[105th Congress Public Law 85]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ85.105]


[[Page 111 STAT. 1629]]

Public Law 105-85
105th Congress

                                 An Act


 
To authorize appropriations for fiscal year 1998 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: Nov. 18, 1997 -  [H.R. 1119]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States <<NOTE: National Defense Authorization Act for Fiscal Year 
1998.>>  of America in Congress assembled

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 1998''.

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

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

Sec. 111. Army helicopter modernization plan.
Sec. 112. Multiyear procurement authority for specified Army programs.
Sec. 113. M113 vehicle modifications.

                        Subtitle C--Navy Programs

Sec. 121. New Attack Submarine program.
Sec. 122. CVN-77 nuclear aircraft carrier program.

[[Page 111 STAT. 1630]]

Sec. 123. Exclusion from cost limitation for Seawolf submarine program.

                     Subtitle D--Air Force Programs

Sec. 131. Authorization for B-2 bomber program.
Sec. 132. ALR radar warning receivers.
Sec. 133. Analysis of requirements for replacement of engines on 
           military aircraft derived from Boeing 707 aircraft.

                        Subtitle E--Other Matters

Sec. 141. Pilot program on sales of manufactured articles and services 
           of certain Army industrial facilities without regard to 
           availability from domestic sources.
Sec. 142. NATO Joint Surveillance/Target Attack Radar System.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology program.
Sec. 204. Reduction in amount for Federally Funded Research and 
           Development Centers.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Manufacturing technology program.
Sec. 212. Report on operational field assessments program.
Sec. 213. Joint Strike Fighter program.
Sec. 214. Kinetic energy tactical anti-satellite technology program.
Sec. 215. Micro-satellite technology development program.
Sec. 216. High altitude endurance unmanned vehicle program.
Sec. 217. F-22 aircraft program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 231. National Missile Defense Program.
Sec. 232. Budgetary treatment of amounts for procurement for ballistic 
           missile 
           defense programs.
Sec. 233. Cooperative Ballistic Missile Defense program.
Sec. 234. Annual report on threat posed to the United States by weapons 
           of mass destruction, ballistic missiles, and cruise missiles.
Sec. 235. Director of Ballistic Missile Defense Organization.
Sec. 236. Repeal of required deployment dates for core theater missile 
           defense 
           programs.

                        Subtitle D--Other Matters

Sec. 241. Restructuring of National Oceanographic Partnership Program 
           organizations.
Sec. 242. Maintenance and repair of real property at Air Force 
           installations.
Sec. 243. Expansion of eligibility for the Defense Experimental Program 
           to Stimulate Competitive Research.
Sec. 244. Bioassay testing of veterans exposed to ionizing radiation 
           during military service.
Sec. 245. Sense of Congress regarding Comanche program.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Fisher House Trust Funds.
Sec. 305. Transfer from National Defense Stockpile Transaction Fund.
Sec. 306. Refurbishment of M1-A1 tanks.
Sec. 307. Operation of prepositioned fleet, National Training Center, 
           Fort Irwin, California.
Sec. 308. Refurbishment and installation of air search radar.
Sec. 309. Contracted training flight services.
Sec. 310. Procurement technical assistance programs.
Sec. 311. Operation of Fort Chaffee, Arkansas.

                  Subtitle B--Military Readiness Issues

Sec. 321. Monthly reports on allocation of funds within operation and 
           maintenance budget subactivities.

[[Page 111 STAT. 1631]]

Sec. 322. Expansion of scope of quarterly readiness reports.
Sec. 323. Semiannual reports on transfers from high-priority readiness 
           appropriations.
Sec. 324. Annual report on aircraft inventory.
Sec. 325. Administrative actions adversely affecting military training 
           or other 
           readiness activities.
Sec. 326. Common measurement of operations tempo and personnel tempo.
Sec. 327. Inclusion of Air Force depot maintenance as operation and 
           maintenance budget line items.
Sec. 328. Prohibition of implementation of tiered readiness system.
Sec. 329. Report on military readiness requirements of the Armed Forces.
Sec. 330. Assessment of cyclical readiness posture of the Armed Forces.
Sec. 331. Report on military exercises conducted under certain training 
           exercises programs.
Sec. 332. Report on overseas deployments.

                  Subtitle C--Environmental Provisions

Sec. 341. Revision of membership terms for Strategic Environmental 
           Research and Development Program Scientific Advisory Board.
Sec. 342. Amendments to authority to enter into agreements with other 
           agencies in support of environmental technology 
           certification.
Sec. 343. Modifications of authority to store and dispose of nondefense 
           toxic and hazardous materials.
Sec. 344. Annual report on payments and activities in response to fines 
           and 
           penalties assessed under environmental laws.
Sec. 345. Annual report on environmental activities of the Department of 
           Defense overseas.
Sec. 346. Review of existing environmental consequences of the presence 
           of the Armed Forces in Bermuda.
Sec. 347. Sense of Congress on deployment of United States Armed Forces 
           abroad for environmental preservation activities.
Sec. 348. Recovery and sharing of costs of environmental restoration at 
           Department of Defense sites.
Sec. 349. Partnerships for investment in innovative environmental 
           technologies.
Sec. 350. Procurement of recycled copier paper.
Sec. 351. Pilot program for the sale of air pollution emission reduction 
           incentives.

                   Subtitle D--Depot-Level Activities

Sec. 355. Definition of depot-level maintenance and repair.
Sec. 356. Core logistics capabilities of Department of Defense.
Sec. 357. Increase in percentage of depot-level maintenance and repair 
           that may be contracted for performance by non-government 
           personnel.
Sec. 358. Annual report on depot-level maintenance and repair.
Sec. 359. Requirement for use of competitive procedures in contracting 
           for performance of depot-level maintenance and repair 
           workloads formerly 
           performed at closed or realigned military installations.
Sec. 360. Clarification of prohibition on management of depot employees 
           by 
           constraints on personnel levels.
Sec. 361. Centers of Industrial and Technical Excellence.
Sec. 362. Extension of authority for aviation depots and naval shipyards 
           to engage in defense-related production and services.
Sec. 363. Repeal of a conditional repeal of certain depot-level 
           maintenance and 
           repair laws and a related reporting requirement.
Sec. 364. Personnel reductions, Army depots participating in Army 
           Workload and Performance System.
Sec. 365. Report on allocation of core logistics activities among 
           Department of 
           Defense facilities and private sector facilities.
Sec. 366. Review of use of temporary duty assignments for ship repair 
           and maintenance.
Sec. 367. Sense of Congress regarding realignment of performance of 
           ground 
           communication-electronic workload.

   Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 371. Reorganization of laws regarding commissaries and exchanges 
           and other morale, welfare, and recreation activities.
Sec. 372. Merchandise and pricing requirements for commissary stores.
Sec. 373. Limitation on noncompetitive procurement of brand-name 
           commercial items for resale in commissary stores.
Sec. 374. Treatment of revenues derived from commissary store 
           activities.
Sec. 375. Maintenance, repair, and renovation of Armed Forces Recreation 
           Center, Europe.

[[Page 111 STAT. 1632]]

Sec. 376. Plan for use of public and private partnerships to benefit 
           morale, welfare, and recreation activities.

                        Subtitle F--Other Matters

Sec. 381. Assistance to local educational agencies that benefit 
           dependents of 
           members of the Armed Forces and Department of Defense 
           civilian 
           employees.
Sec. 382. Center for Excellence in Disaster Management and Humanitarian 
           Assistance.
Sec. 383. Applicability of Federal printing requirements to Defense 
           Automated Printing Service.
Sec. 384. Study and notification requirements for conversion of 
           commercial and 
           industrial type functions to contractor performance.
Sec. 385. Collection and retention of cost information data on converted 
           services and functions.
Sec. 386. Financial assistance to support additional duties assigned to 
           Army 
           National Guard.
Sec. 387. Competitive procurement of printing and duplication services.
Sec. 388. Continuation and expansion of demonstration program to 
           identify 
           overpayments made to vendors.
Sec. 389. Development of standard forms regarding performance work 
           statement and request for proposal for conversion of certain 
           operational functions of military installations.
Sec. 390. Base operations support for military installations on Guam.
Sec. 391. Warranty claims recovery pilot program.
Sec. 392. Program to investigate fraud, waste, and abuse within 
           Department of 
           Defense.
Sec. 393. Multitechnology automated reader card demonstration program.
Sec. 394. Reduction in overhead costs of Inventory Control Points.
Sec. 395. Inventory management.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
           contingencies.

                       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).

               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. Limitation on number of general and flag officers who may 
           serve in 
           positions outside their own service.
Sec. 502. Exclusion of certain retired officers from limitation on 
           period of recall to active duty.
Sec. 503. Clarification of officers eligible for consideration by 
           promotion boards.
Sec. 504. Authority to defer mandatory retirement for age of officers 
           serving as chaplains.
Sec. 505. Increase in number of officers allowed to be frocked to grades 
           of colonel and Navy captain.
Sec. 506. Increased years of commissioned service for mandatory 
           retirement of 
           regular generals and admirals in grades above major general 
           and rear admiral.
Sec. 507. Uniform policy for requirement of exemplary conduct by 
           commanding 
           officers and others in authority.
Sec. 508. Report on the command selection process for District Engineers 
           of the Army Corps of Engineers.

                  Subtitle B--Reserve Component Matters

Sec. 511. Individual Ready Reserve activation authority.
Sec. 512. Termination of Mobilization Income Insurance Program.
Sec. 513. Correction of inequities in medical and dental care and death 
           and disability benefits for reserve members who incur or 
           aggravate an illness in the line of duty.

[[Page 111 STAT. 1633]]

Sec. 514. Authority to permit non-unit assigned officers to be 
           considered by vacancy promotion board to general officer 
           grades.
Sec. 515. Prohibition on use of Air Force Reserve AGR personnel for Air 
           Force base security functions.
Sec. 516. Involuntary separation of reserve officers in an inactive 
           status.
Sec. 517. Federal status of service by National Guard members as honor 
           guards at funerals of veterans.

                    Subtitle C--Military Technicians

Sec. 521. Authority to retain on the reserve active-status list until 
           age 60 military technicians in the grade of brigadier 
           general.
Sec. 522. Military technicians (dual status).
Sec. 523. Non-dual status military technicians.
Sec. 524. Report on feasibility and desirability of conversion of AGR 
           personnel to military technicians (dual status).

   Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit 
                                Attrition

Sec. 531. Reform of military recruiting systems.
Sec. 532. Improvements in medical prescreening of applicants for 
           military service.
Sec. 533. Improvements in physical fitness of recruits.

               Subtitle E--Military Education and Training

                   Part I--Officer Education Programs

Sec. 541. Requirement for candidates for admission to United States 
           Naval 
           Academy to take oath of allegiance.
Sec. 542. Service academy foreign exchange program.
Sec. 543. Reimbursement of expenses incurred for instruction at service 
           academies of persons from foreign countries.
Sec. 544. Continuation of support to senior military colleges.
Sec. 545. Report on making United States nationals eligible for 
           participation in Senior Reserve Officers' Training Corps.
Sec. 546. Coordination of establishment and maintenance of Junior 
           Reserve 
           Officers' Training Corps units to maximize enrollment and 
           enhance 
           efficiency.

                    Part II--Other Education Matters

Sec. 551. United States Naval Postgraduate School.
Sec. 552. Community College of the Air Force.
Sec. 553. Preservation of entitlement to educational assistance of 
           members of the Selected Reserve serving on active duty in 
           support of a contingency 
           operation.

               Part III--Training of Army Drill Sergeants

Sec. 556. Reform of Army drill sergeant selection and training process.
Sec. 557. Training in human relations matters for Army drill sergeant 
           trainees.

  Subtitle F--Commission on Military Training and Gender-Related Issues

Sec. 561. Establishment and composition of Commission.
Sec. 562. Duties.
Sec. 563. Administrative matters.
Sec. 564. Termination of Commission.
Sec. 565. Funding.
Sec. 566. Subsequent consideration by Congress.

               Subtitle G--Military Decorations and Awards

Sec. 571. Purple Heart to be awarded only to members of the Armed 
           Forces.
Sec. 572. Eligibility for Armed Forces Expeditionary Medal for 
           participation in 
           Operation Joint Endeavor or Operation Joint Guard.
Sec. 573. Waiver of time limitations for award of certain decorations to 
           specified persons.
Sec. 574. Clarification of eligibility of members of Ready Reserve for 
           award of 
           service medal for heroism.
Sec. 575. One-year extension of period for receipt of recommendations 
           for decorations and awards for certain military intelligence 
           personnel.
Sec. 576. Eligibility of certain World War II military organizations for 
           award of unit decorations.
Sec. 577. Retroactivity of Medal of Honor special pension.

                  Subtitle H--Military Justice Matters

Sec. 581. Establishment of sentence of confinement for life without 
           eligibility for parole.

[[Page 111 STAT. 1634]]

Sec. 582. Limitation on appeal of denial of parole for offenders serving 
           life 
           sentence.

                        Subtitle I--Other Matters

Sec. 591. Sexual harassment investigations and reports.
Sec. 592. Sense of the Senate regarding study of matters relating to 
           gender equity in the Armed Forces.
Sec. 593. Authority for personnel to participate in management of 
           certain non-
           Federal entities.
Sec. 594. Treatment of participation of members in Department of Defense 
           civil military programs.
Sec. 595. Comptroller General study of Department of Defense civil 
           military 
           programs.
Sec. 596. Establishment of public affairs specialty in the Army.
Sec. 597. Grade of defense attache in France.
Sec. 598. Report on crew requirements of WC-130J aircraft.
Sec. 599. Improvement of missing persons authorities applicable to 
           Department of Defense.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1998.
Sec. 602. Reform of basic allowance for subsistence.
Sec. 603. Consolidation of basic allowance for quarters, variable 
           housing allowance, and overseas housing allowances.
Sec. 604. Revision of authority to adjust compensation necessitated by 
           reform of subsistence and housing allowances.
Sec. 605. Protection of total compensation of members while performing 
           certain duty.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
           authorities for 
           reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
           authorities for nurse officer candidates, registered nurses, 
           and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other 
           bonuses and special pays.
Sec. 614. Increase in minimum monthly rate of hazardous duty incentive 
           pay for certain members.
Sec. 615. Increase in aviation career incentive pay.
Sec. 616. Modification of aviation officer retention bonus.
Sec. 617. Availability of multiyear retention bonus for dental officers.
Sec. 618. Increase in variable and additional special pays for certain 
           dental officers.
Sec. 619. Availability of special pay for duty at designated hardship 
           duty locations.
Sec. 620. Definition of sea duty for purposes of career sea pay.
Sec. 621. Modification of Selected Reserve reenlistment bonus.
Sec. 622. Modification of Selected Reserve enlistment bonus for former 
           enlisted members.
Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard 
           Reserve.
Sec. 624. Increase in special pay and bonuses for nuclear-qualified 
           officers.
Sec. 625. Provision of bonuses in lieu of special pay for enlisted 
           members extending tours of duty at designated locations 
           overseas.
Sec. 626. Increase in amount of family separation allowance.
Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for dependents before 
           approval of member's court-martial sentence.
Sec. 632. Dislocation allowance.

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

Sec. 641. One-year opportunity to discontinue participation in Survivor 
           Benefit Plan.
Sec. 642. Time in which change in survivor benefit coverage from former 
           spouse to spouse may be made.
Sec. 643. Review of Federal former spouse protection laws.
Sec. 644. Annuities for certain military surviving spouses.
Sec. 645. Administration of benefits for so-called minimum income 
           widows.

                        Subtitle E--Other Matters

Sec. 651. Loan repayment program for commissioned officers in certain 
           health 
           professions.

[[Page 111 STAT. 1635]]

Sec. 652. Conformance of NOAA commissioned officers separation pay to 
           separation pay for members of other uniformed services.
Sec. 653. Eligibility of Public Health Service officers and NOAA 
           commissioned corps officers for reimbursement of adoption 
           expenses.
Sec. 654. Payment of back quarters and subsistence allowances to World 
           War II veterans who served as guerrilla fighters in the 
           Philippines.
Sec. 655. Subsistence of members of the Armed Forces above the poverty 
           level.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Expansion of retiree dental insurance plan to include 
           surviving spouse and child dependents of certain deceased 
           members.
Sec. 702. Provision of prosthetic devices to covered beneficiaries.
Sec. 703. Study concerning the provision of comparative information.

                       Subtitle B--TRICARE Program

Sec. 711. Addition of definition of TRICARE program to title 10.
Sec. 712. Plan for expansion of managed care option of TRICARE program.

           Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Implementation of designated provider agreements for Uniformed 

           Services Treatment Facilities.
Sec. 722. Continued acquisition of reduced-cost drugs.
Sec. 723. Limitation on total payments.

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

Sec. 731. Improvements in health care coverage and access for members 
           assigned to certain duty locations far from sources of care.
Sec. 732. Waiver or reduction of copayments under overseas dental 
           program.
Sec. 733. Premium collection requirements for medical and dental 
           insurance 
           programs; extension of deadline for implementation of dental 
           insurance program for military retirees.
Sec. 734. Dental insurance plan coverage for retirees of the Public 
           Health Service and NOAA.
Sec. 735. Consistency between CHAMPUS and Medicare in payment rates for 
           services.
Sec. 736. Use of personal services contracts for provision of health 
           care services and legal protection for providers.
Sec. 737. Portability of State licenses for Department of Defense health 
           care 
           professionals.
Sec. 738. Standard form and requirements regarding claims for payment 
           for 
           services.
Sec. 739. Chiropractic health care demonstration program.

                        Subtitle E--Other Matters

Sec. 741. Continued admission of civilians as students in physician 
           assistant 
           training program of Army Medical Department.
Sec. 742. Payment for emergency health care overseas for military and 
           civilian 
           personnel of the On-Site Inspection Agency.
Sec. 743. Authority for agreement for use of medical resource facility, 
           Alamogordo, New Mexico.
Sec. 744. Disclosures of cautionary information on prescription 
           medications.
Sec. 745. Competitive procurement of certain ophthalmic services.
Sec. 746. Comptroller General study of adequacy and effect of maximum 
           allowable charges for physicians under CHAMPUS.
Sec. 747. Comptroller General study of Department of Defense pharmacy 
           programs.
Sec. 748. Comptroller General study of Navy graduate medical education 
           program.
Sec. 749. Study of expansion of pharmaceuticals by mail program to 
           include 
           additional Medicare-eligible covered beneficiaries.
Sec. 750. Comptroller General study of requirement for military medical 
           facilities in National Capital Region.
Sec. 751. Report on policies and programs to promote healthy lifestyles 
           for 
           members of the Armed Forces and their dependents.
Sec. 752. Sense of Congress regarding quality health care for retirees.

                    Subtitle F--Persian Gulf Illness

Sec. 761. Definitions.
Sec. 762. Plan for health care services for Persian Gulf veterans.

[[Page 111 STAT. 1636]]

Sec. 763. Comptroller General study of revised disability criteria for 
           physical 
           evaluation boards.
Sec. 764. Medical care for certain reserves who served in Southwest Asia 
           during the Persian Gulf War.
Sec. 765. Improved medical tracking system for members deployed overseas 
           in 
           contingency or combat operations.
Sec. 766. Notice of use of investigational new drugs or drugs unapproved 
           for their applied use.
Sec. 767. Report on plans to track location of members in a theater of 
           operations.
Sec. 768. Sense of Congress regarding the deployment of specialized 
           units for 
           detecting and monitoring chemical, biological, and similar 
           hazards in a theater of operations.
Sec. 769. Report on effectiveness of research efforts regarding Gulf War 
           illnesses.
Sec. 770. Persian Gulf illness clinical trials program.
Sec. 771. Sense of Congress concerning Gulf War illness.

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

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

Sec. 801. Expansion of authority to enter into contracts crossing fiscal 
           years to all severable service contracts not exceeding a 
           year.
Sec. 802. Vesting of title in the United States under contracts paid 
           under progress payment arrangements or similar arrangements.
Sec. 803. Restriction on undefinitized contract actions.
Sec. 804. Limitation and report on payment of restructuring costs under 
           defense contracts.
Sec. 805. Increased price limitation on purchases of right-hand drive 
           vehicles.
Sec. 806. Multiyear procurement contracts.
Sec. 807. Audit of procurement of military clothing and clothing-related 
           items by military installations in the United States.
Sec. 808. Limitation on allowability of compensation for certain 
           contractor personnel.
Sec. 809. Elimination of certification requirement for grants.
Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts.
Sec. 811. Item-by-item and country-by-country waivers of domestic source 
           limitations.

               Subtitle B--Acquisition Assistance Programs

Sec. 821. One-year extension of pilot mentor-protege program.
Sec. 822. Test program for negotiation of comprehensive subcontracting 
           plans.

                  Subtitle C--Administrative Provisions

Sec. 831. Retention of expired funds during the pendency of contract 
           litigation.
Sec. 832. Protection of certain information from disclosure.
Sec. 833. Unit cost reports.
Sec. 834. Plan for providing contracting information to general public 
           and small businesses.
Sec. 835. Two-year extension of crediting of certain purchases toward 
           meeting 
           subcontracting goals.

                        Subtitle D--Other Matters

Sec. 841. Repeal of certain acquisition requirements and reports.
Sec. 842. Use of major range and test facility installations by 
           commercial entities.
Sec. 843. Requirement to develop and maintain list of firms not eligible 
           for defense contracts.
Sec. 844. Sense of Congress regarding allowability of costs of employee 
           stock ownership plans.
Sec. 845. Expansion of personnel eligible to participate in 
           demonstration project 
           relating to acquisition workforce.
Sec. 846. Time for submission of annual report relating to Buy American 
           Act.
Sec. 847. Repeal of requirement for contractor guarantees on major 
           weapon 
           systems.
Sec. 848. Requirements relating to micro-purchases.
Sec. 849. Promotion rate for officers in an acquisition corps.
Sec. 850. Use of electronic commerce in Federal procurement.
Sec. 851. Conformance of policy on performance based management of 
           civilian 
           acquisition programs with policy established for defense 
           acquisition 
           programs.

[[Page 111 STAT. 1637]]

Sec. 852. Modification of process requirements for the solutions-based 
           contracting pilot program.
Sec. 853. Guidance and standards for defense acquisition workforce 
           training 
           requirements.
Sec. 854. Study and report to Congress assessing dependence on foreign 
           sources for resistors and capacitors.
Sec. 855. Department of Defense and Federal Prison Industries joint 
           study.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Positions and Organizations and Other 
                             General Matters

Sec. 901. Assistants to the Chairman of the Joint Chiefs of Staff for 
           National Guard matters and for Reserve matters.
Sec. 902. Use of CINC Initiative Fund for force protection.
Sec. 903. Revision to required frequency for provision of policy 
           guidance for contingency plans.
Sec. 904. Annual justification for Department of Defense advisory 
           committees.
Sec. 905. Airborne reconnaissance management.
Sec. 906. Termination of the Armed Services Patent Advisory Board.
Sec. 907. Coordination of Department of Defense criminal investigations 
           and 
           audits.

         Subtitle B--Department of Defense Personnel Management

Sec. 911. Reduction in personnel assigned to management headquarters and 
           headquarters support activities.
Sec. 912. Defense acquisition workforce.

          Subtitle C--Department of Defense Schools and Centers

Sec. 921. Professional military education schools.
Sec. 922. Center for Hemispheric Defense Studies.
Sec. 923. Correction to reference to George C. Marshall European Center 
           for 
           Security Studies.

     Subtitle D--Department of Defense Intelligence-Related Matters

Sec. 931. Transfer of certain military department programs from TIARA 
           budget 
           aggregation.
Sec. 932. Report on coordination of access of commanders and deployed 
           units to 
           intelligence collected and analyzed by the intelligence 
           community.
Sec. 933. Protection of imagery, imagery intelligence, and geospatial 
           information and data.
Sec. 934. POW/MIA intelligence analysis.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of unauthorized fiscal year 1997 
           defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations 
           for fiscal year 1997.
Sec. 1005. Increase in fiscal year 1996 transfer authority.
Sec. 1006. Revision of authority for Fisher House trust funds.
Sec. 1007. Flexibility in financing closure of certain outstanding 
           contracts for which a small final payment is due.
Sec. 1008. Biennial financial management improvement plan.
Sec. 1009. Estimates and requests for procurement and military 
           construction for the reserve components.
Sec. 1010. Sense of Congress regarding funding for reserve component 
           modernization not requested in President's budget.
Sec. 1011. Management of working-capital funds.
Sec. 1012. Authority of Secretary of Defense to settle claims relating 
           to pay, 
           allowances, and other benefits.
Sec. 1013. Payment of claims by members for loss of personal property 
           due to 
           flooding in Red River Basin.
Sec. 1014. Advances for payment of public services.
Sec. 1015. United States Man and the Biosphere Program limitation.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Procedures for sale of vessels stricken from the Naval Vessel 
           Register.

[[Page 111 STAT. 1638]]

Sec. 1022. Authority to enter into a long-term charter for a vessel in 
           support of the Surveillance Towed-Array Sensor (SURTASS) 
           program.
Sec. 1023. Transfer of two specified obsolete tugboats of the Army.
Sec. 1024. Congressional review period with respect to transfer of ex-
           U.S.S. Hornet (CV-12) and ex-U.S.S. Midway (CV-41).
Sec. 1025. Transfers of naval vessels to certain foreign countries.
Sec. 1026. Reports relating to export of vessels that may contain 
           polychlorinated biphenyls.
Sec. 1027. Conversion of defense capability preservation authority to 
           Navy shipbuilding capability preservation authority.

                   Subtitle C--Counter-Drug Activities

Sec. 1031. Use of National Guard for State drug interdiction and 
           counter-drug 
           activities.
Sec. 1032. Authority to provide additional support for counter-drug 
           activities of 
           Mexico.
Sec. 1033. Authority to provide additional support for counter-drug 
           activities of Peru and Colombia.
Sec. 1034. Annual report on development and deployment of narcotics 
           detection technologies.

        Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1041. Repeal of miscellaneous reporting requirements.
Sec. 1042. Study of transfer of modular airborne fire fighting system.
Sec. 1043. Overseas infrastructure requirements.
Sec. 1044. Additional matters for annual report on activities of the 
           General 
           Accounting Office.
Sec. 1045. Eye safety at small arms firing ranges.
Sec. 1046. Reports on Department of Defense procedures for investigating 
           military aviation accidents and for notifying and assisting 
           families of victims.

                Subtitle E--Matters Relating to Terrorism

Sec. 1051. Oversight of counterterrorism and antiterrorism activities; 
           report.
Sec. 1052. Provision of adequate troop protection equipment for Armed 
           Forces 
           personnel engaged in peace operations; report on 
           antiterrorism activities and protection of personnel.

            Subtitle F--Matters Relating to Defense Property

Sec. 1061. Lease of nonexcess personal property of military departments.
Sec. 1062. Lease of nonexcess property of Defense Agencies.
Sec. 1063. Donation of excess chapel property to churches damaged or 
           destroyed by arson or other acts of terrorism.
Sec. 1064. Authority of the Secretary of Defense concerning disposal of 
           assets under cooperative agreements on air defense in Central 
           Europe.
Sec. 1065. Sale of excess, obsolete, or unserviceable ammunition and 
           ammunition components.
Sec. 1066. Transfer of B-17 aircraft to museum.
Sec. 1067. Report on disposal of excess and surplus materials.

