so assigned may not exceed eight at 
any time during that year.
     <<NOTE: 10 USC 405 note.>> (b) Prohibition.--No funds available to 
the Department of Defense may be used--10 USC 405 note.
            (1) for a monetary contribution to the United Nations for 
        the establishment of a standing international force under the 
        United Nations; or
            (2) to assign or detail any member of the Armed Forces to 
        duty with a United Nations Stand By Force.

SEC. 1232. <<NOTE: 10 USC 111 note.>> PROHIBITION ON RESTRICTION OF 
            ARMED FORCES UNDER KYOTO PROTOCOL TO THE UNITED NATIONS 
            FRAMEWORK CONVENTION ON CLIMATE CHANGE.

    (a) In General.--Notwithstanding any other provision of law, no 
provision of the Kyoto Protocol to the United Nations Framework 
Convention on Climate Change, or any regulation issued pursuant to such 
protocol, shall restrict the training or operations of the United States 
Armed Forces or limit the military equipment procured by the United 
States Armed Forces.
    (b) Waiver.--A provision of law may not be construed as modifying or 
superseding the provisions of subsection (a) unless that provision of 
law--
            (1) specifically refers to this section; and

[[Page 112 STAT. 2156]]

            (2) specifically states that such provision of law modifies 
        or supersedes the provisions of this section.

    (c) Matters Not Affected.--Nothing in this section shall be 
construed to preclude the Department of Defense from implementing any 
measure to achieve efficiencies or for any other reason independent of 
the Kyoto Protocol.

SEC. 1233. DEFENSE BURDENSHARING.

     <<NOTE: Effective date.>> (a) Revised Goals for Efforts To Increase 
Allied Burdensharing.--Effective October 1, 1998, subsection (a) of 
section 1221 of the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105-85; 111 Stat. 1935; 22 U.S.C. 1928 note) is 
amended--
            (1) in paragraph (2), by striking out ``September 30, 1998'' 
        and inserting in lieu thereof ``September 30, 1999'';
            (2) in paragraph (3)--
                    (A) by striking out ``economic'' and all that 
                follows through ``rights'' and inserting in lieu thereof 
                ``governmental accountability and transparency, economic 
                stabilization and development, defense economic 
                conversion, respect for the rule of law and 
                internationally recognized human rights, and 
                humanitarian relief efforts)''; and
                    (B) by striking out ``at least to a level 
                commensurate to that of the United States by September 
                30, 1998'' and inserting in lieu thereof ``to provide 
                such foreign assistance at an annual rate that is not 
                less than one percent of its gross domestic product, by 
                September 30, 1999''; and
            (3) in paragraph (4)--
                    (A) by striking out ``amount of'';
                    (B) by striking out ``, or would be prepared to 
                contribute,'' and inserting in lieu thereof ``or has 
                pledged to contribute''; and
                    (C) by inserting before the period at the end the 
                following: ``by 10 percent by September 30, 1999''.

    (b) Revised Requirement for Report on Progress in Increasing Allied 
Burdensharing.--Subsection (c) of such section is amended--
            (1) by striking out ``March 1, 1998'' in the matter 
        preceding paragraph (1) and inserting in lieu thereof ``March 1, 
        1999''; and
            (2) in paragraph (3), by striking out ``March 1, 1996'' and 
        all that follows through the semicolon and inserting in lieu 
        thereof ``October 1, 1996, and ending on September 30, 1997, and 
        during the period beginning on October 1, 1997, and ending on 
        September 30, 1998, or, in the case of any nation for which the 
        data for such periods is inadequate, the difference between the 
        amounts for the latest periods for which adequate data is 
        available;''.

    (c) Extension of Deadline for Report Regarding National Security 
Bases for Forward Deployment and Burdensharing Relationships.--
Subsection (d)(2) of such section is amended by striking out ``March 1, 
1998'' and inserting in lieu thereof ``March 1, 1999''.

SEC. 1234. TRANSFER OF EXCESS UH-1 HUEY AND AH-1 COBRA HELICOPTERS TO 
            FOREIGN COUNTRIES.

    (a) In General.--Chapter 153 of title 10, United States Code, is 
amended by adding at the end the following new section:

[[Page 112 STAT. 2157]]

``Sec. 2581. Excess UH-1 Huey and AH-1 Cobra helicopters: requirements 
                        for transfer to foreign countries

    ``(a) Requirements.--(1) Before an excess UH-1 Huey helicopter or 
AH-1 Cobra helicopter is transferred on a grant or sales basis to a 
foreign country for the purpose of flight operations by that country, 
the Secretary of Defense shall make all reasonable efforts to ensure 
that the helicopter receives, to the extent necessary, maintenance and 
repair equivalent to the depot-level maintenance and repair (as defined 
in section 2460 of this title) that the helicopter would need were the 
helicopter to remain in operational use with the armed forces. Any such 
maintenance and repair work shall be performed at no cost to the 
Department of Defense.
    ``(2) The Secretary shall make all reasonable efforts to ensure that 
maintenance and repair work described in paragraph (1) is performed in 
the United States.
    ``(b) Exception.--Subsection (a) does not apply with respect to 
salvage helicopters provided to the foreign country solely as a source 
for spare parts.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2581. Excess UH-1 Huey and AH-1 Cobra helicopters: requirements for 
           transfer to foreign countries.''.

SEC. 1235. TRANSFERS OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

    (a) Transfers by Grant.--The Secretary of the Navy is authorized to 
transfer vessels to foreign countries on a grant basis under section 516 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:
            (1) To the Government of Argentina, the NEWPORT class tank 
        landing ship NEWPORT (LST 1179).
            (2) To the Government of Greece--
                    (A) the KNOX class frigate HEPBURN (FF 1055); and
                    (B) the ADAMS class guided missile destroyers 
                STRAUSS (DDG 16), SEMMS (DDG 18), and WADDELL (DDG 24).
            (3) To the Government of Portugal, the STALWART class ocean 
        surveillance ship ASSURANCE (T-AGOS 5).
            (4) To the Government of Turkey, the KNOX class frigates 
        PAUL (FF 1080), MILLER (FF 1091), and W.S. SIMMS (FF 1059).

    (b) Transfers by Sale.--The Secretary of the Navy is authorized to 
transfer vessels to foreign countries on a sales basis under section 21 
of the Arms Export Control Act (22 U.S.C. 2761) as follows:
            (1) To the Government of Brazil, the NEWPORT class tank 
        landing ships CAYUGA (LST 1186) and PEORIA (LST 1183).
            (2) To the Government of Chile--
                    (A) the NEWPORT class tank landing ship SAN 
                BERNARDINO (LST 1189); and
                    (B) the auxiliary repair dry dock WATERFORD (ARD 5).
            (3) To the Government of Greece--

[[Page 112 STAT. 2158]]

                    (A) the OAK RIDGE class medium dry dock ALAMAGORDO 
                (ARDM 2); and
                    (B) the KNOX class frigates VREELAND (FF 1068) and 
                TRIPPE (FF 1075).
            (4) To the Government of Mexico--
                    (A) the auxiliary repair dock SAN ONOFRE (ARD 30); 
                and
                    (B) the KNOX class frigate PHARRIS (FF 1094).
            (5) To the Government of the Philippines, the STALWART class 
        ocean surveillance ship TRIUMPH (T-AGOS 4).
            (6) To the Government of Spain, the NEWPORT class tank 
        landing ships HARLAN COUNTY (LST 1196) and BARNSTABLE COUNTY 
        (LST 1197).
            (7) To the Taipai Economic and Cultural Representative 
        Office in the United States (the Taiwan instrumentality that is 
        designated pursuant to section 10(a) of the Taiwan Relations 
        Act)--
                    (A) the KNOX class frigates PEARY (FF 1073), JOSEPH 
                HEWES (FF 1078), COOK (FF 1083), BREWTON (FF 1086), KIRK 
                (FF 1987), and BARBEY (FF 1088);
                    (B) the NEWPORT class tank landing ships MANITOWOC 
                (LST 1180) and SUMTER (LST 1181);
                    (C) the floating dry dock COMPETENT (AFDM 6); and
                    (D) the ANCHORAGE class dock landing ship PENSACOLA 
                (LSD 38).
            (8) To the Government of Turkey--
                    (A) the OLIVER HAZARD PERRY class guided missile 
                frigates MAHLON S. TISDALE (FFG 27), REID (FFG 30), and 
                DUNCAN (FFG 10); and
                    (B) the KNOX class frigates REASONER (FF 1063), 
                FANNING (FF 1076), BOWEN (FF 1079), MCCANDLESS (FF 
                1084), DONALD BEARY (FF 1085), AINSWORTH (FF 1090), 
                THOMAS C. HART (FF 1092), and CAPODANNO (FF 1093).
            (9) To the Government of Venezuela, the medium auxiliary 
        floating dry dock bearing hull number AFDM 2.

    (c) Transfers on a Combined Lease-Sale Basis.--The Secretary of the 
Navy is authorized to transfer vessels to foreign countries on a 
combined lease-sale basis under sections 61 and 21 of the Arms Export 
Control Act (22 U.S.C. 2796, 2761) and in accordance with subsection (d) 
as follows:
            (1) To the Government of Brazil, the CIMARRON class oiler 
        MERRIMACK (AO 179).
            (2) To the Government of Greece, the KIDD class guided 
        missile destroyers KIDD (DDG 993), CALLAGHAN (DDG 994), SCOTT 
        (DDG 995), and CHANDLER (DDG 996).

    (d) Conditions Relating To Combined Lease-Sale Transfers.--A 
transfer of a vessel on a combined lease-sale basis authorized by 
subsection (c) shall be made in accordance with the following 
requirements:
            (1) The Secretary may initially transfer the vessel by 
        lease, with lease payments suspended for the term of the lease, 
        if the country entering into the lease for the vessel 
        simultaneously enters into a foreign military sales agreement 
        for the transfer of title to the vessel.

[[Page 112 STAT. 2159]]

            (2) The Secretary may not deliver to the purchasing country 
        title to the vessel until the purchase price of the vessel under 
        such a foreign military sales agreement is paid in full.
            (3) Upon payment of the purchase price in full under such a 
        sales agreement and delivery of title to the recipient country, 
        the Secretary shall terminate the lease.
            (4) If the purchasing country fails to make full payment of 
        the purchase price in accordance with the sales agreement by the 
        date required under the sales agreement--
                    (A) the sales agreement shall be immediately 
                terminated;
                    (B) the suspension of lease payments under the lease 
                shall be vacated; and
                    (C) the United States shall be entitled to retain 
                all funds received on or before the date of the 
                termination under the sales agreement, up to the amount 
                of the lease payments due and payable under the lease 
                and all other costs required by the lease to be paid to 
                that date.
            (5) If a sales agreement is terminated pursuant to paragraph 
        (4), the United States shall not be required to pay any interest 
        to the recipient country on any amount paid to the United States 
        by the recipient country under the sales agreement and not 
        retained by the United States under the lease.

    (e) Requirement for Provision in Advance in an Appropriations Act.--
Authority to transfer vessels on a sale basis under subsection (b) or a 
combined lease-sale basis under subsection (c) is effective only to the 
extent that authority to effectuate such transfers, together with 
appropriations to cover the associated cost (as defined in section 502 
of the Congressional Budget of 1974 (2 U.S.C. 661a)), are provided in 
advance in an appropriations Act.
    (f ) Authorization of Appropriations for Certain Costs of 
Transfers.--There is established in the Treasury of the United States a 
special account to be known as the Defense Vessels Transfer Program 
Account. There is hereby authorized to be appropriated into that account 
such sums as may be necessary for the costs (as defined in section 502 
of the Congressional Budget Act of 1974 (2 U.S.C. 661a)) of the lease-
sale transfers authorized by subsection (c). Funds in that account are 
available only for the purpose of covering those costs.
    (g) Notification of Congress.--Not later than 30 days after the date 
of the enactment of this Act, the Secretary of the Navy shall submit to 
Congress, for each naval vessel that is to be transferred under this 
section before January 1, 1999, the notifications required under section 
516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) and section 
525 of the Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1998 (Public Law 105-118; 111 Stat. 2413).
    (h) Grants not Counted in Annual Total of Transferred Excess Defense 
Articles.--The value of a vessel transferred to another country on a 
grant basis under section 516 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2321j) pursuant to authority provided by subsection (a) shall not 
be counted for the purposes of subsection (g) of that section in the 
aggregate value of excess defense articles transferred to countries 
under that section in any fiscal year.

[[Page 112 STAT. 2160]]

    (i) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by this section shall be 
charged to the recipient (notwithstanding section 516(e)(1) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1)) in the case of a 
transfer authorized to be made on a grant basis under subsection (a)).
    ( j) Repair and Refurbishment in United States Shipyards.--To the 
maximum extent practicable, the Secretary of the Navy shall require, as 
a condition of the transfer of a vessel under this section, that the 
country to which the vessel is transferred have such repair or 
refurbishment of the vessel as is needed, before the vessel joins the 
naval forces of that country, performed at a shipyard located in the 
United States, including a United States Navy shipyard.
    (k) Expiration of Authority.--The authority to transfer a vessel 
under this section shall expire at the end of the 2-year period 
beginning on the date of the enactment of this Act.

SEC. 1236. REPEAL OF LANDMINE MORATORIUM.

    Section 580 of the Foreign Operations Appropriations Act, 1996 
(Public Law 104-107; 110 Stat. 751), is repealed.

SEC. 1237. <<NOTE: 50 USC 1701 note.>> APPLICATION OF AUTHORITIES UNDER 
            THE INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT TO COMMUNIST 
            CHINESE MILITARY COMPANIES.

    (a) Presidential Authority.--
            (1) In general.--The President may exercise IEEPA 
        authorities (other than authorities relating to importation) 
        without regard to section 202 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1701) in the case of any 
        commercial activity in the United States by a person that is on 
        the list published under subsection (b).
            (2) Penalties.--The penalties set forth in section 206 of 
        the International Emergency Economic Powers Act (50 U.S.C. 1705) 
        apply to violations of any license, order, or regulation issued 
        under paragraph (1).
            (3) Ieepa authorities.--For purposes of paragraph (1), the 
        term ``IEEPA authorities'' means the authorities set forth in 
        section 203(a) of the International Emergency Economic Powers 
        Act (50 U.S.C. 1702(a)).

    (b) Determination and Publication of Communist Chinese Military 
Companies Operating in United States.--
             <<NOTE: Federal Register, publication.>> (1) Initial 
        determination and publication.--Not later than 90 days after the 
        date of the enactment of this Act, the Secretary of Defense 
        shall make a determination of those persons operating directly 
        or indirectly in the United States or any of its territories and 
        possessions that are Communist Chinese military companies and 
        shall publish a list of those persons in the Federal Register.
            (2) Revisions to list.--The Secretary of Defense shall make 
        additions or deletions to the list published under paragraph (1) 
        on an ongoing basis based on the latest information available.
            (3) Consultation.--The Secretary of Defense shall consult 
        with the following officers in carrying out paragraphs (1) and 
        (2):
                    (A) The Attorney General.
                    (B) The Director of Central Intelligence.

[[Page 112 STAT. 2161]]

                    (C) The Director of the Federal Bureau of 
                Investigation.
            (4) Communist chinese military company.--For purposes of 
        making the determination required by paragraph (1) and of 
        carrying out paragraph (2), the term ``Communist Chinese 
        military company'' means--
                    (A) any person identified in the Defense 
                Intelligence Agency publication numbered VP-1920-271-90, 
                dated September 1990, or PC-1921-57-95, dated October 
                1995, and any update of those publications for the 
                purposes of this section; and
                    (B) any other person that--
                          (i) is owned or controlled by the People's 
                      Liberation Army; and
                          (ii) is engaged in providing commercial 
                      services, manufacturing, producing, or exporting.

    (c) People's Liberation Army.--For purposes of this section, the 
term ``People's Liberation Army'' means the land, naval, and air 
military services, the police, and the intelligence services of the 
Communist Government of the People's Republic of China, and any member 
of any such service or of such police.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
           funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition on use of funds for specified purposes.
Sec. 1304. Limitation on use of funds for chemical weapons destruction 
           activities in Russia.
Sec. 1305. Limitation on use of funds for biological weapons 
           proliferation prevention activities in Russia.
Sec. 1306. Cooperative counter-proliferation program.
Sec. 1307. Requirement to submit summary of amounts requested by project 

           category.
Sec. 1308. Report on biological weapons programs in Russia.
Sec. 1309. Report on individuals with expertise in former Soviet weapons 
           of mass destruction programs.

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
            FUNDS.

     <<NOTE: 22 USC 5952 note.>> (a) Specification of CTR Programs.--(1) 
For purposes of section 301 and other provisions of this Act, 
Cooperative Threat Reduction programs are the programs specified in 
section 1501(b) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 note) (as 
amended by paragraph (2)).

    (2) Section 1501(b)(3) of such Act <<NOTE: 50 USC 2362 note.>> is 
amended by inserting ``materials,'' after ``components,''.

    (b) Fiscal Year 1999 Cooperative Threat Reduction Funds Defined.--As 
used in this title, the term ``fiscal year 1999 Cooperative Threat 
Reduction funds'' means the funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs.
    (c) Availability of Funds.--Funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs shall be available for obligation for three fiscal 
years.

[[Page 112 STAT. 2162]]

SEC. 1302. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the amounts authorized to be 
appropriated to the Department of Defense for fiscal year 1999 in 
section 301(23), $440,400,000 shall be available to carry out 
Cooperative Threat Reduction programs, of which not more than the 
following amounts may be obligated for the purposes specified:
            (1) For strategic offensive arms elimination in Russia, 
        $142,400,000.
            (2) For strategic nuclear arms elimination in Ukraine, 
        $47,500,000.
            (3) For activities to support warhead dismantlement 
        processing in Russia, $9,400,000.
            (4) For activities associated with chemical weapons 
        destruction in Russia, $88,400,000.
            (5) For weapons transportation security in Russia, 
        $10,300,000.
            (6) For planning, design, and construction of a storage 
        facility for Russian fissile material, $60,900,000.
            (7) For weapons storage security in Russia, $41,700,000.
            (8) For development of a cooperative program with the 
        Government of Russia to eliminate the production of weapons 
        grade plutonium at Russian reactors, $29,800,000.
            (9) For biological weapons proliferation prevention 
        activities in Russia, $2,000,000.
            (10) For activities designated as Other Assessments/
        Administrative Support, $8,000,000.

    (b) Limited Authority To Vary Individual Amounts.--(1) If the 
Secretary of Defense determines that it is necessary to do so in the 
national interest, the Secretary may, subject to paragraphs (2) and (3), 
obligate amounts for the purposes stated in any of the paragraphs of 
subsection (a) in excess of the amount specified for those purposes in 
that paragraph. However, the total amount obligated for the purposes 
stated in the paragraphs in subsection (a) may not by reason of the use 
of the authority provided in the preceding sentence exceed the sum of 
the amounts specified in those paragraphs.
    (2) An obligation for the purposes stated in any of the paragraphs 
in subsection (a) in excess of the amount specified in that paragraph 
may be made using the authority provided in paragraph (1) only after--
            (A) the Secretary submits to Congress notification of the 
        intent to do so together with a complete discussion of the 
        justification for doing so; and
            (B) 15 days have elapsed following the date of the 
        notification.

    (3) The Secretary may not, under the authority provided in paragraph 
(1), obligate amounts appropriated for the purposes stated in any of 
paragraphs (3) through (10) of subsection (a) in excess of 115 percent 
of the amount stated in those paragraphs.

SEC. 1303. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

    (a) In General.--No fiscal year 1999 Cooperative Threat Reduction 
funds, and no funds appropriated for Cooperative Threat Reduction 
programs for any prior fiscal year and remaining available for 
obligation, may be obligated or expended for any of the following 
purposes:

[[Page 112 STAT. 2163]]

            (1) Conducting with Russia any peacekeeping exercise or 
        other peacekeeping-related activity.
            (2) Provision of housing.
            (3) Provision of assistance to promote environmental 
        restoration.
            (4) Provision of assistance to promote job retraining.

    (b) Limitation With Respect to Defense Conversion Assistance.--None 
of the funds appropriated pursuant to this Act may be obligated or 
expended for the provision of assistance to Russia or any other state of 
the former Soviet Union to promote defense conversion.

SEC. 1304. <<NOTE: 22 USC 5952 note.>> LIMITATION ON USE OF FUNDS FOR 
            CHEMICAL WEAPONS DESTRUCTION ACTIVITIES IN RUSSIA.

    (a) Limitation.--Subject to the limitation in section 1405(b) of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 1961), no funds authorized to be appropriated for 
Cooperative Threat Reduction programs under this Act or any other Act 
may be obligated or expended for chemical weapons destruction activities 
in Russia (including activities for the planning, design, or 
construction of a chemical weapons destruction facility or for the 
dismantlement of an existing chemical weapons production facility) until 
the President submits to Congress a written certification described in 
subsection (b).
    (b) Presidential Certification.--A certification under this 
subsection is either of the following certifications by the President:
            (1) A certification that--
                    (A) Russia is making reasonable progress toward the 
                implementation of the Bilateral Destruction Agreement;
                    (B) the United States and Russia have made 
                substantial progress toward the resolution, to the 
                satisfaction of the United States, of outstanding 
                compliance issues under the Wyoming Memorandum of 
                Understanding and the Bilateral Destruction Agreement; 
                and
                    (C) Russia has fully and accurately declared all 
                information regarding its unitary and binary chemical 
                weapons, chemical weapons facilities, and other 
                facilities associated with chemical weapons.
            (2) A certification that the national security interests of 
        the United States could be undermined by a policy of the United 
        States not to carry out chemical weapons destruction activities 
        under Cooperative Threat Reduction programs for which funds are 
        authorized to be appropriated under this Act or any other Act 
        for fiscal year 1999.

    (c) Definitions.--In this section:
            (1) The term ``Bilateral Destruction Agreement'' means the 
        Agreement Between the United States of America and the Union of 
        Soviet Socialist Republics on Destruction and Non-production of 
        Chemical Weapons and on Measures to Facilitate the Multilateral 
        Convention on Banning Chemical Weapons signed on June 1, 1990.
            (2) The term ``Wyoming Memorandum of Understanding'' means 
        the Memorandum of Understanding Between the Government of the 
        United States of America and the Government of the Union of 
        Soviet Socialist Republics Regarding a Bilateral Verification 
        Experiment and Data Exchange Related

[[Page 112 STAT. 2164]]

        to Prohibition on Chemical Weapons, signed at Jackson Hole, 
        Wyoming, on September 23, 1989.

SEC. 1305. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL WEAPONS 
            PROLIFERATION PREVENTION ACTIVITIES IN RUSSIA.