                        Subtitle G--Other Matters

Sec. 1071. Authority for special agents of the Defense Criminal 
           Investigative 
           Service to execute warrants and make arrests.
Sec. 1072. Study of investigative practices of military criminal 
           investigative organizations relating to sex crimes.
Sec. 1073. Technical and clerical amendments.
Sec. 1074. Sustainment and operation of the Global Positioning System.
Sec. 1075. Protection of safety-related information voluntarily provided 
           by air 
           carriers.
Sec. 1076. National Guard Challenge Program to create opportunities for 
           civilian youth.
Sec. 1077. Disqualification from certain burial-related benefits for 
           persons 
           convicted of capital crimes.
Sec. 1078. Restrictions on the use of human subjects for testing of 
           chemical or 
           biological agents.
Sec. 1079. Treatment of military flight operations.
Sec. 1080. Naturalization of certain foreign nationals who serve 
           honorably in the Armed Forces during a period of conflict.
Sec. 1081. Applicability of certain pay authorities to members of 
           specified independent study organizations.
Sec. 1082. Display of POW/MIA flag.

[[Page 111 STAT. 1639]]

Sec. 1083. Program to commemorate 50th anniversary of the Korean 
           conflict.
Sec. 1084. Commendation of members of the Armed Forces and Government 
           civilian personnel who served during the Cold War; 
           certificate of recognition.
Sec. 1085. Sense of Congress on granting of statutory Federal charters.
Sec. 1086. Sense of Congress regarding military voting rights.
Sec. 1087. Designation of Bob Hope as an honorary veteran of the Armed 
           Forces of the United States.
Sec. 1088. Five-year extension of aviation insurance program.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Use of prohibited constraints to manage Department of Defense 

           personnel.
Sec. 1102. Veterans' preference status for certain veterans who served 
           on active duty during the Persian Gulf War.
Sec. 1103. Repeal of deadline for placement consideration of 
           involuntarily 
           separated military reserve technicians.
Sec. 1104. Rate of pay of Department of Defense overseas teachers upon 
           transfer to General Schedule position.
Sec. 1105. Garnishment and involuntary allotment.
Sec. 1106. Extension and revision of voluntary separation incentive pay 
           authority.
Sec. 1107. Use of approved fire-safe accommodations by Government 
           employees on official business.
Sec. 1108. Navy higher education pilot program regarding administration 
           of 
           business relationships between Government and private sector.
Sec. 1109. Authority for Marine Corps University to employ civilian 
           faculty 
           members.

              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. Withdrawal of United States ground forces from Republic of 
           Bosnia and Herzegovina.
Sec. 1204. Secretary of Defense reports on tasks carried out by United 
           States forces.
Sec. 1205. Presidential report on situation in Republic of Bosnia and 
           Herzegovina.
Sec. 1206. Definitions.

        Subtitle B--Export Controls on High Performance Computers

Sec. 1211. Export approvals for high performance computers.
Sec. 1212. Report on exports of high performance computers.
Sec. 1213. Post-shipment verification of export of high performance 
           computers.
Sec. 1214. GAO study on certain computers; end user information 
           assistance.
Sec. 1215. Congressional committees.

                        Subtitle C--Other Matters

Sec. 1221. Defense burdensharing.
Sec. 1222. Temporary use of general purpose vehicles and nonlethal 
           military equipment under acquisition and cross servicing 
           agreements.
Sec. 1223. Sense of Congress and reports regarding financial costs of 
           enlargement of the North Atlantic Treaty Organization.
Sec. 1224. Sense of Congress regarding enlargement of the North Atlantic 
           Treaty Organization.
Sec. 1225. Sense of the Congress relating to level of United States 
           military personnel in the East Asia and Pacific region.
Sec. 1226. Report on future military capabilities and strategy of the 
           People's 
           Republic of China.
Sec. 1227. Sense of Congress on need for Russian openness on the 
           Yamantau Mountain project.
Sec. 1228. Assessment of the Cuban threat to United States national 
           security.
Sec. 1229. Report on Helsinki Joint statement.
Sec. 1230. Commendation of Mexico on free and fair elections.
Sec. 1231. Sense of Congress regarding Cambodia.
Sec. 1232. Congratulating Governor Christopher Patten of Hong Kong.

              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

Sec. 1301. Presidential report concerning detargeting of Russian 
           strategic missiles.
Sec. 1302. Limitation on retirement or dismantlement of strategic 
           nuclear delivery systems.
Sec. 1303. Assistance for facilities subject to inspection under the 
           Chemical 
           Weapons Convention.

[[Page 111 STAT. 1640]]

Sec. 1304. Transfers of authorizations for high-priority 
           counterproliferation 
           programs.
Sec. 1305. Advice to the President and Congress regarding the safety, 
           security, and reliability of United States nuclear weapons 
           stockpile.
Sec. 1306. Reconstitution of commission to assess the ballistic missile 
           threat to the United States.
Sec. 1307. Sense of Congress regarding the relationship between United 
           States 
           obligations under the Chemical Weapons Convention and 
           environmental laws.
Sec. 1308. Extension of counterproliferation authorities for support of 
           United 
           Nations Special Commission on Iraq.
Sec. 1309. Annual report on moratorium on use by Armed Forces of 
           antipersonnel landmines.

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

Sec. 1401. Specification of Cooperative Threat Reduction programs and 
           funds.
Sec. 1402. Funding allocations.
Sec. 1403. Prohibition on use of funds for specified purposes.
Sec. 1404. Limitation on use of funds for projects related to START II 
           Treaty until submission of certification.
Sec. 1405. Limitation on use of funds for chemical weapons destruction 
           facility.
Sec. 1406. Limitation on use of funds for destruction of chemical 
           weapons.
Sec. 1407. Limitation on use of funds for storage facility for Russian 
           fissile 
           material.
Sec. 1408. Limitation on use of funds for weapons storage security.
Sec. 1409. Report on issues regarding payment of taxes, duties, and 
           other 
           assessments on assistance provided to Russia under 
           Cooperative Threat Reduction programs.
Sec. 1410. Availability of funds.

    TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION

Sec. 1501. Recognition and grant of Federal charter.
Sec. 1502. Powers.
Sec. 1503. Purposes.
Sec. 1504. Service of process.
Sec. 1505. Membership.
Sec. 1506. Board of directors.
Sec. 1507. Officers.
Sec. 1508. Restrictions.
Sec. 1509. Liability.
Sec. 1510. Maintenance and inspection of books and records.
Sec. 1511. Audit of financial transactions.
Sec. 1512. Annual report.
Sec. 1513. Reservation of right to alter, amend, or repeal charter.
Sec. 1514. Tax-exempt status required as condition of charter.
Sec. 1515. Termination.
Sec. 1516. Definition of State.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Correction in authorized uses of funds, Fort Irwin, 
           California.

                            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 of military construction project at Naval 
           Station, Pascagoula, Mississippi, for which funds have been 
           appropriated.

[[Page 111 STAT. 1641]]

Sec. 2206. Increase in authorization for military construction projects 
           at Naval 
           Station Roosevelt Roads, Puerto Rico.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
           projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authorization of military construction project at McConnell 
           Air Force Base, Kansas, for which funds have been 
           appropriated.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
           projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Clarification of authority relating to fiscal year 1997 
           project at Naval 
           Station, Pearl Harbor, Hawaii.
Sec. 2407. Correction in authorized uses of funds, McClellan Air Force 
           Base, 
           California.
Sec. 2408. Modification of authority to carry out certain fiscal year 
           1995 projects.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
           acquisition projects.
Sec. 2602. Authorization of military construction projects for which 
           funds have been appropriated.
Sec. 2603. Army Reserve construction project, Camp Williams, Utah.

         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 1995 
           projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1994 
           projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1993 
           projects.
Sec. 2705. Extension of authorizations of certain fiscal year 1992 
           projects.
Sec. 2706. Extension of availability of funds for construction of 
           relocatable over-the-horizon radar, Naval Station Roosevelt 
           Roads, Puerto Rico.
Sec. 2707. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Use of mobility enhancement funds for unspecified minor 
           construction.
Sec. 2802. Limitation on use of operation and maintenance funds for 
           facility repair projects.
Sec. 2803. Leasing of military family housing, United States Southern 
           Command, Miami, Florida.
Sec. 2804. Use of financial incentives provided as part of energy 
           savings and water conservation activities.
Sec. 2805. Congressional notification requirements regarding use of 
           Department of Defense housing funds for investments in 
           nongovernmental entities.

         Subtitle B--Real Property and Facilities Administration

Sec. 2811. Increase in ceiling for minor land acquisition projects.
Sec. 2812. Permanent authority regarding conveyance of utility systems.
Sec. 2813. Administrative expenses for certain real property 
           transactions.
Sec. 2814. Screening of real property to be conveyed by Department of 
           Defense.
Sec. 2815. Disposition of proceeds from sale of Air Force Plant 78, 
           Brigham City, Utah.
Sec. 2816. Fire protection and hazardous materials protection at Fort 
           Meade, 
           Maryland.

            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Consideration of military installations as sites for new 
           Federal facilities.

[[Page 111 STAT. 1642]]

Sec. 2822. Adjustment and diversification assistance to enhance 
           performance of 
           military family support services by private sector sources.
Sec. 2823. Security, fire protection, and other services at property 
           formerly associated with Red River Army Depot, Texas.
Sec. 2824. Report on closure and realignment of military installations.
Sec. 2825. Sense of Senate regarding utilization of savings derived from 
           base 
           closure process.
Sec. 2826. Prohibition against certain conveyances of property at Naval 
           Station, Long Beach, California.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Land conveyance, Army Reserve Center, Greensboro, Alabama.
Sec. 2832. Land conveyance, James T. Coker Army Reserve Center, Durant, 
           Oklahoma.
Sec. 2833. Land conveyance, Gibson Army Reserve Center, Chicago, 
           Illinois.
Sec. 2834. Land conveyance, Fort A. P. Hill, Virginia.
Sec. 2835. Land conveyances, Fort Dix, New Jersey.
Sec. 2836. Land conveyances, Fort Bragg, North Carolina.
Sec. 2837. Land conveyance, Hawthorne Army Ammunition Depot, Mineral 
           County, Nevada.
Sec. 2838. Expansion of land conveyance authority, Indiana Army 
           Ammunition Plant, Charlestown, Indiana.
Sec. 2839. Modification of land conveyance, Lompoc, California.
Sec. 2840. Modification of land conveyance, Rocky Mountain Arsenal, 
           Colorado.
Sec. 2841. Correction of land conveyance authority, Army Reserve Center, 
           Anderson, South Carolina.

                        Part II--Navy Conveyances

Sec. 2851. Land conveyance, Topsham Annex, Naval Air Station, Brunswick, 
           Maine.
Sec. 2852. Land conveyance, Naval Weapons Industrial Reserve Plant No. 
           464, 
           Oyster Bay, New York.
Sec. 2853. Correction of lease authority, Naval Air Station, Meridian, 
           Mississippi.

                     Part III--Air Force Conveyances

Sec. 2861. Land transfer, Eglin Air Force Base, Florida.
Sec. 2862. Land conveyance, March Air Force Base, California.
Sec. 2863. Land conveyance, Ellsworth Air Force Base, South Dakota.
Sec. 2864. Land conveyance, Hancock Field, Syracuse, New York.
Sec. 2865. Land conveyance, Havre Air Force Station, Montana, and Havre 
           Training Site, Montana.
Sec. 2866. Land conveyance, Charleston Family Housing Complex, Bangor, 
           Maine.
Sec. 2867. Study of land exchange options, Shaw Air Force Base, South 
           Carolina.

                        Subtitle E--Other Matters

Sec. 2871. Repeal of requirement to operate Naval Academy dairy farm.
Sec. 2872. Long-term lease of property, Naples, Italy.
Sec. 2873. Designation of military family housing at Lackland Air Force 
           Base, Texas, in honor of Frank Tejeda, a former Member of the 
           House of 
           Representatives.
Sec. 2874. Fiber-optics based telecommunications linkage of military 
           installations.

                    TITLE XXIX--SIKES ACT IMPROVEMENT

Sec. 2901. Short title.
Sec. 2902. Definition of Sikes Act for purposes of amendments.
Sec. 2903. Codification of short title of Act.
Sec. 2904. Preparation of integrated natural resources management plans.
Sec. 2905. Review for preparation of integrated natural resources 
           management plans.
Sec. 2906. Transfer of wildlife conservation fees from closed military 
           installations.
Sec. 2907. Annual reviews and reports.
Sec. 2908. Cooperative agreements.
Sec. 2909. Federal enforcement.
Sec. 2910. Natural resources management services.
Sec. 2911. Definitions.
Sec. 2912. Repeal of superseded provision.
Sec. 2913. Technical amendments.
Sec. 2914. Authorizations of appropriations.

[[Page 111 STAT. 1643]]

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

                Subtitle B--Recurring General Provisions

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

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Memorandum of understanding for use of national laboratories 
           for 
           ballistic missile defense programs.
Sec. 3132. Defense environmental management privatization projects.
Sec. 3133. International cooperative stockpile stewardship.
Sec. 3134. Modernization of enduring nuclear weapons complex.
Sec. 3135. Tritium production.
Sec. 3136. Processing, treatment, and disposition of spent nuclear fuel 
           rods and other legacy nuclear materials at the Savannah River 
           Site.
Sec. 3137. Limitations on use of funds for laboratory directed research 
           and development purposes.
Sec. 3138. Pilot program relating to use of proceeds of disposal or 
           utilization of 
           certain Department of Energy assets.
Sec. 3139. Modification and extension of authority relating to 
           appointment of 
           certain scientific, engineering, and technical personnel.
Sec. 3140. Limitation on use of funds for subcritical nuclear weapons 
           tests.
Sec. 3141. Limitation on use of certain funds until future use plans are 
           submitted.

                        Subtitle D--Other Matters

Sec. 3151. Plan for stewardship, management, and certification of 
           warheads in the nuclear weapons stockpile.
Sec. 3152. Repeal of obsolete reporting requirements.
Sec. 3153. Study and funding relating to implementation of workforce 
           restructuring plans.
Sec. 3154. Report and plan for external oversight of national 
           laboratories.
Sec. 3155. University-based research collaboration program.
Sec. 3156. Stockpile stewardship program.
Sec. 3157. Reports on advanced supercomputer sales to certain foreign 
           nations.
Sec. 3158. Transfers of real property at certain Department of Energy 
           facilities.
Sec. 3159. Requirement to delegate certain authorities to site manager 
           of Hanford Reservation.
Sec. 3160. Submittal of biennial waste management reports.
Sec. 3161. Department of Energy Security Management Board.
Sec. 3162. Submittal of annual report on status of security functions at 
           nuclear weapons facilities.
Sec. 3163. Modification of authority on Commission on Maintaining United 
           States Nuclear Weapons Expertise.
Sec. 3164. Land transfer, Bandelier National Monument.
Sec. 3165. Final settlement of Department of Energy community assistance 
           obligations with respect to Los Alamos National Laboratory, 
           New Mexico.
Sec. 3166. Sense of Congress regarding the Y-12 Plant in Oak Ridge, 
           Tennessee.
Sec. 3167. Support for public education in the vicinity of Los Alamos 
           National 
           Laboratory, New Mexico.
Sec. 3168. Improvements to Greenville Road, Livermore, California.

[[Page 111 STAT. 1644]]

Sec. 3169. Report on alternative system for availability of funds.
Sec. 3170. Report on remediation under the Formerly Utilized Sites 
           Remedial 
           Action Program.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
Sec. 3202. Report on external regulation of defense nuclear facilities.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of beryllium copper master alloy in National Defense 
           Stockpile.
Sec. 3304. Disposal of titanium sponge in National Defense Stockpile.
Sec. 3305. Disposal of cobalt in National Defense Stockpile.
Sec. 3306. Required procedures for disposal of strategic and critical 
           materials.
Sec. 3307. Return of surplus platinum from the Department of the 
           Treasury.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
           year 1998.
Sec. 3403. Repeal of requirement to assign Navy officers to Office of 
           Naval 
           Petroleum and Oil Shale Reserves.
Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves Numbered 1 
           and 3.

                   TITLE XXXV--PANAMA CANAL COMMISSION

      Subtitle A--Authorization of Expenditures From Revolving Fund

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

           Subtitle B--Facilitation of Panama Canal Transition

Sec. 3511. Short title; references.
Sec. 3512. Definitions relating to canal transition.

Part I--Transition Matters Relating to Commission Officers and Employees

Sec. 3521. Authority for the Administrator of the Commission to accept 
           appointment as the Administrator of the Panama Canal 
           Authority.
Sec. 3522. Post-Canal transfer personnel authorities.
Sec. 3523. Enhanced authority of Commission to establish compensation of 

           Commission officers and employees.
Sec. 3524. Travel, transportation, and subsistence expenses for 
           Commission personnel no longer subject to Federal travel 
           regulation.
Sec. 3525. Enhanced recruitment and retention authorities.
Sec. 3526. Transition separation incentive payments.
Sec. 3527. Labor-management relations.
Sec. 3528. Availability of Panama Canal Revolving Fund for severance pay 
           for 
           certain employees separated by Panama Canal Authority after 
           Canal Transfer Date.

Part II--Transition Matters Relating to Operation and Administration of 
                                  Canal

Sec. 3541. Establishment of procurement system and Board of Contract 
           Appeals.
Sec. 3542. Transactions with the Panama Canal Authority.
Sec. 3543. Time limitations on filing of claims for damages.
Sec. 3544. Tolls for small vessels.
Sec. 3545. Date of actuarial evaluation of FECA liability.
Sec. 3546. Appointment of notaries public.
Sec. 3547. Commercial services.
Sec. 3548. Transfer from President to Commission of certain regulatory 
           functions 
           relating to employment classification appeals.
Sec. 3549. Enhanced printing authority.
Sec. 3550. Technical and conforming amendments.

                  TITLE XXXVI--MARITIME ADMINISTRATION

Sec. 3601. Authorization of appropriations for fiscal year 1998.
Sec. 3602. Repeal of obsolete annual report requirement concerning 
           relative cost of shipbuilding in the various coastal 
           districts of the United States.
Sec. 3603. Provisions relating to maritime security fleet program.

[[Page 111 STAT. 1645]]

Sec. 3604. Authority to utilize replacement vessels and capacity.
Sec. 3605. Authority to convey National Defense Reserve Fleet vessel.
Sec. 3606. Determination of gross tonnage for purposes of tank vessel 
           double hull requirements.

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. Army helicopter modernization plan.
Sec. 112. Multiyear procurement authority for specified Army programs.
Sec. 113. M113 vehicle modifications.

                        Subtitle C--Navy Programs

Sec. 121. New Attack Submarine program.
Sec. 122. CVN-77 nuclear aircraft carrier program.
Sec. 123. Exclusion from cost limitation for Seawolf submarine program.

                     Subtitle D--Air Force Programs

Sec. 131. Authorization for B-2 bomber program.
Sec. 132. ALR radar warning receivers.
Sec. 133. Analysis of requirements for replacement of engines on 
           military aircraft derived from Boeing 707 aircraft.

                        Subtitle E--Other Matters

Sec. 141. Pilot program on sales of manufactured articles and services 
           of certain Army industrial facilities without regard to 
           availability from domestic sources.
Sec. 142. NATO Joint Surveillance/Target Attack Radar System.

               Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for procurement for the Army as follows:
            (1) For aircraft, $1,316,233,000.
            (2) For missiles, $742,639,000.

[[Page 111 STAT. 1646]]

            (3) For weapons and tracked combat vehicles, $1,297,641,000.
            (4) For ammunition, $1,011,193,000.
            (5) For other procurement, $2,566,208,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 
year 1998 for procurement for the Navy as follows:
            (1) For aircraft, $6,437,330,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,089,443,000.
            (3) For shipbuilding and conversion, $8,195,269,000.
            (4) For other procurement, $2,970,867,000.

    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1998 for procurement for the Marine Corps in the amount 
of $460,081,000.
    (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 $364,744,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for procurement for the Air Force as follows:
            (1) For aircraft, $6,425,749,000.
            (2) For missiles, $2,376,301,000.
            (3) For ammunition, $398,534,000.
            (4) For other procurement, $6,543,580,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for Defense-wide procurement in the amount of $2,057,150,000.

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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, $70,000,000.
            (2) For the Air National Guard, $303,000,000.
            (3) For the Army Reserve, $75,000,000.
            (4) For the Naval Reserve, $80,000,000.
            (5) For the Air Force Reserve, $50,000,000.
            (6) For the Marine Corps Reserve, $65,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for procurement for the Inspector General of the Department of Defense 
in the amount of $1,800,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 1998 
the amount of $600,700,000 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.

[[Page 111 STAT. 1647]]

SEC. 108. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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 $274,068,000.

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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 $1,231,000.

                        Subtitle B--Army Programs

SEC. 111. ARMY HELICOPTER MODERNIZATION PLAN.

    (a) Limitation.--Not more than 80 percent of the total of the 
amounts authorized to be appropriated pursuant to section 101(1), 
105(1), and 105(3) for modifications or upgrades of helicopters may be 
obligated before the date that is 30 days after the date on which the 
Secretary of the Army submits to the congressional defense committees a 
comprehensive plan for the modernization of the Army's helicopter fleet.
    (b) Content of Plan.--The plan required by subsection (a) shall 
include the following:
            (1) A detailed assessment of the Army's present and future 
        helicopter requirements and present and future helicopter 
        inventory, including number of aircraft, age of aircraft, 
        availability of spare parts, flight hour costs, roles and 
        functions assigned to the fleet as a whole and to its individual 
        types of aircraft, and the mix of active component aircraft and 
        reserve component aircraft in the fleet.
            (2) Estimates and analysis of requirements and funding 
        proposed for procurement of new aircraft.
            (3) An analysis of the requirements for and funding proposed 
        for extended service plans or service life extension plans for 
        fleet aircraft.
            (4) A plan for retiring aircraft no longer required or 
        capable of performing assigned functions, including a discussion 
        of opportunities to eliminate older aircraft models and to focus 
        future funding on current or future generation aircraft.
            (5) The implications of the plan for the defense industrial 
        base.

    (c) Relationship to Future-Years Defense Program.--The Secretary of 
the Army shall design the plan under subsection (a) so that the plan 
could be implemented within the funding levels expected to be available 
for Army aircraft programs in the next future-years defense program to 
be submitted to Congress pursuant to section 221(a) of title 10, United 
States Code. The Secretary shall include in the plan a certification 
that the program of the Army prepared for inclusion in the future-years 
defense program submitted to Congress in 1998 pursuant to section 221(a) 
of title 10, United States Code, included full funding for 
implementation of the plan.

[[Page 111 STAT. 1648]]

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR SPECIFIED ARMY PROGRAMS.

    (a) AH-64D Longbow Apache Fire Control Radar.--Beginning with the 
fiscal year 1998 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 AH-64D 
Longbow Apache fire control radar.
    (b) Medium Tactical Vehicles.--Beginning with the fiscal year 1998 
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 vehicles of the Family of Medium 
Tactical Vehicles. The contract may be for a term of four years and may 
include an option to extend the contract for one additional year.

SEC. 113. M113 VEHICLE MODIFICATIONS.

    Of the amount made available for the Army pursuant to section 
101(3), $35,244,000 shall be available only for the procurement and 
installation of A3 upgrade kits for the M113 vehicle.

                        Subtitle C--Navy Programs

SEC. 121. NEW ATTACK SUBMARINE PROGRAM.

    (a) Amounts Authorized From SCN Account.--Of the amounts authorized 
to be appropriated by section 102(a)(3) for fiscal year 1998, 
$2,599,800,000 is available for the New Attack Submarine Program.
    (b) Contract Authority.--(1) The Secretary of the Navy may enter 
into a contract for the procurement of four submarines under the New 
Attack Submarine program.
    (2) Any contract entered into under paragraph (1)--
            (A) shall, notwithstanding section 2304(k) of title 10, 
        United States Code, be awarded to one of the two eligible 
        shipbuilders as the prime contractor on the condition that the 
        prime contractor enter into one or more subcontracts (under such 
        prime contract) with the other of the two eligible shipbuilders 
        as contemplated in the New Attack Submarine Team Agreement; and
            (B) shall provide for--
                    (i) construction of the first submarine in fiscal 
                year 1998; and
                    (ii) advance construction and advance procurement of 
                materiel for the second, third, and fourth submarines in 
                fiscal year 1998.

    (3) The following shipbuilders are eligible for a contract under 
this subsection:
            (A) The Electric Boat Corporation.
            (B) The Newport News Shipbuilding and Drydock Company.

    (4) In paragraph (2)(A), the term ``New Attack Submarine Team 
Agreement'' means the agreement known as the Team Agreement between 
Electric Boat Corporation and Newport News Shipbuilding and Drydock 
Company, dated February 25, 1997, that was submitted to Congress by the 
Secretary of the Navy on March 31, 1997.
    (c) Limitation of Liability.--If a contract entered into under this 
section is terminated, the United States shall not be liable

[[Page 111 STAT. 1649]]

for termination costs in excess of the total amount appropriated for the 
New Attack Submarine program.
    (d) Repeals of Superseded Provisions of Previous Defense 
Authorization Laws.--(1) Section 131 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
206) is amended--
            (A) in subsection (a)(1)(B)--
                    (i) in clause (i), by striking out ``, which shall 
                be built by Electric Boat Division''; and
                    (ii) in clause (ii), by striking out ``, which shall 
                be built by Newport News Shipbuilding''; and
            (B) in subsection (b), by striking out paragraph (1).

    (2) Section 121 of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2441) is amended--
            (A) in subsection (a)--
                    (i) in paragraph (1)(B), by striking out ``to be 
                built by Electric Boat Division''; and
                    (ii) in paragraph (1)(C), by striking out ``to be 
                built by Newport News Shipbuilding'';
            (B) in subsection (d), by striking out paragraph (2);
            (C) in subsection (e), by striking out paragraph (1); and
            (D) in subsection (g), by striking out ``the committees 
        specified in subsection (e)(1)'' in paragraphs (3) and (4) and 
        inserting in lieu thereof ``the Committee on Armed Services of 
        the Senate and the Committee on National Security of the House 
        of Representatives''.

    (e) Inapplicability of Superseded Aspects of Attack Submarine 
Development Plan.--The Secretary of Defense and the Secretary of the 
Navy are not required to carry out the portions of the program plan 
submitted under subsection (c) of section 131 of the National Defense 
Authorization Act for Fiscal Year 1996 that are included in the plan 
pursuant to subparagraphs (A), (B), and (E) of paragraph (2) of such 
subsection.

SEC. 122. CVN-77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

    (a) Authorization of Ship.--The Secretary of the Navy is authorized 
to procure the aircraft carrier to be designated CVN-77, subject to the 
availability of appropriations for that purpose.
    (b) Amount Authorized From SCN Account.--Of the amount authorized to 
be appropriated by section 102(a)(3) for fiscal year 1998, $50,000,000 
is available for the advance procurement and advance construction of 
components (including nuclear components) for the CVN-77 aircraft 
carrier program. The Secretary of the Navy may enter into a contract or 
contracts with the shipbuilder and other entities for the advance 
procurement and advance construction of those components.
    (c) Other Funds.--Of the funds authorized to be appropriated under 
this Act for programs, projects, and activities of the military 
departments and Defense Agencies, other than the CVN-77 aircraft carrier 
program, up to $295,000,000 may be made available, as the Secretary of 
Defense may direct, for the CVN-77 aircraft carrier program. Authority 
to make transfers under this subsection is in addition to the transfer 
authority provided in section 1001.
    (d) Management of Funds.--The Secretary of the Navy shall obligate 
and expend the funds available for advance procurement and advance 
construction of components for the CVN-77 aircraft carrier program for 
fiscal year 1998 in a manner that is designed

[[Page 111 STAT. 1650]]

to result in such cost savings as may be required in order to meet the 
cost limitation specified in subsection (f).
    (e) Adjustments to Future-Years Defense Program.--The Secretary of 
Defense shall make such plans for the CVN-77 aircraft carrier program as 
are necessary to attain for the program the cost savings that are 
contemplated for the procurement of the CVN-77 aircraft carrier in the 
March 1997 procurement plan.
    (f) Limitation on Total Cost of Procurement.--(1) The Secretary of 
the Navy shall structure the program for the procurement of the CVN-77 
aircraft carrier, and shall manage that program, so that the total cost 
of the procurement of the CVN-77 aircraft carrier does not exceed 
$4,600,000,000 (such amount being the estimated cost for the procurement 
of the CVN-77 aircraft carrier in the March 1997 procurement plan).
    (2) The Secretary of the Navy may adjust the amount set forth in 
paragraph (1) for the CVN-77 aircraft carrier program by the following:
            (A) The amounts of outfitting costs and post-delivery costs 
        incurred for the program.
            (B) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 1997.
            (C) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, State, or 
        local laws enacted after September 30, 1997.
            (D) The amounts of increases or decreases in costs of the 
        program that are attributable to new technology built into the 
        CVN-77 aircraft carrier, as compared to the technology built 
        into the baseline design of the CVN-76 aircraft carrier.
            (E) The amounts of increases or decreases in costs resulting 
        from changes the Secretary proposes in the funding plan (as 
        contemplated in the March 1997 procurement plan) on which the 
        projected savings are based.

    (3) The Secretary of the <<NOTE: Notice.>>  Navy shall annually 
submit to Congress, at the same time as the budget is submitted under 
section 1105(a) of title 31, United States Code, written notice of any 
change in the amount set forth in paragraph (1) during the preceding 
fiscal year that the Secretary has determined to be associated with a 
cost referred to in paragraph (2).

    (g) March 1997 Procurement Plan Defined.--In this section, the term 
``March 1997 procurement plan'' means the procurement plan for the CVN-
77 aircraft carrier that was submitted to the Navy and Congress by the 
shipbuilder in March 1997.

SEC. 123. EXCLUSION FROM COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

    (a) Authority To Exclude Amounts Appropriated for Canceled 
Vessels.--(1) The Secretary of the Navy may exclude from the application 
of the cost limitation for the Seawolf submarine program such amounts, 
not in excess of $272,400,000, as were appropriated for fiscal years 
1990, 1991, and 1992 for procurement of Seawolf-class submarines that 
have been canceled.
    (2) For the purposes of this subsection, the term ``cost limitation 
for the Seawolf submarine program'' means the limitation in section 
133(a) of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 110 Stat. 211).

[[Page 111 STAT. 1651]]

    (b) Determination and Report by Inspector General.--(1) Not later 
than March 30, 1998, the Inspector General of the Department of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
containing the Inspector General's determination as to whether any 
further exclusion from, adjustment to exclusion from, or increase in the 
dollar amount of the cost limitation referred to in subsection (a) will 
be required.
    (2) The Inspector General shall include in the report the 
following:
            (A) A thorough and comprehensive accounting for the amount 
        of $745,400,000 identified by the Secretary of the Navy as 
        having been obligated or expended for the detailed design for 
        Seawolf-class submarines that have been canceled and for the 
        procurement of nuclear components and construction spare parts 
        for those canceled submarines, including a statement of the 
        current disposition of items specifically purchased using those 
        funds.
            (B) Cost growth, if any, in the cost of construction of the 
        SSN-21, SSN-22, and SSN-23 Seawolf-class submarines that has not 
        been reported to Congress before the date of the report of the 
        Inspector General.
            (C) The current cost estimate of the Secretary of the Navy 
        for completion of the SSN-21, SSN-22, and SSN-23 Seawolf-class 
        submarines.

    (3) The Inspector General shall include in the report such 
supporting information and analyses as the Inspector General considers 
appropriate for aiding in understanding the determination and findings 
of the Inspector General.

                     Subtitle D--Air Force Programs

SEC. 131. AUTHORIZATION FOR B-2 BOMBER PROGRAM.

    (a) Funding Availability.--Of the funds made available for 
procurement of aircraft for the Air Force for fiscal year 1998, the 
amount of $331,000,000 is available for long-lead activities related to 
the procurement of additional B-2 bomber aircraft. However, if the 
President determines that no additional B-2 bombers should be procured 
during fiscal year 1998 and certifies that decision to Congress, the 
funding authorized in the preceding sentence shall be made available to 
modify and repair the existing fleet of B-2 bomber aircraft.
    (b) Secretary of Defense To Preserve Options of President.--The 
Secretary of Defense shall ensure that all appropriate actions are taken 
to preserve the options of the President until the panel to review long-
range airpower established by section 8131 of the Department of Defense 
Appropriations Act, 1998 (Public Law 105-56; 111 Stat. 1249), submits 
its report.

SEC. 132. ALR RADAR WARNING RECEIVERS.

    (a) Cost and Operation Effectiveness Analysis.--The Secretary of the 
Air Force shall conduct a cost and operation effectiveness analysis of 
upgrading the ALR69 radar warning receiver as compared with the further 
acquisition of the ALR56M radar warning receiver.

[[Page 111 STAT. 1652]]

    (b) Submission to Congress.--The Secretary shall submit the cost and 
operation effectiveness analysis to the congressional defense committees 
not later than April 2, 1998.

SEC. 133. ANALYSIS OF REQUIREMENTS FOR REPLACEMENT OF ENGINES ON 
            MILITARY AIRCRAFT DERIVED FROM BOEING 707 AIRCRAFT.

    (a) Analysis 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 an analysis, to be carried out 
by the Under Secretary of Defense for Acquisition and Technology, of the 
requirements of the Department of Defense for replacing engines on the 
aircraft of the Department of Defense that are derived from the Boeing 
707 aircraft and the costs of meeting those requirements.
    (b) Content.--The analysis shall include the following:
            (1) The number of aircraft described in subsection (a) that 
        are in the inventory of the Department of Defense as of October 
        1, 1997, and the number of such aircraft that are projected to 
        be in the inventory of the Department as of October 1, 2002, as 
        of October 1, 2007, and as of October 1, 2012.
            (2) For each type of such aircraft, the estimated cost of 
        operating the aircraft for each fiscal year beginning with 
        fiscal year 1998 and ending with fiscal year 2014, taking into 
        account historical patterns of usage and projected support 
        costs.
            (3) For each type of such aircraft, the estimated costs and 
        the benefits of replacing the engines on the aircraft, analyzed 
        on the basis of the experience under the limited program for 
        replacing the engines on RC-135 aircraft that was undertaken 
        during fiscal years 1995, 1996, and 1997.
            (4) Various plans for replacement of engines that the Under 
        Secretary considers best on the basis of costs and benefits.

    (c) Submission Deadline.--The analysis under subsection (a) shall be 
submitted not later than March 1, 1998.

                        Subtitle E--Other Matters

SEC. 141. PILOT <<NOTE: 10 USC 4543 note.>>  PROGRAM ON SALES OF 
            MANUFACTURED ARTICLES AND SERVICES OF CERTAIN ARMY 
            INDUSTRIAL FACILITIES WITHOUT REGARD TO AVAILABILITY FROM 
            DOMESTIC SOURCES.

    (a) Pilot Program Required.--During fiscal years 1998 and 1999, the 
Secretary of the Army shall carry out a pilot program to test the 
efficacy and appropriateness of selling manufactured articles and 
services of Army industrial facilities under section 4543 of title 10, 
United States Code, without regard to the availability of the articles 
and services from United States commercial sources. In carrying out the 
pilot program, the Secretary may use articles manufactured at, and 
services provided by, not more than three Army industrial facilities.
    (b) Temporary Waiver of Requirement for Determination of 
Unavailability From Domestic Source.--Under the pilot program, the 
Secretary of the Army is not required under section 4543(a)(5) of title 
10, United States Code, to determine whether an article or service is 
available from a commercial source located in the United States in the 
case of any of the following sales

[[Page 111 STAT. 1653]]

for which a solicitation of offers is issued during fiscal year 1998 or 
1999:
            (1) A sale of articles to be incorporated into a weapon 
        system being procured by the Department of Defense.
            (2) A sale of services to be used in the manufacture of a 
        weapon system being procured by the Department of Defense.

    (c) Review by Inspector <<NOTE: Reports.>>  General.--The Inspector 
General of the Department of Defense shall review the experience under 
the pilot program under this section and, not later than July 1, 1999, 
submit to Congress a report on the results of the review. The report 
shall contain the following:
            (1) The Inspector General's views regarding the extent to 
        which the waiver under subsection (b) enhances the opportunity 
        for United States manufacturers, assemblers, developers, and 
        other concerns to enter into or participate in contracts and 
        teaming arrangements with Army industrial facilities under 
        weapon system programs of the Department of Defense.
            (2) The Inspector General's views regarding the extent to 
        which the waiver under subsection (b) enhances the opportunity 
        for Army industrial facilities referred to in section 4543(a) of 
        title 10, United States Code, to enter into or participate in 
        contracts and teaming arrangements with United States 
        manufacturers, assemblers, developers, and other concerns under 
        weapon system programs of the Department of Defense.
            (3) The Inspector General's views regarding the effect of 
        the waiver under subsection (b) on the ability of small 
        businesses to compete for the sale of manufactured articles or 
        services in the United States in competitions to enter into or 
        participate in contracts and teaming arrangements under weapon 
        system programs of the Department of Defense.
            (4) Specific examples under the pilot program that support 
        the Inspector General's views.
            (5) Any other information that the Inspector General 
        considers pertinent regarding the effects of the waiver of 
        section 4543(a)(5) of title 10, United States Code, under the 
        pilot program on opportunities for United States manufacturers, 
        assemblers, developers, or other concerns, and for Army 
        industrial facilities, to enter into or participate in contracts 
        and teaming arrangements under weapon system programs of the 
        Department of Defense.
            (6) Any recommendations that the Inspector General considers 
        appropriate regarding continuation or modification of the policy 
        set forth in section 4543(a)(5) of title 10, United States Code.

SEC. 142. NATO JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM.

    (a) Funding.--Amounts authorized to be appropriated under this title 
and title II are available for a NATO alliance ground surveillance 
capability that is based on the Joint Surveillance/Target Attack Radar 
System of the United States, as follows:
            (1) Of the amount authorized to be appropriated under 
        section 101(5), $26,153,000.
            (2) Of the amount authorized to be appropriated under 
        section 103(1), $10,000,000.
            (3) Of the amount authorized to be appropriated under 
        section 201(1), $13,500,000.

[[Page 111 STAT. 1654]]

            (4) Of the amount authorized to be appropriated under 
        section 201(3), $26,061,000.

    (b) Authority.--(1) Subject to paragraph (2), the Secretary of 
Defense may utilize authority under section 2350b of title 10, United 
States Code, for contracting for the purposes of Phase I of a NATO 
Alliance Ground Surveillance capability that is based on the Joint 
Surveillance/Target Attack Radar System of the United States, 
notwithstanding the condition in such section that the authority be 
utilized for carrying out contracts or obligations incurred under 
section 27(d) of the Arms Export Control Act (22 U.S.C. 2767(d)).
    (2) The authority under paragraph (1) applies during the period that 
the conclusion of a cooperative project agreement for a NATO Alliance 
Ground Surveillance capability under section 27(d) of the Arms Export 
Control Act is pending, as determined by the Secretary of Defense.
    (c) Modification of Air Force Aircraft.--Amounts available pursuant 
to paragraphs (2) and (4) of subsection (a) may be used to provide for 
modifying two Air Force Joint Surveillance/Target Attack Radar System 
production aircraft to have a NATO Alliance Ground Surveillance 
capability that is based on the Joint Surveillance/Target Attack Radar 
System of the United States.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology program.
Sec. 204. Reduction in amount for Federally Funded Research and 
           Development Centers.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Manufacturing technology program.
Sec. 212. Report on operational field assessments program.
Sec. 213. Joint Strike Fighter program.
Sec. 214. Kinetic energy tactical anti-satellite technology program.
Sec. 215. Micro-satellite technology development program.
Sec. 216. High altitude endurance unmanned vehicle program.
Sec. 217. F-22 aircraft program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 231. National Missile Defense Program.
Sec. 232. Budgetary treatment of amounts for procurement for ballistic 
           missile 
           defense programs.
Sec. 233. Cooperative Ballistic Missile Defense program.
Sec. 234. Annual report on threat posed to the United States by weapons 
           of mass destruction, ballistic missiles, and cruise missiles.
Sec. 235. Director of Ballistic Missile Defense Organization.
Sec. 236. Repeal of required deployment dates for core theater missile 
           defense 
           programs.

                        Subtitle D--Other Matters

Sec. 241. Restructuring of National Oceanographic Partnership Program 
           organizations.
Sec. 242. Maintenance and repair of real property at Air Force 
           installations.
Sec. 243. Expansion of eligibility for the Defense Experimental Program 
           to Stimulate Competitive Research.
Sec. 244. Bioassay testing of veterans exposed to ionizing radiation 
           during military service.
Sec. 245. Sense of Congress regarding Comanche program.

[[Page 111 STAT. 1655]]

               Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $4,633,495,000.
            (2) For the Navy, $7,774,877,000.
            (3) For the Air Force, $14,338,934,000.
            (4) For Defense-wide activities, $9,831,646,000, of which--
                    (A) $258,183,000 is authorized for the activities of 
                the Director, Test and Evaluation; and
                    (B) $27,384,000 is authorized for the Director of 
                Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 1998.--Of the amounts authorized to be appropriated 
by section 201, $3,935,390,000 shall be available for basic research and 
applied research projects.
    (b) Basic Research and Applied Research Defined.--For purposes of 
this section, the term ``basic research and applied research'' means 
work funded in program elements for defense research and development 
under Department of Defense category 6.1 or 6.2.

SEC. 203. DUAL-USE <<NOTE: 10 USC 2511 note.>>  SCIENCE AND TECHNOLOGY 
            PROGRAM.

    (a) Funding 1998.--Of the amounts authorized to be appropriated by 
section 201, $75,000,000 is authorized for dual-use projects.
    (b) Goals.--(1) Subject to paragraph (3), it shall be the objective 
of the Secretary of each military department to obligate for dual-use 
projects in each fiscal year referred to in paragraph (2), out of the 
total amount authorized to be appropriated for such fiscal year for the 
applied research programs of the military department, the percent of 
such amount that is specified for that fiscal year in paragraph (2).
    (2) The objectives for fiscal years under paragraph (1) are as 
follows:
            (A) For fiscal year 1998, 5 percent.
            (B) For fiscal year 1999, 7 percent.
            (C) For fiscal year 2000, 10 percent.
            (D) For fiscal year 2001, 15 percent.

    (3) The Secretary of Defense may establish for a military department 
for a fiscal year an objective different from the objective set forth in 
paragraph (2) if the Secretary--
            (A) determines that compelling national security 
        considerations require the establishment of the different 
        objective; and
            (B) notifies Congress of the determination and the reasons 
        for the determination.

    (c) Designation of Official for Dual-Use Programs.--(1) The 
Secretary of Defense shall designate a senior official in the Office of 
the Secretary of Defense to carry out responsibilities for dual-use 
projects under this subsection. The designated official shall report 
directly to the Under Secretary of Defense for Acquisition and 
Technology.

[[Page 111 STAT. 1656]]

    (2) The primary responsibilities of the designated official shall 
include developing policy and overseeing the establishment of, and 
adherence to, procedures for ensuring that dual-use projects are 
initiated and administered effectively and that applicable commercial 
technologies are integrated into current and future military systems.
    (3) In carrying out the responsibilities, the designated official 
shall ensure that--
            (A) dual-use projects are consistent with the joint 
        warfighting science and technology plan referred to in section 
        270 of the National Defense Authorization Act for Fiscal Year 
        1997 (Public Law 104-201; 10 U.S.C. 2501 note); and
            (B) the dual-use projects of the military departments and 
        defense agencies of the Department of Defense are coordinated 
        and avoid unnecessary duplication.

    (d) Financial Commitment of Non-Federal Government Participants.--
The total amount of funds provided by a military department for a dual-
use project entered into by the Secretary of that department shall not 
exceed 50 percent of the total cost of the project. In the case of a 
dual-use project initiated after the date of the enactment of this Act, 
the Secretary may consider in-kind contributions by non-Federal 
participants only to the extent such contributions constitute 50 percent 
or less of the share of the project costs by such participants.
    (e) Use of Competitive Procedures.--Funds obligated for a dual-use 
project may be counted toward meeting an objective under subsection (a) 
only if the funds are obligated for a contract, grant, cooperative 
agreement, or other transaction that was entered into through the use of 
competitive procedures.
    (f) Report.--(1) Not later than March 1 of each of 1998, 1999, and 
2000, the Secretary of Defense shall submit a report to the 
congressional defense committees on the progress made by the Department 
of Defense in meeting the objectives set forth in subsection (b) during 
the preceding fiscal year.
    (2) The report for a fiscal year shall contain, at a minimum, the 
following:
            (A) The aggregate value of all contracts, grants, 
        cooperative agreements, or other transactions entered into 
        during the fiscal year for which funding is counted toward 
        meeting an objective under this section, expressed in 
        relationship to the total amount appropriated for the applied 
        research programs in the Department of Defense for that fiscal 
        year.
            (B) For each military department, the value of all 
        contracts, grants, cooperative agreements, or other transactions 
        entered into during the fiscal year for which funding is counted 
        toward meeting an objective under this section, expressed in 
        relationship to the total amount appropriated for the applied 
        research program of the military department for that fiscal 
        year.
            (C) A summary of the cost-sharing arrangements in dual-use 
        projects that were initiated during the fiscal year and are 
        counted toward reaching an objective under this section.
            (D) A description of the regulations, directives, or other 
        procedures that have been issued by the Secretary of Defense or 
        the Secretary of a military department to increase the 
        percentage of the total value of the dual-use projects 
        undertaken to meet or exceed an objective under this section.

[[Page 111 STAT. 1657]]

            (E) Any recommended legislation to facilitate achievement of 
        objectives under this section.

    (g) Commercial Operations and Support Savings Initiative.--(1) The 
Secretary of Defense shall establish a Commercial Operations and Support 
Savings Initiative (in this subsection referred to as the 
``Initiative'') to develop commercial products and processes that the 
military departments can incorporate into operational military systems 
to reduce costs of operations and support.
    (2) Of the amounts authorized to be appropriated by section 201, 
$50,000,000 is authorized for the Initiative.
    (3) Projects and participants in the Initiative shall be selected 
through the use of competitive procedures.
    (4) The budget submitted to Congress by the President for fiscal 
year 1999 and each fiscal year thereafter pursuant to section 1105(a) of 
title 31, United States Code, shall set forth separately the funding 
request for the Initiative.
    (h) Repeal of Superseded Authority.--Section 203 of the National 
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
Stat. 2451) is repealed.
    (i) Definitions.--In this section:
            (1) The term ``applied research program'' means a program of 
        a military department which is funded under the 6.2 Research, 
        Development, Test and Evaluation account of that department.
            (2) The term ``dual-use project'' means a project under a 
        program of a military department or a defense agency under which 
        research or development of a dual-use technology is carried out 
        and the costs of which are shared by the Department of Defense 
        and non-Government entities.

SEC. 204. REDUCTION IN AMOUNT FOR FEDERALLY FUNDED RESEARCH AND 
            DEVELOPMENT CENTERS.

    The total of the amounts authorized to be appropriated in section 
201 that are available for Federally Funded Research and Development 
Centers (other than amounts for capital equipment investment) is hereby 
reduced by $42,000,000.

     Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. MANUFACTURING TECHNOLOGY PROGRAM.

    (a) Participation of Manufacturers.--Section 2525(c)(2) of title 10, 
United States Code, is amended to read as follows:
    ``(2) In order to promote increased dissemination and use of 
manufacturing technology throughout the national defense technology and 
industrial base, the Secretary shall seek, to the maximum extent 
practicable, the participation of manufacturers of manufacturing 
equipment in the projects under the program.''.
    (b) Five-Year Plan.--Section 2525 of such title is amended by adding 
at the end the following new subsection:
    ``(e) Five-Year Plan.--(1) The Secretary of Defense shall prepare a 
five-year plan for the program which establishes--
            ``(A) the overall manufacturing technology goals, 
        milestones, priorities, and investment strategy for the program; 
        and

[[Page 111 STAT. 1658]]

            ``(B) for each of the five fiscal years covered by the plan, 
        the objectives of, and funding for the program by, each military 
        department and each Defense Agency participating in the program.

    ``(2) The plan shall include an assessment of the effectiveness of 
the program.
    ``(3) The plan shall be updated annually and shall be included in 
the budget justification documents submitted in support of the budget of 
the Department of Defense for a fiscal year (as included in the budget 
of the President submitted to Congress under section 1105 of title 
31).''.
    (c) Deadline for <<NOTE: 10 USC 2525 note.>>  First Plan.--The 
Secretary of Defense shall prepare the first five-year plan required 
under section 2525(e) of such title, as added by subsection (b), within 
60 days after the date of the enactment of this Act.

SEC. 212. REPORT ON OPERATIONAL FIELD ASSESSMENTS PROGRAM.

    (a) Finding.--Congress recognizes the potential value that the 
Department of Defense Operational Field Assessments program, which is 
managed by the Director of Operational Test and 
Evaluation, provides to the commanders of the Unified Combatant Commands 
with respect to assessment of the effectiveness of near-term operational 
concepts and critical operational issues in quick-response operational 
tests and evaluations.
    (b) Report.--Not later than March 30, 1998, the Secretary of Defense 
shall submit to the congressional defense committees a report on the 
Operational Field Assessments program.
    (c) Content of Report.--The report shall contain the 
following:
            (1) A review of the Operational Field Assessments program 
        which describes the goals and objectives of the program, 
        assessments by the program conducted as of the date of the 
        submission of the report, and the results of those assessments.
            (2) A description of the current management and support 
        structure of the program within the Department of Defense, 
        including a description of how program responsibilities are 
        assigned within the Office of the Secretary of Defense and a 
        description of the roles of the Joint Staff, the commanders of 
        the Unified Combatant Commands, and the military departments.
            (3) An analysis of and recommendations regarding the 
        management structure required within the Office of the Secretary 
        of Defense to ensure that the program is responsive to the 
        mission needs of the commanders of the Unified Combatant 
        Commands.
            (4) The funding plan for the program.
            (5) A description of future plans for the program and 
        funding requirements for those plans.
            (6) Recommendations regarding additional statutory authority 
        that may be required for the program.

SEC. 213. JOINT STRIKE FIGHTER PROGRAM.

    (a) Report.--Not later than February 15, 1998, the Secretary of 
Defense shall submit to the congressional defense committees a report on 
the options for the sequence in which the variants of the joint strike 
fighter are to be produced and fielded.
    (b) Content of Report.--The report shall contain the 
following:

[[Page 111 STAT. 1659]]

            (1) A review of the plan for production under the Joint 
        Strike Fighter Program that was used by the Department of 
        Defense for developing the funding estimates for the fiscal year 
        1999 budget request for the Department of Defense.
            (2) An estimate of the costs, and an analysis of the costs 
        and benefits, of producing the joint strike fighter variants in 
        a sequence that provides for fielding of the naval variant of 
        the aircraft first.
            (3) A comparison of the costs and benefits of the various 
        options for the sequence for fielding the variants of the joint 
        strike fighter that the Secretary of Defense considers likely to 
        be the options from among which a sequence for fielding is 
        selected, including a discussion of the effects that selection 
        of each such option would have on the costs and rates of 
        production of the units of F/A-18E/F and F-22 aircraft that are 
        in production when the Joint Strike Fighter Program proceeds 
        into production.
            (4) A certification that the Joint Strike Fighter Program 
        contains sufficient funding to carry out an alternate engine 
        development program that includes flight qualification of an 
        alternate engine in a joint strike fighter airframe.

    (c) Limitation on Use of Funds Pending Submission of Report.--Not 
more than 90 percent of the total amount authorized to be appropriated 
under this Act for the Joint Strike Fighter Program may be obligated 
until the date that is 30 days after the date on which the congressional 
defense committees receive the report required under this section.
    (d) Fiscal Year 1998 Budget Defined.--In this section, the term 
``fiscal year 1999 budget request for the Department of Defense'' means 
the budget estimates for the Department of Defense for fiscal year 1999 
that were submitted to Congress by the Secretary of Defense in 
connection with the submission of the budget for fiscal year 1998 to 
Congress under section 1105 of title 31, United States Code.

SEC. 214. KINETIC ENERGY TACTICAL ANTI-SATELLITE TECHNOLOGY PROGRAM.

    Of the funds authorized to be appropriated under section 201(4), 
$37,500,000 shall be available for the kinetic energy tactical anti-
satellite technology program.

SEC. 215. MICRO-SATELLITE TECHNOLOGY DEVELOPMENT PROGRAM.

    (a) Establishment of Micro-Satellite Technology Development 
Program.--The Secretary of Defense shall restructure the Clementine 2 
micro-satellite development program into a micro-satellite technology 
development program that supports a range of space mission areas.
    (b) Report.--Not later than February 15, 1998, the Secretary of 
Defense shall submit to the congressional defense committees a report 
describing the structure and objectives of the micro-satellite 
technology development program established under subsection (a) and how 
the program can benefit existing or future space systems or 
architectures.

SEC. 216. HIGH ALTITUDE ENDURANCE UNMANNED VEHICLE 
            PROGRAM.

    (a) Limitation on Total Cost of Advanced Concept Technology 
Demonstration.--The total amount obligated or expended

[[Page 111 STAT. 1660]]

for advanced concept technology demonstration under the High Altitude 
Endurance Unmanned Vehicle Program for fiscal year 1998 through fiscal 
year 2003 may not exceed $476,826,000.
    (b) Limitation on Procurement.--The Secretary of Defense may not 
procure any high altitude endurance unmanned vehicles, other than the 
currently planned vehicles, until the completion of the testing 
identified in phase II of the test and demonstration plan for the 
advanced concept technology demonstration for the vehicles.
    (c) Limitation on Proceeding.--The High Altitude Endurance Unmanned 
Vehicle Program may not proceed beyond advanced concept technology 
demonstration until the Secretary of Defense--
            (1) provides to Congress a firm unit cost (referred to in 
        this section as the ``fly away cost'') for each of the currently 
        planned vehicles; and
            (2) certifies to Congress the military suitability and the 
        worth of each such vehicle.