    No fiscal year 1999 Cooperative Threat Reduction funds may be 
obligated or expended for biological weapons proliferation prevention 
activities in Russia until 15 days after the date on which the Secretary 
submits to the congressional defense committees a report on--
            (1) whether Cooperative Threat Reduction funds provided for 
        cooperative research activities at biological research 
        institutes in Russia have been used--
                    (A) to support activities to develop new strains of 
                anthrax; or
                    (B) for any purpose inconsistent with the objectives 
                of providing such funds; and
            (2) the new strains of anthrax alleged to have been 
        developed at a biological research institute in Russia and any 
        efforts by the United States to examine such strains.

SEC. 1306. COOPERATIVE COUNTER PROLIFERATION PROGRAM.

    (a) In General.--Of the amount authorized to be appropriated in 
section 1302 (other than the amounts authorized to be appropriated in 
subsections (a)(1) and (a)(2) of that section) and subject to the 
limitations in that section and subsection (b), the Secretary of Defense 
may provide a country of the former Soviet Union with emergency 
assistance for removing or obtaining from that country--
            (1) weapons of mass destruction; or
            (2) materials, equipment, or technology related to the 
        development or delivery of weapons of mass destruction.

    (b) Certification Required.--(1) The Secretary may not provide 
assistance under subsection (a) until 15 days after the date that the 
Secretary submits to the congressional defense committees a 
certification in writing that the weapons, materials, equipment, or 
technology described in that subsection meet each of the following 
requirements:
            (A) The weapons, materials, equipment, or technology are at 
        risk of being sold or otherwise transferred to a restricted 
        foreign state or entity.
            (B) The transfer of the weapons, materials, equipment, or 
        technology would pose a significant near-term threat to the 
        national security interests of the United States or would 
        significantly advance a foreign country's weapon program that 
        threatens the national security interests of the United States.
            (C) Other options for securing or otherwise preventing the 
        transfer of the weapons, materials, equipment, or technology 
        have been considered and rejected as ineffective or inadequate.

    (2) The 15-day notice requirement in paragraph (1) may be waived if 
the Secretary determines that compliance with the requirement would 
compromise the national security interests of the United States. In such 
case, the Secretary shall promptly notify the congressional defense 
committees of the circumstances regarding such determination in advance 
of providing assistance under subsection (a) and shall submit the 
certification required not later than 30 days after providing such 
assistance.

[[Page 112 STAT. 2165]]

    (c) Content of Certifications.--Each certification required under 
subsection (b) shall contain information on the following with respect 
to the assistance being provided:
            (1) The specific assistance provided and the purposes for 
        which the assistance is being provided.
            (2) The sources of funds for the assistance.
            (3) Whether any assistance is being provided by any other 
        Federal department or agency.
            (4) The options considered and rejected for preventing the 
        transfer of the weapons, materials, equipment, or technology, as 
        described in subsection (b)(1)(C).
            (5) Whether funding was requested by the Secretary from 
        other Federal departments or agencies.
            (6) Any additional information that the Secretary determines 
        is relevant to the assistance being provided.

    (d) Additional Sources of Funding.--The Secretary may request 
assistance and accept funds from other Federal departments or agencies 
in carrying out this section.
    (e) Definitions.--In this section:
            (1) The term ``restricted foreign state or entity'', with 
        respect to weapons, materials, equipment, or technology covered 
        by a certification or notification of the Secretary of Defense 
        under subsection (b), means--
                    (A) any foreign country the government of which has 
                repeatedly provided support for acts of international 
                terrorism, as determined by the Secretary of State under 
                section 620A of the Foreign Assistance Act of 1961 (22 
                U.S.C. 2371); or
                    (B) any foreign state or entity that the Secretary 
                of Defense determines would constitute a military threat 
                to the United States, its allies, or interests, if that 
                foreign state or entity were to possess the weapons, 
                materials, equipment, or technology.
            (2) The term ``weapons of mass destruction'' has the meaning 
        given that term in section 1403(1) of the Defense Against 
        Weapons of Mass Destruction Act of 1996 (title XIV of Public Law 
        104-201; 50 U.S.C. 2302(1)).

SEC. 1307. <<NOTE: 22 USC 5952 note.>> REQUIREMENT TO SUBMIT SUMMARY OF 
            AMOUNTS REQUESTED BY PROJECT CATEGORY.

    (a) Summary Required.--The Secretary of Defense shall submit to 
Congress as part of the Secretary's annual budget request to Congress--
            (1) a descriptive summary, with respect to the 
        appropriations requested for Cooperative Threat Reduction 
        programs for the fiscal year after the fiscal year in which the 
        summary is submitted, of the amounts requested for each project 
        category under each Cooperative Threat Reduction program 
        element; and
            (2) a descriptive summary, with respect to appropriations 
        for Cooperative Threat Reduction programs for the fiscal year in 
        which the list is submitted and the previous fiscal year, of the 
        amounts obligated or expended, or planned to be obligated or 
        expended, for each project category under each Cooperative 
        Threat Reduction program element.

    (b) Description of Purpose and Intent.--The descriptive summary 
required under subsection (a) shall include a narrative

[[Page 112 STAT. 2166]]

description of each program and project category under each Cooperative 
Threat Reduction program element that explains the purpose and intent of 
the funds requested.

SEC. 1308. REPORT ON BIOLOGICAL WEAPONS PROGRAMS IN RUSSIA.

    (a) Report.--Not later than March 1, 1999, the Secretary of Defense 
shall submit to the congressional defense committees a report, in 
classified and unclassified forms, containing--
            (1) an assessment of the extent of compliance by Russia with 
        international agreements relating to the control of biological 
        weapons; and
            (2) a detailed evaluation of the potential political and 
        military costs and benefits of collaborative biological pathogen 
        research efforts by the United States and Russia.

    (b) Content of Report.--The report required under subsection (a) 
shall include the following:
            (1) An evaluation of the extent of the control and oversight 
        by the Government of Russia over the military and civilian-
        military biological warfare programs formerly controlled or 
        overseen by states of the former Soviet Union.
            (2) The extent and scope of continued biological warfare 
        research, development, testing, and production in Russia, 
        including the sites where such activity is occurring and the 
        types of activity being conducted.
            (3) An assessment of compliance by Russia with the terms of 
        the Biological Weapons Convention.
            (4) An identification and assessment of the measures taken 
        by Russia to comply with the obligations assumed under the Joint 
        Statement on Biological Weapons, agreed to by the United States, 
        the United Kingdom, and Russia on September 14, 1992.
            (5) A description of the extent to which Russia has 
        permitted individuals from the United States or other countries 
        to visit military and nonmilitary biological research, 
        development, testing, and production sites in order to resolve 
        ambiguities regarding activities at such sites.
            (6) A description of the information provided by Russia 
        about its biological weapons dismantlement efforts to date.
            (7) An assessment of the accuracy and comprehensiveness of 
        declarations by Russia regarding its biological weapons 
        activities.
            (8) An identification of collaborative biological research 
        projects carried out by the United States and Russia for which 
        Cooperative Threat Reduction funds have been used.
            (9) An evaluation of the political and military utility of 
        prior, existing, and prospective cooperative biological pathogen 
        research programs carried out between the United States and 
        Russia, and an assessment of the impact of such programs on 
        increasing Russian military transparency with respect to 
        biological weapons activities.
            (10) An assessment of the political and military utility of 
        the long-term collaborative program advocated by the National 
        Academy of Sciences in its October 27, 1997 report, 
        ``Controlling Dangerous Pathogens: A Blueprint for U.S.-Russian 
        Cooperation''.

[[Page 112 STAT. 2167]]

SEC. 1309. REPORT ON INDIVIDUALS WITH EXPERTISE IN FORMER SOVIET WEAPONS 
            OF MASS DESTRUCTION PROGRAMS.

    Not later than January 31, 1999, the Secretary of Defense, in 
consultation with the Secretary of State, the Secretary of Energy, and 
any other appropriate officials, shall submit to the congressional 
defense committees a report on the number of individuals in the former 
Soviet Union who have significant expertise in the research, 
development, production, testing, and operational employment of 
ballistic missiles and weapons of mass destruction. The report shall 
contain the following:
            (1) A listing of the specific expertise of the individuals, 
        by category and discipline.
            (2) An assessment of which categories of expertise would 
        pose the greatest risks to the security of the United States if 
        that expertise were transferred to potentially hostile states.
            (3) An estimate, by category, of the number of the 
        individuals in paragraph (1) who are fully or partly employed at 
        the time the report is submitted by the military-industrial 
        complex of the former Soviet Union, the number of such 
        individuals who are fully employed at the time the report is 
        submitted by commercial ventures outside the military-industrial 
        complex of the former Soviet Union, and the number of such 
        individuals who are unemployed and underemployed at the time the 
        report is submitted.
            (4) An identification of the nature, scope, and cost of 
        activities conducted by the United States and other countries to 
        assist in the employment in nonproliferation and nonmilitary-
        related endeavors and enterprises of individuals involved in the 
        weapons complex of the former Soviet Union, and which categories 
        of individuals are being targeted in these efforts.
            (5) An assessment of whether the activities identified under 
        paragraph (4) should be reduced, maintained, or expanded.

TITLE XIV--DOMESTIC <<NOTE: Defense Against Weapons of Mass Destruction 
    Act of 1998.>> PREPAREDNESS FOR DEFENSE AGAINST WEAPONS OF MASS 
DESTRUCTION

Sec. 1401. Short title.
Sec. 1402. Domestic preparedness for response to threats of terrorist 
           use of weapons of mass destruction.
Sec. 1403. Report on domestic emergency preparedness.
Sec. 1404. Threat and risk assessments.
Sec. 1405. Advisory panel to assess domestic response capabilities for 
           terrorism 
           involving weapons of mass destruction.

SEC. 1401. <<NOTE: 50 USC 2301 note.>> SHORT TITLE.

    This title may be cited as the ``Defense Against Weapons of Mass 
Destruction Act of 1998''.

SEC. 1402. <<NOTE: 50 USC 2301 note.>> DOMESTIC PREPAREDNESS FOR 
            RESPONSE TO THREATS OF TERRORIST USE OF WEAPONS OF MASS 
            DESTRUCTION.

    (a) Enhanced Response Capability.--In light of the continuing 
potential for terrorist use of weapons of mass destruction against the 
United States and the need to develop a more fully coordinated response 
to that threat on the part of Federal, State, and local agencies, the 
President shall act to increase the effectiveness at

[[Page 112 STAT. 2168]]

the Federal, State, and local level of the domestic emergency 
preparedness program for response to terrorist incidents involving 
weapons of mass destruction by utilizing the President's existing 
authorities to develop an integrated program that builds upon the 
program established under the Defense Against Weapons of Mass 
Destruction Act of 1996 (title XIV of Public Law 104-201; 110 Stat. 
2714; 50 U.S.C. 2301 et seq.).
     <<NOTE: President.>> (b) Report.--Not later than January 31, 1999, 
the President shall submit to Congress a report containing information 
on the actions taken at the Federal, State, and local level to develop 
an integrated program to prevent and respond to terrorist incidents 
involving weapons of mass destruction.

SEC. 1403. REPORT ON DOMESTIC EMERGENCY <<NOTE: 50 USC 2301 
            note.>> PREPAREDNESS.

    Section 1051 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1889; 31 U.S.C. 1113 note) is 
amended by adding at the end the following new subsection:
    ``(c) Annex on Domestic Emergency Preparedness Program.--As part of 
the annual report submitted to Congress under subsection (b), the 
President shall include an annex which provides the following 
information on the domestic emergency preparedness program for response 
to terrorist incidents involving weapons of mass destruction (as 
established under section 1402 of the Defense Against Weapons of Mass 
Destruction Act of 1998):
            ``(1) Information on program responsibilities for each 
        participating Federal department, agency, and bureau.
            ``(2) A summary of program activities performed during the 
        preceding fiscal year for each participating Federal department, 
        agency, and bureau.
            ``(3) A summary of program obligations and expenditures 
        during the preceding fiscal year for each participating Federal 
        department, agency, and bureau.
            ``(4) A summary of the program plan and budget for the 
        current fiscal year for each participating Federal department, 
        agency, and bureau.
            ``(5) The program budget request for the following fiscal 
        year for each participating Federal department, agency, and 
        bureau.
            ``(6) Recommendations for improving Federal, State, and 
        local domestic emergency preparedness to respond to incidents 
        involving weapons of mass destruction that have been made by the 
        advisory panel to assess the capabilities of domestic response 
        to terrorism involving weapons of mass destruction (as 
        established under section 1405 of the Defense Against Weapons of 
        Mass Destruction Act of 1998), and actions taken as a result of 
        such recommendations.
            ``(7) Additional program measures and legislative authority 
        for which congressional action may be required.''.

SEC. 1404. THREAT AND RISK <<NOTE: 50 USC 2301 note.>> ASSESSMENTS.

    (a) Requirement To Develop Methodologies.--The Attorney General, in 
consultation with the Director of the Federal Bureau of Investigation 
and representatives of appropriate Federal, State, and local agencies, 
shall develop and test methodologies for assessing the threat and risk 
of terrorist employment of weapons of mass destruction against cities 
and other local areas. The results of the tests may be used to determine 
the training and equipment

[[Page 112 STAT. 2169]]

requirements under the program developed under section 1402. The 
methodologies required by this subsection shall be developed using 
cities or local areas selected by the Attorney General, acting in 
consultation with the Director of the Federal Bureau of Investigation 
and appropriate representatives of Federal, State, and local agencies.
    (b) Required Completion Date.--The requirements in subsection (a) 
shall be completed not later than 1 year after the date of the enactment 
of this Act.

SEC. 1405. <<NOTE: 50 USC 2301 note.>> ADVISORY PANEL TO ASSESS DOMESTIC 
            RESPONSE CAPABILITIES FOR TERRORISM INVOLVING WEAPONS OF 
            MASS DESTRUCTION.

     <<NOTE: Contracts.>> (a) Requirement for Panel.--The Secretary of 
Defense, in consultation with the Attorney General, the Secretary of 
Energy, the Secretary of Health and Human Services, and the Director of 
the Federal Emergency Management Agency, shall enter into a contract 
with a federally funded research and development center to establish a 
panel to assess the capabilities for domestic response to terrorism 
involving weapons of mass destruction.

    (b) Composition of Panel; Selection.--(1) The panel shall be 
composed of members who shall be private citizens of the United States 
with knowledge and expertise in emergency response matters.
    (2) Members of the panel shall be selected by the federally funded 
research and development center in accordance with the terms of the 
contract established pursuant to subsection (a).
    (c) Procedures for Panel.--The federally funded research and 
development center shall be responsible for establishing appropriate 
procedures for the panel, including procedures for selection of a panel 
chairman.
    (d) Duties of Panel.--The panel shall--
            (1) assess Federal agency efforts to enhance domestic 
        preparedness for incidents involving weapons of mass 
        destruction;
            (2) assess the progress of Federal training programs for 
        local emergency responses to incidents involving weapons of mass 
        destruction;
            (3) assess deficiencies in programs for response to 
        incidents involving weapons of mass destruction, including a 
        review of unfunded communications, equipment, and planning 
        requirements, and the needs of maritime regions;
            (4) recommend strategies for ensuring effective coordination 
        with respect to Federal agency weapons of mass destruction 
        response efforts, and for ensuring fully effective local 
        response capabilities for weapons of mass destruction incidents; 
        and
            (5) assess the appropriate roles of State and local 
        government in funding effective local response capabilities.

    (e) Deadline To Enter Into Contract.--The Secretary of Defense shall 
enter into the contract required under subsection (a) not later than 60 
days after the date of the enactment of this Act.
    (f ) Deadline for Selection of Panel Members.--Selection of panel 
members shall be made not later than 30 days after the date on which the 
Secretary enters into the contract required by subsection (a).

[[Page 112 STAT. 2170]]

    (g) Initial Meeting of the Panel.--The panel shall conduct its first 
meeting not later than 30 days after the date that all the selections to 
the panel have been made.
    (h) Reports.--(1) Not later than 6 months after the date of the 
first meeting of the panel, the panel shall submit to the President and 
to Congress an initial report setting forth its findings, conclusions, 
and recommendations for improving Federal, State, and local domestic 
emergency preparedness to respond to incidents involving weapons of mass 
destruction.
    (2) Not later than December 15 of each year, beginning in 1999 and 
ending in 2001, the panel shall submit to the President and to the 
Congress a report setting forth its findings, conclusions, and 
recommendations for improving Federal, State, and local domestic 
emergency preparedness to respond to incidents involving weapons of mass 
destruction.
    (i) Cooperation of Other Agencies.--(1) The panel may secure 
directly from the Department of Defense, the Department of Energy, the 
Department of Health and Human Services, the Department of Justice, and 
the Federal Emergency Management Agency, or any other Federal department 
or agency information that the panel considers necessary for the panel 
to carry out its duties.
    (2) The Attorney General, the Secretary of Defense, the Secretary of 
Energy, the Secretary of Health and Human Services, the Director of the 
Federal Emergency Management Agency, and any other official of the 
United States shall provide the panel with full and timely cooperation 
in carrying out its duties under this section.
    ( j) Funding.--The Secretary of Defense shall provide the funds 
necessary for the panel to carry out its duties from the funds available 
to the Department of Defense for weapons of mass destruction 
preparedness initiatives.
    (k) Compensation of Panel Members.--(1) Members of the panel shall 
serve without pay by reason of their work on the panel.
    (2) Members of the panel shall be allowed travel expenses, including 
per diem in lieu of subsistence, at rates authorized for employees of 
agencies under subchapter 57 of title 5, United States Code, while away 
from their homes or regular place of business in performance of services 
for the panel.
    (l) Termination of the Panel.--The panel shall terminate three years 
after the date of the appointment of the member selected as chairman of 
the panel.
    (m) Definition.--In this section, the term ``weapon of mass 
destruction'' has the meaning given that term in section 1403(1) of the 
Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 
2302(1)).

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

                    Subtitle A--Arms Control Matters

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

[[Page 112 STAT. 2171]]

Sec. 1502. Transmission of executive branch reports providing Congress 
           with classified summaries of arms control developments.
Sec. 1503. Report on adequacy of emergency communications capabilities 
           between United States and Russia.
Sec. 1504. Russian nonstrategic nuclear weapons.

                  Subtitle B--Satellite Export Controls

Sec. 1511. Sense of Congress.
Sec. 1512. Certification of exports of missile equipment or technology 
           to China.
Sec. 1513. Satellite controls under the United States Munitions List.
Sec. 1514. National security controls on satellite export licensing.
Sec. 1515. Report on export of satellites for launch by People's 
           Republic of China.
Sec. 1516. Related items defined.

                Subtitle C--Other Export Control Matters

Sec. 1521. Authority for export control activities of the Department of 
           Defense.
Sec. 1522. Release of export information by Department of Commerce to 
           other agencies for purpose of national security assessment.
Sec. 1523. Nuclear export reporting requirement.
Sec. 1524. Execution of objection authority within the Department of 
           Defense.

                Subtitle D--Counterproliferation Matters

Sec. 1531. One-year extension of counterproliferation authorities for 
           support of 
           United Nations Special Commission on Iraq.
Sec. 1532. Sense of Congress on nuclear tests in South Asia.
Sec. 1533. Report on requirements for response to increased missile 
           threat in Asia-Pacific region.

                    Subtitle A--Arms Control Matters

SEC. 1501. ONE-YEAR EXTENSION OF LIMITATION ON RETIREMENT OR 
            DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY SYSTEMS.

    Section 1302 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1948) is amended--
            (1) in subsections (a), (b), and (c)(2), by striking out 
        ``during fiscal year 1998'' and inserting in lieu thereof 
        ``during the strategic delivery systems retirement limitation 
        period'';
            (2) in subsection (c)(1), by striking out ``during fiscal 
        year 1998'';
            (3) in subsection (d)(1)--
                    (A) by striking out ``for fiscal year 1998''; and
                    (B) by striking out ``during fiscal year 1998''; and
            (4) by adding at the end the following new subsection:

    ``(g) Strategic Delivery Systems Retirement Limitation Period.--For 
purposes of this section, the term `strategic delivery systems 
retirement limitation period' means the period of fiscal years 1998 and 
1999.''.

SEC. 1502. <<NOTE: 22 USC 2593a note.>> TRANSMISSION OF EXECUTIVE BRANCH 
            REPORTS PROVIDING CONGRESS WITH CLASSIFIED SUMMARIES OF ARMS 
            CONTROL DEVELOPMENTS.

    (a) Reporting Requirement.--The Director of the Arms Control and 
Disarmament Agency (or the Secretary of State, if the Arms Control and 
Disarmament Agency becomes an element of the Department of State) shall 
transmit to the Committee on National Security of the House of 
Representatives on a periodic basis reports containing classified 
summaries of arms control devel-
opments.

[[Page 112 STAT. 2172]]

    (b) Contents of Reports.--The reports required by subsection (a) 
shall include information reflecting the activities of forums 
established to consider issues relating to treaty implementation and 
treaty compliance.

SEC. 1503. REPORT ON ADEQUACY OF EMERGENCY COMMUNICATIONS CAPABILITIES 
            BETWEEN UNITED STATES AND RUSSIA.

    Not later than 3 months after the date of the enactment of this Act, 
the Secretary of Defense shall submit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the House of 
Representatives a report on the status and adequacy of current direct 
communications capabilities between the governments of the United States 
and Russia. The report shall identify each existing direct 
communications link between those governments and each such link that is 
designed to be used, or is available to be used, in an emergency 
situation. The Secretary shall describe in the report any shortcomings 
with the existing communications capabilities and shall include such 
proposals as the Secretary considers appropriate to improve those 
capabilities. In considering improvements to propose, the Secretary 
shall assess the feasibility and desirability of establishing a direct 
communications link between the commanders of appropriate United States 
unified and specified commands, including the United States Space 
Command and the United States Strategic Command, and their Russian 
counterparts.

SEC. 1504. RUSSIAN NONSTRATEGIC NUCLEAR WEAPONS.

    (a) Findings.--The Congress makes the following findings:
            (1) The 7,000 to 12,000 or more nonstrategic (or 
        ``tactical'') nuclear weapons estimated by the United States 
        Strategic Command to be in the Russian arsenal may present the 
        greatest threat of sale or theft of a nuclear warhead in the 
        world today.
            (2) As the number of deployed strategic warheads in the 
        Russian and United States arsenals declines to just a few 
        thousand under the START accords, Russia's vast superiority in 
        tactical nuclear warheads--many of which have yields equivalent 
        to strategic nuclear weapons--could become strategically 
        destabilizing.
            (3) While the United States has unilaterally reduced its 
        inventory of tactical nuclear weapons by nearly 90 percent since 
        the end of the Cold War, Russia is behind schedule in 
        implementing the steep tactical nuclear arms reductions pledged 
        by former Soviet President Gorbachev in 1991 and Russian 
        President Yeltsin in 1992, perpetuating the dangers from 
        Russia's tactical nuclear stockpile.