    (d) GAO Review.--(1) The Comptroller General shall review the High 
Altitude Endurance Unmanned Vehicle Program for purposes of determining 
whether the average fly away cost for each vehicle is within the cost 
goal under the program of $10,000,000.
    (2) The Secretary of Defense and the prime contractors under the 
High Altitude Endurance Unmanned Vehicle Program shall provide the 
Comptroller General with such information on the program as the 
Comptroller considers necessary to make the determination under 
paragraph (1).
    (e) Currently Planned Vehicles.--In this section, the term 
``currently planned vehicles'' means the four Dark Star air vehicles and 
the five Global Hawk air vehicles that have been approved for 
procurement by the Secretary of Defense as of the date of the enactment 
of this Act.

SEC. 217. F-22 AIRCRAFT PROGRAM.

    (a) Limitation on Total Cost of Engineering and Manufacturing 
Development.--The total amount obligated or expended for engineering and 
manufacturing development under the F-22 aircraft program may not exceed 
$18,688,000,000.
    (b) Limitation on Total Cost of Production.--The total amount 
obligated or expended for the F-22 production program may not exceed 
$43,400,000,000.
    (c) Adjustment of Limitation Amounts.--The Secretary of the Air 
Force shall adjust the amounts of the limitations set forth in 
subsections (a) and (b) by the following amounts:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 1997.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, State, or 
        local laws enacted after September 30, 1997.

    (d)  <<NOTE: Reports.>> Annual GAO Review.--(1) Not later than March 
15 of each year, the Comptroller General shall review the F-22 aircraft 
program and submit to Congress a report on the results of the review. 
The Comptroller General shall also submit to Congress for each report a 
certification regarding whether the Comptroller General has had access 
to sufficient information to make informed judgments on the matters 
covered by the report.

    (2) The report submitted on the program each year shall include the 
following:

[[Page 111 STAT. 1661]]

            (A) The extent to which engineering and manufacturing 
        development under the program is meeting the goals established 
        for engineering and manufacturing development under the program, 
        including the performance, cost, and schedule goals.
            (B) The status of modifications expected to have a 
        significant effect on cost or performance of F-22 aircraft.
            (C) The plan for engineering and manufacturing development 
        (leading to production) under the program for the fiscal year 
        that begins in the following year.
            (D) A conclusion regarding whether the plan referred to in 
        subparagraph (C) is consistent with the limitation in subsection 
        (a).
            (E) A conclusion regarding whether engineering and 
        manufacturing development (leading to production) under the 
        program is likely to be completed at a total cost not in excess 
        of the amount specified in subsection (a).

    (3) The Comptroller General shall submit the first report under this 
subsection not later than March 15, 1998. No report is required under 
this subsection after engineering and manufacturing development under 
the program has been completed.
    (e) Requirement To Support Annual GAO Review.--The Secretary of 
Defense and the prime contractors under the F-22 aircraft program shall 
provide the Comptroller General with such information on the program as 
the Comptroller General considers necessary to carry out the 
responsibilities under subsection (d).
    (f) Limitation on Obligation of Funds.--Of the total amount 
authorized to be appropriated for the F-22 aircraft program for a fiscal 
year, not more than 90 percent of the amount may be obligated until the 
Comptroller General submits to Congress--
            (1) the report required to be submitted in that fiscal year 
        under subsection (d); and
            (2) a certification regarding whether the Comptroller 
        General has had access to sufficient information to make 
        informed judgments on the matters covered by the report.

             Subtitle C--Ballistic Missile Defense Programs

SEC. 231. NATIONAL <<NOTE: 10 USC 2431 note.>>  MISSILE DEFENSE PROGRAM.

    (a) Program Structure.--To preserve the option of achieving an 
initial operational capability in fiscal year 2003, the Secretary of 
Defense shall ensure that the National Missile Defense Program is 
structured and programmed for funding so as to support a test, in fiscal 
year 1999, of an integrated national missile defense system that is 
representative of the national missile defense system architecture that 
could achieve initial operational capability in fiscal year 2003.
    (b) Elements of NMD System.--The national missile defense system 
architecture specified in subsection (a) shall consist of the following 
elements:
            (1) An interceptor system that optimizes defensive coverage 
        of the continental United States, Alaska, and Hawaii against 
        limited ballistic missile attack (whether accidental, 
        unauthorized, or deliberate).
            (2) Ground-based radars.

[[Page 111 STAT. 1662]]

            (3) Space-based sensors.
            (4) Battle management, command, control, and communications 
        (BM/C<SUP>3</SUP>).

    (c) Plan for NMD System Development and Deployment.--Not later than 
February 15, 1998, the Secretary of Defense shall submit to the 
congressional defense committees a plan for the development and 
deployment of a national missile defense system that could achieve 
initial operational capability in fiscal year 2003. The plan shall 
include the following matters:
            (1) A detailed description of the system architecture 
        selected for development.
            (2) A discussion of the justification for the selection of 
        that particular architecture.
            (3) The Secretary's estimate of the amounts of the 
        appropriations that would be necessary for research, 
        development, test, evaluation, and for procurement for each of 
        fiscal years 1999 through 2003 in order to achieve an initial 
        operational capability of the system architecture in fiscal year 
        2003.
            (4) For each activity necessary for the development and 
        deployment of the national missile defense system architecture 
        selected by the Secretary that would at some point conflict with 
        the terms of the ABM Treaty, if any--
                    (A) a description of the activity;
                    (B) a description of the point at which the activity 
                would conflict with the terms of the ABM Treaty;
                    (C) the legal analysis justifying the Secretary's 
                determination regarding the point at which the activity 
                would conflict with the terms of the ABM Treaty; and
                    (D) an estimate of the time at which such point 
                would be reached in order to achieve a test of an 
                integrated missile defense system in fiscal year 1999 
                and initial operational capability of such a system in 
                fiscal year 2003.

    (d) Funding for Fiscal Year 1998.--Of the funds authorized to be 
appropriated under section 201(4), $978,091,000 shall be available for 
the National Missile Defense Program.
    (e) ABM Treaty Defined.--In this section, the term ``ABM Treaty'' 
means the Treaty Between the United States of America and the Union of 
Soviet Socialist Republics on the Limitation of Anti-Ballistic Missile 
Systems, signed at Moscow on May 26, 1972, and includes the Protocol to 
that treaty, signed at Moscow on July 3, 1974.

SEC. 232. BUDGETARY TREATMENT OF AMOUNTS FOR PROCUREMENT FOR BALLISTIC 
            MISSILE DEFENSE PROGRAMS.

    (a) Requirement for Inclusion in Budget of BMDO.--(1) Chapter 9 of 
title 10, United States Code, is amended by inserting after section 222 
the following new section:

``Sec. 224. Ballistic missile defense programs: display of amounts for 
                        procurement

    ``(a) Requirement.--Any amount in the budget submitted to Congress 
under section 1105 of title 31 for any fiscal year for procurement for a 
Department of Defense missile defense program described in subsection 
(b) shall be set forth under the account of the Department of Defense 
for Defense-wide procurement and, within that account, under the 
subaccount (or other budget activity level) for the Ballistic Missile 
Defense Organization.

[[Page 111 STAT. 1663]]

    ``(b) Covered Programs.--Subsection (a) applies to the 
following missile defense programs of the Department of Defense:
            ``(1) The National Missile Defense Program.
            ``(2) Any system that is part of the core theater missile 
        defense program.
            ``(3) Any other ballistic missile defense program that 
        enters production after the date of the enactment of this 
        section and for which research, development, test, and 
        evaluation was carried out by the Ballistic Missile Defense 
        Organization.

    ``(c) Core Theater Ballistic Missile Defense Program.--For purposes 
of this section, the core theater missile defense program consists of 
the systems specified in section 234 of the Ballistic Missile Defense 
Act of 1995 (10 U.S.C. 2431 note).''.
    (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:

``224. Ballistic missile defense programs: display of amounts for 
           procurement.''.

    (b) Fiscal Year 1998 Funds.--(1) The Secretary of Defense shall 
transfer to appropriations available to the Ballistic Missile Defense 
Organization for procurement for fiscal year 1998 any amounts that are 
appropriated for procurement for that fiscal year for any of the Armed 
Forces by reason of the transference of certain programs to accounts of 
the Army, Navy, Air Force, and Marine Corps pursuant to Program Budget 
Decision 224C3, signed by the Under Secretary of Defense (Comptroller) 
on December 23, 1996.
    (2) Any transfer pursuant to paragraph (1) shall not be counted for 
purposes of section 1001.

SEC. 233. COOPERATIVE <<NOTE: 10 USC 221 note.>>  BALLISTIC MISSILE 
            DEFENSE PROGRAM.

    (a) Requirement for New Program Element.--The Secretary of Defense 
shall establish a program element for the Ballistic Missile Defense 
Organization, to be referred to as the ``Cooperative Ballistic Missile 
Defense Program'', to support technical and analytical cooperative 
efforts between the United States and other nations that contribute to 
United States ballistic missile defense capabilities. Except as provided 
in subsection (b), all international cooperative ballistic missile 
defense programs of the Department of Defense shall be budgeted and 
administered through that program element.
    (b) Authority for Exceptions.--The Secretary of Defense may exclude 
from the program element established pursuant to subsection (a) any 
international cooperative ballistic missile defense program of the 
Department of Defense that after the date of the enactment of this Act 
is designated by the Secretary of Defense (pursuant to applicable 
Department of Defense acquisition regulations and policy) to be managed 
as a separate acquisition program.
    (c) Relationship to Other Program Elements.--The program element 
established pursuant to subsection (a) is in addition to the program 
elements for activities of the Ballistic Missile Defense Organization 
required under section 251 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 233; 10 U.S.C. 221 
note).

[[Page 111 STAT. 1664]]

SEC. 234. ANNUAL <<NOTE: 50 USC 2367.>>  REPORT ON THREAT POSED TO THE 
            UNITED STATES BY WEAPONS OF MASS DESTRUCTION, BALLISTIC 
            MISSILES, AND CRUISE MISSILES.

    (a) Annual Report.--The Secretary of Defense shall submit to 
Congress by January 30 of each year a report on the threats posed to the 
United States and allies of the United States--
            (1) by weapons of mass destruction, ballistic missiles, and 
        cruise missiles; and
            (2) by the proliferation of weapons of mass destruction, 
        ballistic missiles, and cruise missiles.

    (b) Consultation.--Each report submitted under subsection (a) shall 
be prepared in consultation with the Director of Central Intelligence.
    (c) Matters To Be Included.--Each report submitted under subsection 
(a) shall include the following:
            (1) Identification of each foreign country and non-State 
        organization that possesses weapons of mass destruction, 
        ballistic missiles, or cruise missiles, and a description of 
        such weapons and missiles with respect to each such foreign 
        country and non-State organization.
            (2) A description of the means by which any foreign country 
        and non-State organization that has achieved capability with 
        respect to weapons of mass destruction, ballistic missiles, or 
        cruise missiles has achieved that capability, including a 
        description of the international network of foreign countries 
        and private entities that provide assistance to foreign 
        countries and non-State organizations in achieving that 
        capability.
            (3) An examination of the doctrines that guide the use of 
        weapons of mass destruction in each foreign country that 
        possesses such weapons.
            (4) An examination of the existence and implementation of 
        the control mechanisms that exist with respect to nuclear 
        weapons in each foreign country that possesses such weapons.
            (5) Identification of each foreign country and non-State 
        organization that seeks to acquire or develop (indigenously or 
        with foreign assistance) weapons of mass destruction, ballistic 
        missiles, or cruise missiles, and a description of such weapons 
        and missiles with respect to each such foreign country and non-
        State organization.
            (6) An assessment of various possible timelines for the 
        achievement by foreign countries and non-State organizations of 
        capability with respect to weapons of mass destruction, 
        ballistic missiles, and cruise missiles, taking into account the 
        probability of whether the Russian Federation and the People's 
        Republic of China will comply with the Missile Technology 
        Control Regime, the potential availability of assistance from 
        foreign technical specialists, and the potential for independent 
        sales by foreign private entities without authorization from 
        their national governments.
            (7) For each foreign country or non-State organization that 
        has not achieved the capability to target the United States or 
        its territories with weapons of mass destruction, ballistic 
        missiles, or cruise missiles as of the date of the enactment of 
        this Act, an estimate of how far in advance the United States is 
        likely to be warned before such foreign country or non-State 
        organization achieves that capability.

[[Page 111 STAT. 1665]]

            (8) For each foreign country or non-State organization that 
        has not achieved the capability to target members of the United 
        States Armed Forces deployed abroad with weapons of mass 
        destruction, ballistic missiles, or cruise missiles as of the 
        date of the enactment of this Act, an estimate of how far in 
        advance the United States is likely to be warned before such 
        foreign country or non-State organization achieves that 
        capability.

    (d) Classification.--Each report under subsection (a) shall be 
submitted in classified and unclassified form.

SEC. 235. DIRECTOR OF BALLISTIC MISSILE DEFENSE ORGANIZATION.

    (a) In General.--Subchapter II of chapter 8 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 203. Director of Ballistic Missile Defense Organization

    ``If an officer of the armed forces on active duty is appointed to 
the position of Director of the Ballistic Missile Defense Organization, 
the position shall be treated as having been designated by the President 
as a position of importance and responsibility for purposes of section 
601 of this title and shall carry the grade of lieutenant general or 
general or, in the case of an officer of the Navy, vice admiral or 
admiral.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``203. Director of Ballistic Missile Defense Organization.''.

SEC. 236. REPEAL OF REQUIRED DEPLOYMENT DATES FOR CORE THEATER MISSILE 
            DEFENSE PROGRAMS.

    Section 234(a) of the Ballistic Missile Defense Act of 1995 
(subtitle C of title II of Public Law 104-106; 110 Stat. 229; 10 U.S.C. 
2431 note) is amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``, to be carried out so as to achieve the specified 
        capabilities'';
            (2) in paragraph (1), by striking out ``, with a first unit 
        equipped (FUE) during fiscal year 1998'';
            (3) in paragraph (2), by striking out ``Navy Lower Tier 
        (Area) system'' and all that follows through ``fiscal year 
        1999'' and inserting in lieu thereof ``Navy Area Defense 
        system'';
            (4) in paragraph (3), by striking out ``, with a'' and all 
        that follows through ``fiscal year 2000''; and
            (5) in paragraph (4), by striking out ``Navy Upper Tier'' 
        and all that follows through ``fiscal year 2001'' and inserting 
        in lieu thereof ``Navy Theater Wide system''.

                        Subtitle D--Other Matters

SEC. 241. RESTRUCTURING OF NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM 
            ORGANIZATIONS.

    (a) National Ocean Research Leadership Council.--Section 7902 of 
title 10, United States Code, is amended--
            (1) in subsection (b)--
                    (A) by striking out paragraphs (11), (14), (15), 
                (16), and (17); and
                    (B) by redesignating paragraphs (12) and (13) as 
                paragraphs (11) and (12), respectively;

[[Page 111 STAT. 1666]]

            (2) by striking out subsection (d); and
            (3) by redesignating subsections (e), (f), (g), (h), and (i) 
        as subsections (d), (e), (f), (g), and (h), respectively.

    (b) Ocean Research Advisory Panel.--(1) The text of section 7903 of 
such title is amended to read as follows:
    ``(a) Establishment.--The Council shall establish an Ocean Research 
Advisory Panel consisting of not less than 10 and not more than 18 
members appointed by the chairman, including the following:
            ``(1) One member who will represent the National Academy of 
        Sciences.
            ``(2) One member who will represent the National Academy of 
        Engineering.
            ``(3) One member who will represent the Institute of 
        Medicine.
            ``(4) Members selected from among individuals who will 
        represent the views of ocean industries, State governments, 
        academia, and such other views as the chairman considers 
        appropriate.
            ``(5) Members selected from among individuals eminent in the 
        fields of marine science or marine policy, or related fields.

    ``(b) Responsibilities.--The Council shall assign the following 
responsibilities to the Advisory Panel:
            ``(1) To advise the Council on policies and procedures to 
        implement the National Oceanographic Partnership Program.
            ``(2) To advise the Council on selection of partnership 
        projects and allocation of funds for partnership projects for 
        implementation under the program.
            ``(3) To advise the Council on matters relating to national 
        oceanographic data requirements.
            ``(4) Any additional responsibilities that the Council 
        considers appropriate.

    ``(c) Funding.--The Secretary of the Navy annually shall make funds 
available to support the activities of the Advisory Panel.''.
    (2) Section 282(c) of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 <<NOTE: 10 USC 7903 
note.>> Stat. 2473) is amended by striking out ``January 1, 1997'' and 
inserting in lieu thereof ``January 1, 1998''.

    (c) Conforming Amendments.--Section 282 of the National Defense 
Authorization Act for Fiscal Year 1997 is amended--
            (1) by striking out <<NOTE: 10 USC 7902 note.>>  subsection 
        (b); and
            (2) by redesignating <<NOTE: 10 USC 7903 note, 7902 
        note.>> subsections (c), (d), (e), and (f) as subsections (b), 
        (c), (d), and (e), respectively.

    (d) Effective Date.--The <<NOTE: 10 USC 7902 note.>>  amendments 
made by subsections (a) and (b) shall be effective as of September 23, 
1996, as if included in section 282 of Public Law 104-201.

SEC. 242. MAINTENANCE AND REPAIR OF REAL PROPERTY AT AIR FORCE 
            INSTALLATIONS.

    (a) In General.--Chapter 949 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 9782. Maintenance and repair of real property

    ``(a) Allocation of Funds.--The Secretary of the Air Force shall 
allocate funds authorized to be appropriated by a provision described in 
subsection (c) and a provision described in subsection

[[Page 111 STAT. 1667]]

(d) for maintenance and repair of real property at military 
installations of the Department of the Air Force without regard to 
whether the installation is supported with funds authorized by a 
provision described in subsection (c) or (d).
    ``(b) Mixing of Funds Prohibited on Individual Projects.--The 
Secretary of the Air Force may not combine funds authorized to be 
appropriated by a provision described in subsection (c) and funds 
authorized to be appropriated by a provision described in subsection (d) 
for an individual project for maintenance and repair of real property at 
a military installation of the Department of the Air Force.
    ``(c) Research, Development, Test, and Evaluation Funds.--The 
provision described in this subsection is a provision of a national 
defense authorization Act that authorizes funds to be appropriated for a 
fiscal year to the Air Force for research, development, test, and 
evaluation.
    ``(d) Operation and Maintenance Funds.--The provision described in 
this subsection is a provision of a national defense authorization Act 
that authorizes funds to be appropriated for a fiscal year to the Air 
Force for operation and maintenance.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``9782. Maintenance and repair of real property.''.

SEC. 243. EXPANSION OF ELIGIBILITY FOR THE DEFENSE EXPERIMENTAL PROGRAM 
            TO STIMULATE COMPETITIVE RESEARCH.

    Section 257 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; U.S.C. 2358 note) <<NOTE: 10 USC 2358 
note.>> is amended by adding at the end the following new subsection:

    ``(f) State Defined.--In this section, the term `State' means a 
State of the United States, the District of Columbia, the Commonwealth 
of Puerto Rico, Guam, the Virgin Islands, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.''.

SEC. 244. BIOASSAY TESTING OF VETERANS EXPOSED TO IONIZING RADIATION 
            DURING MILITARY SERVICE.

    (a) Nuclear Test Personnel Program.--Of the amount provided in 
section 201(4), $300,000 shall be available for testing described in 
subsection (b) in support of the Nuclear Test Personnel Program 
conducted by the Defense Special Weapons Agency.
    (b) Covered Testing.--Subsection <<NOTE: Applicability.>>  (a) 
applies to the third phase of bioassay testing of individuals who are 
radiation-exposed veterans (as defined in section 1112(c)(3)(A) of title 
38, United States Code) who participated in radiation-risk activities 
(as defined in section 1112(c)(3)(B) of such title).

SEC. 245. SENSE OF CONGRESS REGARDING COMANCHE PROGRAM.

    It is the sense of Congress that the Department of Defense should--
            (1) evaluate technology transfer and acquisition initiatives 
        within the Army Comanche program that have the potential to 
        increase the efficiency or reduce the risk of the Comanche 
        program; and
            (2) include adequate funding for those initiatives that the 
        Department deems to be meritorious in the future-years defense

[[Page 111 STAT. 1668]]

        program (as submitted to Congress under section 221 of title 10, 
        United States Code).

                  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. Fisher House Trust Funds.
Sec. 305. Transfer from National Defense Stockpile Transaction Fund.
Sec. 306. Refurbishment of M1-A1 tanks.
Sec. 307. Operation of prepositioned fleet, National Training Center, 
           Fort Irwin, California.
Sec. 308. Refurbishment and installation of air search radar.
Sec. 309. Contracted training flight services.
Sec. 310. Procurement technical assistance programs.
Sec. 311. Operation of Fort Chaffee, Arkansas.

                  Subtitle B--Military Readiness Issues

Sec. 321. Monthly reports on allocation of funds within operation and 
           maintenance budget subactivities.
Sec. 322. Expansion of scope of quarterly readiness reports.
Sec. 323. Semiannual reports on transfers from high-priority readiness 
           appropriations.
Sec. 324. Annual report on aircraft inventory.
Sec. 325. Administrative actions adversely affecting military training 
           or other 
           readiness activities.
Sec. 326. Common measurement of operations tempo and personnel tempo.
Sec. 327. Inclusion of Air Force depot maintenance as operation and 
           maintenance budget line items.
Sec. 328. Prohibition of implementation of tiered readiness system.
Sec. 329. Report on military readiness requirements of the Armed Forces.
Sec. 330. Assessment of cyclical readiness posture of the Armed Forces.
Sec. 331. Report on military exercises conducted under certain training 
           exercises programs.
Sec. 332. Report on overseas deployments.

                  Subtitle C--Environmental Provisions

Sec. 341. Revision of membership terms for Strategic Environmental 
           Research and Development Program Scientific Advisory Board.
Sec. 342. Amendments to authority to enter into agreements with other 
           agencies in support of environmental technology 
           certification.
Sec. 343. Modifications of authority to store and dispose of nondefense 
           toxic and hazardous materials.
Sec. 344. Annual report on payments and activities in response to fines 
           and 
           penalties assessed under environmental laws.
Sec. 345. Annual report on environmental activities of the Department of 
           Defense overseas.
Sec. 346. Review of existing environmental consequences of the presence 
           of the Armed Forces in Bermuda.
Sec. 347. Sense of Congress on deployment of United States Armed Forces 
           abroad for environmental preservation activities.
Sec. 348. Recovery and sharing of costs of environmental restoration at 
           Department of Defense sites.
Sec. 349. Partnerships for investment in innovative environmental 
           technologies.
Sec. 350. Procurement of recycled copier paper.
Sec. 351. Pilot program for the sale of air pollution emission reduction 
           incentives.

                   Subtitle D--Depot-Level Activities

Sec. 355. Definition of depot-level maintenance and repair.
Sec. 356. Core logistics capabilities of Department of Defense.
Sec. 357. Increase in percentage of depot-level maintenance and repair 
           that may be contracted for performance by non-Government 
           personnel.
Sec. 358. Annual report on depot-level maintenance and repair.
Sec. 359. Requirement for use of competitive procedures in contracting 
           for performance of depot-level maintenance and repair 
           workloads formerly 
           performed at closed or realigned military installations.

[[Page 111 STAT. 1669]]

Sec. 360. Clarification of prohibition on management of depot employees 
           by 
           constraints on personnel levels.
Sec. 361. Centers of Industrial and Technical Excellence.
Sec. 362. Extension of authority for aviation depots and naval shipyards 
           to engage in defense-related production and services.
Sec. 363. Repeal of a conditional repeal of certain depot-level 
           maintenance and 
           repair laws and a related reporting requirement.
Sec. 364. Personnel reductions, Army depots participating in Army 
           Workload and Performance System.
Sec. 365. Report on allocation of core logistics activities among 
           Department of 
           Defense facilities and private sector facilities.
Sec. 366. Review of use of temporary duty assignments for ship repair 
           and maintenance.
Sec. 367. Sense of Congress regarding realignment of performance of 
           ground 
           communication-electronic workload.

   Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 371. Reorganization of laws regarding commissaries and exchanges 
           and other morale, welfare, and recreation activities.
Sec. 372. Merchandise and pricing requirements for commissary stores.
Sec. 373. Limitation on noncompetitive procurement of brand-name 
           commercial items for resale in commissary stores.
Sec. 374. Treatment of revenues derived from commissary store 
           activities.
Sec. 375. Maintenance, repair, and renovation of Armed Forces Recreation 
           Center, Europe.
Sec. 376. Plan for use of public and private partnerships to benefit 
           morale, welfare, and recreation activities.

                        Subtitle F--Other Matters

Sec. 381. Assistance to local educational agencies that benefit 
           dependents of members of the Armed Forces and Department of 
           Defense civilian employees.
Sec. 382. Center for Excellence in Disaster Management and Humanitarian 
           Assistance.
Sec. 383. Applicability of Federal printing requirements to Defense 
           Automated Printing Service.
Sec. 384. Study and notification requirements for conversion of 
           commercial and 
           industrial type functions to contractor performance.
Sec. 385. Collection and retention of cost information data on converted 
           services and functions.
Sec. 386. Financial assistance to support additional duties assigned to 
           Army 
           National Guard.
Sec. 387. Competitive procurement of printing and duplication services.
Sec. 388. Continuation and expansion of demonstration program to 
           identify overpayments made to vendors.
Sec. 389. Development of standard forms regarding performance work 
           statement and request for proposal for conversion of certain 
           operational functions of military installations.
Sec. 390. Base operations support for military installations on Guam.
Sec. 391. Warranty claims recovery pilot program.
Sec. 392. Program to investigate fraud, waste, and abuse within 
           Department of 
           Defense.
Sec. 393. Multitechnology automated reader card demonstration program.
Sec. 394. Reduction in overhead costs of Inventory Control Points.
Sec. 395. Inventory management.

               Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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, $17,174,589,000.
            (2) For the Navy, $21,947,656,000.
            (3) For the Marine Corps, $2,424,645,000.

[[Page 111 STAT. 1670]]

            (4) For the Air Force, $19,172,985,000.
            (5) For Defense-wide activities, $10,242,607,000.
            (6) For the Army Reserve, $1,207,981,000.
            (7) For the Naval Reserve, $846,711,000.
            (8) For the Marine Corps Reserve, $116,366,000.
            (9) For the Air Force Reserve, $1,631,200,000.
            (10) For the Army National Guard, $2,311,432,000.
            (11) For the Air National Guard, $2,999,782,000.
            (12) For the Defense Inspector General, $136,580,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $6,952,000.
            (14) For Environmental Restoration, Army, $375,337,000.
            (15) For Environmental Restoration, Navy, $275,500,000.
            (16) For Environmental Restoration, Air Force, $376,900,000.
            (17) For Environmental Restoration, Defense-wide, 
        $26,900,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $202,300,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $47,130,000.
            (20) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $666,882,000.
            (21) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $10,000,000.
            (22) For Medical Programs, Defense, $9,957,782,000.
            (23) For Cooperative Threat Reduction programs, 
        $382,200,000.
            (24) For Overseas Contingency Operations Transfer Fund, 
        $1,253,900,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1998 
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, $971,952,000.
            (2) For the National Defense Sealift Fund, $1,059,948,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 1998 
from the Armed Forces Retirement Home Trust Fund the sum of $79,977,000 
for the operation of the Armed Forces Retirement Home, including the 
United States Soldiers' and Airmen's Home and the Naval Home.