    (b) Sense of Congress.--It is the sense of Congress that the 
President should call on Russia to expedite reduction of its tactical 
nuclear arsenal in accordance with the promises made in 1991 and 1992.
    (c) Report.--Not later than March 15, 1999, the Secretary of Defense 
shall submit to Congress a report on the nonstrategic nuclear weapons of 
Russia. The report shall include--
            (1) estimates regarding the current numbers, types, yields, 
        viability, and locations of those weapons;
            (2) an assessment of the strategic implications of Russia's 
        nonstrategic arsenal, including the potential use of those 
        weapons in a strategic role or the use of their components in 
        strategic

[[Page 112 STAT. 2173]]

        nuclear systems and the potential of Russian superiority in 
        tactical nuclear weapons to destabilize the overall nuclear 
        balance as strategic nuclear weapons are sharply reduced under 
        the START accords;
            (3) an assessment of the extent of the current threat of 
        theft, sale, or unauthorized use of the warheads of those 
        weapons, including an analysis of Russian command and control as 
        it concerns the use of tactical nuclear weapons;
            (4) a summary of past, current, and planned efforts to work 
        cooperatively with Russia to account for, secure, and reduce 
        Russia's stockpile of tactical nuclear weapons and associated 
        fissile material;
            (5) a summary of how the United States would prevent, or 
        plans to cope militarily with, scenarios in which a 
        deterioration in relations with Moscow causes Russia to redeploy 
        tactical nuclear weapons or in which Russia threatens to employ, 
        or actually employs, tactical nuclear weapons in a local or 
        regional conflict involving the United States or allies of the 
        United States; and
            (6) an assessment of the steps that could be taken by the 
        United States to enhance military preparedness in order (A) to 
        deter any potential attempt by Russia to possibly exploit its 
        advantage in tactical nuclear weapons through coercive ``nuclear 
        diplomacy'' or on the battlefield, or (B) to counter Russia if 
        Russia should make such an attempt to exploit its advantage in 
        tactical nuclear weapons.

    (d) Views.--The Secretary of Defense shall include in the report 
under subsection (c) the views of the Director of Central Intelligence 
and of the commander of the United States Strategic Command.

                  Subtitle B--Satellite Export Controls

SEC. 1511. <<NOTE: 22 USC 2778 note.>> SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) United States business interests must not be placed 
        above United States national security interests;
            (2) United States foreign policy and the policies of the 
        United States regarding commercial relations with other 
        countries should affirm the importance of observing and adhering 
        to the Missile Technology Control Regime (MTCR);
            (3) the United States should encourage universal observance 
        of the Guidelines to the Missile Technology Control Regime;
            (4) the exportation or transfer of advanced communication 
        satellites and related technologies from United States sources 
        to foreign recipients should not increase the risks to the 
        national security of the United States;
            (5) due to the military sensitivity of the technologies 
        involved, it is in the national security interests of the United 
        States that United States satellites and related items be 
        subject to the same export controls that apply under United 
        States law and practices to munitions;
            (6) the United States should not issue any blanket waiver of 
        the suspensions contained in section 902 of the Foreign 
        Relations Authorization Act, Fiscal Years 1990 and 1991 (Public 
        Law 101-246), regarding the export of satellites of United

[[Page 112 STAT. 2174]]

        States origin intended for launch from a launch vehicle owned by 
        the People's Republic of China;
            (7) the United States should pursue policies that protect 
        and enhance the United States space launch industry; and
            (8) the United States should not export to the People's 
        Republic of China missile equipment or technology that would 
        improve the missile or space launch capabilities of the People's 
        Republic of China.

SEC. 1512. <<NOTE: 22 USC 2778 note.>> CERTIFICATION OF EXPORTS OF 
            MISSILE EQUIPMENT OR TECHNOLOGY TO CHINA.

    The President shall certify to the Congress at least 15 days in 
advance of any export to the People's Republic of China of missile 
equipment or technology (as defined in section 74 of the Arms Export 
Control Act (22 U.S.C. 2797c)) that--
            (1) such export is not detrimental to the United States 
        space launch industry; and
            (2) the missile equipment or technology, including any 
        indirect technical benefit that could be derived from such 
        export, will not measurably improve the missile or space launch 
        capabilities of the People's Republic of China.

SEC. 1513. <<NOTE: 22 USC 2778 note.>> SATELLITE CONTROLS UNDER THE 
            UNITED STATES MUNITIONS LIST.

    (a) Control of Satellites on the United States Munitions List.--
Notwithstanding any other provision of law, all satellites and related 
items that are on the Commerce Control List of dual-use items in the 
Export Administration Regulations (15 CFR part 730 et seq.) on the date 
of the enactment of this Act shall be transferred to the United States 
Munitions List and controlled under section 38 of the Arms Export 
Control Act (22 U.S.C. 2778).
    (b) Defense Trade Controls Registration Fees.--Section 45 of the 
State Department Basic Authorities Act of 1956 (22 U.S.C. 2717) is 
amended--
            (1) in subsection (a)--
                    (A) by striking out ``$700,000'' and inserting in 
                lieu thereof ``100 percent''; and
                    (B) by striking out ``(a) Defense Trade Controls 
                Registration Fees.--''; and
            (2) by striking out subsection (b).

    (c) Effective Date.--(1) Subsection (a) shall take effect on March 
15, 1999, and shall not apply to any export license issued before such 
effective date or to any export license application made under the 
Export Administration Regulations before such effective date.
    (2) The amendments made by subsection (b) shall be effective as of 
October 1, 1998.
    (d) Report.--Not later than January 1, 1999, the Secretary of State, 
in consultation with the Secretary of Defense and the Secretary of 
Commerce, shall submit to Congress a report containing--
            (1) a detailed description of the plans of the Department of 
        State to implement the requirements of this section, including 
        any organizational changes that are required and any Executive 
        orders or regulations that may be required;
            (2) an identification and explanation of any steps that 
        should be taken to improve the license review process for

[[Page 112 STAT. 2175]]

        exports of the satellites and related items described in 
        subsection (a), including measures to shorten the timelines for 
        license application reviews, and any measures relating to the 
        transparency of the license review process and dispute 
        resolution procedures;
            (3) an evaluation of the adequacy of resources available to 
        the Department of State, including fiscal and personnel 
        resources, to carry out the additional activities required by 
        this section; and
            (4) any recommendations for additional actions, including 
        possible legislation, to improve the export licensing process 
        under the Arms Export Control Act for the satellites and related 
        items described in subsection (a).

SEC. 1514. <<NOTE: 22 USC 2778 note.>> NATIONAL SECURITY CONTROLS ON 
            SATELLITE EXPORT LICENSING.

    (a) Actions by the President.--Notwithstanding any other provision 
of law, the President shall take such actions as are necessary to 
implement the following requirements for improving national security 
controls in the export licensing of satellites and related items:
            (1) Mandatory technology control plans.--All export licenses 
        shall require a technology transfer control plan approved by the 
        Secretary of Defense and an encryption technology transfer 
        control plan approved by the Director of the National Security 
        Agency.
            (2) Mandatory monitors and reimbursement.--
                    (A) Monitoring of proposed foreign launch of 
                satellites.--In any case in which a license is approved 
                for the export of a satellite or related items for 
                launch in a foreign country, the Secretary of Defense 
                shall monitor all aspects of the launch in order to 
                ensure that no unauthorized transfer of technology 
                occurs, including technical assistance and technical 
                data. The costs of such monitoring services shall be 
                fully reimbursed to the Department of Defense by the 
                person or entity receiving such services. All 
                reimbursements received under this subparagraph shall be 
                credited to current appropriations available for the 
                payment of the costs incurred in providing such 
                services.
                    (B) Contents of monitoring.--The monitoring under 
                subparagraph (A) shall cover, but not be limited to--
                          (i) technical discussions and activities, 
                      including the design, development, operation, 
                      maintenance, modification, and repair of 
                      satellites, satellite components, missiles, other 
                      equipment, launch facilities, and launch vehicles;
                          (ii) satellite processing and launch 
                      activities, including launch preparation, 
                      satellite transportation, integration of the 
                      satellite with the launch vehicle, testing and 
                      checkout prior to launch, satellite launch, and 
                      return of equipment to the United States;
                          (iii) activities relating to launch failure, 
                      delay, or cancellation, including post-launch 
                      failure investigations; and
                          (iv) all other aspects of the launch.

[[Page 112 STAT. 2176]]

            (3) Mandatory licenses for crash-investigations.--In the 
        event of the failure of a launch from a foreign country of a 
        satellite of United States origin--
                    (A) the activities of United States persons or 
                entities in connection with any subsequent investigation 
                of the failure are subject to the controls established 
                under section 38 of the Arms Export Control Act, 
                including requirements for licenses issued by the 
                Secretary of State for participation in that 
                investigation;
                    (B) officials of the Department of Defense shall 
                monitor all activities associated with the investigation 
                to insure against unauthorized transfer of technical 
                data or services; and
                    (C) the Secretary of Defense shall establish and 
                implement a technology transfer control plan for the 
                conduct of the investigation to prevent the transfer of 
                information that could be used by the foreign country to 
                improve its missile or space launch capabilities.
            (4) Mandatory notification and certification.--All 
        technology transfer control plans for satellites or related 
        items shall require any United States person or entity involved 
        in the export of a satellite of United States origin or related 
        items to notify the Department of Defense in advance of all 
        meetings and interactions with any foreign person or entity 
        providing launch services and require the United States person 
        or entity to certify after the launch that it has complied with 
        this notification requirement.
            (5) Mandatory intelligence community review.--The Secretary 
        of Commerce and the Secretary of State shall provide to the 
        Secretary of Defense and the Director of Central Intelligence 
        copies of all export license applications and technical 
        assistance agreements submitted for approval in connection with 
        launches in foreign countries of satellites to verify the 
        legitimacy of the stated end-user or end-users.
            (6) Mandatory sharing of approved licenses and agreements.--
        The Secretary of State shall provide copies of all approved 
        export licenses and technical assistance agreements associated 
        with launches in foreign countries of satellites to the 
        Secretaries of Defense and Energy, the Director of Central 
        Intelligence, and the Director of the Arms Control and 
        Disarmament Agency.
            (7) Mandatory notification to congress on licenses.--Upon 
        issuing a license for the export of a satellite or related items 
        for launch in a foreign country, the head of the department or 
        agency issuing the license shall so notify Congress.
            (8) Mandatory reporting on monitoring activities.--The 
        Secretary of Defense shall provide to Congress an annual report 
        on the monitoring of all launches in foreign countries of 
        satellites of United States origin.
            (9) Establishing safeguards program.--The Secretary of 
        Defense shall establish a program for recruiting, training, and 
        maintaining a staff dedicated to monitoring launches in foreign 
        countries of satellites and related items of United States 
        origin.

    (b) Exception.--This section shall not apply to the export of a 
satellite or related items for launch in, or by nationals of,

[[Page 112 STAT. 2177]]

a country that is a member of the North Atlantic Treaty Organization or 
that is a major non-NATO ally of the United States.
    (c) Effective <<NOTE: President.>> Date.--The President shall take 
the actions required by subsection (a) not later than 45 days after the 
date of the enactment of this Act.

SEC. 1515. <<NOTE: 22 USC 2778 note.>> REPORT ON EXPORT OF SATELLITES 
            FOR LAUNCH BY PEOPLE'S REPUBLIC OF CHINA.

    (a) Requirement for Report.--Each report to Congress submitted 
pursuant to subsection (b) of section 902 of the Foreign Relations 
Authorization Act, Fiscal Years 1990 and 1991 (22 U.S.C. 2151 note; 
Public Law 101-246) to waive the restrictions contained in subsection 
(a) of that section on the export to the People's Republic of China of 
any satellite of United States origin or related items shall be 
accompanied by a detailed justification setting forth the following:
            (1) A detailed description of all militarily sensitive 
        characteristics integrated within, or associated with, the 
        satellite.
            (2) An estimate of the number of United States civilian 
        contract personnel expected to be needed in country to carry out 
        the proposed satellite launch.
            (3)(A) A detailed description of the United States 
        Government's plan to monitor the proposed satellite launch to 
        ensure that no unauthorized transfer of technology occurs, 
        together with an estimate of the number of officers and 
        employees of the United States that are expected to be needed in 
        country to carry out monitoring of the proposed satellite 
        launch; and
            (B) the estimated cost to the Department of Defense of 
        monitoring the proposed satellite launch and the amount of such 
        cost that is to be reimbursed to the department.
            (4) The reasons why the proposed satellite launch is in the 
        national security interest of the United States.
            (5) The impact of the proposed export on employment in the 
        United States, including the number of new jobs created in the 
        United States, on a State-by-State basis, as a direct result of 
        the proposed export.
            (6) The number of existing jobs in the United States that 
        would be lost, on a State-by-State basis, as a direct result of 
        the proposed export not being licensed.
            (7) The impact of the proposed export on the balance of 
        trade between the United States and the People's Republic of 
        China and on reducing the current United States trade deficit 
        with the People's Republic of China.
            (8) The impact of the proposed export on the transition of 
        the People's Republic of China from a nonmarket economy to a 
        market economy and the long-term economic benefit to the United 
        States.
            (9) The impact of the proposed export on opening new markets 
        to United States-made products through the purchase by the 
        People's Republic of China of United States-made goods and 
        services not directly related to the proposed export.
            (10) The impact of the proposed export on reducing acts, 
        policies, and practices that constitute significant trade 
        barriers to United States exports or foreign direct investment 
        in the People's Republic of China by United States nationals.

[[Page 112 STAT. 2178]]

            (11) The increase that will result from the proposed export 
        in the overall market share of the United States for goods and 
        services in comparison to Japan, France, Germany, the United 
        Kingdom, and Russia.
            (12) The impact of the proposed export on the willingness of 
        the People's Republic of China to modify its commercial and 
        trade laws, practices, and regulations to make United States-
        made goods and services more accessible to that market.
            (13) The impact of the proposed export on the willingness of 
        the People's Republic of China to reduce formal and informal 
        trade barriers and tariffs, duties, and other fees on United 
        States-made goods and services entering that country.

    (b) Militarily Sensitive Characteristics Defined.--In this section, 
the term ``militarily sensitive characteristics'' includes antijamming 
capability, antennas, crosslinks, baseband processing, encryption 
devices, radiation-hardened devices, propulsion systems, pointing 
accuracy, kick motors, and other such characteristics as are specified 
by the Secretary of Defense.

SEC. 1516. <<NOTE: 22 USC 2778 note.>> RELATED ITEMS DEFINED.

    In this subtitle, the term ``related items'' means the satellite 
fuel, ground support equipment, test equipment, payload adapter or 
interface hardware, replacement parts, and non-embedded solid propellant 
orbit transfer engines described in the report submitted to Congress by 
the Department of State on February 6, 1998, pursuant to section 38(f ) 
of the Arms Export Control Act (22 U.S.C. 2778(f )).

                Subtitle C--Other Export Control Matters

SEC. 1521. AUTHORITY FOR EXPORT CONTROL ACTIVITIES OF THE DEPARTMENT OF 
            DEFENSE.

    (a) Functions of the Under Secretary for Policy.--Section 134(b) of 
title 10, United States Code, is amended by adding at the end the 
following new paragraph:
    ``(3) Subject to the authority, direction, and control of the 
Secretary of Defense, the Under Secretary shall have responsibility for 
supervising and directing activities of the Department of Defense 
relating to export controls.''.
    (b) Establishment of Deputy Under Secretary for Technology Security 
Policy.--(1) Chapter 4 of title 10, United States Code, is amended by 
inserting after section 134a the following new section:

``Sec. 134b. Deputy Under Secretary of Defense for Technology Security 
                        Policy

    ``(a) There is in the Office of the Under Secretary of Defense for 
Policy a Deputy Under Secretary of Defense for Technology Security 
Policy.
    ``(b) The Deputy Under Secretary serves as the Director of the 
Defense Technology Security Administration (or any successor 
organization charged with similar responsibilities).
    ``(c) The principal duties of the Deputy Under Secretary are--
            ``(1) assisting the Under Secretary of Defense for Policy in 
        supervising and directing the activities of the Department of 
        Defense relating to export controls; and

[[Page 112 STAT. 2179]]

            ``(2) assisting the Under Secretary of Defense for Policy in 
        developing policies and positions regarding the appropriate 
        export control policies and procedures that are necessary to 
        protect the national security interests of the United States.

    ``(d) The Deputy Under Secretary shall perform such additional 
duties and exercise such authority as the Secretary of Defense may 
prescribe.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 134a the 
following new item:

``134b. Deputy Under Secretary of Defense for Technology Security 
           Policy.''.

     <<NOTE: 10 USC 134 note.>> (c) Time for Implementation.--The 
Secretary of Defense shall complete the actions necessary to implement 
the amendment made by subsection (a) and to establish the office of 
Deputy Under Secretary of Defense for Technology Security Policy in 
accordance with section 134b of title 10, United States Code, as added 
by subsection (b), not later than 60 days after the date of the 
enactment of this Act.

     <<NOTE: 10 USC 134 note.>> (d) Report.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the plans of the Secretary for implementing the amendments made by 
subsections (a) and (b). The report shall include the following:
            (1) A description of any organizational changes that are to 
        be made within the Department of Defense to implement those 
        amendments.
            (2) A description of the role of the Chairman of the Joint 
        Chiefs of Staff in the export control activities of the 
        Department of Defense after those subsections are implemented, 
        together with a discussion of how that role compares to the 
        Chairman's role in those activities before the implementation of 
        those subsections.

SEC. 1522. <<NOTE: 50 USC app. 2404 note.>> RELEASE OF EXPORT 
            INFORMATION BY DEPARTMENT OF COMMERCE TO OTHER AGENCIES FOR 
            PURPOSE OF NATIONAL SECURITY ASSESSMENT.

    (a) Release of Export Information.--The Secretary of Commerce shall, 
upon the written request of an official specified in subsection (c), 
transmit to that official any information relating to exports that is 
held by the Department of Commerce and is requested by that official for 
the purpose of assessing national security risks. The Secretary shall 
transmit such information within 10 business days after receiving such a 
request.
    (b) Nature of Information.--The information referred to in 
subsection (a) includes information concerning--
            (1) export licenses issued by the Department of Commerce;
            (2) exports that were carried out under an export license 
        issued by the Department of Commerce; and
            (3) exports from the United States that were carried out 
        without an export license.

    (c) Requesting Officials.--The officials referred to in subsection 
(a) are the Secretary of State, the Secretary of Defense, the Secretary 
of Energy, and the Director of Central Intelligence. Each of those 
officials may delegate to any other official within

[[Page 112 STAT. 2180]]

their respective departments and agency the authority to request 
information under subsection (a).

SEC. 1523. <<NOTE: President. 42 USC 2155 note.>> NUCLEAR EXPORT 
            REPORTING REQUIREMENT.

    (a) Notification of Congress.--The President shall notify Congress 
upon the granting of a license by the Nuclear Regulatory Commission for 
the export or reexport of any nuclear-related technology or equipment, 
including source material, special nuclear material, or equipment or 
material especially designed or prepared for the processing, use, or 
production of special nuclear material.
    (b) Applicability.--The requirements of this section shall apply 
only to an export or reexport to a country that--
            (1) the President has determined is a country that has 
        detonated a nuclear explosive device; and
            (2) is not a member of the North Atlantic Treaty 
        Organization.

SEC. 1524. <<NOTE: 50 USC app. 2404 note.>> EXECUTION OF OBJECTION 
            AUTHORITY WITHIN THE DEPARTMENT OF DEFENSE.

    Section 1211 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1932) is amended by adding at 
the end the following new subsection:
    ``(g) Delegation of Objection Authority Within the Department of 
Defense.--For the purposes of the Department of Defense, the authority 
to issue an objection referred to in subsection (a) shall be executed 
for the Secretary of Defense by an official at the Assistant Secretary 
level within the office of the Under Secretary of Defense for Policy. In 
implementing subsection (a), the Secretary of Defense shall ensure that 
Department of Defense procedures maximize the ability of the Department 
of Defense to be able to issue an objection within the 10-day period 
specified in subsection (c).''.

                Subtitle D--Counterproliferation Matters

SEC. 1531. ONE-YEAR EXTENSION OF COUNTERPROLIFERATION AUTHORITIES FOR 
            SUPPORT OF UNITED NATIONS SPECIAL COMMISSION ON IRAQ.

    (a) Amount Authorized for Fiscal Year 1999.--The total amount of 
assistance for fiscal year 1999 provided by the Secretary of Defense 
under section 1505 of the Weapons of Mass Destruction Control Act of 
1992 (22 U.S.C. 5859a) that is provided for activities of the Department 
of Defense in support of the United Nations Special Commission on Iraq, 
may not exceed $15,000,000.
    (b) Extension of Authority To Provide Assistance.--Subsection (f ) 
of section 1505 of the Weapons of Mass Destruction Control Act of 1992 
(22 U.S.C. 5859a) is amended by striking out ``1998'' and inserting in 
lieu thereof ``1999''.

SEC. 1532. SENSE OF CONGRESS ON NUCLEAR TESTS IN SOUTH ASIA.

    The Congress--
            (1) strongly condemns the decisions by the Governments of 
        India and Pakistan to conduct nuclear tests in May 1998;
            (2) calls for the Governments of India and Pakistan to 
        commit not to conduct any additional nuclear tests;
            (3) urges the Governments of India and Pakistan to take 
        immediate steps to reduce tensions between the two countries;

[[Page 112 STAT. 2181]]

            (4) urges India and Pakistan to engage in high-level 
        dialogue aimed at reducing the likelihood of armed conflict, 
        enacting confidence and security building measures, and 
        resolving areas of dispute;
            (5) commends all nations to take steps which will reduce 
        tensions in South Asia, including appropriate measures to 
        prevent the transfer of technology that could further exacerbate 
        the arms race in South Asia, and thus avoid further 
        deterioration of security there;
            (6) calls upon the President, leaders of all nations, and 
        the United Nations to encourage a diplomatic, negotiated 
        solution between the Governments of India and Pakistan to 
        promote peace and stability in South Asia and resolve the 
        current impasse;
            (7) encourages United States diplomatic leadership in 
        assisting the Governments of India and Pakistan to seek a 
        negotiated resolution of their 50-year conflict over the 
        disputed territory in Kashmir;
            (8) urges India and Pakistan to take immediate, binding, and 
        verifiable steps to roll back their nuclear programs and come 
        into compliance with internationally accepted norms regarding 
        the proliferation of weapons of mass destruction; and
            (9) urges the United States to reevaluate its bilateral 
        relationship with India and Pakistan, in light of the new 
        regional security realities in South Asia, with the goal of 
        preventing further nuclear and ballistic missile proliferation, 
        diffusing long-standing regional rivalries between India and 
        Pakistan, and securing commitments from India and Pakistan 
        which, if carried out, could result in a calibrated lifting of 
        United States sanctions imposed under the Arms Export Control 
        Act and the Nuclear Proliferation Prevention Act of 1994.