SEC. 304. FISHER HOUSE TRUST FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1998, 
out of funds in Fisher House Trust Funds not otherwise appropriated, for 
the operation of Fisher houses described in section 2221(d) of title 10, 
United States Code, as follows:
            (1) From the Fisher House Trust Fund, Department of the 
        Army, $250,000 for Fisher houses that are located in proximity 
        to medical treatment facilities of the Army.
            (2) From the Fisher House Trust Fund, Department of the 
        Navy, $150,000 for Fisher houses that are located in proximity 
        to medical treatment facilities of the Navy.

[[Page 111 STAT. 1671]]

SEC. 305. 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 1998 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.

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

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

SEC. 306. REFURBISHMENT OF M1-A1 TANKS.

    Of the amount authorized to be appropriated pursuant to section 
301(1) for operation and maintenance for the Army, $35,000,000 shall be 
available only for refurbishment of M1-A1 tanks under the AIM-XXI 
program if the Secretary of Defense determines that the cost 
effectiveness of the pilot AIM-XXI program is validated through user 
trials conducted at the National Training Center, Fort Irwin, 
California.

SEC. 307. 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. 308. REFURBISHMENT AND INSTALLATION OF AIR SEARCH RADAR.

    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 refurbishment and installation of the AN/SPS-48E air 
search radar for the Ship Self Defense System at the Integrated Ship 
Defense Systems Engineering Center, Naval Surface Warfare Center, 
Wallops Islands, Virginia.

SEC. 309. CONTRACTED TRAINING FLIGHT SERVICES.

    Of the amount authorized to be appropriated pursuant to section 
301(4) for operation and maintenance for the Air Force, $12,000,000 may 
be used for contracted training flight services.

SEC. 310. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

    (a) Funding.--Of the amount authorized to be appropriated under 
section 301(5), $12,000,000 shall be available for carrying out the 
provisions of chapter 142 of title 10, United States Code.
    (b) Specific Programs.--Of the amounts made available pursuant to 
subsection (a), $600,000 shall be available for fiscal year

[[Page 111 STAT. 1672]]

1998 for the purpose of carrying out programs sponsored by eligible 
entities referred to in subparagraph (D) of section 2411(1) of title 10, 
United States Code, that provide procurement technical assistance in 
distressed areas referred to in subparagraph (B) of section 2411(2) of 
such title. If there is an insufficient number of satisfactory proposals 
for cooperative agreements in such distressed areas to allow effective 
use of the funds made available in accordance with this subsection in 
such areas, the funds shall be allocated among the Defense Contract 
Administration Services regions in accordance with section 2415 of such 
title.

SEC. 311. OPERATION OF FORT CHAFFEE, ARKANSAS.

    Of the amount authorized to be appropriated pursuant to section 
301(10) for operation and maintenance for the Army National Guard, 
$6,854,000 may be available for the operation of Fort Chaffee, Arkansas.

                  Subtitle B--Military Readiness Issues

SEC. 321. MONTHLY REPORTS ON ALLOCATION OF FUNDS WITHIN OPERATION AND 
            MAINTENANCE BUDGET SUBACTIVITIES.

    (a) In General.--(1) Chapter 9 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 228. Monthly reports on allocation of funds within operation and 
                        maintenance budget subactivities

    ``(a) Monthly Report.--The Secretary of Defense shall submit to 
Congress a monthly report on the allocation of appropriations to O&M 
budget activities and to the subactivities of those budget activities. 
Each such report shall be submitted not later than 60 days after the end 
of the month to which the report pertains.
    ``(b) Matters To Be Included.--Each such report shall set forth the 
following for each subactivity of the O&M budget activities:
            ``(1) The amount of budget authority appropriated for that 
        subactivity in the most recent regular Department of Defense 
        Appropriations Act.
            ``(2) The amount of budget authority actually made available 
        for that subactivity, taking into consideration supplemental 
        appropriations, rescissions, and other adjustments required by 
        law or made pursuant to law.
            ``(3) The amount programmed to be expended from such 
        subactivity.

    ``(c) Identification of Certain Fluctuations.--(1) If, in the report 
under this section for a month of a fiscal year after the first month of 
that fiscal year, an amount shown under subsection (b) for a subactivity 
is different by more than $15,000,000 from the corresponding amount for 
that subactivity in the report for the first month of that fiscal year, 
the Secretary shall include in the report notice of that difference.
    ``(2) If, in the report under this section for a month of a fiscal 
year after a month for which the report under this section includes a 
notice under paragraph (1), an amount shown under subsection (b) for a 
subactivity is different by more than $15,000,000 from the corresponding 
amount for that subactivity in the most recent report that includes a 
notice under paragraph (1) or this

[[Page 111 STAT. 1673]]

paragraph, the Secretary shall include in the report notice of that 
difference.
    ``(d) Report on Fluctuations.--If a report under this section 
includes a notice under subsection (c), the Secretary shall include in 
the report with each such notice the following:
            ``(1) The reasons for the reallocations of funds resulting 
        in the inclusion of that notice in the report.
            ``(2) Each budget subactivity involved in those 
        reallocations.
            ``(3) The effect of those reallocations on the operation and 
        maintenance activities funded through the subactivity with 
        respect to which the notice is included in the report.

    ``(e) O&M Budget Activity Defined.--For purposes of this section, 
the term `O&M budget activity' means a budget activity within an 
operation and maintenance appropriation of the Department of Defense for 
a fiscal year.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``228. Monthly reports on allocation of funds within operation and 
           maintenance budget subactivities.''.

    (b) Effective Date.--The <<NOTE: 10 USC 228 note.>>  first report 
under section 228 of title 10, United States Code, as added by 
subsection (a), shall be for the month of December 1997.

SEC. 322. EXPANSION OF SCOPE OF QUARTERLY READINESS REPORTS.

    (a) Expanded Reports Required.--(1) Section 482 of title 10, United 
States Code, is amended to read as follows:

``Sec. 482. Quarterly reports: personnel and unit readiness

    ``(a) Quarterly Reports Required.--Not later than 30 days after the 
end of each calendar-year quarter, the Secretary of Defense shall submit 
to Congress a report regarding military readiness. The report for a 
quarter shall contain the information required by subsections (b), (d), 
and (e).
    ``(b) Readiness Problems and Remedial Actions.--Each report shall 
specifically describe--
            ``(1) each readiness problem and deficiency identified using 
        the assessments considered under subsection (c);
            ``(2) planned remedial actions; and
            ``(3) the key indicators and other relevant information 
        related to each identified problem and deficiency.

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

[[Page 111 STAT. 1674]]

    ``(d) Comprehensive Readiness Indicators for Active Components.--
Each report shall also include information regarding each of the active 
components of the armed forces (and an evaluation of such information) 
with respect to each of the following readiness indicators:
            ``(1) Personnel strength.--
                    ``(A) Personnel status, including the extent to 
                which members of the armed forces are serving in 
                positions outside of their military occupational 
                specialty, serving in grades other than the grades for 
                which they are qualified, or both.
                    ``(B) Historical data and projected trends in 
                personnel strength and status.
            ``(2) Personnel turbulence.--
                    ``(A) Recruit quality.
                    ``(B) Borrowed manpower.
                    ``(C) Personnel stability.
            ``(3) Other personnel matters.--
                    ``(A) Personnel morale.
                    ``(B) Recruiting status.
            ``(4) Training.--
                    ``(A) Training unit readiness and proficiency.
                    ``(B) Operations tempo.
                    ``(C) Training funding.
                    ``(D) Training commitments and deployments.
            ``(5) Logistics--equipment fill.--
                    ``(A) Deployed equipment.
                    ``(B) Equipment availability.
                    ``(C) Equipment that is not mission capable.
                    ``(D) Age of equipment.
                    ``(E) Condition of nonpacing items.
            ``(6) Logistics--equipment maintenance.--
                    ``(A) Maintenance backlog.
            ``(7) Logistics--supply.--
                    ``(A) Availability of ordnance and spares.
                    ``(B) Status of prepositioned equipment.

    ``(e) Unit Readiness Indicators.--Each report shall also include 
information regarding the readiness of each active component unit of the 
armed forces at the battalion, squadron, or an equivalent level (or a 
higher level) that received a readiness rating of C-3 (or below) for any 
month of the calendar-year quarter covered by the report. With respect 
to each such unit, the report shall separately provide the following 
information:
            ``(1) The unit designation and level of organization.
            ``(2) The overall readiness rating for the unit for the 
        quarter and each month of the quarter.
            ``(3) The resource area or areas (personnel, equipment and 
        supplies on hand, equipment condition, or training) that 
        adversely affected the unit's readiness rating for the quarter.
            ``(4) The reasons why the unit received a readiness rating 
        of C-3 (or below).

    ``(f) Classification of Reports.--A report under this section shall 
be submitted in unclassified form. To the extent the Secretary of 
Defense determines necessary, the report may also be submitted in 
classified form.''.

[[Page 111 STAT. 1675]]

    (2) The item relating to section 482 in the table of sections at the 
beginning of chapter 23 of such title is amended to read as follows:

``482. Quarterly reports: personnel and unit readiness.''.

    (b) Implementation <<NOTE: 10 USC 482 note.>>  Plan To Examine 
Readiness Indicators.--Not later than January 15, 1998, the Secretary of 
Defense shall submit to the congressional defense committees a plan--
            (1) specifying the manner in which the Secretary will 
        implement the additional reporting requirement of subsection (d) 
        of section 482 of title 10, United States Code, as added by this 
        section; and
            (2) specifying the criteria proposed to be used to evaluate 
        the readiness indicators identified in such subsection (d).

    (c) Limitation Pending Receipt of Implementation Plan.--Of the 
amount available for fiscal year 1998 for operation and support 
activities of the Office of the Secretary of Defense, 10 percent may not 
be obligated until after the date on which the implementation plan 
required by subsection (b) is submitted.
    (d) Transition <<NOTE: 10 USC 482 note.>>  To Complete Report.--
Until the report under section 482 of title 10, United States Code, as 
amended by subsection (a), for the third quarter of 1998 is submitted, 
the Secretary of Defense may omit the information required by subsection 
(d) of such section if the Secretary determines that it is impracticable 
to comply with such subsection with regard to the preceding reports.

SEC. 323. SEMIANNUAL REPORTS ON TRANSFERS FROM HIGH-
            PRIORITY READINESS APPROPRIATIONS.

    (a) Reports Required.--Chapter 23 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 483. Reports on transfers from high-priority readiness 
                        appropriations

    ``(a) Annual Reports.--Not later than the date on which the 
President submits the budget for a fiscal year to Congress pursuant to 
section 1105 of title 31, the Secretary of Defense shall 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 on transfers 
during the preceding fiscal year from funds available for each covered 
budget activity.
    ``(b) Midyear Reports.--Not later than June 1 of each fiscal year, 
the Secretary of Defense shall submit to the congressional committees 
specified in subsection (a) a report on transfers, during the first six 
months of that fiscal year, from funds available for each covered budget 
activity.
    ``(c) Matters To Be Included.--In each report under subsection (a) 
or (b), the Secretary of Defense shall include for each covered budget 
activity the following:
            ``(1) A statement, for the period covered by the report, 
        of--
                    ``(A) the total amount of transfers into funds 
                available for that activity;
                    ``(B) the total amount of transfers from funds 
                available for that activity; and
                    ``(C) the net amount of transfers into, or out of, 
                funds available for that activity.

[[Page 111 STAT. 1676]]

            ``(2) A detailed explanation of the transfers into, and out 
        of, funds available for that activity during the period covered 
        by the report.

    ``(d) Covered Budget Activity Defined.--In this section, the term 
`covered budget activity' means each of the following:
            ``(1) The budget activity groups (known as `subactivities') 
        within the Operating Forces budget activity of the annual 
        Operation and Maintenance, Army, appropriation that are 
        designated as follows:
                    ``(A) All subactivities under the category of Land 
                Forces.
                    ``(B) Land Forces Depot Maintenance.
                    ``(C) Base Support.
                    ``(D) Maintenance of Real Property.
            ``(2) The Air Operations budget activity groups (known as 
        `subactivities') within the Operating Forces budget activity of 
        the annual Operation and Maintenance, Navy, appropriation that 
        are designated as follows:
                    ``(A) Mission and Other Flight Operations.
                    ``(B) Fleet Air Training.
                    ``(C) Aircraft Depot Maintenance.
                    ``(D) Base Support.
                    ``(E) Maintenance of Real Property.
            ``(3) The Ship Operations budget activity groups (known as 
        `subactivities') within the Operating Forces budget activity of 
        the annual Operation and Maintenance, Navy, appropriation that 
        are designated as follows:
                    ``(A) Mission and Other Ship Operations.
                    ``(B) Ship Operational Support and Training.
                    ``(C) Ship Depot Maintenance.
                    ``(D) Base Support.
                    ``(E) Maintenance of Real Property.
            ``(4) The Expeditionary Forces budget activity groups (known 
        as `subactivities') within the Operating Forces budget activity 
        of the annual Operation and Maintenance, Marine Corps, 
        appropriation that are designated as follows:
                    ``(A) Operational Forces.
                    ``(B) Depot Maintenance.
                    ``(C) Base Support.
                    ``(D) Maintenance of Real Property.
            ``(5) The Air Operations and Combat Related Operations 
        budget activity groups (known as `subactivities') within the 
        Operating Forces budget activity of the annual Operation and 
        Maintenance, Air Force, appropriation that are designated as 
        follows:
                    ``(A) Primary Combat Forces.
                    ``(B) Primary Combat Weapons.
                    ``(C) Air Operations Training.
                    ``(D) Depot Maintenance.
                    ``(E) Base Support.
                    ``(F) Maintenance of Real Property.
            ``(6) The Mobility Operations budget activity group (known 
        as a `subactivity') within the Mobilization budget activity of 
        the annual Operation and Maintenance, Air Force, appropriation 
        that is designated as Airlift Operations.

[[Page 111 STAT. 1677]]

    ``(e) Termination.--The requirements specified in subsections (a) 
and (b) shall terminate upon the submission of the annual report under 
subsection (a) covering fiscal year 2000.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``483. Reports on transfers from high-priority readiness 
           appropriations.''.

SEC. 324. ANNUAL REPORT ON AIRCRAFT INVENTORY.

    (a) Annual Report Required.--(1) Chapter 23 of title 10, United 
States Code, is amended by inserting after section 483, as added by 
section 323, the following new section:

``Sec. 484. Annual report on aircraft inventory

    ``(a) Annual Report.--The Under Secretary of Defense (Comptroller) 
shall submit to Congress each year a report on the aircraft in the 
inventory of the Department of Defense. The Under Secretary shall submit 
the report when the President submits the budget to Congress under 
section 1105(a) of title 31.
    ``(b) Content.--The report shall set forth, in accordance with 
subsection (c), the following information:
            ``(1) The total number of aircraft in the inventory.
            ``(2) The total number of the aircraft in the inventory that 
        are active, stated in the following categories (with appropriate 
        subcategories for mission aircraft, training aircraft, dedicated 
        test aircraft, and other aircraft):
                    ``(A) Primary aircraft.
                    ``(B) Backup aircraft.
                    ``(C) Attrition and reconstitution reserve aircraft.
            ``(3) The total number of the aircraft in the inventory that 
        are inactive, stated in the following categories:
                    ``(A) Bailment aircraft.
                    ``(B) Drone aircraft.
                    ``(C) Aircraft for sale or other transfer to foreign 
                governments.
                    ``(D) Leased or loaned aircraft.
                    ``(E) Aircraft for maintenance training.
                    ``(F) Aircraft for reclamation.
                    ``(G) Aircraft in storage.
            ``(4) The aircraft inventory requirements approved by the 
        Joint Chiefs of Staff.

    ``(c) Display of Information.--The report shall specify the 
information required by subsection (b) separately for the active 
component of each armed force and for each reserve component of each 
armed force and, within the information set forth for each such 
component, shall specify the information separately for each type, 
model, and series of aircraft provided for in the future-years defense 
program submitted to Congress.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 483, as added by 
section 323, the following new item:

``484. Report on aircraft inventory.''.

    (b) Special <<NOTE: 10 USC 484 note.>>  Submission Date for First 
Report.--The Under Secretary of Defense (Comptroller) shall submit the 
first report required under section 484 of title 10, United States Code 
(as added by subsection (a)), not later than January 30, 1998.

[[Page 111 STAT. 1678]]

    (c) Modification of Budget <<NOTE: 10 USC 221 note.>>  Data 
Exhibits.--The Under Secretary of Defense (Comptroller) shall ensure 
that aircraft budget data exhibits of the Department of Defense that are 
submitted to Congress display total numbers of active aircraft where 
numbers of primary aircraft or primary authorized aircraft are displayed 
in those exhibits.

SEC. 325. ADMINISTRATIVE ACTIONS ADVERSELY AFFECTING MILITARY TRAINING 
            OR OTHER READINESS ACTIVITIES.

    (a) Congressional Notification.--Chapter 101 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 2014. Administrative actions adversely affecting military 
                        training or other readiness activities

    ``(a) Congressional Notification.--Whenever an official of an 
Executive agency takes or proposes to take an administrative action 
that, as determined by the Secretary of Defense in consultation with the 
Chairman of the Joint Chiefs of Staff, affects training or any other 
readiness activity in a manner that has or would have a significant 
adverse effect on the military readiness of any of the armed forces or a 
critical component thereof, the Secretary shall submit a written 
notification of the action and each significant adverse effect to the 
head of the Executive agency taking or proposing to take the 
administrative action. At the same time, the Secretary shall transmit a 
copy of the notification to the President, the Committee on Armed 
Services of the Senate, and the Committee on National Security of the 
House of Representatives.
    ``(b) Notification To Be Prompt.--(1) Subject to paragraph (2), the 
Secretary shall submit a written notification of an administrative 
action or proposed administrative action required by subsection (a) as 
soon as possible after the Secretary becomes aware of the action or 
proposed action.
    ``(2) The Secretary shall <<NOTE: Regulations.>>  prescribe policies 
and procedures to ensure that the Secretary receives information on an 
administrative action or proposed administrative action described in 
subsection (a) promptly after Department of Defense personnel receive 
notice of such an action or proposed action.

    ``(c) Consultation Between Secretary and Head of Executive Agency.--
Upon notification with respect to an administrative action or proposed 
administrative action under subsection (a), the head of the Executive 
agency concerned shall--
            ``(1) respond promptly to the Secretary; and
            ``(2) consistent with the urgency of the training or 
        readiness activity involved and the provisions of law under 
        which the administrative action or proposed administrative 
        action is being taken, seek to reach an agreement with the 
        Secretary on immediate actions to attain the objective of the 
        administrative action or proposed administrative action in a 
        manner which eliminates or mitigates the adverse effects of the 
        administrative action or proposed administrative action upon the 
        training or readiness activity.

    ``(d) Moratorium.--(1) Subject to paragraph (2), upon notification 
with respect to an administrative action or proposed administrative 
action under subsection (a), the administrative action or proposed 
administrative action shall cease to be effective with respect to the 
Department of Defense until the earlier of--

[[Page 111 STAT. 1679]]

            ``(A) the end of the five-day period beginning on the date 
        of the notification; or
            ``(B) the date of an agreement between the head of the 
        Executive agency concerned and the Secretary as a result of the 
        consultations under subsection (c).

    ``(2) Paragraph (1) shall not apply with respect to an 
administrative action or proposed administrative action if the head of 
the Executive agency concerned determines that the delay in enforcement 
of the administrative action or proposed administrative action will pose 
an actual threat of an imminent and substantial endangerment to public 
health or the environment.
    ``(e) Effect of Lack of Agreement.--(1) If the head of an Executive 
agency and the Secretary do not enter into an agreement under subsection 
(c)(2), the Secretary shall submit a written notification to the 
President who shall take final action on the matter.
    ``(2) Not later than 30 days after the date on which the President 
takes final action on a matter under paragraph (1), the President shall 
submit to the committees referred to in subsection (a) a notification of 
the action.
    ``(f) Limitation on Delegation of Authority.--The head of an 
Executive agency may not delegate any responsibility under this section.
    ``(g) Definition.--In this section, the term `Executive agency' has 
the meaning given such term in section 105 of title 5, except that the 
term does not include the General Accounting Office.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2014. Administrative actions adversely affecting military training or 
           other readiness activities.''.

SEC. 326. COMMON <<NOTE: 10 USC 153 note.>>  MEASUREMENT OF OPERATIONS 
            TEMPO AND PERSONNEL TEMPO.

    (a) Means for Measurement.--The Chairman of the Joint Chiefs of 
Staff shall, to the maximum extent practicable, develop (1) a common 
means of measuring the operations tempo (OPTEMPO) of each of the Armed 
Forces, and (2) a common means of measuring the personnel tempo 
(PERSTEMPO) of each of the Armed Forces. The Chairman shall consult with 
the other members of the Joint Chiefs of Staff in developing those 
common means of measurement.
    (b) PERSTEMPO Measurement.--The measurement of personnel tempo 
developed by the Chairman shall include a means of identifying the rate 
of deployment for individual members of the Armed Forces in addition to 
the rate of deployment for units.

SEC. 327. INCLUSION <<NOTE: 10 USC 221 note.>>  OF AIR FORCE DEPOT 
            MAINTENANCE AS OPERATION AND MAINTENANCE BUDGET LINE ITEMS.

    For fiscal year 1999 and each fiscal year thereafter, Air Force 
depot-level maintenance of materiel shall be displayed as one or more 
separate line items under each subactivity within the authorization 
request for operation and maintenance, Air Force, in the proposed budget 
for that fiscal year submitted to Congress pursuant to section 1105 of 
title 31, United States Code.

[[Page 111 STAT. 1680]]

SEC. 328. PROHIBITION OF IMPLEMENTATION OF TIERED READINESS SYSTEM.

    (a) Prohibition.--The Secretary of a military department may not 
implement, or be required to implement, a new readiness system for units 
of the Armed Forces (as outlined in sections 329 and 330), under which a 
military unit would be categorized into one of several categories (known 
as ``tiers'') according to the likelihood that the unit will be required 
to respond to a military conflict and the time in which the unit will be 
required to respond, if that system would have the effect of changing 
the methods used as of October 1, 1996, by the Armed Forces under the 
jurisdiction of that Secretary for determining the priorities for 
allocating to such military units funding, personnel, equipment, 
equipment maintenance, and training resources, and the associated levels 
of readiness of those units that result from those priorities.
    (b) Report to Congress Requesting Waiver.--If the Secretary of 
Defense determines, following the review required by sections 329 and 
330 (or any similar review), that implementation for one or more of the 
Armed Forces of a tiered readiness system that is prohibited by 
subsection (a) would be in the national security interests of the United 
States, the Secretary shall submit to Congress a report setting forth 
that determination, together with the rationale for that determination, 
and a request for the enactment of legislation to allow implementation 
of such a system.
    (c) Rule of Construction.--Nothing in subsection (a) is intended to 
preclude the Secretary of Defense from taking necessary actions to 
maintain the combat preparedness of the active and reserve components of 
the Armed Forces.

SEC. 329. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED FORCES.

    (a) Requirement for Report.--Not later than January 31, 1998, the 
Chairman of the Joint Chiefs of Staff shall submit to the congressional 
defense committees a report on the military readiness requirements of 
the active and reserve components of the Armed Forces (including combat 
units, combat support units, and combat service support units). The 
report shall assess such requirements under a tiered readiness and 
response system that categorizes a given unit according to the 
likelihood that it will be required to respond to a military conflict 
and the time within which it will be required to respond.
    (b) Preparation by JCS and Commanders of Unified Commands.--The 
report required by subsection (a) shall be prepared jointly by the 
Chairman of the Joint Chiefs of Staff, 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 commander of the Special Operations 
Command, and the commanders of the other unified commands.
    (c) Assessment Scenario.--The report shall assess readiness 
requirements in a scenario that is based on the following assumptions:
            (1) That the Armed Forces of the United States must be 
        capable of--
                    (A) fighting and winning, in concert with allies, 
                two major theater wars nearly simultaneously; and
                    (B) deterring or defeating a strategic attack on the 
                United States.

[[Page 111 STAT. 1681]]

            (2) That the forces available for deployment are the forces 
        included in the force structure recommended in the Quadrennial 
        Defense Review, including all other planned force enhancements.

    (d) Assessment Elements.--(1) The report shall identify, by unit 
type, all major units of the active and reserve components of the Armed 
Forces and assess the readiness requirements of the units. Each 
identified unit shall be categorized within one of the following 
classifications:
            (A) Forward-deployed and crisis response forces, or ``Tier 
        I'' forces, that possess limited internal sustainment capability 
        and do not require immediate access to regional air bases or 
        ports or overflight rights, including the following:
                    (i) Force units that are deployed in rotation at sea 
                or on land outside the United States.
                    (ii) Combat-ready crises response forces that are 
                capable of mobilizing and deploying within 10 days after 
                receipt of orders.
                    (iii) Forces that are supported by prepositioning 
                equipment afloat or are capable of being inserted into a 
                theater upon the capture of a port or airfield by 
                forcible entry forces.
            (B) Combat-ready follow-on forces, or ``Tier II'' forces, 
        that can be mobilized and deployed to a theater within 
        approximately 60 days after receipt of orders.
            (C) Combat-ready conflict resolution forces, or ``Tier III'' 
        forces, that can be mobilized and deployed to a theater within 
        approximately 180 days after receipt of orders.
            (D) All other active and reserve component force units which 
        are not categorized within a classification described in 
        subparagraph (A), (B), or (C).

    (2) For the purposes of paragraph (1), the following units are major 
units:
            (A) In the case of the Army or Marine Corps, a brigade and a 
        battalion.
            (B) In the case of the Navy, a squadron of aircraft, a ship, 
        and a squadron of ships.
            (C) In the case of the Air Force, a squadron of aircraft.

    (e) Projection of Savings for Use for Modernization.--The report 
shall include a projection for fiscal years 1998 through 2003 of the 
amounts of the savings in operation and maintenance funding that--
            (1) could be derived by each of the Armed Forces by placing 
        as many units as is practicable into the lower readiness 
        categories among the tiers; and
            (2) could be made available for force modernization.

    (f) Form of Report.--The report under this section shall be 
submitted in unclassified form, but may contain a classified annex.
    (g) Planned Force Enhancement Defined.--In this section, the term 
``planned force enhancement'', with respect to the force structure 
recommended in the Quadrennial Defense Review, means any future 
improvement in the capability of the force (including current strategic 
and future improvement in strategic lift capability) that is assumed in 
the development of the recommendation for the force structure set forth 
in the Quadrennial Defense Review.

[[Page 111 STAT. 1682]]

SEC. 330. ASSESSMENT OF CYCLICAL READINESS POSTURE OF THE ARMED FORCES.

    (a) Requirement.--(1) 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 readiness posture of the Armed Forces described in 
subsection (b).
    (2) The Secretary shall prepare the report required under paragraph 
(1) with the assistance of the Joint Chiefs of Staff. In providing such 
assistance, the Chairman of the Joint Chiefs of Staff shall consult with 
the Chief of the National Guard Bureau.
    (b) Readiness Posture.--(1) The readiness posture to be covered by 
the report under subsection (a) is a readiness posture for units of the 
Armed Forces, or for designated units of the Armed Forces, that provides 
for a rotation of such units between a state of high readiness and a 
state of low readiness.
    (2) As part of the evaluation of the readiness posture described in 
paragraph (1), the report shall address in particular a readiness 
posture that--
            (A) establishes within the Armed Forces two equivalent 
        forces each structured so as to be capable of fighting and 
        winning a major theater war; and
            (B) provides for an alternating rotation of such forces 
        between a state of high readiness and a state of low readiness.

    (3) The evaluation of the readiness posture described in paragraph 
(2) shall be based upon assumptions permitting comparison with the 
existing force structure as follows:
            (A) That there are assembled from among the units of the 
        Armed Forces two equivalent forces each structured so as to be 
        capable of fighting and winning a major theater war.
            (B) That each force referred to in subparagraph (A) 
        includes--
                    (i) four active Army divisions, including one 
                mechanized division, one armored division, one light 
                infantry division, and one division combining airborne 
                units and air assault units, and appropriate support and 
                service support units for such divisions;
                    (ii) six divisions (or division equivalents) of the 
                Army National Guard or the Army Reserve that are 
                essentially equivalent in structure, and appropriate 
                support and service support units for such divisions;
                    (iii) six aircraft carrier battle groups;
                    (iv) six active Air Force fighter wings (or fighter 
                wing equivalents);
                    (v) four Air Force reserve fighter wings (or fighter 
                wing equivalents); and
                    (vi) one active Marine Corps expeditionary force.
            (C) That each force may be supplemented by critical units or 
        units in short supply, including heavy bomber units, strategic 
        lift units, and aerial reconnaissance units, that are not 
        subject to the readiness rotation otherwise assumed for purposes 
        of the evaluation or are subject to the rotation on a modified 
        basis.
            (D) That units of the Armed Forces not assigned to a force 
        are available for operations other than those essential to fight 
        and win a major theater war, including peace operations.

[[Page 111 STAT. 1683]]

            (E) That the state of readiness of each force alternates 
        between a state of high readiness and a state of low readiness 
        on a frequency determined by the Secretary (but not more often 
        than once every six months) and with only one force at a given 
        state of readiness at any one time.
            (F) That, during the period of state of high readiness of a 
        force, any operations or activities (including leave and 
        education and training of personnel) that detract from the near-
        term wartime readiness of the force are temporary and their 
        effects on such state of readiness minimized.
            (G) That units are assigned overseas during the period of 
        state of high readiness of the force to which the units are 
        assigned primarily on a temporary duty basis.
            (H) That, during the period of high readiness of a force, 
        the operational war plans for the force incorporate the 
        divisions (or division equivalents) of the Army Reserve or Army 
        National Guard assigned to the force in a manner such that one 
        such division (or division equivalent) is, on a rotating basis 
        for such divisions (or division equivalents) during the period, 
        maintained in a high state of readiness and dedicated as the 
        first reserve combat division to be transferred overseas in the 
        event of a major theater war.

    (c) Report Elements.--The report under this section shall include 
the following elements for the readiness posture described in subsection 
(b)(2):
            (1) An estimate of the range of cost savings achievable over 
        the long term as a result of implementing the readiness posture, 
        including--
                    (A) the savings achievable from reduced training 
                levels and readiness levels during periods in which a 
                force referred to in subsection (b)(3)(A) is in a state 
                of low readiness; and
                    (B) the savings achievable from reductions in costs 
                of infrastructure overseas as a result of reduced 
                permanent change of station rotations.
            (2) An assessment of the potential risks associated with a 
        lower readiness status for units assigned to a force in a state 
        of low readiness under the readiness posture, including the 
        risks associated with the delayed availability of such units 
        overseas in the event of two nearly simultaneous major theater 
        wars.
            (3) An assessment of the potential risks associated with 
        requiring the forces under the readiness posture to fight a 
        major war in any theater worldwide.
            (4) An assessment of the modifications of the current force 
        structure of the Armed Forces that are necessary to achieve the 
        range of cost savings estimated under paragraph (1), including 
        the extent of the diminishment, if any, of the military 
        capabilities of the Armed Forces as a result of the 
        modifications.
            (5) An assessment whether or not the risks of diminished 
        military capability associated with implementation of the 
        readiness posture exceed the risks of diminished military 
        capability associated with the modifications of the current 
        force structure necessary to achieve cost savings equivalent to 
        the best case for cost savings resulting from the implementation 
        of the readiness posture.

[[Page 111 STAT. 1684]]

    (d) Form of Report.--The report under this section shall be 
submitted in unclassified form, but may contain a classified annex.
    (e) Definitions.--In this section:
            (1) The term ``state of high readiness'', in the case of a 
        military force, means the capability to mobilize first-to-arrive 
        units of the force within 18 hours and last-to-arrive units 
        within 120 days of a particular event.
            (2) The term ``state of low readiness'', in the case of a 
        military force, means the capability to mobilize first-to-arrive 
        units within 90 days and last-to-arrive units within 180 days of 
        a particular event.

SEC. 331. REPORT ON MILITARY EXERCISES CONDUCTED UNDER 
            CERTAIN TRAINING EXERCISES PROGRAMS.

    (a) Report.--Not later than February 16, 1998, the Secretary of 
Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives a 
report on the military exercises conducted by the Department of Defense 
during fiscal years 1995, 1996, and 1997 and the military exercises 
planned to be conducted during fiscal years 1998, 1999, and 2000, under 
the following training exercises programs:
            (1) The program known as the ``CJCS Exercise Program''.
            (2) The program known as the ``Partnership for Peace 
        program''.
            (3) The Cooperative Threat Reduction programs.

    (b) Information on Exercises Conducted or To Be Conducted.--The 
report under subsection (a) shall include the following information for 
each exercise included in the report, which shall be set forth by fiscal 
year and shown within the fiscal year by the sponsoring command:
            (1) Name of the exercise.
            (2) Type, description, duration, and objectives of the 
        exercise.
            (3) Participating units, including the number of personnel 
        participating in each unit.
            (4) For each participating unit, the percentage of the tasks 
        on that unit's specification of tasks (known as a mission 
        essential task list) or a comparable specification (in the case 
        of any of the Armed Forces not maintaining a mission essential 
        task list designation) that were performed or are scheduled to 
        be performed as part of the exercise.
            (5) The cost of the exercise paid or to be paid out of funds 
        available to the Chairman of the Joint Chiefs of Staff and the 
        cost to each of the Armed Forces participating in the exercise, 
        with a description of the categories of activities for which 
        those costs are incurred in each such case.
            (6) In the case of each planned exercise, the priority of 
        the exercise in relation to all other exercises planned by the 
        sponsoring command to be conducted during that fiscal year.
            (7) In the case of an exercise conducted or to be conducted 
        in a foreign country or with military personnel of a foreign 
        country, the military forces of the foreign country that 
        participated or will participate in the exercise.

    (c) Assessment.--The report under subsection (a) shall include--

[[Page 111 STAT. 1685]]

            (1) an assessment of the ability of each of the Armed Forces 
        to meet requirements of the training exercises programs 
        specified in subsection (a);
            (2) an assessment of the training value of each exercise 
        covered in the report to each unit of the Armed Forces 
        participating in the exercise, including for each such unit an 
        assessment of the value of the percentage under subsection 
        (b)(4) as an indicator of the training value of the exercise for 
        that unit;
            (3) options to minimize the negative effects on operational 
        and personnel tempo resulting from the training exercises 
        programs; and
            (4) in the case of exercises to be conducted in a foreign 
        country or with military personnel of a foreign country--
                    (A) an assessment of the training value of each 
                exercise covered in the report to the foreign countries 
                involved and the extent to which the exercise enhances 
                the readiness capabilities of all military forces 
                involved in the exercise (both United States and 
                foreign); and
                    (B) an assessment of the benefits to be derived 
                through enhanced military-to-military relationships 
                between the United States and foreign countries.

    (d) Funding Limitation Pending Receipt of Report.--Of the funds 
available for fiscal year 1998 for the conduct of the CJCS Exercise 
Program, not more than 90 percent may be expended before the date on 
which the report required under subsection (a) is submitted.

SEC. 332. REPORT ON OVERSEAS DEPLOYMENTS.

    (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 
on the deployments overseas of members of the Armed Forces (other than 
the Coast Guard). The report shall describe the deployments as of June 
30, 1996, and as of June 30, 1997.
    (b) Elements.--The report shall include the following, shown as of 
each date specified in subsection (a) and shown for the Armed Forces in 
the aggregate and separately for each of the Armed Forces:
            (1) The number of military personnel deployed overseas 
        pursuant to a permanent duty assignment, shown in the aggregate 
        and by country or ocean to which deployed.
            (2) The number of military personnel deployed overseas 
        pursuant to a temporary duty assignment, including--
                    (A) the number engaged in training with units of a 
                single military department;
                    (B) the number engaged in United States military 
                joint exercises; and
                    (C) the number engaged in training with allied 
                units.
            (3) The number of military personnel deployed overseas who 
        were engaged in contingency operations (including peacekeeping 
        or humanitarian assistance missions) or other activities (other 
        than those personnel covered by paragraphs (1) and (2)).

[[Page 111 STAT. 1686]]

                  Subtitle C--Environmental Provisions

SEC. 341. REVISION OF MEMBERSHIP TERMS FOR STRATEGIC ENVIRONMENTAL 
            RESEARCH AND DEVELOPMENT 
            PROGRAM SCIENTIFIC ADVISORY BOARD.

    Section 2904(b)(4) of title 10, United States Code, is amended by 
striking out ``three'' and inserting in lieu thereof ``not less than two 
and not more than four''.

SEC. 342. AMENDMENTS TO AUTHORITY TO ENTER INTO AGREEMENTS WITH OTHER 
            AGENCIES IN SUPPORT OF ENVIRONMENTAL TECHNOLOGY 
            CERTIFICATION.

    (a) Authority To Enter Into Agreements With Indian Tribes.--Section 
327 of the National Defense Authorization Act for Fiscal Year 1997 
(Public Law 104-201; 110 Stat. 2483; 10 U.S.C. 2702 note) is amended--
            (1) in subsection (a), by inserting ``, or with an Indian 
        tribe,'' after ``with an agency of a State or local 
        government'';
            (2) by redesignating subsection (e) as subsection (f); and
            (3) by inserting after subsection (d) the following new 
        subsection:

    ``(e) Definition.--In this section, the term `Indian tribe' has the 
meaning given that term by section 101(36) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9601(36)).''.
    (b) Elimination of Certain Limitation on Authority.--Subsection 
(b)(1) of such section is amended by striking out ``in carrying out its 
environmental restoration activities''.
    (c) Additional Report Information.--Subsection (d) of such section 
is amended by adding at the end the following:
            ``(5) A statement of the funding that will be required to 
        meet commitments made to State and local governments and Indian 
        tribes under such agreements entered into during the fiscal year 
        preceding the fiscal year in which the report is submitted.
            ``(6) A description of any cost-sharing arrangement under 
        any such agreements.''.

    (d) Guidelines <<NOTE: 10 USC 2702 note.>>  for Reimbursement and 
Cost-Sharing.--Not later than 90 days after the date of enactment of 
this Act, the Secretary of Defense shall submit to Congress a report 
setting forth the guidelines established by the Secretary for 
reimbursement of State and local governments, and for cost-sharing 
between the Department of Defense, such governments, and vendors, under 
cooperative agreements entered into under such section 327.

    (e) Effective Date.--The <<NOTE: 10 USC 2702 note.>>  amendments 
made by this section shall take effect 30 days after the date on which 
the report required by subsection (d) is submitted to Congress.

SEC. 343. MODIFICATIONS OF AUTHORITY TO STORE AND DISPOSE OF NONDEFENSE 
            TOXIC AND HAZARDOUS MATERIALS.

    (a) Storage of Materials Owned by Members and Dependents.--
Subsection (a)(1) of section 2692 of title 10, United States Code, is 
amended by striking out ``by the Department of Defense.'' and inserting 
in lieu thereof the following: ``either by the Department of Defense or 
by a member of the armed forces (or a dependent of the member) assigned 
to or provided military housing on the installation.''.

[[Page 111 STAT. 1687]]

    (b) Additional Authority.--Subsection (b) of such section is 
amended--
            (1) by redesignating paragraphs (1) through (9) as 
        paragraphs (2) through (10), respectively; and
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following new paragraph (1):
            ``(1) the storage, treatment, or disposal of materials that 
        will be or have been used in connection with an activity of the 
        Department of Defense or in connection with a service to be 
        performed on an installation of the Department for the benefit 
        of the Department;''.

    (c) Storage and Disposal of Explosives To Assist Law Enforcement 
Agencies.--Subsection (b) of such section is 
amended in paragraph (3) (as redesignated by subsection (b))--
            (1) by striking out ``Federal law enforcement'' and 
        inserting in lieu thereof ``Federal, State, or local law 
        enforcement''; and
            (2) by striking out ``Federal agency'' and inserting in lieu 
        thereof ``Federal, State, or local agency''.

    (d) Storage of Material in Connection With Authorized and Compatible 
Use of a Defense Facility.--Subsection (b) of such section is amended in 
paragraph (9) (as redesignated by subsection (b))--
            (1) by striking out ``by a private person in connection with 
        the authorized and compatible use by that person of an 
        industrial-type'' and inserting in lieu thereof ``in connection 
        with the authorized and compatible use of a''; and
            (2) by striking out ``; and'' at the end and inserting in 
        lieu thereof the following: ``, including the use of such a 
        facility for testing materiel or training personnel;''.

    (e) Treatment and Disposal of Material in Connection With Authorized 
and Compatible Use of a Defense Facility.--Subsection (b) of such 
section is amended in paragraph (10) (as redesignated by subsection 
(b))--
            (1) by striking out ``by a private person in connection with 
        the authorized and compatible commercial use by that person of 
        an industrial-type'' and inserting in lieu thereof ``in 
        connection with the authorized and compatible use of a'';
            (2) by striking out ``with that person'' and inserting in 
        lieu thereof ``or agreement with the prospective user'';
            (3) by striking out ``for that person's'' in subparagraph 
        (B) and inserting in lieu thereof ``for the prospective 
        user's''; and
            (4) by striking out the period at the end and inserting in 
        lieu thereof ``; and''.

    (f) Storage of Material in Connection With Space Launch 
Facilities.--Subsection (b) of such section is further amended by adding 
at the end the following new paragraph:
            ``(11) the storage of any material that is not owned by the 
        Department of Defense if the Secretary of the military 
        department concerned determines that the material is required or 
        generated in connection with the use of a space launch facility 
        located on an installation of the Department of Defense or on 
        other land controlled by the United States.''.

    (g) Technical Amendments.--(1) Subsection (a)(1) of such section is 
further amended by striking out ``storage'' and inserting in lieu 
thereof ``storage, treatment,''.
    (2) The heading for such section is amended to read as follows:

[[Page 111 STAT. 1688]]

``Sec. 2692. Storage, treatment, and disposal of nondefense toxic and 
                        hazardous materials''.

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

``2692. Storage, treatment, and disposal of nondefense toxic and 
           hazardous materials.''.

    (h) Savings Clause.--Nothing <<NOTE: 10 USC 2692 note.>>  in the 
amendments made by this section is intended to modify environmental laws 
or laws relating to the siting of facilities.

SEC. 344. ANNUAL REPORT ON PAYMENTS AND ACTIVITIES IN RESPONSE TO FINES 
            AND PENALTIES ASSESSED UNDER ENVIRONMENTAL LAWS.

    (a) Annual Reports.--Section 2706(b)(2) of title 10, United States 
Code, is amended by adding at the end the following:
            ``(H) A statement of the fines and penalties imposed or 
        assessed against the Department of Defense under Federal, State, 
        or local environmental law during the fiscal year preceding the 
        fiscal year in which the report is submitted, setting forth each 
        Federal environmental statute under which a fine or penalty was 
        imposed or assessed during the fiscal year, and, with respect to 
        each such statute--
                    ``(i) the aggregate amount of fines and penalties 
                imposed or assessed during the fiscal year;
                    ``(ii) the aggregate amount of fines and penalties 
                paid during the fiscal year;
                    ``(iii) the total amount required for environmental 
                projects to be carried out by the Department of Defense 
                in lieu of the payment of fines or penalties; and
                    ``(iv) the number of fines and penalties imposed or 
                assessed during the fiscal year that were--
                          ``(I) $100,000 or less; and
                          ``(II) more than $100,000.''.

    (b) Report in Fiscal <<NOTE: 10 USC 2706 note.>>  Year 1998.--The 
statement submitted by the Secretary of Defense under subparagraph (H) 
of section 2706(b)(2) of title 10, United States Code, as added by 
subsection (a), in 1998 shall, to the maximum extent practicable, 
include the information required by that subparagraph for each of fiscal 
years 1994 through 1997.

SEC. 345. ANNUAL REPORT ON ENVIRONMENTAL ACTIVITIES OF THE DEPARTMENT OF 
            DEFENSE OVERSEAS.

    Section 2706 of title 10, United States Code, is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection (d):

    ``(d) Report on Environmental Activities Overseas.--(1) The 
Secretary of Defense shall submit to Congress each year, not later than 
30 days after the date on which the President submits to Congress the 
budget for a fiscal year, a report on the environmental activities of 
the Department of Defense overseas.
    ``(2) Each such report shall include a statement of the funding 
levels during such fiscal year for each of the following categories:
            ``(A) Compliance by the Department of Defense with 
        requirements under a treaty, law, contract, or other agreement 
        for environmental restoration or compliance activities.

[[Page 111 STAT. 1689]]

            ``(B) Performance by the Department of Defense of other 
        environmental restoration and compliance activities overseas.
            ``(C) Performance by the Department of Defense of any other 
        overseas activities related to the environment, including 
        conferences, meetings, and studies for pilot programs, and 
        travel related to such activities.''.

SEC. 346. REVIEW OF EXISTING ENVIRONMENTAL CONSEQUENCES OF THE PRESENCE 
            OF THE ARMED FORCES IN BERMUDA.

    Not later <<NOTE: Reports.>>  than 120 days after the date of 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on any remaining environmental 
effects of the presence of the Armed Forces of the United States in 
Bermuda.

SEC. 347. SENSE OF CONGRESS ON DEPLOYMENT OF UNITED STATES ARMED FORCES 
            ABROAD FOR ENVIRONMENTAL PRESERVATION ACTIVITIES.

    (a) Sense of Congress.--It is the sense of Congress that members of 
the Army, Navy, Air Force, and Marine Corps should not be deployed 
outside the United States to provide assistance to another nation in 
connection with environmental preservation activities in that nation, 
unless the Secretary of Defense determines that such activities are 
necessary for national security purposes.
    (b) Scope of Section.--For purposes of this section, environmental 
preservation activities do not include any of the following:
            (1) Activities undertaken for humanitarian purposes, 
        disaster relief activities, peacekeeping activities, or 
        operational training activities.
            (2) Environmental compliance and restoration activities 
        associated with military installations and deployments outside 
        the United States.

SEC. 348. RECOVERY <<NOTE: 10 USC 2701 note.>>  AND SHARING OF COSTS OF 
            ENVIRONMENTAL RESTORATION AT DEPARTMENT OF DEFENSE SITES.

    (a) Regulations.--Not later than March 1, 1998, the Secretary of 
Defense shall prescribe regulations containing the guidelines and 
requirements described in subsections (b) and (c).
    (b) Guidelines.--(1) The regulations prescribed under subsection (a) 
shall contain uniform guidelines for the military departments and 
defense agencies concerning the cost-recovery and cost-sharing 
activities of those departments and agencies.
    (2) The Secretary shall take appropriate actions to ensure the 
implementation of the guidelines.
    (c) Requirements.--The regulations prescribed under subsection (a) 
shall contain requirements for the Secretaries of the military 
departments and the heads of defense agencies to--
            (1) obtain all data that is relevant for purposes of cost-
        recovery and cost-sharing activities; and
            (2) identify any negligence or other misconduct that may 
        preclude indemnification or reimbursement by the Department of 
        Defense for the costs of environmental restoration at a 
        Department site or justify the recovery or sharing of costs 
        associated with such restoration.

    (d) Definition.--In this section, the term ``cost-recovery and cost-
sharing activities'' means activities concerning--

[[Page 111 STAT. 1690]]

            (1) the recovery of the costs of environmental restoration 
        at Department of Defense sites from contractors of the 
        Department and other private parties that contribute to 
        environmental contamination at such sites; and
            (2) the sharing of the costs of such restoration with such 
        contractors and parties.

SEC. 349. PARTNERSHIPS <<NOTE: 10 USC 2702 note.>>  FOR INVESTMENT IN 
            INNOVATIVE ENVIRONMENTAL TECHNOLOGIES.

    (a) Authority.--Subject to subsection (b), the Secretary of Defense 
may enter into a partnership with one or more private entities to 
demonstrate and validate innovative environmental technologies.
    (b) Limitations.--The Secretary of Defense may enter into a 
partnership with respect to an environmental technology under subsection 
(a) only if--
            (1) any private entities participating in the partnership 
        are selected through the use of competitive procedures;
            (2) the partnership provides for parties other than the 
        Department of Defense to provide at least 50 percent of the 
        funding required (not including in-kind contributions or 
        preexisting investments); and
            (3) the Secretary determines that--
                    (A) the technology has clear potential to be of 
                significant value to the Department of Defense in its 
                environmental remediation activities at a substantial 
                number of Department of Defense sites; and
                    (B) the technology would not be developed without 
                the commitment of Department of Defense funds.

    (c) Evaluation Guidelines.--Before entering into a partnership with 
respect to an environmental technology under subsection (a), the 
Secretary of Defense shall give consideration to the 
following:
            (1) The potential for the technology to be used by the 
        Department of Defense for environmental remediation.
            (2) The technical feasibility and maturity of the 
        technology.
            (3) The adequacy of financial and management plans to 
        demonstrate and validate the technology.
            (4) The costs and benefits to the Department of Defense of 
        developing and using the technology.
            (5) The potential for commercialization of the technology.
            (6) The proposed arrangements for sharing the costs of the 
        partnership through the use of resources outside the Department 
        of Defense.

    (d) Funding.--Under a partnership entered into under subsection (a), 
the Secretary of Defense may provide funds to the partner or partners 
from appropriations available to the Department of Defense for 
environmental activities, for a period of up to five years.
    (e) Report.--In the annual report required under section 2706(a) of 
title 10, United States Code, the Secretary of Defense shall include the 
following information with respect to partnerships entered into under 
this section:
            (1) The number of such partnerships.
            (2) A description of the nature of the technology involved 
        in each such partnership.
            (3) A list of all partners in such partnerships.

[[Page 111 STAT. 1691]]

    (f) Coordination.--The Secretary of Defense shall ensure that the 
Department of Defense coordinates with the Administrator of the 
Environmental Protection Agency in any verification sponsored by the 
Department of technologies demonstrated and validated by a partnership 
entered into under this section.
    (g) Procedures.--The Secretary of Defense shall develop appropriate 
procedures to ensure that all Department of Defense funds committed to a 
partnership entered into under this section are expended for the purpose 
authorized in the partnership agreement. The Secretary may not enter 
into a partnership under this section until 30 days after the date on 
which a copy of such procedures is provided to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives.
    (h) Termination of Authority.--The authority to enter into 
agreements under subsection (a) shall terminate three years after the 
date of the enactment of this Act.

SEC. 350. PROCUREMENT OF RECYCLED COPIER PAPER.

    (a) Procurement Requirements.--Chapter 140 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 2378. Procurement of copier paper containing specified 
                        percentages of post-consumer recycled content

    ``(a) Procurement Requirement.--(1) Except as provided in 
subsections (b) and (c), a department or agency of the Department of 
Defense may not procure copying machine paper after the applicable date 
specified in paragraph (2) unless the percentage of post-consumer 
recycled content of the paper meets the percentage then in effect under 
such paragraph.
    ``(2) The percentage of post-consumer recycled content of paper 
required under paragraph (1) is as follows:
            ``(A) 20 percent as of January 1, 1998.
            ``(B) 30 percent as of January 1, 1999.
            ``(C) 50 percent as of January 1, 2004.

    ``(b) Exceptions.--A department or agency of the Department of 
Defense is not required to procure copying machine paper containing a 
percentage of post-consumer recycled content that meets the applicable 
requirement in subsection (a) if the Secretary concerned determines that 
one or more of the following circumstances apply with respect to that 
procurement:
            ``(1) The cost of procuring copying machine paper satisfying 
        the applicable requirement significantly exceeds the cost of 
        procuring copying machine paper containing a percentage of post-
        consumer recycled content that does not meet such requirement. 
        The Secretary concerned shall establish the cost differential to 
        be applied under this paragraph.
            ``(2) Copying machine paper containing a percentage of post-
        consumer recycled content meeting such requirement is not 
        reasonably available within a reasonable period of time.
            ``(3) Copying machine paper containing a percentage of post-
        consumer recycled content meeting such requirement does not meet 
        performance standards of the department or agency for copying 
        machine paper.

    ``(c) Effect of Inability To Meet Goal in 2004.--(1) In the case of 
the requirement that will take effect on January 1, 2004,

[[Page 111 STAT. 1692]]

pursuant to subsection (a)(2)(C), the requirement shall not take effect 
with respect to a military department or Defense Agency if the Secretary 
of Defense determines that the department or agency will be unable to 
meet such requirement by that date.
    ``(2) The Secretary shall <<NOTE: Notice.>>  submit to Congress 
written notice of any determination made under paragraph (1) and the 
reasons for the determination. The Secretary shall submit such notice, 
if at all, not later than January 1, 2003.

    ``(d) Secretary Concerned Defined.--In this section, the term 
`Secretary concerned' means the Secretary of each military department 
and the Secretary of Defense with respect to the Defense Agencies.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2378. Procurement of copier paper containing specified percentages of 
           post-consumer recycled content.''.

SEC. 351. PILOT <<NOTE: 10 USC 2701 note.>>  PROGRAM FOR THE SALE OF AIR 
            POLLUTION EMISSION REDUCTION INCENTIVES.