SEC. 1533. REPORT ON REQUIREMENTS FOR RESPONSE TO INCREASED MISSILE 
            THREAT IN ASIA-PACIFIC REGION.

    (a) Study.--The Secretary of Defense shall carry out a study of the 
architecture requirements for the establishment and operation of a 
theater ballistic missile defense system in the Asia-Pacific region that 
would have the capability to protect key regional allies of the United 
States.
    (b) Report.--(1) Not later than January 1, 1999, the Secretary shall 
submit to the Committee on National Security of the House of 
Representatives and the Committee on Armed Services of the Senate a 
report containing--
            (A) the results of the study conducted under subsection (a);
            (B) the factors used to obtain such results; and
            (C) a description of any United States missile defense 
        system currently deployed or under development that could be 
        transferred to key allies of the United States in the Asia-
        Pacific region to provide for their self-defense against limited 
        ballistic missile attacks.

    (2) The report shall be submitted in both classified and 
unclassified form.

[[Page 112 STAT. 2182]]

DIVISION B--MILITARY <<NOTE: Military Construction Authorization Act for 
Fiscal Year 1999.>> CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 1999''.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out fiscal year 1998 
           projects.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(1), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:
      

                     Army: Inside the United States
------------------------------------------------------------------------
            State               Installation or location      Amount
------------------------------------------------------------------------
Alabama......................  Anniston Army Depot......      $3,550,000
                               Fort Rucker..............     $14,300,000
                               Redstone Arsenal.........      $1,550,000
Alaska.......................  Fort Wainwright..........     $22,600,000
California...................  Fort Irwin...............     $14,800,000
Georgia......................  Fort Benning.............     $28,600,000
Hawaii.......................  Schofield Barracks.......     $71,000,000
Illinois.....................  Rock Island Arsenal......      $5,300,000
Indiana......................  Crane Army Ammunition          $7,100,000
                                Activity................
Kansas.......................  Fort Riley...............     $41,000,000
Kentucky.....................  Blue Grass Army Depot....      $5,300,000
                               Fort Campbell............     $75,000,000
                               Fort Knox................     $23,000,000
Louisiana....................  Fort Polk................      $8,300,000
Maryland.....................  Fort Detrick.............      $3,550,000
                               Fort Meade...............      $5,300,000
Missouri.....................  Fort Leonard Wood........     $28,200,000
New Jersey...................  Fort Monmouth............      $7,600,000
                               Picatinny Arsenal........      $8,400,000
New York.....................  Fort Drum................      $4,650,000
                               United States Military        $85,000,000
                                Academy, West Point.....
North Carolina...............  Fort Bragg...............     $95,900,000
Oklahoma.....................  Fort Sill................     $13,800,000
                               McAlester Army Ammunition     $10,800,000
                                Plant...................
Texas........................  Fort Bliss...............      $4,100,000
                               Fort Hood................     $32,500,000
                               Fort Sam Houston.........     $27,300,000
Utah.........................  Tooele Army Depot........      $3,900,000
Virginia.....................  National Ground               $46,200,000
                                Intelligence Center,
                                Charlottesville.........
                               Fort Eustis..............     $41,181,000
                               Fort Myer................      $6,200,000

[[Page 112 STAT. 2183]]

 
Washington...................  Fort Lewis...............     $18,200,000
CONUS Classified.............  Classified Location......      $4,600,000
                                                         ---------------
                                       Total............    $768,781,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(2), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the locations outside the United States, and 
in the amounts, set forth in the following table:
      

                     Army: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Belgium........................  80th Area Support Group      $6,300,000
Germany........................  Schweinfurt............     $18,000,000
                                 Wurzburg...............      $4,250,000
Korea..........................  Camp Casey.............     $21,400,000
                                 Camp Castle............     $18,226,000
                                 Camp Humphreys.........      $8,500,000
                                 Camp Stanley...........      $5,800,000
Kwajalein......................  Kwajalein Atoll........     $48,600,000
                                                         ---------------
                                         Total..........    $131,076,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(5)(A), the Secretary of the Army may construct or acquire family 
housing units (including land acquisition) at the installations, for the 
purposes, and in the amounts set forth in the following table:
      

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Purpose                 Amount
----------------------------------------------------------------------------------------------------------------
Alabama...............................  Redstone Arsenal.........  118 Units....................     $14,000,000
Hawaii................................  Schofield Barracks.......  64 Units.....................     $14,700,000
North Carolina........................  Fort Bragg...............  170 Units....................     $19,800,000
Texas.................................  Fort Hood................  154 Units....................     $21,600,000
Virginia..............................  Fort Lee.................  80 Units.....................     $13,000,000
                                                                                                 ---------------
                                                                       Total....................     $83,100,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to the 
authorization of appropriations in section 2104(a)(5)(A), the Secretary 
of the Army may carry out architectural and engineering services and 
construction design activities with respect to the construction or 
improvement of family housing units in an amount not to exceed 
$6,350,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2104(a)(5)(A), the Secretary of the Army may

[[Page 112 STAT. 2184]]

improve existing military family housing units in an amount not to 
exceed $48,479,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1998, for military 
construction, land acquisition, and military family housing functions of 
the Department of the Army in the total amount of $2,098,713,000 as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2101(a), $609,781,000.
            (2) For military construction projects outside the United 
        States authorized by section 2101(b), $95,076,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $12,500,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $64,269,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $137,929,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $1,097,697,000.
            (6) For the construction of the missile software engineering 
        annex, phase II, Redstone Arsenal, Alabama, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 
        1966), $13,600,000.
            (7) For the construction of a disciplinary barracks, phase 
        II, Fort Leavenworth, Kansas, authorized by section 2101(a) of 
        the Military Construction Authorization Act for Fiscal Year 
        1998, $29,000,000.
            (8) For the construction of the whole barracks complex 
        renewal, Fort Sill, Oklahoma, authorized by section 2101(a) of 
        the Military Construction Authorization Act for Fiscal Year 
        1998, $20,500,000.
            (9) For rail yard expansion at Fort Carson, Colorado, 
        authorized by section 2101(a) of the Military Construction 
        Authorization Act for Fiscal Year 1998, $23,000,000.
            (10) For the construction of an aerial gunnery range at Fort 
        Drum, New York, authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 1998, $9,000,000.

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2101 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a);
            (2) $16,000,000 (the balance of the amount authorized under 
        section 2101(a) for the construction of a multipurpose digital 
        training range at Fort Knox, Kentucky);

[[Page 112 STAT. 2185]]

            (3) $15,000,000 (the balance of the amount authorized under 
        section 2101(a) for the construction of a railhead facility at 
        Fort Hood, Texas);
            (4) $73,000,000 (the balance of the amount authorized under 
        section 2101(a) for the construction of a cadet development 
        center at the United States Military Academy, West Point, New 
        York);
            (5) $36,000,000 (the balance of the amount authorized under 
        section 2101(b) for the construction of a powerplant on Roi 
        Namur Island at Kwajalein Atoll, Kwajalein);
            (6) $3,500,000 (the balance of the amount authorized under 
        section 2101(a) for the construction of the whole barracks 
        complex renewal at Fort Wainwright, Alaska);
            (7) $24,500,000 (the balance of the amount authorized under 
        section 2101(a) for the construction of the whole barracks 
        complex renewal at Fort Riley, Kansas); and
            (8) $27,000,000 (the balance of the amount authorized under 
        section 2101(a) for the construction of the whole barracks 
        complex renewal at Fort Campbell, Kentucky).

    (c) Adjustments.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (10) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by--
            (1) $2,639,000, which represents the combination of project 
        savings in military family housing construction resulting from 
        favorable bids, reduced overhead costs, and cancellations due to 
        force structure changes;
            (2) $3,000,000, which represents the combination of savings 
        in military family housing support resulting from favorable 
        bids, reduced overhead costs, and cancellations due to force 
        structure changes; and
            (3) $8,000,000, which represents the combination of project 
        savings in military construction resulting from favorable bids, 
        reduced overhead costs, and cancellations due to force structure 
        changes.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1998 
            PROJECTS.

    (a) Modification.--The table in section 2101(a) of the Military 
Construction Authorization Act for Fiscal Year 1998 (division B of 
Public Law 105-85; 111 Stat. 1967) is amended--
            (1) in the item relating to Fort Drum, New York, by striking 
        out ``$24,400,000'' in the amount column and inserting in lieu 
        thereof ``$24,900,000'';
            (2) in the item relating to Fort Sill, Oklahoma, by striking 
        out ``$25,000,000'' in the amount column and inserting in lieu 
        thereof ``$28,500,000''; and
            (3) by striking out the amount identified as the total in 
        the amount column and inserting in lieu thereof 
        ``$602,750,000''.

    (b) Conforming Amendments.--Section 2104 of that Act (111 Stat. 
1968) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking out ``$2,010,466,000'' and inserting in lieu 
                thereof ``$2,013,966,000''; and
                    (B) in paragraph (1), by striking out 
                ``$435,350,000'' and inserting in lieu thereof 
                ``$438,850,000''; and

[[Page 112 STAT. 2186]]

            (2) in subsection (b)(8), by striking out ``$8,500,000'' and 
        inserting in lieu thereof ``$9,000,000''.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization to accept road construction project, Marine 
           Corps Base, Camp Lejeune, North Carolina.

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(1), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:
      

                     Navy: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air            $11,010,000
                                  Station, Yuma.
                                 Naval Observatory              $990,000
                                  Detachment, Flagstaff.
California.....................  Marine Corps Air            $29,570,000
                                  Station, Miramar......
                                 Marine Corps Base, Camp     $40,430,000
                                  Pendleton.............
                                 Naval Air Station,          $20,640,000
                                  Lemoore.
                                 Naval Air Warfare           $10,140,000
                                  Center Weapons
                                  Division, China Lake.
                                 Naval Facility, San          $8,350,000
                                  Clemente Island.......
                                 Naval Submarine Base,       $11,400,000
                                  San Diego.
Connecticut....................  Naval Submarine Base,       $11,330,000
                                  New London............
District of Columbia...........  Naval District,                $790,000
                                  Washington.
Florida........................  Naval Air Station, Key       $3,730,000
                                  West.
                                 Naval Air Station,           $1,500,000
                                  Jacksonville.
                                 Naval Air Station,           $1,400,000
                                  Whiting Field.
                                 Naval Station, Mayport.      $6,163,000
Georgia........................  Marine Corps Logistics       $2,800,000
                                  Base, Albany..........
                                 Naval Submarine Base,        $2,550,000
                                  Kings Bay.............
Hawaii.........................  Fleet and Industrial         $9,730,000
                                  Supply Center, Pearl
                                  Harbor................
                                 Marine Corps Air            $46,410,000
                                  Station, Kaneohe Bay..
                                 Naval Communications &       $1,970,000
                                  Telecommunications
                                  Area Master Station
                                  Eastern Pacific,
                                  Wahiawa...............
                                 Naval Shipyard, Pearl       $11,400,000
                                  Harbor.
                                 Naval Station, Pearl        $18,180,000
                                  Harbor.
                                 Naval Submarine Base,        $8,060,000
                                  Pearl Harbor..........
                                 Navy Public Works           $28,967,000
                                  Center, Pearl Harbor..
Illinois.......................  Naval Training Center,      $19,950,000
                                  Great Lakes...........
Indiana........................  Naval Surface Warfare       $11,110,000
                                  Center, Crane.........
Maryland.......................  Naval Surface Warfare       $13,270,000
                                  Center, Indian Head
                                  Division, Indian Head.
                                 United States Naval          $4,300,000
                                  Academy...............
Mississippi....................  Naval Air Station,           $3,280,000
                                  Meridian.
                                 Naval Construction          $10,670,000
                                  Battalion Center,
                                  Gulfport..............

[[Page 112 STAT. 2187]]

 
North Carolina.................  Marine Corps Air             $6,040,000
                                  Station, Cherry Point.
                                 Marine Corps Base, Camp     $14,600,000
                                  LeJeune...............
Pennsylvania...................  Naval Surface Warfare        $2,410,000
                                  Center Ship Systems
                                  Engineering Station,
                                  Philadelphia..........
                                 Naval Inventory Control      $1,600,000
                                  Point, Mechanicsburg..
                                 Naval Inventory Control      $1,550,000
                                  Point, Philadelphia...
Rhode Island...................  Naval Education and          $5,630,000
                                  Training Center,
                                  Newport...............
                                 Naval Undersea Warfare       $9,140,000
                                  Center Division,
                                  Newport...............
South Carolina.................  Marine Corps Air             $1,770,000
                                  Station, Beaufort.....
                                 Marine Corps Reserve        $15,990,000
                                  Detachment, Parris
                                  Island................
                                 Naval Weapons Station,       $9,737,000
                                  Charleston............
Texas..........................  Naval Station,              $12,200,000
                                  Ingleside.
Virginia.......................  Fleet and Industrial         $1,770,000
                                  Supply Center, Norfolk
                                  (Craney Island).......
                                 Fleet Training Center,       $5,700,000
                                  Norfolk.
                                 Naval Air Station,           $6,400,000
                                  Oceana.
                                 Naval Shipyard,              $6,180,000
                                  Norfolk, Portsmouth...
                                 Naval Station, Norfolk.     $45,530,000
                                 Naval Surface Warfare       $15,680,000
                                  Center, Dahlgren......
                                 Tactical Training Group      $2,430,000
                                  Atlantic, Dam Neck....
Washington.....................  Naval Shipyard, Puget        $4,300,000
                                  Sound.
                                 Strategic Weapons            $2,750,000
                                  Facility Pacific,
                                  Bremerton.............
                                                         ---------------
                                         Total..........    $521,497,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(2), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following table:
      

                     Navy: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Greece.........................  Naval Support Activity,      $5,260,000
                                  Souda Bay.............
Guam...........................  Naval Activities, Guam.     $10,310,000
Italy..........................  Naval Support Activity,     $18,270,000
                                  Naples.
United Kingdom.................  Joint Maritime               $2,010,000
                                  Communications Center,
                                  St. Mawgan............
                                                         ---------------
                                         Total..........     $35,850,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(5)(A), the Secretary of the Navy may construct or acquire

[[Page 112 STAT. 2188]]

family housing units (including land acquisition) at the installations, 
for the purposes, and in the amounts set forth in the following table:
      

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Naval Air Station, Lemoore  162 Units.................     $30,379,000
Hawaii..................................  Navy Public Works Center,   150 Units.................     $29,125,000
                                           Pearl Harbor.............
                                                                                                 ---------------
                                                                          Total.................     $59,504,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to the 
authorization of appropriations in section 2204(a)(5)(A), the Secretary 
of the Navy may carry out architectural and engineering services and 
construction design activities with respect to the construction or 
improvement of military family housing units in an amount not to exceed 
$15,618,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2204(a)(5)(A), the Secretary of the Navy may improve existing 
military family housing units in an amount not to exceed $227,791,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1998, for military 
construction, land acquisition, and military family housing functions of 
the Department of the Navy in the total amount of $1,812,476,000 as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $503,997,000.
            (2) For military construction projects outside the United 
        States authorized by section 2201(b), $35,850,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $9,900,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $60,846,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $302,913,000.
                    (B) For support of military housing (including 
                functions described in section 2833 of title 10, United 
                States Code), $915,293,000.

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2201 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a);

[[Page 112 STAT. 2189]]

            (2) $13,500,000 (the balance of the amount authorized under 
        section 2202(a) for the construction of a berthing pier at Naval 
        Station, Norfolk, Virginia); and
            (3) $4,000,000 (the balance of the amount authorized under 
        section 2201(a) for the construction of a bachelor enlisted 
        quarters at Marine Corps Air Station, Kaneohe Bay, Hawaii).

    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (5) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by--
            (1) $7,323,000, which represents the combination of project 
        savings in military family housing construction resulting from 
        favorable bids, reduced overhead costs, and cancellations due to 
        force structure changes;
            (2) $3,000,000, which represents the combination of savings 
        in military family housing support resulting from favorable 
        bids, reduced overhead costs, and cancellations due to force 
        structure changes; and
            (3) $6,000,000, which represents the combination of project 
        savings in military construction resulting from favorable bids, 
        reduced overhead costs, and cancellations due to force structure 
        changes.

SEC. 2205. AUTHORIZATION TO ACCEPT ROAD CONSTRUCTION PROJECT, MARINE 
            CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA.

    The Secretary of the Navy may accept from the State of North 
Carolina a road construction project valued at approximately $2,000,000, 
which is to be constructed at Marine Corps Base, Camp Lejeune, North 
Carolina, in accordance with plans and specifications acceptable to the 
Secretary.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
           projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
            PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(1), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
inside the United States, and in the amounts, set forth in the following 
table:
      

                   Air Force: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.     $19,398,000
Alaska.........................  Eielson Air Force Base.      $4,352,000
Arizona........................  Luke Air Force Base....      $3,400,000
Arkansas.......................  Little Rock Air Force        $1,500,000
                                  Base.
California.....................  Edwards Air Force Base.     $10,361,000
                                 Travis Air Force Base..      $4,250,000
                                 Vandenberg Air Force        $18,709,000
                                  Base.
Colorado.......................  Falcon Air Force             $9,601,000
                                  Station.

[[Page 112 STAT. 2190]]

 
                                 United States Air Force      $4,413,000
                                  Academy...............
District of Columbia...........  Bolling Air Force Base.      $2,948,000
Florida........................  Eglin Air Force Base...     $20,437,000
                                 Eglin Auxiliary Field 9      $3,837,000
                                 MacDill Air Force Base.      $9,808,000
                                 Tyndall Air Force Base.      $3,600,000
Georgia........................  Robins Air Force Base..     $11,894,000
Hawaii.........................  Hickam Air Force Base..      $5,890,000
Idaho..........................  Mountain Home Air Force     $17,897,000
                                  Base..................
Kansas.........................  McConnell Air Force          $4,450,000
                                  Base.
Louisiana......................  Barksdale Air Force          $9,300,000
                                  Base.
Maryland.......................  Andrews Air Force Base.      $4,448,000
Massachusetts..................  Hanscom Air Force Base.     $10,000,000
Mississippi....................  Columbus Air Force Base      $5,700,000
                                 Keesler Air Force Base.     $35,526,000
Montana........................  Malmstrom Air Force          $7,900,000
                                  Base.
Nevada.........................  Indian Springs Air          $15,013,000
                                  Force Auxiliary Air
                                  Field.................
                                 Nellis Air Force Base..      $6,378,000
New Jersey.....................  McGuire Air Force Base.      $6,044,000
New Mexico.....................  Holloman Air Force Base     $11,100,000
                                 Kirtland Air Force Base      $8,574,000
North Carolina.................  Seymour Johnson Air          $6,100,000
                                  Force Base............
North Dakota...................  Grand Forks Air Force       $11,486,000
                                  Base.
                                 Minot Air Force Base...      $8,500,000
Ohio...........................  Wright-Patterson Air        $22,000,000
                                  Force Base............
Oklahoma.......................  Altus Air Force Base...      $9,300,000
                                 Tinker Air Force Base..     $24,985,000
                                 Vance Air Force Base...      $6,223,000
South Carolina.................  Charleston Air Force        $24,330,000
                                  Base.
South Dakota...................  Ellsworth Air Force          $6,500,000
                                  Base.
Tennessee......................  Arnold Air Force Base..     $11,600,000
Texas..........................  Dyess Air Force Base...      $4,750,000
                                 Goodfellow Air Force         $7,300,000
                                  Base.
                                 Lackland Air Force Base     $14,930,000
                                 Laughlin Air Force Base      $7,315,000
                                 Randolph Air Force Base      $3,166,000
Utah...........................  Hill Air Force Base....      $2,600,000
Washington.....................  Fairchild Air Force         $15,220,000
                                  Base.
                                 McChord Air Force Base.     $51,847,000
                                                         ---------------
                                       Total............    $514,880,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(2), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
outside the United States, and in the amounts, set forth in the 
following table:

[[Page 112 STAT. 2191]]

      

                  Air Force: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Spangdahlem Air Base...      $9,501,000
Korea..........................  Kunsan Air Base........      $5,958,000
                                 Osan Air Base..........      $7,496,000
Turkey.........................  Incirlik Air Base......      $2,949,000
United Kingdom.................  Royal Air Force,            $15,838,000
                                  Lakenheath.
                                 Royal Air Force,            $24,960,000
                                  Mildenhall.
                                                         ---------------
                                       Total............     $66,702,000
------------------------------------------------------------------------


SEC. 2302. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(5)(A), the Secretary of the Air Force may construct or acquire 
family housing units (including land acquisition) at the installations, 
for the purposes, and in the amounts set forth in the following table:

      

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Purpose                 Amount
----------------------------------------------------------------------------------------------------------------
Alabama...............................  Maxwell Air Force Base...  143 Units....................     $16,300,000
Alaska................................  Eielson Air Force Base...  46 Units.....................     $12,932,000
California............................  Edwards Air Force Base...  48 Units.....................     $12,580,000
                                        Vandenberg Air Force Base  95 Units.....................     $18,499,000
Delaware..............................  Dover Air Force Base.....  55 Units.....................      $8,998,000
Florida...............................  MacDill Air Force Base...  48 Units.....................      $7,609,000
                                        Patrick Air Force Base...  46 Units.....................      $9,692,000
                                        Tyndall Air Force Base...  122 Units....................     $14,500,000
Mississippi...........................  Columbus Air Force Base..  52 Units.....................      $6,800,000
                                        Keesler Air Force Base...  52 Units.....................      $6,800,000
Montana...............................  Malmstrom Air Force Base.  50 Units.....................     $10,000,000
Nebraska..............................  Offutt Air Force Base....  Ancillary Facility...........        $870,000
                                        Offutt Air Force Base....  Ancillary Facility...........        $900,000
                                        Offutt Air Force Base....  90 Units.....................     $12,212,000
Nevada................................  Nellis Air Force Base....  28 Units.....................      $5,000,000
New Mexico............................  Kirtland Air Force Base..  37 Units.....................      $6,400,000
Ohio..................................  Wright-Patterson Air       40 Units.....................      $5,600,000
                                         Force Base..............
Texas.................................  Dyess Air Force Base.....  64 Units.....................      $9,415,000
                                        Sheppard Air Force Base..  65 Units.....................      $7,000,000

[[Page 112 STAT. 2192]]

 
Washington............................  Fairchild Air Force Base.  Ancillary Facility...........      $1,692,000
                                        Fairchild Air Force Base.  14 Units.....................      $2,300,000
                                                                                                 ---------------
                                                                       Total....................    $176,099,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to the 
authorization of appropriations in section 2304(a)(5)(A), the Secretary 
of the Air Force may carry out architectural and engineering services 
and construction design activities with respect to the construction or 
improvement of military family housing units in an amount not to exceed 
$11,342,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2304(a)(5)(A), the Secretary of the Air Force may improve 
existing military family housing units in an amount not to exceed 
$104,108,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1998, for military 
construction, land acquisition, and military family housing functions of 
the Department of the Air Force in the total amount of $1,679,978,000 as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2301(a), $514,880,000.
            (2) For military construction projects outside the United 
        States authorized by section 2301(b), $66,702,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $8,135,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $38,092,000.
            (5) For military housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $291,549,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $785,204,000.

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2301 of this 
Act may not exceed the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a).
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (5) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by--

[[Page 112 STAT. 2193]]

            (1) $10,584,000, which represents the combination of project 
        savings in military family housing construction resulting from 
        favorable bids, reduced overhead costs, and cancellations due to 
        force structure changes;
            (2) $2,000,000,000, which represents the combination of 
        savings in military family housing support resulting from 
        favorable bids, reduced overhead costs, and cancellations due to 
        force structure changes; and
            (3) $12,000,000, which represents the combination of project 
        savings in military construction resulting from favorable bids, 
        reduced overhead costs, and cancellations due to force structure 
        changes.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
           projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
Sec. 2405. Repeal of fiscal year 1997 authorization of appropriations 
           for certain 
           military housing improvement program.
Sec. 2406. Modification of authority to carry out certain fiscal year 
           1995 projects.
Sec. 2407. Modification of authority to carry out fiscal year 1990 
           project.

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND ACQUISITION 
            PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(1), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:
      

               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Chemical Demilitarization......  Aberdeen Proving           $186,350,000
                                  Ground, Maryland......
                                 Newport Army Depot,        $191,550,000
                                  Indiana...............
Defense Logistics Agency.......  Defense Fuel Support         $3,500,000
                                  Point, Fort Sill,
                                  Oklahoma..............
                                 Defense Fuel Support        $11,020,000
                                  Point, Jacksonville
                                  Annex, Mayport,
                                  Florida...............
                                 Defense Fuel Support        $11,000,000
                                  Point, Jacksonville,
                                  Florida...............
                                 Defense General Supply      $10,500,000
                                  Center, Richmond
                                  (DLA), Virginia.......
                                 Defense Fuel Supply          $5,300,000
                                  Center, Camp Shelby,
                                  Mississippi...........
                                 Defense Fuel Supply         $19,500,000
                                  Center, Elmendorf Air
                                  Force Base, Alaska....
                                 Defense Fuel Supply          $4,100,000
                                  Center, Pope Air Force
                                  Base, North Carolina..
                                 Various Locations......      $1,300,000
Defense Medical Facilities       Barksdale Air Force          $3,450,000
 Office........................   Base, Louisiana.......
                                 Beale Air Force Base,        $3,500,000
                                  California............
                                 Carlisle Barracks,           $4,678,000
                                  Pennsylvania..........
                                 Cheatham Annex,             $11,300,000
                                  Virginia.

[[Page 112 STAT. 2194]]

 
                                 Edwards Air Force Base,      $6,000,000
                                  California............
                                 Eglin Air Force Base,        $9,200,000
                                  Florida.
                                 Fort Bragg, North            $6,500,000
                                  Carolina.
                                 Fort Hood, Texas.......     $14,100,000
                                 Fort Stewart/Hunter         $10,400,000
                                  Army Air Field,
                                  Georgia...............
                                 Grand Forks Air Force        $5,600,000
                                  Base, North Dakota....
                                 Holloman Air Force           $1,300,000
                                  Base, New Mexico......
                                 Keesler Air Force Base,        $700,000
                                  Mississippi...........
                                 Marine Corps Air             $6,300,000
                                  Station, Camp
                                  Pendleton, California.
                                 McChord Air Force Base,     $20,000,000
                                  Washington............
                                 Moody Air Force Base,       $11,000,000
                                  Georgia...............
                                 Naval Air Station,          $25,400,000
                                  Pensacola, Florida....
                                 Naval Hospital,             $28,000,000
                                  Bremerton, Washington.
                                 Naval Hospital, Great        $7,100,000
                                  Lakes, Illinois.......
                                 Naval Station, San           $1,350,000
                                  Diego, California.....
                                 Naval Submarine Base,        $5,700,000
                                  Bangor, Washington....
                                 Travis Air Force Base,       $1,700,000
                                  California............
Defense Education Activity.....  Marine Corps Base, Camp     $16,900,000
                                  LeJeune, North
                                  Carolina..............
                                 United States Military       $2,840,000
                                  Academy, West Point,
                                  New York..............
National Security Agency.......  Fort Meade, Maryland...        $668,000
Special Operations Command.....  Eglin Auxiliary Field        $7,310,000
                                  3, Florida............
                                 Eglin Auxiliary Field        $2,400,000
                                  9, Florida............
                                 Fort Campbell, Kentucky     $15,000,000
                                 MacDill Air Force Base,      $8,400,000
                                  Florida...............
                                 Naval Amphibious Base,       $3,600,000
                                  Coronado, California..
                                 Stennis Space Center,        $5,500,000
                                  Mississippi...........
                                                         ---------------
                                         Total..........    $690,016,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(2), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following table:
      

               Defense Agencies: Outside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Logistics Agency.......  Lajes Field, Azores,         $7,700,000
                                  Portugal..............
Defense Medical Facilities       Naval Air Station,           $5,300,000
 Office........................   Sigonella, Italy......

[[Page 112 STAT. 2195]]

 
                                 Royal Air Force,            $10,800,000
                                  Lakenheath, United
                                  Kingdom...............
Defense Education Activity.....  Fort Buchanan, Puerto        $8,805,000
                                  Rico..................
                                 Naval Activities, Guam.     $13,100,000
Special Operations Command.....  Naval Station,               $9,600,000
                                  Roosevelt Roads,
                                  Puerto Rico...........
                                                         ---------------
                                         Total..........     $55,305,000
------------------------------------------------------------------------

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2404(a)(11)(A), the Secretary of Defense may improve existing 
military family housing units in an amount not to exceed $345,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(9), the Secretary of Defense may carry 
out energy conservation projects under section 2865 of title 10, United 
States Code.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1998, for military 
construction, land acquisition, and military family housing functions of 
the Department of Defense (other than the military departments) in the 
total amount of $2,223,260,000 as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2401(a), $369,966,000.
            (2) For military construction projects outside the United 
        States authorized by section 2401(a), $55,305,000.
            (3) For construction of the Ammunition Demilitarization 
        Facility, Pine Bluff Arsenal, Arkansas, authorized by section 
        2401 of the Military Construction Authorization Act for Fiscal 
        Year 1995 (division B of Public Law 103-337; 108 Stat. 3040), as 
        amended by section 2407 of the Military Construction 
        Authorization Act for Fiscal Year 1996 (division B of Public Law 
        104-106; 110 Stat. 539), section 2408 of the Military 
        Construction Authorization Act for Fiscal Year 1998 (division B 
        of Public Law 105-85; 111 Stat. 1982), and section 2406 of this 
        Act, $16,500,000.
            (4) For construction of the Ammunition Demilitarization 
        Facility, Umatilla Army Depot, Oregon, authorized by section 
        2401 of the Military Construction Authorization Act for Fiscal 
        Year 1995, as amended by section 2407 of the Military 
        Construction Authorization Act for Fiscal Year 1996, section 
        2408 of the Military Construction Authorization Act for Fiscal 
        Year 1998, and section 2406 of this Act, $50,950,000.
            (5) For military construction projects at Portsmouth Naval 
        Hospital, Virginia, hospital replacement, authorized by section 
        2401(a) of the Military Construction Authorization Act for 
        Fiscal Years 1990 and 1991 (division B of Public Law 101-189;

[[Page 112 STAT. 2196]]

        106 Stat. 1640), as amended by section 2407 of this Act, 
        $17,954,000.
            (6) For unspecified minor construction projects under 
        section 2805 of title 10, United States Code, $13,394,000.
            (7) For contingency construction projects of the Secretary 
        of Defense under section 2804 of title 10, United States Code, 
        $4,890,000.
            (8) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $41,005,000.
            (9) For energy conservation projects authorized by section 
        2403, $46,950,000.
            (10) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment Act of 
        1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
        note), $1,630,902,000.
            (11) For military family housing functions:
                    (A) For improvement of military family housing and 
                facilities, $345,000.
                    (B) For support of military housing (including 
                functions described in section 2833 of title 10, United 
                States Code), $36,899,000 of which not more than 
                $31,139,000 may be obligated or expended for the leasing 
                of military family housing units worldwide.
                    (C) For credit to the Department of Defense Family 
                Housing Improvement Fund established by section 
                2883(a)(1) of title 10, United States Code, $2,000,000.

    (b) Limitation of Total Cost of Construction Projects.--
Notwithstanding the cost variation authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2401 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a);
            (2) $162,050,000 (the balance of the amount authorized under 
        section 2401(a) for the construction of the Ammunition 
        Demilitarization Facility at Newport Army Depot, Indiana); and
            (3) $158,000,000 (the balance of the amount authorized under 
        section 2401(a) for the construction of the Ammunition 
        Demilitarization Facility at Aberdeen Proving Ground, Maryland).

    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (11) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced by 
$63,800,000 (of which $50,500,000 represents savings from military 
construction for chemical demilitarization), which represents the 
combination of project savings in military construction resulting from 
favorable bids, reduced overhead costs, and cancellations due to force 
structure changes.

SEC. 2405. REPEAL OF FISCAL YEAR 1997 AUTHORIZATION OF APPROPRIATIONS 
            FOR CERTAIN MILITARY HOUSING IMPROVEMENT PROGRAM.

    (a) Authorization of Appropriations.--Section 2406(a) of the 
Military Construction Authorization Act for Fiscal Year 1997 (division B 
of Public Law 104-201; 110 Stat. 2778) is amended--

[[Page 112 STAT. 2197]]

            (1) by striking out ``$3,379,703,000'' and inserting in lieu 
        thereof ``$3,374,703,000''; and
            (2) in paragraph (14), by striking out subparagraph (D).

    (b) Credit and Use of Funds.--Section 2404 of that Act (110 Stat. 
2777) is amended--
            (1) in subsection (a)--
                    (A) by striking out ``(1)'' before ``Of ''; and
                    (B) by striking out paragraph (2); and
            (2) in subsection (b)--
                    (A) by striking out ``(1)'' before ``The'';
                    (B) by striking out ``subsection (a)(1)'' and 
                inserting in lieu thereof ``subsection (a)''; and
                    (C) by striking out paragraph (2).

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
            1995 PROJECTS.

    The table in section 2401 of the Military Construction Authorization 
Act for Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 
3040), as amended by section 2407 of the Military Construction 
Authorization Act for Fiscal Year 1996 (division B of Public Law 104-
106; 110 Stat. 539) and section 2408 of the Military Construction 
Authorization Act for Fiscal Year 1998 (division B of Public Law 105-85; 
111 Stat. 1982), under the agency heading relating to Chemical Weapons 
and Munitions Destruction, is amended--
            (1) in the item relating to Pine Bluff Arsenal, Arkansas, by 
        striking out ``$134,000,000'' in the amount column and inserting 
        in lieu thereof ``$154,400,000''; and
            (2) in the item relating to Umatilla Army Depot, Oregon, by 
        striking out ``$187,000,000'' in the amount column and inserting 
        in lieu thereof ``$193,377,000''.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1990 
            PROJECT.

    (a) Increase.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Years 1990 and 1991 (division 
B of Public Law 100-189; 103 Stat. 1640) is amended in the item relating 
to Portsmouth Naval Hospital, Virginia, by striking out ``$330,000,000'' 
and inserting in lieu thereof ``$351,354,000''.
    (b) Conforming Amendment.--Section 2405(b)(2) of that Act (103 Stat. 
1642) is amended by striking out ``$321,500,000'' and inserting in lieu 
thereof ``$342,854,000''.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the North 
Atlantic Treaty Organization Security Investment program as provided in 
section 2806 of title 10, United States Code, in an amount

[[Page 112 STAT. 2198]]

not to exceed the sum of the amount authorized to be appropriated for 
this purpose in section 2502 and the amount collected from the North 
Atlantic Treaty Organization as a result of construction previously 
financed by the United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 1998, for contributions by the Secretary 
of Defense under section 2806 of title 10, United States Code, for the 
share of the United States of the cost of projects for the North 
Atlantic Treaty Organization Security Investment program authorized by 
section 2501, in the amount of $154,000,000.

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
           acquisition projects.
Sec. 2602. Modification of authority to carry out fiscal year 1998 
           project.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
            ACQUISITION PROJECTS.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years beginning after September 30, 1998, for 
the costs of acquisition, architectural and engineering services, and 
construction of facilities for the Guard and Reserve Forces, and for 
contributions therefor, under chapter 1803 of title 10, United States 
Code (including the cost of acquisition of land for those facilities), 
the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the United 
                States, $142,403,000; and
                    (B) for the Army Reserve, $102,119,000.
            (2) For the Department of the Navy, for the Naval and Marine 
        Corps Reserve, $31,621,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the United States, 
                $169,801,000; and
                    (B) for the Air Force Reserve, $34,371,000.

    (b) Adjustment.--(1) The amount authorized to be appropriated 
pursuant to subsection (a)(1)(A) is reduced by $2,000,000, which 
represents the combination of project savings in military construction 
resulting from favorable bids, reduced overhead costs, and cancellations 
due to force structure changes.
    (2) The amount authorized to be appropriated pursuant to subsection 
(a)(3)(A) is reduced by $4,000,000, which represents the combination of 
project savings in military construction resulting from favorable bids, 
reduced overhead costs, and cancellations due to force structure 
changes.

SEC. 2602. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1998 
            PROJECT.

    Section 2603 of the Military Construction Authorization Act for 
Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 1983) is 
amended to read as follows:

[[Page 112 STAT. 2199]]

``SEC. 2603. ARMY RESERVE CONSTRUCTION PROJECT, SALT LAKE CITY, UTAH.

    ``With regard to the military construction project for the Army 
Reserve concerning construction of a reserve center and organizational 
maintenance shop at an appropriate site in, or in the vicinity of, Salt 
Lake City, Utah, to be carried out using funds appropriated pursuant to 
the authorization of appropriations in section 2601(a)(1)(B), the 
Secretary of the Army shall enter into an agreement with the State of 
Utah under which the State agrees to provide financial or in-kind 
contributions in connection with the project.''.

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
           specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1996 
           projects.
Sec. 2703. Extension of authorization of fiscal year 1995 project.
Sec. 2704. Effective date.

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE 
            SPECIFIED BY LAW.

    (a) Expiration of Authorizations After Three Years.--Except as 
provided in subsection (b), all authorizations contained in titles XXI 
through XXVI for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the North 
Atlantic Treaty Organization Security Investment program (and 
authorizations of appropriations therefor) shall expire on the later 
of--
            (1) October 1, 2001; or
            (2) the date of enactment of an Act authorizing funds for 
        military construction for fiscal year 2002.

    (b) Exception.--Subsection (a) shall not apply to authorizations for 
military construction projects, land acquisition, family housing 
projects and facilities, and contributions to the North Atlantic Treaty 
Organization Security Investment program (and authorizations of 
appropriations therefor), for which appropriated funds have been 
obligated before the later of--
            (1) October 1, 2001; or
            (2) the date of enactment of an Act authorizing funds for 
        fiscal year 2002 for military construction projects, land 
        acquisition, family housing projects and facilities, or 
        contributions to the North Atlantic Treaty Organization Security 
        Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1996 
            PROJECTS.

    (a) Extensions.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1996 (division B of 
Public Law 104-106; 110 Stat. 541), authorizations for the projects set 
forth in the tables in subsection (b), as provided in section 2201, 
2202, 2302, or 2601 of that Act, shall remain in effect until October 1, 
1999, or the date of enactment of an Act authorizing funds for military 
construction for fiscal year 2000, whichever is later.

[[Page 112 STAT. 2200]]

    (b) Tables.--The tables referred to in subsection (a) are as 
follows:
      

                                 Navy: Extension of 1996 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Puerto Rico...........................  Naval Station Roosevelt    Housing Office...............        $710,000
                                         Roads...................
California............................  Camp Pendleton...........  Family Housing Construction       $20,000,000
                                                                    (138 units).................
----------------------------------------------------------------------------------------------------------------


                               Air Force: Extension of 1996 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Texas.................................  Lackland Air Force Base..  Family Housing (67 units)....      $6,200,000
----------------------------------------------------------------------------------------------------------------


                          Army National Guard: Extension of 1996 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Mississippi...........................  Camp Shelby..............  Multipurpose Range Complex         $5,000,000
                                                                    (Phase I)...................
Missouri..............................  National Guard Training    Multipurpose Range...........      $2,236,000
                                         Site, Jefferson City....
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATION OF FISCAL YEAR 1995 PROJECT.

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1995 (division B of 
Public Law 103-337; 108 Stat. 3046), the authorization for the project 
set forth in the table in subsection (b), as provided in section 2201 of 
that Act and extended by section 2702 of the Military Construction 
Authorization Act for Fiscal Year 1998 (division B of Public Law 105-85; 
111 Stat. 1985), shall remain in effect until October 1, 1999, or the 
date of enactment of an Act authorizing funds for military construction 
for fiscal year 2000, whichever is later.
    (b) Table.--The table referred to in subsection (a) is as follows:
      

                                  Navy: Extension of 1995 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Maryland..............................  Indian Head Naval Surface  Denitrification/Acid Mixing        $6,400,000
                                         Warfare Center..........   Facility....................
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on 
the later of--
            (1) October 1, 1998; or

[[Page 112 STAT. 2201]]

            (2) the date of the enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Architectural and engineering services and construction 
           design.
Sec. 2802. Expansion of Army overseas family housing lease authority.
Sec. 2803. Definition of ancillary supporting facilities under 
           alternative authority for acquisition and improvement of 
           military housing.
Sec. 2804. Purchase of build-to-lease family housing at Eielson Air 
           Force Base, 
           Alaska.
Sec. 2805. Report relating to improvement of housing for unaccompanied 
           members.

         Subtitle B--Real Property and Facilities Administration

Sec. 2811. Exceptions to real property transaction reporting 
           requirements for war and certain emergency and other 
           operations.
Sec. 2812. Restoration of Department of Defense lands used by another 
           Federal agency.
Sec. 2813. Outdoor recreation development on military installations for 
           disabled 
           veterans, military dependents with disabilities, and other 
           persons with disabilities.
Sec. 2814. Report on leasing and other alternative uses of nonexcess 
           military property.
Sec. 2815. Report on implementation of utility system conveyance 
           authority.

            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Applicability of property disposal laws to leases at 
           installations to be closed or realigned under base closure 
           laws.
Sec. 2822. Elimination of waiver authority regarding prohibition against 
           certain 
           conveyances of property at Naval Station, Long Beach, 
           California.
Sec. 2823. Payment of stipulated penalties assessed under CERCLA in 
           connection with McClellan Air Force Base, California.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Modification of land conveyance, Army Reserve Center, 
           Youngstown, Ohio.
Sec. 2832. Release of interests in real property, former Kennebec 
           Arsenal, Augusta, Maine.
Sec. 2833. Release, waiver, or conveyance of interests in real property, 
           former 
           Redstone Army Arsenal property, Alabama.
Sec. 2834. Conveyance of utility systems, Lone Star Army Ammunition 
           Plant, Texas.
Sec. 2835. Conveyance of water rights and related interests, Rocky 
           Mountain Arsenal, Colorado, for purposes of acquisition of 
           perpetual contracts for water.
Sec. 2836. Land conveyance, Army Reserve Center, Massena, New York.
Sec. 2837. Land conveyance, Army Reserve Center, Ogdensburg, New York.
Sec. 2838. Land conveyance, Army Reserve Center, Jamestown, Ohio.
Sec. 2839. Land conveyance, Army Reserve Center, Peoria, Illinois.
Sec. 2840. Land conveyance, Army Reserve Center, Bridgton, Maine.
Sec. 2841. Land conveyance, Fort Sheridan, Illinois.
Sec. 2842. Land conveyance, Skaneateles, New York.
Sec. 2843. Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
           Indiana.
Sec. 2844. Land conveyance, Volunteer Army Ammunition Plant, 
           Chattanooga, 
           Tennessee.
Sec. 2845. Land conveyance, Stewart Amy Sub-Post, New Windsor, New York.

                        Part II--Navy Conveyances

Sec. 2851. Conveyance of easement, Marine Corps Base, Camp Pendleton, 
           California.
Sec. 2852. Land exchange, Naval Reserve Readiness Center, Portland, 
           Maine.
Sec. 2853. Land conveyance, Naval and Marine Corps Reserve facility, 
           Youngstown, Ohio.
Sec. 2854. Land conveyance, Naval Air Reserve Center, Minneapolis, 
           Minnesota.

                     Part III--Air Force Conveyances

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

[[Page 112 STAT. 2202]]

Sec. 2862. Modification of land conveyance, Finley Air Force Station, 
           North Dakota.
Sec. 2863. Land conveyance, Lake Charles Air Force Station, Louisiana.
Sec. 2864. Land conveyance, Air Force Housing Facility, La Junta, 
           Colorado.

                        Subtitle E--Other Matters

Sec. 2871. Modification of authority relating to Department of Defense 
           Laboratory Revitalization Demonstration Program.
Sec. 2872. Repeal of prohibition on joint use of Gray Army Airfield, 
           Fort Hood, Texas, with civil aviation.
Sec. 2873. Modification of demonstration project for purchase of fire, 
           security, police, public works, and utility services from 
           local government agencies.
Sec. 2874. Designation of building containing Navy and Marine Corps 
           Reserve 
           Center, Augusta, Georgia.

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

SEC. 2801. ARCHITECTURAL AND ENGINEERING SERVICES AND CONSTRUCTION 
            DESIGN.

    (a) Increase in Threshold for Notice to Congress.--
Subsection (b) of section 2807 of title 10, United States Code, is 
amended by striking out ``$300,000'' and inserting in lieu thereof 
``$500,000''.
    (b) Availability of Appropriations.--Subsection (d) of that section 
is amended by striking out ``study, planning, design, architectural, and 
engineering services'' and inserting in lieu thereof ``architectural and 
engineering services and construction design''.

SEC. 2802. EXPANSION OF ARMY OVERSEAS FAMILY HOUSING LEASE AUTHORITY.