    (a) Authority.--(1) The Secretary of Defense may, in consultation 
with the Administrator of General Services, carry out a pilot program to 
assess the feasibility and advisability of the sale of economic 
incentives for the reduction of emission of air pollutants attributable 
to a facility of a military department.
    (2) The Secretary may carry out the pilot program during the period 
beginning on the date of the enactment of this Act and ending two years 
after such date.
    (b) Incentives Available for Sale.--(1) Under the pilot program, the 
Secretary may sell economic incentives for the reduction of emission of 
air pollutants attributable to a facility of a military department only 
if such incentives are not otherwise required for the activities or 
operations of the military department.
    (2) The Secretary may not, under the pilot program, sell economic 
incentives attributable to the closure or realignment of a military 
installation under a base closure law.
    (3) If the Secretary determines that additional sales of economic 
incentives are likely to result in amounts available for allocation 
under subsection (c)(2) in a fiscal year in excess of the limitation set 
forth in subparagraph (B) of that subsection, the Secretary shall not 
carry out such additional sales in that fiscal year.
    (c) Use of Proceeds.--(1) The proceeds of sale of economic 
incentives attributable to a facility of a military department shall be 
credited to the funds available to the facility for the costs of 
identifying, quantifying, or valuing economic incentives for the 
reduction of emission of air pollutants. The amount credited shall be 
equal to the cost incurred in identifying, quantifying, or valuing the 
economic incentives sold.
    (2)(A)(i) If after crediting under paragraph (1) a balance remains, 
the amount of such balance shall be available to the Department of 
Defense for allocation by the Secretary to the military departments for 
programs, projects, and activities necessary for compliance with Federal 
environmental laws, including the purchase of economic incentives for 
the reduction of emission of air pollutants.
    (ii) To the extent practicable, amounts allocated to the military 
departments under this subparagraph shall be made available to

[[Page 111 STAT. 1693]]

the facilities that generated the economic incentives providing the 
basis for the amounts.
    (B) The total amount allocated under this paragraph in a fiscal year 
from sales of economic incentives may not equal or exceed $500,000.
    (3) If after crediting under paragraph (1) a balance remains in 
excess of an amount equal to the limitation set forth in paragraph 
(2)(B), the amount of the excess shall be covered over into the Treasury 
as miscellaneous receipts.
    (4) Funds credited under paragraph (1) or allocated under paragraph 
(2) shall be merged with the funds to which credited or allocated, as 
the case may be, and shall be available for the same purposes and for 
the same period as the funds with which merged.
    (d) Definitions.--In this section:
            (1) The term ``base closure law'' means the following:
                    (A) Section 2687 of title 10, United States Code.
                    (B) Title II of the Defense Authorization Amendments 
                and Base Closure and Realignment Act (Public Law 100-
                526; 10 U.S.C. 2687 note).
                    (C) The Defense Base Closure and Realignment Act of 
                1990 (part A of title XXIX of Public Law 101-510; 10 
                U.S.C. 2687 note).
            (2) The term ``economic incentives for the reduction of 
        emission of air pollutants'' means any transferable economic 
        incentives (including marketable permits and emission rights) 
        necessary or appropriate to meet air quality requirements under 
        the Clean Air Act (42 U.S.C. 7401 et seq.).

                   Subtitle D--Depot-Level Activities

SEC. 355. DEFINITION OF DEPOT-LEVEL MAINTENANCE AND REPAIR.

    (a) Depot-Level Maintenance and Repair Defined.--Chapter 146 of 
title 10, United States Code, is amended by inserting before section 
2461 the following new section:

``Sec. 2460. Definition of depot-level maintenance and repair

    ``(a) In General.--In this chapter, the term `depot-level 
maintenance and repair' means (except as provided in subsection (b)) 
material maintenance or repair requiring the overhaul, upgrading, or 
rebuilding of parts, assemblies, or subassemblies, and the testing and 
reclamation of equipment as necessary, regardless of the source of funds 
for the maintenance or repair. The term includes (1) all aspects of 
software maintenance classified by the Department of Defense as of July 
1, 1995, as depot-level maintenance and repair, and (2) interim 
contractor support or contractor logistics support (or any similar 
contractor support), to the extent that such support is for the 
performance of services described in the preceding sentence.
    ``(b) Exceptions.--(1) The term does not include the procurement of 
major modifications or upgrades of weapon systems that are designed to 
improve program performance or the nuclear refueling of an aircraft 
carrier. A major upgrade program covered by this exception could 
continue to be performed by private or public sector activities.

[[Page 111 STAT. 1694]]

    ``(2) The term also does not include the procurement of parts for 
safety modifications. However, the term does include the installation of 
parts for that purpose.''.
    (b) Conforming Amendment.--Section 2469 of title 10, United States 
Code, is amended in subsections (a) and (b), by striking out ``or 
repair'' and inserting in lieu thereof ``and repair''.
    (c) Clerical Amendments.--(1) The table of sections at the beginning 
of chapter 146 of title 10, United States Code, is amended by inserting 
before the item relating to section 2461 the following new item:

``2460. Definition of depot-level maintenance and repair.''.

    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part IV of subtitle A, of such title are amended by 
striking out the item relating to chapter 146 and inserting in lieu 
thereof the following new item:

``146. Contracting for Performance of Civilian Commercial or 
Industrial Type Functions........................................2460''.

SEC. 356. CORE LOGISTICS CAPABILITIES OF DEPARTMENT OF DEFENSE.

    (a) In General.--Section 2464 of title 10, United States Code, is 
amended to read as follows:

``Sec. 2464. Core logistics capabilities

    ``(a) Necessity for Core Logistics Capabilities.--(1) It is 
essential for the national defense that the Department of Defense 
maintain a core logistics capability that is Government-owned and 
Government-operated (including Government personnel and Government-owned 
and Government-operated equipment and facilities) to ensure a ready and 
controlled source of technical competence and resources necessary to 
ensure effective and timely response to a mobilization, national defense 
contingency situations, and other emergency requirements.
    ``(2) The Secretary of Defense shall identify the core logistics 
capabilities described in paragraph (1) and the workload required to 
maintain those capabilities.
    ``(3) The core logistics capabilities identified under paragraphs 
(1) and (2) shall include those capabilities that are necessary to 
maintain and repair the weapon systems and other military equipment 
(including mission-essential weapon systems or materiel not later than 
four years after achieving initial operational capability, but excluding 
systems and equipment under special access programs, nuclear aircraft 
carriers, and commercial items described in paragraph (5)) that are 
identified by the Secretary, in consultation with the Chairman of the 
Joint Chiefs of Staff, as necessary to enable the armed forces to 
fulfill the strategic and contingency plans prepared by the Chairman of 
the Joint Chiefs of Staff under section 153(a) of this title.
    ``(4) The Secretary of Defense shall require the performance of core 
logistics workloads necessary to maintain the core logistics 
capabilities identified under paragraphs (1), (2), and (3) at 
Government-owned, Government-operated facilities of the Department of 
Defense (including Government-owned, Government-operated facilities of a 
military department) and shall assign such facilities sufficient 
workload to ensure cost efficiency and technical competence in peacetime 
while preserving the surge capacity and reconstitution

[[Page 111 STAT. 1695]]

capabilities necessary to support fully the strategic and contingency 
plans referred to in paragraph (3).
    ``(5) The commercial items covered by paragraph (3) are commercial 
items that have been sold or leased in substantial quantities to the 
general public and are purchased without modification in the same form 
that they are sold in the commercial marketplace, or with minor 
modifications to meet Federal Government requirements.
    ``(b) Limitation on Contracting.--(1) Except as provided in 
paragraph (2), performance of workload needed to maintain a logistics 
capability identified by the Secretary under subsection (a)(2) may not 
be contracted for performance by non-Government personnel under the 
procedures and requirements of Office of Management and Budget Circular 
A-76 or any successor administrative regulation or policy (hereinafter 
in this section referred to as OMB Circular A-76).
    ``(2) The Secretary of Defense may waive paragraph (1) in the case 
of any such logistics capability and provide that performance of the 
workload needed to maintain that capability shall be considered for 
conversion to contractor performance in accordance with OMB Circular A-
76. Any such waiver shall be made under regulations prescribed by the 
Secretary and shall be based on a determination by the Secretary that 
Government performance of the workload is no longer required for 
national defense reasons. Such regulations shall include criteria for 
determining whether Government performance of any such workload is no 
longer required for national defense reasons.
    ``(3)(A) A waiver under paragraph (2) may not take effect until the 
expiration of the first period of 30 days of continuous session of 
Congress that begins on or after the date on which the Secretary submits 
a report on the waiver to the Committee on Armed Services and the 
Committee on Appropriations of the Senate and the Committee on National 
Security and the Committee on Appropriations of the House of 
Representatives.
    ``(B) For the purposes of subparagraph (A)--
            ``(i) continuity of session is broken only by an adjournment 
        of Congress sine die; and
            ``(ii) the days on which either House is not in session 
        because of an adjournment of more than three days to a day 
        certain are excluded in the computation of any period of time in 
        which Congress is in continuous session.''.

    (b) Clerical Amendment.--The item relating to such section at the 
beginning of chapter 146 of such title is amended to read as follows:

``2464. Core logistics capabilities.''.

SEC. 357. INCREASE IN PERCENTAGE OF DEPOT-LEVEL MAINTENANCE AND REPAIR 
            THAT MAY BE CONTRACTED FOR PERFORMANCE BY NON-GOVERNMENT 
            PERSONNEL.

    Section 2466(a) of title 10, United States Code, is amended by 
striking out ``40 percent'' and inserting in lieu thereof ``50 
percent''.

SEC. 358. ANNUAL REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR.

    Subsection (e) of section 2466 of title 10, United States Code, is 
amended to read as follows:

[[Page 111 STAT. 1696]]

    ``(e) Report.--(1) Not later than February 1 of each year, the 
Secretary of Defense shall submit to Congress a report identifying, for 
each military department and Defense Agency, the percentage of the funds 
referred to in subsection (a) that were expended during the preceding 
fiscal year for performance of depot-level maintenance and repair 
workloads by the public and private sectors as required by section 2466 
of this title.
    ``(2) Not later than 90 days after the date on which the Secretary 
submits the annual report under paragraph (1), the Comptroller General 
shall submit to Congress the Comptroller General's views on whether the 
Department of Defense has complied with the requirements of subsection 
(a) for the fiscal year covered by the report.''.

SEC. 359. REQUIREMENT FOR USE OF COMPETITIVE PROCEDURES IN CONTRACTING 
            FOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE AND REPAIR 
            WORKLOADS FORMERLY PERFORMED AT CLOSED OR REALIGNED MILITARY 
            INSTALLATIONS.

    (a) Application To Certain Workloads.--(1) Chapter 146 of title 10, 
United States Code, is amended by inserting after section 2469 the 
following new section:

``Sec. 2469a. Use of competitive procedures in contracting for 
                        performance of depot-level maintenance and 
                        repair workloads formerly performed at certain 
                        military installations

    ``(a) Definitions.--In this section:
            ``(1) The term `closed or realigned military installation' 
        means a military installation where a depot-level maintenance 
        and repair facility was approved in 1995 for closure or 
        realignment under the Defense Base Closure and Realignment Act 
        of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
        2687 note).
            ``(2) The term `military installation' includes a former 
        military installation that was a military installation when it 
        was approved in 1995 for closure or realignment under the 
        Defense Base Closure and Realignment Act of 1990 and that has 
        been closed or realigned under the Act.
            ``(3) The terms `realignment' and `realigned' mean a 
        decision under the Defense Base Closure and Realignment Act of 
        1990 that results in both a reduction and relocation of 
        functions and civilian personnel positions.

    ``(b) Covered Depot-Level Maintenance and Repair Workloads.--Except 
as provided in subsection (c), this section applies with respect to any 
depot-level maintenance and repair workload that--
            ``(1) was performed as of January 1, 1997, at a military 
        installation that was approved in 1995 for closure or 
        realignment under the Defense Base Closure and Realignment Act 
        of 1990 and that has been closed or realigned under the Act; and
            ``(2) is proposed to be converted from performance by 
        Department of Defense personnel to performance by a private 
        sector source.

    ``(c) Exceptions.--This section shall not apply with respect to--

[[Page 111 STAT. 1697]]

            ``(1) a depot-level maintenance and repair workload that is 
        to be consolidated to another military installation (other than 
        a closed or realigned military installation) as a result of a 
        base closure or realignment action or a decision made by the 
        Secretary concerned or the Defense Depot Maintenance Council;
            ``(2) a workload necessary to maintain a core logistics 
        capability identified under section 2464 of this title; or
            ``(3) any contract originally entered into before the date 
        of the enactment of the National Defense Authorization Act for 
        Fiscal Year 1998.

    ``(d) Conditions and Solicitation.--A solicitation of offers for the 
performance of any depot-level maintenance and repair workload described 
in subsection (b) may be issued, and a contract may be awarded pursuant 
to such a solicitation, only if the following conditions are met with 
respect to the contract and the solicitation specifically states the 
conditions:
            ``(1) The source selection process used in the case of the 
        solicitation and contract permits the consideration of offers 
        submitted by private sector sources and offers submitted by 
        public sector sources.
            ``(2) The source selection process used in the case of the 
        solicitation and contract requires that, in the comparison of 
        offers, there be taken into account--
                    ``(A) the fair market value (or if fair market value 
                cannot be determined, the estimated book value) of any 
                land, plant, or equipment from a military installation 
                that is proposed by a private offeror to be used to meet 
                a specific workload (whether these assets are provided 
                to the offeror by a local redevelopment authority or by 
                any other source approved by an official of the 
                Department of Defense); and
                    ``(B) the total estimated direct and indirect costs 
                that will be incurred by the Department of Defense and 
                the total estimated direct and indirect savings 
                (including overhead) that will be derived by the 
                Department of Defense.
            ``(3) The cost standards used to determine the depreciation 
        of facilities and equipment shall, to the maximum extent 
        practicable, provide identical treatment to all public and 
        private sector offerors.
            ``(4) Any offeror, whether public or private, may offer to 
        perform the workload at any location or locations selected by 
        the offeror and to team with any other public or private entity 
        to perform that workload at one or more locations, including a 
        Center of Industrial and Technical Excellence designated under 
        section 2474 of this title.
            ``(5) No offeror may be given any preferential consideration 
        for, or in any way be limited to, performing the workload in-
        place or at any other single location.

    ``(e) Contracts for Multiple Workloads.--(1) A solicitation may be 
issued for a single contract for the performance of multiple depot-level 
maintenance and repair workloads described in subsection (b) only if--
            ``(A) the Secretary of Defense determines in writing that 
        the individual workloads cannot as logically and economically

[[Page 111 STAT. 1698]]

        be performed without combination by sources that are potentially 
        qualified to submit an offer and to be awarded a contract to 
        perform those individual workloads;
            ``(B) the Secretary submits <<NOTE: Reports.>>  to Congress 
        a report setting forth the determination together with the 
        reasons for the determination; and
            ``(C) the solicitation of offers for the contract is issued 
        more than 60 days after the date on which the Secretary submits 
        the report.

    ``(2) The Comptroller General shall review each report submitted 
under paragraph (1)(B) and, not later than 30 days after the report is 
submitted to Congress, shall submit to Congress the Comptroller 
General's views regarding the determination of the Secretary that is set 
forth in the report, together with any other findings that the 
Comptroller General considers appropriate.
    ``(f) Competitive Procedures Required.--Section 2304(c)(7) of this 
title shall not be used as the basis for an exception to the requirement 
to use competitive procedures for any contract for a depot-level 
maintenance and repair workload described in subsection (b).
    ``(g) Reviews of Competitive Procedures.--If a solicitation of 
offers for a contract for, or award of, any depot-level maintenance and 
repair workload described in subsection (b) is issued, the Comptroller 
General shall--
            ``(1) within 45 days after the issuance of the solicitation, 
        review the solicitation and report to Congress on whether the 
        solicitation--
                    ``(A) provides substantially equal opportunity for 
                public and private offerors to compete for the contract 
                without regard to the location at which the workload is 
                to be performed; and
                    ``(B) is in compliance with the requirements of this 
                section and all applicable provisions of law and 
                regulations; and
            ``(2) within 45 days after any contract or award resulting 
        from the solicitation is entered into or made, review the 
        contract or award, including the contracting or award process, 
        and report to Congress on whether--
                    ``(A) the procedures used to conduct the 
                competition--
                          ``(i) provided substantially equal opportunity 
                      for public and private offerors to compete for the 
                      contract without regard to the location at which 
                      the workload is to be performed; and
                          ``(ii) were in compliance with the 
                      requirements of this section and all applicable 
                      provisions of law and regulations;
                    ``(B) appropriate consideration was given to factors 
                other than cost in the selection of the source for 
                performance of the workload; and
                    ``(C) the contract or award resulted in the lowest 
                total cost to the Department of Defense for performance 
                of the workload.

    ``(h) Resolution of Workload Award Objections.--Any public or 
private entity may, pursuant to procedures established by the Secretary, 
object to a solicitation of offers under this section for the 
performance of any depot-level maintenance and repair workload, or the 
award or proposed award of any workload pursuant

[[Page 111 STAT. 1699]]

to such a solicitation. The Secretary may designate a qualified 
individual or entity to review the objection; however, the Secretary 
shall not designate the Source Selection Authority or any individual 
from the same military department as the Source Selection Authority to 
review the objection. The Secretary shall take appropriate action to 
address any defect in the solicitation or award in the event that the 
objection is sustained.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2469 the 
following new item:

``2469a. Use of competitive procedures in contracting for performance of 
           depot-level maintenance and repair workloads formerly 
           performed at certain military installations.''.

    (b) Limitation <<NOTE: 10 USC 2469a note.>>  Relating to Timing of 
Solicitation.--The first solicitation of offers from private sector 
sources for the performance of a depot-level maintenance and repair 
workload described in subsection (b) of section 2469a of title 10, 
United States Code, as added by subsection (a), may be issued pursuant 
to such section only after the date that is 30 days after the latest of 
the following:
            (1) The date on which the Secretary of Defense publishes and 
        submits to Congress a plan or Department of Defense directive 
        that sets forth the specific procedures for the conduct of 
        competitions among private and public sector entities for such 
        depot-level maintenance and repair workloads.
            (2) The date on which the Secretary of Defense submits to 
        Congress the report on allocation of workloads required under 
        subsection (c).
            (3) The date on which the Comptroller General is required to 
        submit the report to Congress under subsection (d).

    (c) Report of <<NOTE: 10 USC 2469a note.>>  Allocation of 
Workload.--Before any solicitation of offers for the performance by a 
private sector source of a depot-level maintenance and repair workload 
at a closed or realigned installation described in subsection (b) of 
section 2469a of title 10, United States Code, as added by subsection 
(a), is to be issued, the Secretary of Defense shall submit to Congress 
a report describing the allocation proposed by the Secretary of all 
workloads that were performed at that closed or realigned military 
installation (as defined in subsection (a) of such section) as of July 
1, 1995, including--
            (1) the workloads that are considered to be core logistics 
        functions under section 2464 of such title;
            (2) the workloads that are proposed to be transferred to a 
        military installation other than a closed or realigned military 
        installation;
            (3) the workloads that are proposed to be included in the 
        public-private competitions carried out under section 2469a of 
        such title, and, if any of such workloads are to be combined for 
        purposes of such a competition, the reasons for combining the 
        workloads, together with a description of how the workloads are 
        to be combined;
            (4) any workload that has been determined within the 
        Department of Defense as no longer being necessary;
            (5) the proposed schedule for implementing the allocations 
        covered by the report; and
            (6) the anticipated capacity utilization of the military 
        installations and former military installations to which 
        workloads are to be transferred, based on the maximum potential

[[Page 111 STAT. 1700]]

        capacity certified to the 1995 Defense Base Closure and 
        Realignment Commission, after the transfers are completed (not 
        taking into account any workloads that may be transferred as a 
        result of a public-private competition carried out under section 
        2469a of such title, as described in paragraph (3)).

    (d) Review Regarding Award for C-5 Aircraft Workload.--(1) The 
Comptroller General shall conduct a review of the award for the 
performance of the C-5 aircraft workload that was made to Warner Robins 
Air Logistics Center. As part of the review, the Comptroller General 
shall--
            (A) determine whether the procedures used to conduct the 
        competition--
                    (i) provided substantially equal opportunity for 
                public and private offerors to compete for the award 
                without regard to the location at which the workload is 
                to be performed; and
                    (ii) are in compliance with the requirements of all 
                applicable provisions of law and the Federal Acquisition 
                Regulation; and
            (B) determine whether that award results in the lowest total 
        cost to the Department of Defense for performance of the 
        workload.

    (2) Not later <<NOTE: Reports.>>  than 60 days after the date of the 
enactment of this Act, the Comptroller General shall submit to Congress 
a report containing the results of the review.

SEC. 360. CLARIFICATION OF PROHIBITION ON MANAGEMENT OF DEPOT EMPLOYEES 
            BY CONSTRAINTS ON PERSONNEL LEVELS.

    Section 2472(a) of title 10, United States Code, is amended by 
striking out the first sentence and inserting in lieu thereof the 
following: ``The civilian employees of the Department of Defense, 
including the civilian employees of the military departments and the 
Defense Agencies, who perform, or are involved in the performance of, 
depot-level maintenance and repair workloads may not be managed on the 
basis of any constraint or limitation in terms of man years, end 
strength, full-time equivalent positions, or maximum number of 
employees.''.

SEC. 361. CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

    (a) Designation and Purpose.--(1) Chapter 146 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 2474. Centers of Industrial and Technical Excellence: 
                        designation; public-private partnerships

    ``(a) Designation.--(1) The Secretary of Defense shall designate 
each depot-level activity of the military departments and the Defense 
Agencies (other than facilities approved for closure or major 
realignment 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)) as a 
Center of Industrial and Technical Excellence in the recognized core 
competencies of the activity.
    ``(2) The Secretary shall establish a policy to encourage the 
Secretary of each military department and the head of each Defense 
Agency to reengineer industrial processes and adopt best-business 
practices at their depot-level activities in connection with their core 
competency requirements, so as to serve as recognized leaders

[[Page 111 STAT. 1701]]

in their core competencies throughout the Department of Defense and in 
the national technology and industrial base (as defined in section 
2500(1) of this title).
    ``(3) The Secretary of a military department may conduct a pilot 
program, consistent with applicable requirements of law, to test any 
practices referred to in paragraph (2) that the Secretary determines 
could improve the efficiency and effectiveness of depot-level 
operations, improve the support provided by depot-level activities for 
the armed forces user of the services of such activities, and enhance 
readiness by reducing the time that it takes to repair equipment.
    ``(b) Public-Private Partnerships.--The Secretary of Defense shall 
enable Centers of Industrial and Technical Excellence to enter into 
public-private cooperative arrangements for the performance of depot-
level maintenance and repair at such Centers and shall encourage the use 
of such arrangements to maximize the utilization of the capacity at such 
Centers. A public-private cooperative arrangement under this subsection 
shall be known as a `public-private partnership'.
    ``(c) Crediting of Amounts for Performance.--Amounts received by a 
Center for work performed under a public-private partnership shall be 
credited to the appropriation or fund, including a working-capital fund, 
that incurs the cost of performing the work.
    ``(d) Additional Work.--The policy required under subsection (a) 
shall include measures to enable a private sector entity that enters 
into a partnership arrangement under subsection (b) or leases excess 
equipment and facilities at a Center of Industrial and Technical 
Excellence pursuant to section 2471 of this title to perform additional 
work at the Center, subject to the limitations outlined in subsection 
(b) of such section, outside of the types of work normally assigned to 
the Center.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2474. Centers of Industrial and Technical Excellence: designation; 
           public-private partnerships.''.

    (b) Lease of Excess Depot-Level Equipment and Facilities.--(1) 
Section 2471(c) of such title is amended to read as follows:
    ``(c) Conformance With Authority Under Section 2667.--The provisions 
of subsection (d) of section 2667 of this title shall apply to this 
section in the same manner as such provisions are applicable under that 
section.''.
    (2) Section 2667(d)(2) of such title is amended by inserting ``or 
working capital fund'' before ``from which''.
    (c) Reporting Requirement.--Not later <<NOTE: 10 USC 2474 note.>>  
than March 1, 1999, the Secretary of Defense shall submit to Congress a 
report on the policies established by the Secretary pursuant to section 
2474 of title 10, United States Code, to implement the requirements of 
such section. The report shall include--
            (1) the details of any public-private partnerships entered 
        into as of that date under subsection (b) of such section;
            (2) the details of any leases entered into as of that date 
        under section 2471 of such title with authorized entities for 
        dual-use (military and nonmilitary) purposes; and
            (3) the effect that the partnerships and leases had on 
        capacity utilization, depot rate structures, and readiness.

[[Page 111 STAT. 1702]]

SEC. 362. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL SHIPYARDS 
            TO ENGAGE IN DEFENSE-RELATED PRODUCTION AND SERVICES.

    Section 1425(e) of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 104 Stat. 1684) is amended by striking 
out ``September 30, 1997'' and inserting in lieu thereof ``September 30, 
1999''.

SEC. 363. REPEAL OF A CONDITIONAL REPEAL OF CERTAIN DEPOT-LEVEL 
            MAINTENANCE AND REPAIR LAWS AND A RELATED REPORTING 
            REQUIREMENT.

    Section 311 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 247; 10 U.S.C. 2464 note) is 
amended by <<NOTE: 10 USC 2466, 2469.>>  striking out subsections (f) 
and (g).

SEC. 364. PERSONNEL REDUCTIONS, ARMY DEPOTS PARTICIPATING IN ARMY 
            WORKLOAD AND PERFORMANCE SYSTEM.

    (a) Limitation.--Except as necessary to implement BRAC 1995 
decisions at Red River Army Depot, Texas, and Letterkenny Army Depot, 
Pennsylvania, the Secretary of the Army may not initiate a reduction in 
force of civilian employees at the five Army depots participating in the 
demonstration and testing of the Army Workload and Performance System 
until after the date on which the Secretary submits to Congress a report 
certifying that the Army Workload and Performance System is fully 
operational.
    (b) BRAC 1995 Decisions Defined.--The term ``BRAC 1995 decisions'' 
means the decisions to close or realign certain military installations 
resulting from the recommendations approved in 1995 under the Defense 
Base Closure and Realignment Act of 1990 (part A of title XXIX of Public 
Law 101-510; 10 U.S.C. 2687 note).

SEC. 365. REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES AMONG 
            DEPARTMENT OF DEFENSE FACILITIES AND PRIVATE SECTOR 
            FACILITIES.

    (a) Report.--Not later than May 31, 1998, the Secretary of Defense 
shall submit to Congress a report on the allocation among facilities of 
the Department of Defense and facilities in the private sector of the 
logistics activities that are necessary to maintain and repair the 
weapon systems and other military equipment identified by the Secretary, 
in consultation with the Chairman of the Joint Chiefs of Staff, as being 
necessary to enable the Armed Forces to conduct a strategic or major 
theater war.
    (b) Elements.--The report under subsection (a) shall set forth the 
following:
            (1) The systems or equipment identified under subsection (a) 
        that must be maintained and repaired in Government-owned, 
        Government-operated facilities, using personnel and equipment of 
        the Department, as a result of the Secretary's determination 
        that--
                    (A) the work involves unique or valuable workforce 
                skills that should be maintained in the public sector in 
                the national interest;
                    (B) the base of private sector sources having the 
                capability to perform the workloads includes industry 
                sectors that are vulnerable to work stoppages;
                    (C) the private sector sources having the capability 
                to perform the workloads have insufficient workforce 
                levels

[[Page 111 STAT. 1703]]

                or skills to perform the depot-level maintenance and 
                repair workloads--
                          (i) in the quantity necessary, or as rapidly 
                      as the Secretary considers necessary, to enable 
                      the armed forces to fulfill the national military 
                      strategy; or
                          (ii) without a significant disruption or delay 
                      in the maintenance and repair of equipment;
                    (D) the need for performance of workloads is too 
                infrequent, cyclical, or variable to sustain a reliable 
                base of private sector sources having the workforce 
                levels or skills to perform the workloads;
                    (E) the market conditions or workloads are 
                insufficient to ensure that the price of private sector 
                performance of the workloads can be controlled through 
                competition or other means;
                    (F) private sector sources are not adequately 
                responsive to the requirements of the Department for 
                rapid, cost-effective, and flexible response to surge 
                requirements or other contingency situations, including 
                changes in the mix or priority of previously scheduled 
                workloads and reassignment of employees to different 
                workloads without the requirement for additional 
                contractual negotiations;
                    (G) private sector sources are less willing to 
                assume responsibility for performing the workload as a 
                result of the possibility of direct military or 
                terrorist attack; or
                    (H) private sector sources cannot maintain 
                continuity of workforce expertise as a result of high 
                rates of employee turnover.
            (2) The systems or equipment identified under subsection (a) 
        that must be maintained and repaired in Government-owned 
        facilities, whether Government-operated or contractor-operated, 
        as a result of the Secretary's determination that--
                    (A) the work involves facilities, technologies, or 
                equipment that are unique and sufficiently valuable that 
                the facilities, technologies, or equipment must be 
                maintained in the public sector in the national 
                interest;
                    (B) the private sector sources having the capability 
                to perform the workloads have insufficient facilities, 
                technology, or equipment to perform the depot-level 
                maintenance and repair workloads--
                          (i) in the quantity necessary, or as rapidly 
                      as the Secretary considers necessary, to enable 
                      the armed forces to fulfill the national military 
                      strategy; or
                          (ii) without a significant disruption or delay 
                      in the maintenance and repair of equipment; or
                    (C) the need for performance of workloads is too 
                infrequent, cyclical, or variable to sustain a reliable 
                base of private sector sources having the facilities, 
                technology, or equipment to perform the workloads.
            (3) The systems or equipment identified under subsection (a) 
        that may be maintained and repaired in private sector 
        facilities.
            (4) The approximate percentage of the total maintenance and 
        repair workload of the Department of Defense necessary for the 
        systems and equipment identified under subsection (a) that would 
        be performed at Department of Defense facilities,

[[Page 111 STAT. 1704]]

        and at private sector facilities, as a result of the 
        determinations made for purposes of paragraphs (1), (2), and 
        (3).