    (a) Alternative Maximum Unit Amounts.--Section 2828(e) of title 10, 
United States Code, is amended--
            (1) in paragraph (2), by inserting, ``, and the Secretary of 
        the Army may lease not more than 500 units of family housing in 
        Italy,'' after ``family housing in Italy'';
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (3) by inserting after paragraph (2) the following new 
        paragraph (3):

    ``(3) In addition to the 450 units of family housing referred to in 
paragraph (1) for which the maximum lease amount is $25,000 per unit per 
year, the Secretary of the Army may lease not more than 800 units of 
family housing in Korea subject to that maximum lease amount.''.
    (b) Conforming Amendment.--Paragraph (4) of that section, as 
redesignated by subsection (a)(2) of this section, is amended by 
striking out ``and (2)'' and inserting in lieu thereof ``, (2), and 
(3)''.

SEC. 2803. DEFINITION OF ANCILLARY SUPPORTING FACILITIES UNDER 
            ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF 
            MILITARY HOUSING.

    Section 2871(1) of title 10, United States Code, is amended by 
inserting after ``including'' the following: ``facilities to provide or 
support elementary or secondary education,''.

[[Page 112 STAT. 2203]]

SEC. 2804. PURCHASE OF BUILD-TO-LEASE FAMILY HOUSING AT EIELSON AIR 
            FORCE BASE, ALASKA.

    (a) Authority To Purchase.--The Secretary of the Air Force may 
purchase the entire interest of the developer in the military family 
housing project at Eielson Air Force Base, Alaska, described in 
subsection (b) if the Secretary determines that the purchase is in the 
best economic interests of the Air Force.
    (b) Description of Project.--The military family housing project 
referred to in this section is the 366-unit military family housing 
project at Eielson Air Force Base that was constructed by the developer 
and is being leased by the Secretary under the authority of former 
subsection (g) of section 2828 of title 10, United States Code (now 
section 2835 of such title), as added by section 801 of the Military 
Construction Authorization Act, 1984 (Public Law 98-115; 97 Stat. 782).
    (c) Purchase Price.--The purchase price to be paid by the Secretary 
under this section for the interest of the developer in the military 
family housing project may not exceed an amount equal to the amount of 
the outstanding indebtedness of the developer to the lender for the 
project that would have remained at the time of the purchase under this 
section if the developer had paid down its indebtedness to the lender 
for the project in accordance with the original debt instruments for the 
project.
    (d) Time for Purchase.--(1) Subject to paragraph (2), the Secretary 
may elect to make the purchase authorized by subsection (a) at any time 
during or after the term of the lease for the military family housing 
project.
    (2) The Secretary may not make the purchase until 30 days after the 
date on which the Secretary notifies the congressional defense 
committees of the Secretary's election to make the purchase under 
paragraph (1).

SEC. 2805. REPORT RELATING TO IMPROVEMENT OF HOUSING FOR UNACCOMPANIED 
            MEMBERS.

    (a) Report Required.--(1) Not later than April 1, 1999, the 
Secretary of Defense shall submit to Congress a report on--
            (A) the plans of each of the military departments to improve 
        the condition, suitability, and availability of housing for 
        members of the Armed Forces who are unaccompanied by dependents; 
        and
            (B) the costs associated with the implementation of the 
        plans.

    (2) The Secretary of Defense shall prepare the report in 
consultation with the Secretaries of the military departments.
    (b) Elements.--The report under subsection (a) shall include the 
following:
            (1) The plans and programs of each of the military 
        departments to improve housing on military installations for 
        unaccompanied members of the Armed Forces, including an 
        assessment of the requirement, a schedule to implement such 
        plans and programs, and an explanation of the standards used to 
        determine the adequacy, suitability, and availability of housing 
        outside of military installations.
            (2) A justification for the initiative to build single 
        occupancy rooms with a shared bath (commonly known as the ``1 
        Plus 1 Initiative''), including--

[[Page 112 STAT. 2204]]

                    (A) a description of the manner in which the 
                initiative is designed to enhance the quality of life 
                for enlisted members and the retention of such members 
                in adequate numbers; and
                    (B) an assessment of the analysis and data used in 
                the justification to implement the initiative.
            (3) The cost for each military department of implementing 
        the initiative, including the amount of funds, by fiscal year, 
        authorized and appropriated for military construction and real 
        property maintenance obligated or expended on the improvement of 
        military housing for unaccompanied members beginning on October 
        1, 1996, and the amount of funds required to be expended to 
        ensure the suitability of such housing for unaccompanied 
        members.
            (4) An explanation of the difference in cost between--
                    (A) upgrading existing military housing to the 
                standard proposed in the initiative; and
                    (B) rehabilitating such housing within existing 
                standards.
            (5) An assessment of the viability and utility of the 
        authorities provided by subchapter IV of chapter 169 of title 
        10, United States Code, to contribute to the improvement of the 
        condition, suitability, and availability of housing for 
        unaccompanied members, especially members in junior grades.
            (6) The views of the Chief of Staff of the Army, the Chief 
        of Naval Operations, the Chief of Staff of the Air Force, the 
        Commandant of the Marine Corps, the Commandant of the Coast 
        Guard, and each of the senior enlisted members of the Armed 
        Forces regarding the initiative referred to in paragraph (2) and 
        regarding any alternatives to the initiative having the 
        potential of enhancing the quality of life for unaccompanied 
        members, improving the readiness of the Armed Forces, and 
        improving the retention of enlisted members in adequate numbers.

         Subtitle B--Real Property and Facilities Administration

SEC. 2811. EXCEPTIONS TO REAL PROPERTY TRANSACTION REPORTING 
            REQUIREMENTS FOR WAR AND CERTAIN EMERGENCY AND OTHER 
            OPERATIONS.

    (a) Exceptions.--Section 2662 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(g) Exceptions for Transactions for War and Certain Emergency and 
Other Operations.--(1) The reporting requirement set forth in subsection 
(a) shall not apply with respect to a real property transaction 
otherwise covered by that subsection, and the reporting requirement set 
forth in subsection (e) shall not apply with respect to a real property 
transaction otherwise covered by that subsection, if the Secretary 
concerned determines that the transaction is made as a result of any of 
the following:
            ``(A) A declaration of war.
            ``(B) A declaration of a national emergency by the President 
        pursuant to the National Emergencies Act (50 U.S.C. 1601 et 
        seq.).

[[Page 112 STAT. 2205]]

            ``(C) A declaration of an emergency or major disaster 
        pursuant to the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5121 et seq.).
            ``(D) The use of the militia or the armed forces after a 
        proclamation to disperse under section 334 of this title.
            ``(E) A contingency operation.

    ``(2) The reporting requirement set forth in subsection (a) shall 
not apply with respect to a real property transaction otherwise covered 
by that subsection if the Secretary concerned determines that--
            ``(A) an event listed in paragraph (1) is imminent; and
            ``(B) the transaction is necessary for purposes of 
        preparation for such event.

    ``(3) Not later than 30 days after entering into a real property 
transaction covered by paragraph (1) or (2), the Secretary concerned 
shall submit to the committees named in subsection (a) a report on the 
transaction. The report shall set forth any facts or information which 
would otherwise have been submitted in a report on the transaction under 
subsection (a) or (e), as the case may be, but for the operation of 
paragraph (1) or (2).''.
    (b) Stylistic Amendments.--That section is further amended--
            (1) in subsection (a), by inserting ``General Notice and 
        Wait Requirements.--'' after ``(a)'';
            (2) in subsection (b), by inserting ``Annual Reports on 
        Certain Minor Transactions.--'' after ``(b)'';
            (3) in subsection (c), by inserting ``Geographic Scope; 
        Excepted Projects.--'' after ``(c)'';
            (4) in subsection (d), by inserting ``Statements of 
        Compliance in Transaction Instruments.--'' after ``(d)'';
            (5) in subsection (e), by inserting ``Notice and Wait 
        Regarding Leases of Space for DoD by GSA.--'' after ``(e)''; and
            (6) in subsection (f ), by inserting ``Reports on 
        Transactions Involving Intelligence Components.--'' after ``(f 
        )''.

SEC. 2812. RESTORATION OF DEPARTMENT OF DEFENSE LANDS USED BY ANOTHER 
            FEDERAL AGENCY.

    (a) Restoration as Term of Agreement.--Section 2691 of title 10, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(c)(1) As a condition of any lease, permit, license, or other 
grant of access entered into by the Secretary of a military department 
with another Federal agency authorizing the agency to use lands under 
the control of the Secretary, the Secretary may require the agency to 
agree to remove any improvements and to take any other action necessary 
in the judgment of the Secretary to restore the land used by the agency 
to its condition before its use by the agency.
    ``(2) In lieu of performing any removal or restoration work under 
paragraph (1), a Federal agency may elect, with the consent of the 
Secretary, to reimburse the Secretary for the costs incurred by the 
military department in performing such removal or restoration work.''.
    (b) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

[[Page 112 STAT. 2206]]

``Sec. 2691. Restoration of land used by permit or lease''.

    (2) The table of sections at the beginning of chapter 159 of title 
10, United States Code, is amended by striking the item relating to 
section 2691 and inserting in lieu thereof the following new item:

``2691. Restoration of land used by permit or lease.''.

SEC. 2813. OUTDOOR RECREATION DEVELOPMENT ON MILITARY INSTALLATIONS FOR 
            DISABLED VETERANS, MILITARY DEPENDENTS WITH DISABILITIES, 
            AND OTHER PERSONS WITH DISABILITIES.

    (a) Access Enhancement.--Section 103 of the Sikes Act (16 U.S.C. 
670c) is amended by adding at the end the following new subsections:
    ``(b) Access for Disabled Veterans, Military Dependents With 
Disabilities, and Other Persons With Disabilities.--(1) In developing 
facilities and conducting programs for public outdoor recreation at 
military installations, consistent with the primary military mission of 
the installations, the Secretary of Defense shall ensure, to the extent 
reasonably practicable, that outdoor recreation opportunities (including 
fishing, hunting, trapping, wildlife viewing, boating, and camping) made 
available to the public also provide access for persons described in 
paragraph (2) when topographic, vegetative, and water resources allow 
access for such persons without substantial modification to the natural 
environment.
    ``(2) Persons referred to in paragraph (1) are the following:
            ``(A) Disabled veterans.
            ``(B) Military dependents with disabilities.
            ``(C) Other persons with disabilities, when access to a 
        military installation for such persons and other civilians is 
        not otherwise restricted.

    ``(3) The Secretary of Defense shall carry out this subsection in 
consultation with the Secretary of Veterans Affairs, national service, 
military, and veterans organizations, and sporting organizations in the 
private sector that participate in outdoor recreation projects for 
persons described in paragraph (2).
    ``(c) Acceptance of Donations.--In connection with the facilities 
and programs for public outdoor recreation at military installations, in 
particular the requirement under subsection (b) to provide access for 
persons described in paragraph (2) of such subsection, the Secretary of 
Defense may accept--
            ``(1) the voluntary services of individuals and 
        organizations; and
            ``(2) donations of property, whether real or personal.

    ``(d) Treatment of Volunteers.--A volunteer under subsection (c) 
shall not be considered to be a Federal employee and shall not be 
subject to the provisions of law relating to Federal employment, 
including those relating to hours of work, rates of compensation, leave, 
unemployment compensation, and Federal employee benefits, except that--
            ``(1) for the purposes of the tort claims provisions of 
        chapter 171 of title 28, United States Code, the volunteer shall 
        be considered to be a Federal employee; and
            ``(2) for the purposes of subchapter I of chapter 81 of 
        title 5, United States Code, relating to compensation to Federal 
        employees for work injuries, the volunteer shall be considered 
        to be an employee, as defined in section 8101(1)(B) of title

[[Page 112 STAT. 2207]]

        5, United States Code, and the provisions of such subchapter 
        shall apply.''.

    (b) Conforming Amendment.--Such section is further amended by 
striking out ``Sec. 103.'' and inserting in lieu thereof the following:

``SEC. 103. PROGRAM FOR PUBLIC OUTDOOR RECREATION.

    ``(a) Program Authorized.--''.

SEC. 2814. REPORT ON LEASING AND OTHER ALTERNATIVE USES OF NONEXCESS 
            MILITARY PROPERTY.

    (a) Report Required.--Not later than March 15, 1999, the Secretary 
of Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives a 
report regarding the authority of the military departments and Defense 
Agencies to lease to the private sector nonexcess real and personal 
property. The Secretary shall prepare the report in consultation with 
the Secretaries of the military departments and the Director of the 
Office of Management and Budget.
    (b) Required Elements of Report.--The report shall set forth the 
following:
            (1) The number and purpose of all leases entered into under 
        sections 2667 and 2667a of title 10, United States Code, other 
        than leases under section 2667(f ) of that title, during the 5-
        year period ending on the date of the enactment of this Act.
            (2) The types and amounts of payments received under the 
        leases specified in paragraph (1) and the costs, if any, 
        foregone as a result of the leases.
            (3) An assessment of the positive and negative aspects of 
        leasing real property and surplus capacity at military 
        installations to the private sector, including the potential 
        effect of the use of the leases on force protection and the 
        military functions of the installations.
            (4) An assessment of the current efforts of the Department 
        of Defense to identify for the private sector any surplus 
        capacity at military installations that could be leased or 
        otherwise used by the private sector.
            (5) An assessment of the proposal of the Secretary of the 
        Air Force to reduce infrastructure costs at Brooks Air Force 
        Base, Texas, using the authority provided in section 2667 of 
        title 10, United States Code, and the proposal of the Secretary 
        of the Navy regarding the potential for development of Ford 
        Island as part of Naval Complex, Pearl Harbor, Hawaii.
            (6) An assessment (including an economic analysis) of the 
        ability of the military departments and Defense Agencies to 
        reduce the quantity of real property leased by them through the 
        relocation of activities located in such leased space to 
        property of a military installation, or another Federal agency, 
        that is unutilized or underutilized, while also lowering 
        operational and maintenance costs and minimizing the need for 
        new construction.

    (c) Additional Elements of Report.--In the event that the Secretary 
of Defense considers the authority under section 2667 or 2667a of title 
10, United States Code, to be insufficient, the Secretary shall also 
include in the report--

[[Page 112 STAT. 2208]]

            (1) a proposal for authority to conduct a pilot project 
        based on the assessment made under subsection (b)(5) or for such 
        general legislative authority as the Secretary considers 
        appropriate to enhance the ability of the Department of Defense 
        to utilize surplus capacity at military installations in order 
        to improve military readiness, achieve cost savings with respect 
        to such installations, or decrease the cost of operating such 
        installations;
            (2) an estimate of the income that could accrue to the 
        Department of Defense as a result of the implementation of 
        enhanced authority proposed under paragraph (1) during the 5-
        year period beginning on the date of such implementation; and
            (3) an assessment of the extent to which any such income 
        should be reserved for the use of the installations exercising 
        such authority and of the extent to which installations would be 
        likely to enter into such leases if they cannot retain such 
        income.

SEC. 2815. REPORT ON IMPLEMENTATION OF UTILITY SYSTEM CONVEYANCE 
            AUTHORITY.

    Not later than March 1, 1999, the Secretary of Defense, in 
consultation with the Secretaries of the military departments, shall 
submit to Congress a report containing--
            (1) the criteria to be used by the Secretary of a military 
        department to select utility systems, and related improvements, 
        easements, and rights-of-way, under the jurisdiction of the 
        Secretary, for conveyance to a municipal, private, regional, 
        district, or cooperative utility company or other entity under 
        the authority of section 2688 of title 10, United States Code;
            (2) an assessment of the need to include, as part of the 
        conveyance authority under such section, authority for the 
        Secretary to convey real property associated with a utility 
        system conveyed under such section; and
            (3) a description of the manner in which the Secretary will 
        ensure that any conveyance under such section does not adversely 
        affect the national security of the United States.

            Subtitle C--Defense Base Closure and Realignment

SEC. 2821. APPLICABILITY OF PROPERTY DISPOSAL LAWS TO LEASES AT 
            INSTALLATIONS TO BE CLOSED OR REALIGNED UNDER BASE CLOSURE 
            LAWS.

    Section 2667(f )(1) of title 10, United States Code, is amended by 
inserting after ``subsection (a)(3)'' the following: ``or the Federal 
Property and Administrative Services Act of 1949 (to the extent such Act 
is inconsistent with this subsection)''.

SEC. 2822. ELIMINATION OF WAIVER AUTHORITY REGARDING PROHIBITION AGAINST 
            CERTAIN CONVEYANCES OF PROPERTY AT NAVAL STATION, LONG 
            BEACH, CALIFORNIA.

    Section 2826 of the Military Construction Authorization Act for 
Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 2001) is 
amended by striking out subsection (e).

[[Page 112 STAT. 2209]]

SEC. 2823. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER CERCLA IN 
            CONNECTION WITH MCCLELLAN AIR FORCE BASE, CALIFORNIA.

    (a) Source of Payment.--Notwithstanding subsection (b) of section 
2906 of the Defense Base Closure and Realignment Act of 1990 (part A of 
title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), the Secretary of 
Defense may use amounts in the Department of Defense Base Closure 
Account 1990 established under subsection (a) of such section to pay 
stipulated penalties assessed under the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
seq.) against McClellan Air Force Base, California.
    (b) Amount of Payment.--The amount expended under the authority of 
subsection (a) may not exceed $15,000.

                      Subtitle D--Land Conveyances

                        PART I--ARMY CONVEYANCES

SEC. 2831. MODIFICATION OF LAND CONVEYANCE, ARMY RESERVE CENTER, 
            YOUNGSTOWN, OHIO.

    Section 2861(b) of the Military Construction Authorization Act for 
Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 573) is 
amended by striking out ``retain'' and all that follows through the 
period at the end and inserting in lieu thereof ``develop the parcel for 
educational purposes.''.

SEC. 2832. RELEASE OF INTERESTS IN REAL PROPERTY, FORMER KENNEBEC 
            ARSENAL, AUGUSTA, MAINE.

    (a) Authority To Release.--The Secretary of the Army may release, 
without consideration, all right, title, and interest of the United 
States in and to the real property described in subsection (b).
    (b) Covered Property.--The real property referred to in subsection 
(a) is the parcel of real property consisting of approximately 40 acres 
located in Augusta, Maine, and formerly known as the Kennebec Arsenal, 
which parcel was conveyed by the Secretary of War to the State of Maine 
under the provisions of the Act entitled ``An Act Authorizing the 
Secretary of War to convey the Kennebec Arsenal property, situated in 
Augusta, Maine, to the State of Maine for public purposes'', approved 
March 3, 1905 (33 Stat. 1270), as amended by section 771 of the 
Department of Defense Appropriations Act, 1981 (Public Law 96-527; 94 
Stat. 3093).
    (c) Instrument of Release.--The Secretary of the Army shall execute 
and file in the appropriate office a deed of release, amended deed, or 
other appropriate instrument effectuating the release of interests 
authorized by this section.

SEC. 2833. RELEASE, WAIVER, OR CONVEYANCE OF INTERESTS IN REAL PROPERTY, 
            FORMER REDSTONE ARMY ARSENAL PROPERTY, ALABAMA.

    (a) Release Authorized.--The Secretary of the Army may release, 
without consideration and to such extent as the Secretary considers 
appropriate to protect the interests of the United States, the 
reversionary interests of the United States in the real property 
described in subsection (b), which were retained by the United States 
when the property was conveyed to the Alabama Space

[[Page 112 STAT. 2210]]

Science Exhibit Commission, an agency of the State of Alabama. The 
release shall be executed in the manner provided in this section.
    (b) Description of Property.--The real property referred to in this 
section is the real property conveyed to the Alabama Space Science 
Exhibit Commission under the authority of the following provisions of 
law:
            (1) The first section of Public Law 90-276 (82 Stat. 68).
            (2) Section 813 of the Military Construction Authorization 
        Act, 1980 (Public Law 96-125; 93 Stat. 952).
            (3) Section 813 of the Military Construction Authorization 
        Act, 1984 (Public Law 98-115; 97 Stat. 790).

    (c) Release, Waiver, or Conveyance of Other Rights, Terms, and 
Conditions.--As part of the release under subsection (a), the Secretary 
may release, waive, or convey, without consideration and to such extent 
as the Secretary considers appropriate to protect the interests of the 
United States--
            (1) any and all other rights retained by the United States 
        in and to the real property described in subsection (b) when the 
        property was conveyed to the Alabama Space Science Exhibit 
        Commission; and
            (2) any and all terms and conditions and restrictions on the 
        use of the real property imposed as part of the conveyances 
        described in subsection (b).

    (d) Conditions on Release, Waiver, or Conveyance.--(1) The Secretary 
may execute the release under subsection (a) or a release, waiver, or 
conveyance under subsection (c) only after--
            (A) the Secretary approves of the master plan prepared by 
        the Alabama Space Science Exhibit Commission, as such plan may 
        exist or be revised from time to time, for development of the 
        real property described in subsection (b); and
            (B) the installation commander at Redstone Arsenal, Alabama, 
        certifies to the Secretary that the release, waiver, or 
        conveyance is consistent with the master plan.

    (2) A new facility or structure may not be constructed on the real 
property described in subsection (b) unless the facility or structure is 
included in the master plan, which has been approved and certified as 
provided in paragraph (1).
    (e) Instrument of Release, Waiver, or Conveyance.--In making a 
release, waiver, or conveyance authorized by this section, the Secretary 
shall execute and file in the appropriate office or offices a deed of 
release, amended deed, or other appropriate instrument effectuating the 
release, waiver, or conveyance.
    (f ) Effect of Release.--Except as provided in subsection (g), upon 
release of any reversionary interest under this section, the right, 
title, and interest of the Alabama Space Science Exhibit Commission in 
and to the real property described in subsection (b) shall, to the 
extent of the release, no longer be subject to the conditions prescribed 
in the provisions of law specified in such subsection. Except as 
provided in subsection (g), the Alabama Space Science Exhibit Commission 
may use the real property for any such purpose or purposes as it 
considers appropriate consistent with the master plan approved and 
certified as provided in subsection (d), and the real property may be 
conveyed by the Alabama Space Science Exhibit Commission without 
restriction and unencumbered by any claims or rights of the United 
States with respect to the property, subject to such rights, terms, and 
conditions of the United States previously imposed on the real property 
and

[[Page 112 STAT. 2211]]

not released, waived, or conveyed by the Secretary under subsection (c).
    (g) Exceptions.--(1) Conveyance of the drainage and utility easement 
reserved to the United States pursuant to section 813(b)(3) of the 
Military Construction Authorization Act, 1984 (Public Law 98-115; 97 
Stat. 791), is not authorized under this section.
    (2) In no event may title to any portion of the real property 
described in subsection (b) be conveyed by the Alabama Space Science 
Exhibit Commission or any future deed holder of the real property to any 
person other than an agency, instrumentality, political subdivision, 
municipal corporation, or public corporation of the State of Alabama. 
Any deed conveying title to any portion of the real property described 
in subsection (b) shall restrict the further use of the conveyed 
property to purposes and uses consistent with the master plan approved 
and certified as provided in subsection (d), unless otherwise approved 
by the Secretary.
    (3) Paragraph (2) does not prevent the Alabama Space Science Exhibit 
Commission or any future deed holder of the real property described in 
subsection (b) from giving a mortgage with respect to any portion of the 
real property to any person, except that any such mortgage shall provide 
that the further use of the real property shall be restricted to 
purposes and uses consistent with the master plan approved and certified 
as provided in subsection (d), unless otherwise approved by the 
Secretary.

SEC. 2834. CONVEYANCE OF UTILITY SYSTEMS, LONE STAR ARMY AMMUNITION 
            PLANT, TEXAS.

    (a) Conveyance Authorized.--The Secretary of the Army may convey all 
right, title, and interest of the United States in and to any utility 
system, or part thereof, including any real property associated with 
such system, at the Lone Star Army Ammunition Plant, Texas, to the 
redevelopment authority for the Red River Army Depot, Texas, in 
conjunction with the disposal of property at the Depot under the Defense 
Base Closure and Realignment Act of 1990 (part A of title XXIX of Public 
Law 101-510; 10 U.S.C. 2687 note).
    (b) Consideration.--As consideration for the conveyance under 
subsection (a), the redevelopment authority shall pay to the United 
States an amount equal to the fair market value of the conveyed utility 
system and any real property conveyed as part of the conveyance, as 
determined by an independent appraisal satisfactory to the Secretary and 
paid for by the redevelopment authority.
    (c) Rule of Construction.--Nothing in subsection (a) may be 
construed to prohibit or otherwise limit the Secretary from conveying 
any utility system referred to in that subsection under any other 
provision of law, including section 2688 of title 10, United States 
Code.
    (d) Utility System Defined.--In this section, the term ``utility 
system'' has the meaning given that term in section 2688(g) of title 10, 
United States Code.

SEC. 2835. CONVEYANCE OF WATER RIGHTS AND RELATED INTERESTS, ROCKY 
            MOUNTAIN ARSENAL, COLORADO, FOR PURPOSES OF ACQUISITION OF 
            PERPETUAL CONTRACTS FOR WATER.

    (a) Conveyance Authorized.--Subject to subsection (c), the Secretary 
of the Army may convey any and all interest of the United States in the 
water rights and related rights at Rocky

[[Page 112 STAT. 2212]]

Mountain Arsenal, Colorado, described in subsection (b) to the City and 
County of Denver, Colorado, acting through its Board of Water 
Commissioners.
    (b) Covered Water Rights and Related Rights.--The water rights and 
related rights authorized to be conveyed under subsection (a) are the 
following:
            (1) Any and all interest in 300 acre rights to water from 
        Antero Reservoir as set forth in Antero Reservoir Contract No. 
        382 dated August 22, 1923, for 160 acre rights; Antero Reservoir 
        Contract No. 383 dated August 22, 1923, for 50 acre rights; 
        Antero Reservoir Contract No. 384 dated October 30, 1923, for 40 
        acre rights; Antero Reservoir Contract No. 387 dated March 3, 
        1923, for 50 acre rights; and Supplemental Contract No. 382-383-
        384-387 dated July 24, 1932, defining the amount of water to be 
        delivered under the 300 acre rights in the prior contracts as 
        220 acre feet.
            (2) Any and all interest in the 305 acre rights of water 
        from the High Line Canal, diverted at its headgate on the South 
        Platte River and delivered to the Fitzsimons Army Medical Center 
        and currently subject to cost assessments pursuant to Denver 
        Water Department contract #001990.
            (3) Any and all interest in the 2,603.55 acre rights of 
        water from the High Line Canal, diverted at its headgate on the 
        South Platte River and delivered to the Rocky Mountain Arsenal 
        in Adams County, Colorado, and currently subject to cost 
        assessments by the Denver Water Department, including 680 acre 
        rights transferred from Lowry Field to the Rocky Mountain 
        Arsenal by the October 5, 1943, agreement between the City and 
        County of Denver, acting by and through its Board of Water 
        Commissioners, and the United States of America.
            (4) Any and all interest in 4,058.34 acre rights of water 
        not currently subject to cost assessments by the Denver Water 
        Department.
            (5) A new easement for the placement of water lines 
        approximately 50 feet wide inside the Southern boundary of Rocky 
        Mountain Arsenal and across the Reserve Center along the 
        northern side of 56th Avenue.
            (6) A permanent easement for utilities where Denver has an 
        existing temporary easement near the southern and western 
        boundaries of Rocky Mountain Arsenal.

    (c) Consideration.--(1) The Secretary of the Army may make the 
conveyance under subsection (a) only if the Board of Water 
Commissioners, on behalf of the City and County of Denver, Colorado--
            (A) enters into a permanent contract with the Secretary of 
        the Army for purposes of ensuring the delivery of nonpotable 
        water and potable water to Rocky Mountain Arsenal; and
            (B) enters into a permanent contract with the Secretary of 
        the Interior for purposes of ensuring the delivery of nonpotable 
        water and potable water to Rocky Mountain Arsenal National 
        Wildlife Refuge, Colorado.

    (2) Section 2809(e) of title 10, United States Code, shall not 
operate to limit the term of the contract entered into under paragraph 
(1)(A).
    (d) Requirement Relating to Conveyance.--The Secretary of the Army 
may not make the conveyance authorized by subsection

[[Page 112 STAT. 2213]]

(a) until the execution of the proposed agreement provided for under 
subsection (c) between the City and County of Denver, Colorado, acting 
through its Board of Water Commissioners, the South Adams County Water 
and Sanitation District, the United States Fish and Wildlife Service, 
and the Army.
    (e) Additional Terms and Conditions.--The Secretary of the Army may 
require such additional terms and conditions in connection with the 
conveyance under subsection (a) as the Secretary considers appropriate 
to protect the interests of the United States.

SEC. 2836. LAND CONVEYANCE, ARMY RESERVE CENTER, MASSENA, NEW YORK.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Village of Massena, New York (in this 
section referred to as the ``Village''), all right, title, and interest 
of the United States in and to a parcel of real property, including 
improvements thereon, consisting of the Army Reserve Center in Massena, 
New York, for the purpose of permitting the Village to develop the 
parcel for public benefit, including the development of municipal office 
space.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Village.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified in 
such subsection, all right, title, and interest in and to the property, 
including any improvements thereon, shall revert to the United States, 
and the United States shall have the right of immediate entry onto the 
property. Any determination of the Secretary under this subsection shall 
be made on the record after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.

SEC. 2837. LAND CONVEYANCE, ARMY RESERVE CENTER, OGDENSBURG, NEW YORK.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the City of Ogdensburg, New York (in this 
section referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of real property, including 
improvements thereon, consisting of the Army Reserve Center in 
Ogdensburg, New York, for the purpose of permitting the City to develop 
the parcel for public benefit, including the development of municipal 
office space.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the City.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified in 
such subsection, all right, title, and

[[Page 112 STAT. 2214]]

interest in and to the property, including any improvements thereon, 
shall revert to the United States, and the United States shall have the 
right of immediate entry onto the property. Any determination of the 
Secretary under this subsection shall be made on the record after an 
opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.

SEC. 2838. LAND CONVEYANCE, ARMY RESERVE CENTER, JAMESTOWN, OHIO.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Greeneview Local School District of 
Jamestown, Ohio, all right, title, and interest of the United States in 
and to a parcel of real property, including improvements thereon, that 
is located at 5693 Plymouth Road in Jamestown, Ohio, and contains an 
Army Reserve Center, for the purpose of permitting the Greeneview Local 
School District to retain and use the conveyed property for educational 
purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Greeneview Local School District.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified in 
such subsection, all right, title, and interest in and to the property, 
including any improvements thereon, shall revert to the United States, 
and the United States shall have the right of immediate entry onto the 
property. Any determination of the Secretary under this subsection shall 
be made on the record after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.

SEC. 2839. LAND CONVEYANCE, ARMY RESERVE CENTER, PEORIA, ILLINOIS.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Peoria School District #150 of Peoria, 
Illinois (in this section referred to as the ``School District''), all 
right, title, and interest of the United States in and to a parcel of 
real property, including improvements thereon, consisting of the Army 
Reserve Center located at 1429 Northmoor Road in Peoria, Illinois, for 
the purpose of permitting the School District to develop the parcel for 
educational and transportation purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the School District.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose

[[Page 112 STAT. 2215]]

of the conveyance specified in such subsection, all right, title, and 
interest in and to the property, including any improvements thereon, 
shall revert to the United States, and the United States shall have the 
right of immediate entry onto the property. Any determination of the 
Secretary under this subsection shall be made on the record after an 
opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.

SEC. 2840. LAND CONVEYANCE, ARMY RESERVE CENTER, BRIDGTON, MAINE.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Town of Bridgton, Maine (in this section 
referred to as the ``Town''), all right, title, and interest of the 
United States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 3.65 acres and 
containing the Army Reserve Center in Bridgton, Maine, for the purpose 
of permitting the Town to develop the parcel for public benefit, 
including the development of municipal office space.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Town.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified in 
such subsection, all right, title, and interest in and to the property, 
including any improvements thereon, shall revert to the United States, 
and the United States shall have the right of immediate entry onto the 
property. Any determination of the Secretary under this subsection shall 
be made on the record after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.

SEC. 2841. LAND CONVEYANCE, FORT SHERIDAN, ILLINOIS.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
the City of Lake Forest, Illinois (in this section referred to as the 
``City''), all right, title, and interest, of the United States in and 
to all or some portion of the parcel of real property, including 
improvements thereon, at the former Fort Sheridan, Illinois, consisting 
of approximately 14 acres and known as the northern Army Reserve enclave 
area.
    (b) Consideration.--As consideration for the conveyance under 
subsection (a), the City shall pay to the United States an amount equal 
to not less than the fair market value of the real property to be 
conveyed, as determined by the Secretary.
    (c) Use of Proceeds.--In such amounts as are provided in advance in 
appropriations Acts, the Secretary may use the funds paid by the City 
under subsection (b) to provide for the construction of replacement 
facilities and for the relocation costs for Reserve units and activities 
affected by the conveyance.

[[Page 112 STAT. 2216]]

    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the City.
    (e) Notice and Wait.--The Secretary may not make the conveyance 
authorized by subsection (a) until 21 days after the date on which the 
Secretary submits to the congressional defense committees a 
certification that the relocation of the Reserve units and activities 
affected by the conveyance is consistent with an approved master plan 
for the consolidation of Reserve activities in, or in the vicinity of, 
Chicago, Illinois.
    (f ) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2842. LAND CONVEYANCE, SKANEATELES, NEW YORK.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Town of Skaneateles, New York (in this 
section referred to as the ``Town''), all right, title, and interest of 
the United States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 147.10 acres in 
Skaneateles, New York, and commonly known as the ``Federal Farm'', for 
the purpose of permitting the Town to develop the parcel for public 
benefit, including for recreational purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Town.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified in 
such subsection, all right, title, and interest in and to the property, 
including any improvements thereon, shall revert to the United States, 
and the United States shall have the right of immediate entry onto the 
property. Any determination of the Secretary under this subsection shall 
be made on the record after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interest of the United States.

SEC. 2843. LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT, CHARLESTOWN, 
            INDIANA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
the Indiana Army Ammunition Plant Reuse Authority (in this section 
referred to as the ``Reuse Authority'') all right, title, and interest 
of the United States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 4,660 acres located at 
the Indiana Army Ammunition Plant, Charlestown, Indiana, for the purpose 
of developing the parcel as an industrial park to replace all or part of 
the economic activity lost at the inactivated plant.
    (b) Consideration.--Except as provided in subsection (d), as 
consideration for the conveyance under subsection (a), the Reuse 
Authority shall pay to the Secretary an amount equal to the fair

[[Page 112 STAT. 2217]]

market value of the conveyed property as of the time of the conveyance, 
determined by the Secretary in accordance with Federal appraisal 
standards and procedures.
    (c) Time for Payment.--The consideration required under subsection 
(b) shall be paid by the Reuse Authority at the end of the 10-year 
period beginning on the date on which the conveyance under subsection 
(a) is completed.
    (d) Effect of Reconveyance or Lease.--(1) If, during the 10-year 
period specified in subsection (c), the Reuse Authority reconveys all or 
any part of the property conveyed under subsection (a), the Reuse 
Authority shall pay to the United States an amount equal to the fair 
market value of the reconveyed property as of the time of the 
reconveyance, excluding the value of any improvements made to the 
property by the Reuse Authority, determined by the Secretary in 
accordance with Federal appraisal standards and procedures.
    (2) The Secretary may treat a lease of the property within such 10-
year period as a reconveyance if the Secretary determines that the lease 
is being used to avoid application of paragraph (1).
    (e) Deposit of Proceeds.--The Secretary shall deposit any proceeds 
received under subsection (b) or (d) in the special account established 
pursuant to section 204(h)(2) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 485(h)(2)).
    (f ) Administrative Expenses.--In connection with the conveyance 
under subsection (a), the Secretary may accept amounts provided by the 
Reuse Authority or other persons to cover administrative expenses 
incurred by the Secretary in making the conveyance. Amounts received 
under this subsection for administrative expenses shall be credited to 
the appropriation, fund, or account from which the expenses were paid. 
Amounts so credited shall be merged with funds in such appropriation, 
fund, or account and shall be available for the same purposes and 
subject to the same limitations as the funds with which merged.
    (g) Description of Property.--The property to be conveyed under 
subsection (a) includes the administrative area of the Indiana Army 
Ammunition Plant as well as open space in the southern end of the plant. 
The exact acreage and legal description of the property to be conveyed 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Reuse Authority.
    (h) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.
    (i) Additional Conveyance for Recreational Purposes.--Section 
2858(a) of the Military Construction Authorization Act for Fiscal Year 
1996 (division B of Public Law 104-106; 110 Stat. 571), as amended by 
section 2838 of the Military Construction Authorization Act for Fiscal 
Year 1998 (division B of Public Law 105-85; 111 Stat. 2006), is further 
amended by adding at the end the following new paragraph:
    ``(3) The Secretary may also convey to the State, without 
consideration, another parcel of real property at the Indiana Army 
Ammunition Plant consisting of approximately 2,000 acres of additional 
riverfront property in order to connect the parcel conveyed under 
paragraph (2) with the parcels of Charlestown State Park

[[Page 112 STAT. 2218]]

conveyed to the State under paragraph (1) and title II of the Defense 
Authorization Amendments and Base Closure and Realignment Act (Public 
Law 100-526; 10 U.S.C. 2687 note).''.

SEC. 2844. LAND CONVEYANCE, VOLUNTEER ARMY AMMUNITION PLANT, 
            CHATTANOOGA, TENNESSEE.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
Hamilton County, Tennessee (in this section referred to as the 
``County''), all right, title, and interest of the United States in and 
to a parcel of real property, including improvements thereon, consisting 
of approximately 1,033 acres located at the Volunteer Army Ammunition 
Plant, Chattanooga, Tennessee, for the purpose of developing the parcel 
as an industrial park to replace all or part of the economic activity 
lost at the inactivated plant.
    (b) Consideration.--Except as provided in subsection (d), as 
consideration for the conveyance under subsection (a), the County shall 
pay to the Secretary an amount equal to the fair market value of the 
conveyed property as of the time of the conveyance, determined by the 
Secretary in accordance with Federal appraisal standards and procedures.
    (c) Time for Payment.--The consideration required under subsection 
(b) shall be paid by the County at the end of the 10-year period 
beginning on the date on which the conveyance under subsection (a) is 
completed.
    (d) Effect of Reconveyance or Lease.--(1) If the County reconveys 
all or any part of the conveyed property during the 10-year period 
specified in subsection (c), the County shall pay to the United States 
an amount equal to the fair market value of the reconveyed property as 
of the time of the reconveyance, excluding the value of any improvements 
made to the property by the County, determined by the Secretary in 
accordance with Federal appraisal standards and procedures.
    (2) The Secretary may treat a lease of the property within such 10-
year period as a reconveyance if the Secretary determines that the lease 
is being used to avoid application of paragraph (1).
    (e) Deposit of Proceeds.--The Secretary shall deposit any proceeds 
received under subsection (b) or (d) in the special account established 
pursuant to section 204(h)(2) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 485(h)(2)).
    (f ) Effect on Existing Leases.--The conveyance of the real property 
under subsection (a) shall not affect the terms or length of any 
contract entered into by the Secretary before the date of the enactment 
of this Act with regard to the property to be conveyed.
    (g) Administrative Expenses.--In connection with the conveyance 
under subsection (a), the Secretary may accept amounts provided by the 
County or other persons to cover administrative expenses incurred by the 
Secretary in making the conveyance. Amounts received under this 
subsection for administrative expenses shall be credited to the 
appropriation, fund, or account from which the expenses were paid. 
Amounts so credited shall be merged with funds in such appropriation, 
fund, or account and shall be available for the same purposes and 
subject to the same limitations as the funds with which merged.
    (h) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a)

[[Page 112 STAT. 2219]]

shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the County.
    (i) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.

SEC. 2845. LAND CONVEYANCE, STEWART ARMY SUB-POST, NEW WINDSOR, NEW 
            YORK.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Town of New Windsor, New York (in this 
section referred to as the ``Town''), all right, title, and interest of 
the United States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 291 acres at the 
Stewart Army Sub-Post in New Windsor, New York, for the purpose of 
permitting the Town to develop the parcel for economic purposes.
    (b) Exclusion.--The real property to be conveyed under subsection 
(a) does not include any portion of the approximately 89.2-acre parcel 
at Stewart Army Sub-Post that is proposed for transfer to the 
jurisdiction and control of the Marine Corps or the approximately 22-
acre parcel at Stewart Army Sub-Post that is proposed for transfer to 
the jurisdiction and control of the Army Reserve.
    (c) Conditions of Conveyance.--The conveyance authorized by 
subsection (a) may only be made subject to the following conditions:
            (1) The Town must agree to provide connections to the local 
        wastewater and sewage treatment system for all existing and 
        future improvements to the parcels of real property referred to 
        in subsection (b).
            (2) The Town must agree to provide wastewater and sewage 
        treatment service to such parcels at a rate established by the 
        appropriate Federal or State regulatory authority.

    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Town.
    (e) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.

                        PART II--NAVY CONVEYANCES

SEC. 2851. CONVEYANCE OF EASEMENT, MARINE CORPS BASE, CAMP PENDLETON, 
            CALIFORNIA.

    (a) Easement Authorized.--The Secretary of the Navy may grant an 
easement, in perpetuity, to the Foothill/Eastern Transportation Corridor 
Agency (in this section referred to as the ``Agency'') over a parcel of 
real property at Marine Corps Base, Camp Pendleton, California, 
consisting of approximately 340 acres to permit the recipient of the 
easement to construct, operate, and maintain a restricted access 
highway. The area covered by the easement shall include slopes and all 
necessary incidents thereto.
    (b) Consideration.--As consideration for the grant of an easement 
under subsection (a), the Agency shall pay to the United States an 
amount equal to the fair market value of the easement,

[[Page 112 STAT. 2220]]

as determined by an independent appraisal satisfactory to the Secretary 
and paid for by the Agency.
    (c) Use of Proceeds.--In such amounts as are provided in advance in 
appropriation Acts, the Secretary shall use the funds paid by the Agency 
under subsection (b) to carry out one or more of the following programs 
at Camp Pendleton:
            (1) Enhancement of access from Red, White, and Green Beaches 
        under Interstate Route 5 and railroad crossings to inland areas.
            (2) Improvement of roads and bridge structures in the range 
        and training area.
            (3) Realignment of Basilone Road.

    (d) Description of Property.--The exact acreage and legal 
description of the easement to be granted under subsection (a) shall be 
determined by a survey satisfactory to the Secretary. The cost of the 
survey shall be borne by the Agency.
    (e) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the grant of an 
easement under subsection (a) as the Secretary considers appropriate to 
protect the interests of the United States.

SEC. 2852. LAND EXCHANGE, NAVAL RESERVE READINESS CENTER, PORTLAND, 
            MAINE.

    (a) Conveyance Authorized.--(1) The Secretary of the Navy may convey 
to the Gulf of Maine Aquarium Development Corporation, Portland, Maine 
(in this section referred to as the ``Corporation''), all right, title, 
and interest of the United States in and to a parcel of real property, 
including improvements thereon, consisting of approximately 3.72 acres 
in Portland, Maine, and containing the Naval Reserve Readiness Center, 
Portland, Maine, for the purpose of permitting the Corporation to use 
the parcel for economic development and as the site for an aquarium and 
marine research facility.
    (2) As part of the conveyance under paragraph (1), the Secretary 
shall also convey to the Corporation any interest of the United States 
in the submerged lands adjacent to the real property conveyed under that 
paragraph that is appurtenant to the real property conveyed under that 
paragraph.
    (b) Provision of Replacement Facilities.--As consideration for the 
conveyance authorized by subsection (a), the Corporation shall design 
and construct such facilities as the Secretary determines appropriate 
for the Naval Reserve to replace the facilities conveyed under that 
subsection.
    (c) Location of Replacement Facilities.--(1) To provide a location 
for the replacement facilities required under subsection (b), the 
Corporation shall--
            (A) convey to the United States all right, title, and 
        interest in and to a parcel of real property determined by the 
        Secretary to be an appropriate location for such facilities; or
            (B) design and construct such facilities on such parcel of 
        real property under the jurisdiction of the Secretary as the 
        Secretary shall specify.

    (2) The Secretary shall select the alternative provided under 
paragraph (1) to be used by the Corporation.
    (d) Notice and Wait.--The Secretary may not make the conveyance 
authorized by subsection (a) until 21 days after the date on which the 
Secretary submits to the congressional defense

[[Page 112 STAT. 2221]]

committees a report specifying the terms and conditions under which the 
conveyance will occur.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a)(1), 
of any interest to be conveyed under subsection (a)(2), and of the real 
property, if any, to be conveyed under subsection (c)(1)(A) shall be 
determined by surveys satisfactory to the Secretary. The cost of the 
surveys shall be borne by the Corporation.
    (f ) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2853. LAND CONVEYANCE, NAVAL AND MARINE CORPS RESERVE FACILITY, 
            YOUNGSTOWN, OHIO.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey, 
without consideration, to the City of Youngstown, Ohio (in this section 
referred to as the ``City''), all right, title, and interest of the 
United States in and to a parcel of real property, including 
improvements thereon, that is located at 315 East Laclede Avenue in 
Youngstown, Ohio, and is the location of a Naval and Marine Corps 
Reserve facility, for the purpose of permitting the City to use the 
parcel for educational purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the City.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified in 
such subsection, all right, title, and interest in and to the property, 
including any improvements thereon, shall revert to the United States, 
and the United States shall have the right of immediate entry onto the 
property. Any determination of the Secretary under this subsection shall 
be made on the record after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.

SEC. 2854. LAND CONVEYANCE, NAVAL AIR RESERVE CENTER, MINNEAPOLIS, 
            MINNESOTA.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey to 
the Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota (in 
this section referred to as the ``Commission''), all right, title, and 
interest of the United States in and to a parcel of real property, 
including improvements thereon, consisting of approximately 32 acres 
located in Minneapolis, Minnesota, and comprising the Naval Air Reserve 
Center, Minneapolis, Minnesota, for the purpose of facilitating the 
expansion of the Minneapolis-St. Paul International Airport.
    (b) Alternative Lease Authority.--In lieu of the conveyance 
authorized by subsection (a), the Secretary may elect to lease the 
property referred to in that subsection to the Commission if the 
Secretary determines that a lease of the property would better serve the 
interests of the United States.

[[Page 112 STAT. 2222]]

    (c) Provision of Replacement Facilities.--As consideration for the 
conveyance under subsection (a), or the lease under subsection (b), the 
Commission shall--
            (1) provide for such facilities as the Secretary considers 
        appropriate for the Naval Reserve to replace the facilities 
        conveyed or leased under this section;
            (2) assume the costs of designing and constructing such 
        replacement facilities, as may be acceptable to the Secretary; 
        and
            (3) assume any costs incurred by the Secretary in relocating 
        the operations of the Naval Air Reserve Center to such 
        replacement facilities.

    (d) Location of Replacement Facilities.--To provide a location for 
the replacement facilities required under subsection (c), the Commission 
may--
            (1) convey to the United States all right, title, and 
        interest in and to a parcel of real property determined by the 
        Secretary to be an appropriate location for such facilities, if 
        the Secretary elects to make the conveyance authorized by 
        subsection (a); or
            (2) lease to the United States a parcel of real property 
        determined by the Secretary to be an appropriate location for 
        such facilities, if the Secretary elects to make the lease 
        authorized by subsection (b).

    (e) Availability of Replacement Facilities.--The Secretary may not 
make the conveyance authorized by subsection (a), or enter into the 
lease authorized by subsection (b), until the replacement facilities 
required by subsection (c) are available for the relocation of the 
operations of the Naval Air Reserve Center.
    (f ) Agreement Relating to Conveyance.--(1) If the Secretary 
determines to proceed with the conveyance authorized by subsection (a), 
or the lease authorized by subsection (b), the Secretary and the 
Commission shall enter into an agreement specifying the terms and 
conditions under which the conveyance or lease will occur.
    (2) The Secretary may not enter into the agreement under paragraph 
(1) until 21 days after the date on which the Secretary submits to the 
congressional defense committees a report specifying the terms and 
conditions under which the conveyance or lease will occur.
    (g) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed to the Commission under 
subsection (a), or leased to the Commission under subsection (b), and 
the exact acreage and legal description of the real property to be 
conveyed or leased under subsection (d) to the United States, shall be 
determined by surveys satisfactory to the Secretary. The cost of the 
surveys shall be borne by the Commission.
    (h) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a), or the lease under subsection (b), as the Secretary 
considers appropriate to protect the interests of the United States.

[[Page 112 STAT. 2223]]

                     PART III--AIR FORCE CONVEYANCES

SEC. 2861. MODIFICATION OF LAND CONVEYANCE, EGLIN AIR FORCE BASE, 
            FLORIDA.

    Section 809(c) of the Military Construction Authorization Act, 1979 
(Public Law 95-356; 92 Stat. 587), as amended by section 2826 of the 
Military Construction Authorization Act, 1989 (division B of Public Law 
100-456; 102 Stat. 2123), is further amended by striking out ``and a 
third parcel containing forty-two acres'' and inserting in lieu thereof 
``, a third parcel containing forty-two acres, a fourth parcel 
containing approximately 3.43 acres, and a fifth parcel containing 
approximately 0.56 acres''.

SEC. 2862. MODIFICATION OF LAND CONVEYANCE, FINLEY AIR FORCE STATION, 
            NORTH DAKOTA.

    Section 2835 of the Military Construction Authorization Act for 
Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 3063) is 
amended--
            (1) by striking out subsections (a), (b), and (c) and 
        inserting in lieu thereof the following new subsections:

    ``(a) Conveyance Authorized.--The Secretary of the Air Force may 
convey, without consideration, to the City of Finley, North Dakota (in 
this section referred to as the `City'), all right, title, and interest 
of the United States in and to the parcels of real property, including 
improvements thereon, in the vicinity of Finley, North Dakota, described 
in subsection (b), for the purpose of permitting the City to use the 
parcels for economic development.
    ``(b) Covered Parcels.--The parcels of real property authorized for 
conveyance under subsection (a) are as follows:
            ``(1) A parcel of approximately 14 acres that served as the 
        support complex of the Finley Air Force Station and Radar Site.
            ``(2) A parcel of approximately 57 acres known as the Finley 
        Air Force Station Complex.
            ``(3) A parcel of approximately 6 acres that includes a well 
        site and wastewater treatment system.

    ``(c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified in 
such subsection, all right, title, and interest in and to the property, 
including any improvements thereon, shall revert to the United States, 
and the United States shall have the right of immediate entry onto the 
property. Any determination of the Secretary under this subsection shall 
be made on the record after an opportunity for a hearing.''; and
            (2) in subsections (d) and (e), by striking out ``subsection 
        (a)(1)'' and inserting in lieu thereof ``subsection (a)''.

SEC. 2863. LAND CONVEYANCE, LAKE CHARLES AIR FORCE STATION, LOUISIANA.

    (a) Conveyance Authorized.--The Secretary of the Air Force may 
convey, without consideration, to McNeese State University of Louisiana 
(in this section referred to as the ``University''), all right, title, 
and interest of the United States in and to a parcel of real property, 
including improvements thereon, consisting of

[[Page 112 STAT. 2224]]

approximately 4.38 acres at Lake Charles Air Force Station, Louisiana, 
for the purpose of permitting the University to use the parcel for 
educational purposes and agricultural research.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the University.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified in 
such subsection, all right, title, and interest in and to the property, 
including any improvements thereon, shall revert to the United States, 
and the United States shall have the right of immediate entry onto the 
property. Any determination of the Secretary under this subsection shall 
be made on the record after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.

SEC. 2864. LAND CONVEYANCE, AIR FORCE HOUSING FACILITY, LA JUNTA, 
            COLORADO.

    (a) Conveyance Authorized.--The Secretary of the Air Force may 
convey, without consideration, to the City of La Junta, Colorado (in 
this section referred to as the ``City''), all right, title, and 
interest of the United States in and to the unused Air Force housing 
facility, consisting of approximately 28 acres and improvements thereon, 
located within the southern-most boundary of the City, for the purpose 
of permitting the City to develop the conveyed property for housing and 
educational purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) shall be 
determined by a survey satisfactory to the Secretary. The cost of the 
survey shall be borne by the City.
    (c) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary makes the conveyance authorized under subsection 
(a), if the Secretary determines that the conveyed real property is not 
being used in accordance with the purpose of the conveyance specified in 
such subsection, all right, title, and interest in and to the property, 
including any improvements thereon, shall revert to the United States, 
and the United States shall have the right of immediate entry onto the 
property. Any determination of the Secretary under this subsection shall 
be made on the record after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.

[[Page 112 STAT. 2225]]

                        Subtitle E--Other Matters

SEC. 2871. MODIFICATION OF AUTHORITY RELATING TO DEPARTMENT OF DEFENSE 
            LABORATORY REVITALIZATION DEMONSTRATION PROGRAM.

    (a) Program Requirements.--Subsection (c) of section 2892 of the 
Military Construction Authorization Act for Fiscal Year 1996 (division B 
of Public Law 104-106; 110 Stat. 590; 10 U.S.C. 2805 note) is amended to 
read as follows:
    ``(c) Program Requirements.--(1) Not later than 30 days before 
commencing the program, the Secretary shall establish procedures for the 
review and approval of requests from Department of Defense laboratories 
for construction under the program.
    ``(2) The laboratories at which construction may be carried out 
under the program may not include Department of Defense laboratories 
that are contractor-owned.''.
    (b) Report.--Subsection (d) of that section is amended to read as 
follows:
    ``(d) Report.--Not later than February 1, 2003, the Secretary shall 
submit to Congress a report on the program. The report shall include the 
Secretary's conclusions and recommendation regarding the desirability of 
making the authority set forth under subsection (b) permanent.''.
    (c) Extension.--Subsection (g) of that section is amended by 
striking out ``September 30, 1998'' and inserting in lieu thereof 
``September 30, 2003''.

SEC. 2872. REPEAL OF PROHIBITION ON JOINT USE OF GRAY ARMY AIRFIELD, 
            FORT HOOD, TEXAS, WITH CIVIL AVIATION.

    Section 319 of the National Defense Authorization Act for Fiscal 
Year 1987 (Public Law 99-661; 100 Stat. 3855) is repealed.

SEC. 2873. MODIFICATION OF DEMONSTRATION PROJECT FOR PURCHASE OF FIRE, 
            SECURITY, POLICE, PUBLIC WORKS, AND UTILITY SERVICES FROM 
            LOCAL GOVERNMENT AGENCIES.

    Section 816 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2820), as amended by section 
352 of the National Defense Authorization Act for Fiscal Year 1997 
(Public Law 104-201; 110 Stat. 2491), is further 
amended--
            (1) in subsection (a), by striking out ``, beginning October 
        1, 1994,'';
            (2) in subsection (b), by striking out ``and 1998'' and 
        inserting in lieu thereof ``through 2000''; and
            (3) by adding at the end the following new subsection:

    ``(c) Duration of Project.--The authority to purchase or receive 
services under the demonstration project shall expire on September 30, 
2000.''.

SEC. 2874. DESIGNATION OF BUILDING CONTAINING NAVY AND MARINE CORPS 
            RESERVE CENTER, AUGUSTA, GEORGIA.

    The building containing the Navy and Marine Corps Reserve Center 
located at 2869 Central Avenue in Augusta, Georgia, shall be known and 
designated as the ``A. James Dyess Building''.

[[Page 112 STAT. 2226]]

TITLE XXIX--JUNIPER <<NOTE: Juniper Butte Range Withdrawal Act.>> BUTTE 
RANGE WITHDRAWAL

Sec. 2901. Short title.
Sec. 2902. Withdrawal and reservation.
Sec. 2903. Map and legal description.
Sec. 2904. Agency agreement.
Sec. 2905. Right-of-way grants.
Sec. 2906. Indian sacred sites.
Sec. 2907. Actions concerning ranching operations in withdrawn area.
Sec. 2908. Management of withdrawn and reserved lands.
Sec. 2909. Integrated natural resource management plan.
Sec. 2910. Memorandum of understanding.
Sec. 2911. Maintenance of roads.
Sec. 2912. Management of withdrawn and acquired mineral resources.
Sec. 2913. Hunting, fishing, and trapping.
Sec. 2914. Water rights.
Sec. 2915. Duration of withdrawal.
Sec. 2916. Environmental remediation of relinquished withdrawn lands or 
           upon 
           termination of withdrawal.
Sec. 2917. Delegation of authority.
Sec. 2918. Hold harmless.
Sec. 2919. Authorization of appropriations.

SEC. 2901. SHORT TITLE.

    This title may be cited as the ``Juniper Butte Range Withdrawal 
Act''.

SEC. 2902. WITHDRAWAL AND RESERVATION.

    (a) Withdrawal.--Subject to valid existing rights and except as 
otherwise provided in this title, the lands at the Juniper Butte Range, 
Idaho, referred to in subsection (c), are withdrawn from all forms of 
appropriation under the public land laws, including the mining laws and 
the mineral and geothermal leasing laws but not the Act of July 31, 1947 
(commonly known as the Materials Act of 1947; 30 U.S.C. 601 et seq.).
    (b) Reserved Uses.--The lands withdrawn under subsection (a) are 
reserved for use by the Secretary of the Air Force for--
            (1) a high hazard training area;
            (2) dropping non-explosive training ordnance with spotting 
        charges;
            (3) electronic warfare and tactical maneuvering and air 
        support; and
            (4) other defense-related purposes consistent with the 
        purposes specified in paragraphs (1), (2), and (3), including 
        continued natural resource management and environmental 
        remediation in accordance with section 2916.

    (c) Site Development Plans.--(1) Site development plans shall be 
prepared before construction.
    (2) Site development plans shall be incorporated in the integrated 
natural resource management plan developed under section 2909.
    (3) Except in the case of any minimal improvements, development on 
the withdrawn lands of any facilities beyond those proposed and analyzed 
in the Environmental Impact Statement concerning Enhanced Training in 
Idaho, prepared by the Secretary of the Air Force, the Record of 
Decision dated March 10, 1998, concerning Enhanced Training in Idaho, 
prepared by the Secretary of the Air Force, and the site development 
plans shall be contingent upon review and approval of the Idaho State 
Director of the Bureau of Land Management.

[[Page 112 STAT. 2227]]

    (d) General Description.--(1) The public lands withdrawn and 
reserved by this section comprise approximately 11,300 acres of public 
land in Owhyee County, Idaho, as generally depicted on the map entitled 
``Juniper Butte Range Withdrawal--Proposed'', dated June 1998, that will 
be filed in accordance with section 2903.
    (2) The withdrawal is for an approximately 10,600-acre tactical 
training range, a 640-acre no-drop target site, four 5-acre no-drop 
target sites and nine 1-acre electronic threat emitter sites.

SEC. 2903. MAP AND LEGAL DESCRIPTION.

    (a) In General.--As soon as practicable after the date of the 
enactment of this Act, the Secretary of the Interior shall--
            (1) publish in the Federal Register a notice containing the 
        legal description of the lands withdrawn and reserved by this 
        title; and
            (2) file a map or maps and the legal description of the 
        lands withdrawn and reserved by this title with the Committee on 
        Energy and Natural Resources of the Senate and with the 
        Committee on Resources of the House of Representatives.

    (b) Incorporation by Reference.--Such maps and legal description 
shall have the same force and effect as if included in this title.
    (c) Correction of Errors.--The Secretary of the Interior may correct 
clerical and typographical errors in such map or maps and legal 
description.
    (d) Availability.--Copies of such map or maps and the legal 
description shall be available for public inspection in the following 
offices:
            (1) The office of the Idaho State Director of the Bureau of 
        Land Management.
            (2) The offices of the managers of the Lower Snake River 
        District, Bureau Field Office and Jarbidge Field Office of the 
        Bureau of Land Management.
            (3) The Office of the commander of Mountain Home Air Force 
        Base, Idaho.

    (e) Utilization of Air Force Descriptions and Maps.--To the extent 
practicable, the Secretary of the Interior shall adopt the legal 
description and maps prepared by the Secretary of the Air Force in 
support of this title.
    (f ) Reimbursement of Costs.--The Secretary of the Air Force shall 
reimburse the Secretary of the Interior for the costs incurred by the 
Department of the Interior in implementing this section.

SEC. 2904. AGENCY AGREEMENT.

    (a) Findings.--Congress makes the following findings:
            (1) The Bureau of Land Management and the Air Force have 
        agreed upon additional mitigation measures associated with this 
        land withdrawal as specified in the ``ENHANCED TRAINING IN IDAHO 
        Memorandum of Understanding Between The Bureau of Land 
        Management and The United States Air Force'' dated June 11, 
        1998.
            (2) This agreement specifies that these mitigation measures 
        will be adopted as part of the Air Force's Record of Decision 
        for Enhanced Training in Idaho.
            (3) Congress endorses this collaborative effort between the 
        agencies and directs that the agreement be implemented.

[[Page 112 STAT. 2228]]

    (b) Modification.--The parties may, in accordance with the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), mutually 
agree to modify the mitigation measures specified in the agreement in 
light of experience gained through the actions called for in the 
agreement or as a result of changed military circumstances.
    (c) Construction.--Neither the agreement, any modification thereof, 
nor this section creates any right, benefit, or trust responsibility, 
substantive or procedural, enforceable at law or equity by a party 
against the United States, its agencies, its officers, or any person.

SEC. 2905. RIGHT-OF-WAY GRANTS.

    In addition to the withdrawal under section 2902 and in accordance 
with all applicable laws, the Secretary of the Interior shall process 
and grant the Secretary of the Air Force rights-of-way using the 
Department of the Interior regulations and policies in effect at the 
time of filing applications for the one-quarter acre electronic warfare 
threat emitter sites, roads, powerlines, and other ancillary facilities 
as described and analyzed in the Enhanced Training in Idaho Final 
Environmental Impact Statement, dated January 1998.

SEC. 2906. INDIAN SACRED SITES.

    (a) Management.--(1) In the management of the Federal lands 
withdrawn and reserved by this title, the Air Force shall, to the extent 
practicable and not clearly inconsistent with essential agency 
functions--
            (A) accommodate access to and ceremonial use of Indian 
        sacred sites by Indian religious practitioners; and
            (B) avoid adversely affecting the integrity of such sacred 
        sites.

    (2) The Secretary of the Air Force shall maintain the 
confidentiality of such sites where appropriate.
    (b) Consultation.--The commander of Mountain Home Air Force Base, 
Idaho, shall regularly consult with the Tribal Chairman of the Shoshone-
Paiute Tribes of the Duck Valley Reservation to assure that tribal 
government rights and concerns are fully considered during the 
development of the Juniper Butte Range.
    (c) Definitions.--In this section:
            (1) The term ``sacred site'' shall mean any specific, 
        discrete, narrowly delineated location on Federal land that is 
        identified by an Indian tribe, or Indian individual determined 
        to be an appropriately authoritative representative of an Indian 
        religion, as sacred by virtue of its established religious 
        significance to, or ceremonial use by, an Indian religion but 
        only to the extent that the tribe or appropriately authoritative 
        representative of an Indian religion has informed the Air Force 
        of the existence of such a site.
            (2) The term ``Indian tribe'' means an Indian or Alaska 
        Native tribe, band, nation, pueblo, village, or community that 
        the Secretary of the Interior acknowledges to exist as an Indian 
        tribe pursuant to the Federally Recognized Indian Tribe List Act 
        of 1994 (25 U.S.C. 479a-1).
            (3) The term ``Indian'' refers to a member of an Indian 
        tribe.

[[Page 112 STAT. 2229]]

SEC. 2907. ACTIONS CONCERNING RANCHING OPERATIONS IN WITHDRAWN AREA.

    (a) Authority To Conclude and Implement Agreements.--The Secretary 
of the Air Force is authorized and directed to, upon such terms and 
conditions as the Secretary of the Air Force considers just and in the 
national interest, conclude and implement agreements with the grazing 
permittees to provide appropriate consideration, including future 
grazing arrangements.
    (b) Implementation.--(1) Upon the conclusion of these agreements, 
the Assistant Secretary of the Interior for Land and Minerals Management 
shall grant rights-of-way and approvals and take such actions as are 
necessary to implement promptly this title and the agreements with the 
grazing permittees.
    (2) The Secretary of the Air Force and the Secretary of the Interior 
shall allow the grazing permittees for lands withdrawn and reserved by 
this title to continue their activities on the lands in accordance with 
the permits and their applicable regulations until the Secretary of the 
Air Force has fully implemented the agreement with the grazing 
permittees under this section.
    (3) Upon the implementation of these agreements, the Bureau of Land 
Management is authorized and directed, subject to the limitations 
included in this section, to terminate grazing on the lands withdrawn.

SEC. 2908. MANAGEMENT OF WITHDRAWN AND RESERVED LANDS.

    (a) In General.--Except as provided in section 2916(d), during the 
withdrawal and reservation of any lands under this title, the Secretary 
of the Air Force shall manage such lands for purposes relating to the 
uses set forth in section 2902(b).
    (b) Management According To Plan.--The lands withdrawn and reserved 
by this title shall be managed in accordance with the provisions of this 
title under the integrated natural resources management plan prepared 
under section 2909.
    (c) Authority To Close Land.--(1) If the Secretary of the Air Force 
determines that military operations, public safety, or the interests of 
national security require the closure to public use of any road, trail, 
or other portion of the lands withdrawn by this title that are commonly 
in public use, the Secretary of the Air Force may take such action.
    (2) Closures under paragraph (1) shall be limited to the minimum 
areas and periods required for the purposes specified in this 
subsection.
    (3) During closures, the Secretary of the Air Force shall keep 
appropriate warning notices posted and take appropriate steps to notify 
the public about the closures.
    (d) Lease Authority.--The Secretary of the Air Force may enter into 
leases for State lands with the State of Idaho in support of the Juniper 
Butte Range and operations at the Juniper Butte Range.
    (e) Prevention and Suppression of Fire.--(1) The Secretary of the 
Air Force shall take appropriate precautions to prevent and suppress 
brush fires and range fires that occur within the boundaries of the 
Juniper Butte Range, as well as brush and range fires occurring outside 
the boundaries of the Range resulting from military activities.

[[Page 112 STAT. 2230]]

    (2) Notwithstanding section 2465 of title 10, United States Code, 
the Secretary of the Air Force may obligate funds appropriated or 
otherwise available to the Secretary to enter into contracts for fire-
fighting.
    (3)(A) The memorandum of understanding under section 2910 shall 
provide for the Bureau of Land Management to assist the Secretary of the 
Air Force in the suppression of the fires described in paragraph (1).
    (B) The memorandum of understanding shall provide that the Secretary 
of the Air Force reimburse the Bureau of Land Management for any costs 
incurred by the Bureau of Land Management under this paragraph.
    (f ) Use of Mineral Materials.--Notwithstanding any other provision 
of this title or the Act of July 31, 1947 (commonly known as the 
Materials Act of 1947; 30 U.S.C. 601 et seq.), the Secretary of the Air 
Force may use, from the lands withdrawn and reserved by this title, 
sand, gravel, or similar mineral material resources of the type subject 
to disposition under the Act of July 31, 1947, when the use of such 
resources is required for construction needs of the Juniper Butte Range.

SEC. 2909. INTEGRATED NATURAL RESOURCE MANAGEMENT PLAN.

    (a) Requirement.--(1)(A) Not later than 2 years after the date of 
the enactment of this Act, the Secretary of the Air Force shall, in 
cooperation with the Secretary of the Interior, the State of Idaho, and 
Owyhee County, Idaho, develop an integrated natural resources management 
plan to address the management of the resources of the lands withdrawn 
and reserved by this title during their withdrawal and reservation under 
this title.
    (B) Additionally, the integrated natural resource management plan 
shall address mitigation and monitoring activities by the Air Force for 
State and Federal lands affected by military training activities 
associated with the Juniper Butte Range.
    (C) The foregoing will be done cooperatively between the Air Force, 
the Bureau of Land Management, the State of Idaho, and Owyhee County, 
Idaho.
    (2) Except as otherwise provided under this title, the integrated 
natural resources management plan under this section shall be developed 
in accordance with, and meet the requirements of, section 101 of the 
Sikes Act (16 U.S.C. 670a).
    (3)(A) Site development plans shall be prepared before construction 
of facilit