SEC. 366. REVIEW OF USE OF TEMPORARY DUTY ASSIGNMENTS FOR SHIP REPAIR 
            AND MAINTENANCE.

    (a) Findings.--Congress makes the following findings:
            (1) In order to reduce the time that the crew of a naval 
        vessel is away from the homeport of the vessel, the Navy seeks 
        to perform ship repair and maintenance of the vessel at the 
        homeport of the vessel whenever it takes six months or less to 
        accomplish the work involved.
            (2) At the same time, the Navy seeks to distribute ship 
        repair and maintenance work among the Navy shipyards (known as 
        to ``level load'') in order to more fully utilize personnel 
        resources.
            (3) During periods when a Navy shipyard is not utilized to 
        its capacity, the Navy sometimes sends workers at the shipyard, 
        on a temporary duty basis, to perform ship repairs and 
        maintenance at a homeport not having a Navy shipyard.
            (4) This practice is a more efficient use of civilian 
        employees who might otherwise not be fully employed on work 
        assigned to Navy shipyards.

    (b) Comptroller General Review and Report.--(1) The Comptroller 
General shall review the Navy's practice of using temporary duty 
assignments of personnel to perform ship maintenance and repair work at 
homeports not having Navy shipyards. The review shall include the 
following:
            (A) An assessment of the rationale, conditions, and factors 
        supporting the Navy's practice.
            (B) A determination of whether the practice is cost-
        effective.
            (C) The factors affecting future requirements for, and the 
        adherence to, the practice, together with an assessment of the 
        factors.

    (2) Not later than May 1, 1998, the Comptroller General shall submit 
a report on the review to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives.

SEC. 367. SENSE OF CONGRESS REGARDING REALIGNMENT OF PERFORMANCE OF 
            GROUND COMMUNICATION-ELECTRONIC WORKLOAD.

    It is the sense of Congress that the transfer of the ground 
communication-electronic workload to Tobyhanna Army Depot, Pennsylvania, 
in the realignment of the performance of such function should be carried 
out in adherence to the schedule prescribed for that transfer by the 
Defense Depot Maintenance Council on March 13, 1997, as follows:
            (1) Transfer of 20 percent of the workload in fiscal year 
        1998.
            (2) Transfer of 40 percent of the workload in fiscal year 
        1999.
            (3) Transfer of 40 percent of the workload in fiscal year 
        2000.

[[Page 111 STAT. 1705]]

   Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 371. REORGANIZATION OF LAWS REGARDING COMMISSARIES AND EXCHANGES 
            AND OTHER MORALE, WELFARE, AND RECREATION ACTIVITIES.

    (a) Description of Chapter.--(1) The heading of chapter 147 of title 
10, United States Code, is amended to read as follows:

``CHAPTER 147--COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE, AND 
                        RECREATION ACTIVITIES''.

    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part IV of subtitle A, of such title are amended by 
striking out the item relating to chapter 147 and inserting in lieu 
thereof the following new item:

``147. Commissaries and Exchanges and Other Morale, Welfare, and 
Recreation Activities............................................2481''.

    (b) Transfer and Redesignation of Unrelated Provisions.--(1) Section 
2481 of title 10, United States Code, is transferred to chapter 159 of 
such title, inserted after section 2685, and redesignated as section 
2686.
    (2) Sections 2483 and 2490 of such title are transferred to the end 
of subchapter III of chapter 169 of such title and redesignated as 
sections 2867 and 2868, respectively.
    (3) Section 2491 of such title is redesignated as section 2500.
    (c) Clerical Amendments.--(1) The table of sections at the beginning 
of chapter 147 of title 10, United States Code, is amended by striking 
out the items relating to sections 2481, 2483, and 2490.
    (2) The table of sections at the beginning of chapter 159 of such 
title is amended by inserting after the item relating to section 2685 
the following new item:

``2686. Utilities and services: sale; expansion and extension of systems 
           and facilities.''.

    (3) The table of sections at the beginning of subchapter III of 
chapter 169 of such title is amended by adding at the end the following 
new items:

``2867. Sale of electricity from alternate energy and cogeneration 
           production facilities.
``2868. Utility services: furnishing for certain buildings.''.

    (4) The table of sections at the beginning of subchapter I of 
chapter 148 of such title is amended by striking out the item relating 
to section 2491 and inserting in lieu thereof the following new item:

``2500. Definitions.''.

    (5) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part IV of subtitle A, of such title are amended by 
striking out the item relating to chapter 148 and inserting in lieu 
thereof the following new item:

``148. National Defense Technology and Industrial Base, Defense 
Reinvestment, and Defense Conversion.............................2500''.


[[Page 111 STAT. 1706]]



    (d) Conforming Amendments.--(1) Section 2534(d) of title 10, United 
States Code, is amended by striking out ``section 2491(1)'' both places 
it appears and inserting in lieu thereof ``section 2500(1)''.
    (2) Section 2865(b)(2) of such title is amended by striking out 
``section 2483(b)(2)'' and inserting in lieu thereof ``section 
2867(b)(2)''.

SEC. 372. MERCHANDISE AND PRICING REQUIREMENTS FOR COMMISSARY STORES.

    (a) Authorized Commissary Merchandise Categories.--Subsection (b) of 
section 2486 of title 10, United States Code, is 
amended--
            (1) by striking out the matter preceding paragraph (1) and 
        inserting in lieu thereof the following: ``(b) Authorized 
        Commissary Merchandise Categories.--Merchandise sold in, at, or 
        by commissary stores may include items only in the following 
        categories:''; and
            (2) by striking out paragraph (11) and inserting in lieu 
        thereof the following new paragraph:
            ``(11) Such other <<NOTE: Reports.>>  merchandise categories 
        as the Secretary of Defense may prescribe, except that the 
        Secretary shall submit to Congress, not later than March 1 of 
        each year, a report describing--
                    ``(A) any addition of, or change in, a merchandise 
                category proposed to be made under this paragraph during 
                the one-year period beginning on that date; and
                    ``(B) those additions and changes in merchandise 
                categories actually made during the preceding one-year 
                period.''.

    (b) Codification of Uniform Sales Price Surcharge or Adjustment.--
Subsection (c) of such section is amended--
            (1) by inserting ``Uniform Sales Price Surcharge or 
        Adjustment.--'' after ``(c)'';
            (2) by striking out ``in commissary stores.'' and inserting 
        in lieu thereof ``in, at, or by commissary stores.''; and
            (3) by adding at the end the following new sentence: 
        ``Effective on the date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 1998, the uniform percentage 
        shall be equal to five percent and may not be changed except by 
        a law enacted after such date.''.

    (c) Establishment of Sales Price; Congressional Notification.--
Subsection (d) of such section is amended to read as follows:
    ``(d) Sales Price Establishment.--(1) The Secretary of Defense shall 
establish the sales price of each item of merchandise sold in, at, or by 
commissary stores at the level that will recoup the actual product cost 
of the item (consistent with this section and sections 2484 and 2685 of 
this title).
    ``(2) Any change in the pricing policies for merchandise sold in, 
at, or by commissary stores shall not take effect until the Secretary of 
Defense submits written notice of the proposed change to Congress and a 
period of 90 days of continuous session of Congress expires following 
the date on which notice was received. For purposes of this paragraph, 
the continuity of a session of Congress is broken only by an adjournment 
of the Congress sine die, and the days on which either House is not in 
session because of an adjournment or recess of more than three days to a 
day certain are excluded in a computation of such 90-day period.''.

[[Page 111 STAT. 1707]]

    (d) Special Rules for Certain Merchandise.--Such section is further 
amended by adding at the end the following new subsection:
    ``(f) Special Rules for Certain Merchandise.--(1) Notwithstanding 
the general requirement that merchandise sold in, at, or by commissary 
stores be commissary store inventory, the Secretary of Defense may 
authorize the sale of items in the merchandise categories specified in 
paragraph (2) as noncommissary store inventory. Subsections (c) and (d) 
shall not apply to the pricing of such merchandise items.
    ``(2) The merchandise categories referred to in paragraph (1) are as 
follows:
            ``(A) Magazines and other periodicals.
            ``(B) Tobacco products.''.

    (e) Clerical and Conforming Amendments.--Such section is further 
amended--
            (1) in subsection (a), by inserting ``In General.--'' after 
        ``(a)''; and
            (2) in subsection (e)--
                    (A) by inserting ``Special Rule for Brand-Name 
                Commercial Items.--'' after ``(e)''; and
                    (B) by striking out ``in commissary stores'' both 
                places it appears and inserting in lieu thereof ``in, 
                at, or by commissary stores''.

<<NOTE: 10 USC 2486 note.>>     (f) Report on Merchandise Categories.--
Not later than 30 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to Congress a report specifying the 
merchandise categories authorized for sale sold in, at, or by commissary 
stores pursuant to regulations prescribed under subsection (b)(11) of 
section 2486 of title 10, United States Code, as in effect before such 
date.

SEC. 373. LIMITATION ON NONCOMPETITIVE PROCUREMENT OF BRAND-NAME 
            COMMERCIAL ITEMS FOR RESALE IN COMMISSARY STORES.

    Section 2486(e) of title 10, United States Code, as amended by 
section 372(e)(2), is further amended by adding at the end the following 
new sentence: ``In determining whether a brand name commercial item is 
regularly sold outside of commissary stores, the Secretary shall 
consider only sales of the item on a regional or national basis by 
commercial grocery or other retail operations consisting of multiple 
stores.''.

SEC. 374. TREATMENT OF REVENUES DERIVED FROM COMMISSARY STORE 
            ACTIVITIES.

    (a) Treatment of Revenues.--Section 2685 of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(e) Other Sources of Funds for Construction and Improvements.--
Revenues received by the Secretary of Defense from the following sources 
or activities of commissary store facilities shall be available for the 
purposes set forth in subsections (b), (c), and (d):
            ``(1) Sale of recyclable materials.
            ``(2) Sale of excess and surplus property.
            ``(3) License fees.
            ``(4) Royalties.

[[Page 111 STAT. 1708]]

            ``(5) Fees paid by sources of products in order to obtain 
        favorable display of the products for resale, known as business 
        related management fees.''.

    (b) Clerical Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Adjustment or 
        Surcharge Authorized.--'' after ``(a)'';
            (2) in subsection (b), by inserting ``Use for Construction 
        and Improvement of Facilities.--'' after ``(b)'';
            (3) in subsection (c), by inserting ``Advance Obliga-
        tion.--'' after ``(c)''; and
            (4) in subsection (d), by inserting ``Cooperation With 
        Nonappropriated Fund Instrumentalities.--'' after ``(d)''.

SEC. 375. MAINTENANCE, REPAIR, AND RENOVATION OF ARMED FORCES RECREATION 
            CENTER, EUROPE.

    Section 2247(b) of title 10, United States Code, is amended by 
striking out ``real property maintenance, and'' and inserting in lieu 
thereof ``the maintenance, repair, or renovation of real property, and 
the''.

SEC. 376. PLAN FOR USE OF PUBLIC AND PRIVATE PARTNERSHIPS TO BENEFIT 
            MORALE, WELFARE, AND RECREATION ACTIVITIES.

    (a) Plan Required.--The Secretary of Defense shall prepare a plan 
containing a proposal regarding the advisability and feasibility of 
permitting nonappropriated fund instrumentalities of the Department of 
Defense to enter into leases, licensing agreements, concession 
agreements, and other contracts with private persons and State or local 
governments to facilitate the provision of facilities, goods, or 
services to authorized patrons of nonappropriated fund instrumentalities 
and to generate revenues for the Department of Defense to be used solely 
for the benefit of nonappropriated fund instrumentalities.
    (b) Recommendations for Scope of Plan.--In developing the proposal 
under subsection (a), the Secretary shall include recommendations 
regarding the following:
            (1) The proposed criteria to be used to select goods or 
        services suitable for provision to patrons of nonappropriated 
        fund instrumentalities through a lease or other contractual 
        arrangement.
            (2) The proposed mechanism to be used to assess the likely 
        impact of such a lease or other contractual arrangement on 
        private businesses in the locality that provide the same goods 
        or services proposed to be provided under such a lease or other 
        contractual arrangement.
            (3) The feasibility and desirability of authorizing persons 
        who are not authorized patrons of nonappropriated fund 
        instrumentalities to receive goods and services provided through 
        such a lease or other contractual arrangement.
            (4) The proposed mechanism to be used to ensure that such a 
        lease or contract will not be inconsistent with and will not 
        adversely affect the mission of the Department of Defense or the 
        nonappropriated fund instrumentality involved.

    (c) Submission of Plan.--Not later than March 1, 1998, the Secretary 
shall submit to Congress the plan required under subsection (a).

[[Page 111 STAT. 1709]]

                        Subtitle F--Other Matters

SEC. 381. 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 
1998.--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 for providing educational 
        agencies assistance (as defined in subsection (d)(1)) to local 
        educational agencies; and
            (2) $5,000,000 shall be available for making educational 
        agencies payments (as defined in subsection (d)(2)) to local 
        educational agencies.

    (b) Notification.--Not later than June 30, 1998, the Secretary of 
Defense shall--
            (1) notify each local educational agency that is eligible 
        for educational agencies assistance for fiscal year 1998 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 1998 of that 
        agency's eligibility for such payment and the amount of the 
        payment for which that agency is eligible.

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

    (e) Technical Correction Relating to Original Assistance 
Authority.--Section 386(c)(1) of the National Defense Authorization Act 
for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 7703 note) is 
amended--
            (1) by striking out ``section 8003(a)'' and inserting in 
        lieu thereof ``section 8003(a)(1)''; and
            (2) by striking out ``(20 U.S.C. 7703(a))'' and inserting in 
        lieu thereof ``(20 U.S.C. 7703(a)(1))''.

SEC. 382. CENTER FOR EXCELLENCE IN DISASTER MANAGEMENT AND HUMANITARIAN 
            ASSISTANCE.

    (a) Establishment and Operation of Center.--(1) Chapter 7 of title 
10, United States Code, is amended by adding at the end the following 
new section:

[[Page 111 STAT. 1710]]

``Sec. 182. Center for Excellence in Disaster Management and 
                        Humanitarian Assistance

    ``(a) Establishment.--The Secretary of Defense may operate a Center 
for Excellence in Disaster Management and Humanitarian Assistance (in 
this section referred to as the `Center').
    ``(b) Missions.--(1) The Center shall be used to provide and 
facilitate education, training, and research in civil-military 
operations, particularly operations that require international disaster 
management and humanitarian assistance and operations that require 
coordination between the Department of Defense and other agencies.
    ``(2) The Center shall be used to make available high-quality 
disaster management and humanitarian assistance in response to 
disasters.
    ``(3) The Center shall be used to provide and facilitate education, 
training, interagency coordination, and research on the following 
additional matters:
            ``(A) Management of the consequences of nuclear, biological, 
        and chemical events.
            ``(B) Management of the consequences of terrorism.
            ``(C) Appropriate roles for the reserve components in the 
        management of such consequences and in disaster management and 
        humanitarian assistance in response to natural disasters.
            ``(D) Meeting requirements for information in connection 
        with regional and global disasters, including the use of 
        advanced communications technology as a virtual library.
            ``(E) Tropical medicine, particularly in relation to the 
        medical readiness requirements of the Department of Defense.

    ``(4) The Center shall develop a repository of disaster risk 
indicators for the Asia-Pacific region.
    ``(5) The Center shall perform such other missions as the Secretary 
of Defense may specify.
    ``(c) Joint Operation With Educational Institution Authorized.--The 
Secretary of Defense may enter into an agreement with appropriate 
officials of an institution of higher education to provide for joint 
operation of the Center. Any such agreement shall provide for the 
institution to furnish necessary administrative services for the Center, 
including administration and allocation of funds.
    ``(d) Acceptance of Donations.--(1) Except as provided in paragraph 
(2), the Secretary of Defense may accept, on behalf of the Center, 
donations to be used to defray the costs of the Center or to enhance the 
operation of the Center. Such donations may be accepted from any agency 
of the Federal Government, any State or local government, any foreign 
government, any foundation or other charitable organization (including 
any that is organized or operates under the laws of a foreign country), 
or any other private source in the United States or a foreign country.
    ``(2) The Secretary may not accept a donation under paragraph (1) if 
the acceptance of the donation would compromise or appear to 
compromise--
            ``(A) the ability of the Department of Defense, any employee 
        of the Department, or members of the armed forces, to carry out 
        any responsibility or duty of the Department in a fair and 
        objective manner; or
            ``(B) the integrity of any program of the Department of 
        Defense or of any person involved in such a program.

[[Page 111 STAT. 1711]]

    ``(3) The Secretary shall prescribe written guidance setting forth 
the criteria to be used in determining whether or not the acceptance of 
a foreign donation would have a result described in paragraph (2).
    ``(4) Funds accepted by the Secretary under paragraph (1) as a 
donation on behalf of the Center shall be credited to appropriations 
available to the Department of Defense for the Center. Funds so credited 
shall be merged with the appropriations to which credited and shall be 
available for the Center for the same purposes and the same period as 
the appropriations with which merged.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``182. Center for Excellence in Disaster Management and Humanitarian 
           Assistance.''.

    (b) Funding for Fiscal Year 1998.--Of the funds authorized to be 
appropriated pursuant to section 301(5) for operation and maintenance 
for Defense-wide activities, $5,000,000 shall be available for the 
operation of the Center for Excellence in Disaster Management and 
Humanitarian Assistance established under section 182 of title 10, 
United States Code, as added by subsection (a).

SEC. 383. APPLICABILITY OF FEDERAL PRINTING REQUIREMENTS TO DEFENSE 
            AUTOMATED PRINTING SERVICE.

    (a) In General.--Subchapter I of chapter 8 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 195. Defense Automated Printing Service: applicability of Federal 
                        printing requirements

    ``The Defense Automated Printing Service shall comply fully with the 
requirements of section 501 of title 44 relating to the production and 
procurement of printing, binding, and blank-book work.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``195. Defense Automated Printing Service: applicability of Federal 
           printing requirements.''.

SEC. 384. STUDY AND NOTIFICATION REQUIREMENTS FOR CONVERSION OF 
            COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO CONTRACTOR 
            PERFORMANCE.

    (a) Additional Notification Requirement.--Subsection (a)(1) of 
section 2461 of title 10, United States Code, is amended by inserting 
before the semicolon the following: ``and the anticipated length and 
cost of the study''.
    (b) Notification of Conversion Decision.--Subsection (b) of such 
section is amended by adding at the end the following new sentence: 
``The notification shall include the timetable for completing conversion 
of the function to contractor performance.''.
    (c) Waiver for Small Functions.--Subsection (d) of such section is 
amended by striking out ``45 or fewer'' and inserting in lieu thereof 
``20 or fewer''.

[[Page 111 STAT. 1712]]

SEC. 385. COLLECTION AND RETENTION OF COST INFORMATION DATA ON CONVERTED 
            SERVICES AND FUNCTIONS.

    (a) Collection and Retention Required.--Section 2463 of title 10, 
United States Code, is amended to read as follows:

``Sec. 2463. Collection and retention of cost information data on 
                        converted services and functions

    ``(a) Requirements in Connection With Conversion to Contractor 
Performance.--With respect to each contract converting the performance 
of a service or function of the Department of Defense to contractor 
performance (and any extension of such a contract), the Secretary of 
Defense shall collect, during the term of the contract or extension, but 
not to exceed five years, cost information data regarding performance of 
the service or function by private contractor employees.
    ``(b) Requirements in Connection With Return to Employee 
Performance.--Whenever the performance of a commercial or industrial 
type activity of the Department of Defense that is being performed by 50 
or more employees of a private contractor is changed to performance by 
civilian employees of the Department of Defense, the Secretary of 
Defense shall collect, for a five-year period, cost information data 
comparing--
            ``(1) the estimated costs of continued performance of such 
        activity by private contractor employees; and
            ``(2) the costs of performance of such activity by civilian 
        employees of the Department of Defense.

    ``(c) Retention of Information.--With regard to the conversion to or 
from contractor performance of a particular service or function of the 
Department of Defense, the Secretary of Defense shall provide for the 
retention of information collected under this section for at least a 10-
year period beginning at the end of the final year in which the 
information is collected.''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 146 of title 10, United 
States Code, is amended to read as follows:

``2463. Collection and retention of cost information data on converted 
           services and functions.''.

SEC. 386. FINANCIAL ASSISTANCE TO SUPPORT ADDITIONAL DUTIES ASSIGNED TO 
            ARMY NATIONAL GUARD.

    (a) Authority.--Chapter 1 of title 32, United States Code, is 
amended by adding at the end the following new section:

``Sec. 113. Federal financial assistance for support of additional 
                        duties assigned to the Army National Guard

    ``(a) Authority.--The Secretary of the Army may provide financial 
assistance to a State to support activities carried out by the Army 
National Guard of the State in the performance of duties that the 
Secretary has assigned, with the consent of the Chief of the National 
Guard Bureau, to the Army National Guard of the State. The Secretary 
shall determine the amount of the assistance that is appropriate for the 
purpose.
    ``(b) Covered Activities.--Activities supported under this section 
may include only those activities that are carried out by the Army 
National Guard in the performance of responsibilities of the Secretary 
of the Army under paragraphs (6), (10), and (11) of section 3013(b) of 
title 10.

[[Page 111 STAT. 1713]]

    ``(c) Disbursement Through National Guard Bureau.--The Secretary of 
the Army shall disburse any contribution under this section through the 
Chief of the National Guard Bureau.
    ``(d) Availability of Funds.--Funds appropriated for the Army for a 
fiscal year are available for providing financial assistance under this 
section in support of activities carried out by the Army National Guard 
during that fiscal year.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``113. Federal financial assistance for support of additional duties 
           assigned to the Army National Guard.''.

SEC. 387. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION SERVICES.

    (a) Extension of Requirement To Use Private-Sector Sources.--
Subsection (a) of section 351 of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 266) is amended--
            (1) by striking out ``and 1997'' and inserting in lieu 
        thereof ``through 1998''; and
            (2) by striking out ``Defense Printing Service'' and 
        inserting in lieu thereof ``Defense Automated Printing 
        Service''.

    (b) Surcharge for Services.--Such section is further amended by 
adding at the end the following new subsection:
    ``(d) Conditions on Imposition of Surcharge.--(1) Any surcharge 
imposed by the Defense Automated Printing Service on printing and 
duplication services for the Department of Defense shall be based on 
direct services provided by the Defense Automated Printing Service and 
reflect the costs incurred by the Defense Automated Printing Service, as 
described in its annual budget.
    ``(2) The Defense Automated Printing Service may not impose a 
surcharge on any printing and duplication service for the Department of 
Defense that is procured from a source outside of the Department.''.
<<NOTE: 10 USC 195 note.>>     (c) Authority To Procure Services From 
Government Printing Office.--Consistent with section 501 of title 44, 
United States Code, the Secretary of a military department or head of a 
Defense Agency may contract directly with the Government Printing Office 
for printing and duplication services otherwise available through the 
Defense Automated Printing Service.

SEC. 388. CONTINUATION AND EXPANSION OF DEMONSTRATION PROGRAM TO 
            IDENTIFY OVERPAYMENTS MADE TO VENDORS.

    (a) Scope of Program.--Section 354 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
268; 10 U.S.C. 2461 note) is amended--
            (1) in subsection (a), by striking out the second sentence; 
        and
            (2) in subsection (b)(1), by striking out ``of the Defense 
        Logistics Agency that relate to (at least) fiscal years 1993, 
        1994, and 1995'' and inserting in lieu thereof ``relating to 
        fiscal years after fiscal year 1993 of the working-capital funds 
        and industrial, commercial, and support type activities managed 
        through the Defense Business Operations Fund, except the Defense 
        Logistics Agency to the extent such records have already been 
        audited''.

[[Page 111 STAT. 1714]]

    (b) Collection Method; Contractor Payments.--Such section is further 
amended by striking out subsections (d) and (e) and inserting in lieu 
thereof the following new subsections:
    ``(d) Collection Method.--(1) In the case of an overpayment to a 
vendor identified under the demonstration program, the Secretary shall 
consider the use of the procedures specified in section 32.611 of the 
Federal Acquisition Regulation, regarding a setoff against existing 
invoices for payment to the vendor, as the first method by which the 
Department seeks to recover the amount of the overpayment (and any 
applicable interest and penalties) from the vendor.
    ``(2) The Secretary of Defense shall be solely responsible for 
notifying a vendor of an overpayment made to the vendor and identified 
under the demonstration program and for recovering the amount of the 
overpayment (and any applicable interest and penalties) from the vendor.
    ``(e) Fees for Contractor.--The Secretary shall pay to the 
contractor under the contract entered into under the demonstration 
program an amount not to exceed 25 percent of the total amount recovered 
by the Department (through the collection of overpayments and the use of 
setoffs) solely on the basis of information obtained as a result of the 
audits performed by the contractor under the program. When an 
overpayment is recovered through the use of a setoff, amounts for the 
required payment to the contractor shall be derived from funds available 
to the working-capital fund or industrial, commercial, or support type 
activity for which the overpayment is recovered.''.
<<NOTE: 10 USC 2461 note.>>     (c) GAO Review.--Not later than December 
31, 1998, the Comptroller General shall submit to Congress a report 
containing the results of a review by the Comptroller General of the 
demonstration program conducted under section 354 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 10 
U.S.C. 2461 note). In the review, the Comptroller General shall--
            (1) assess the success of the methods used in the 
        demonstration program to identify overpayments made to vendors;
            (2) consider the types of overpayments identified and the 
        feasibility of avoiding such overpayments through contract 
        adjustments;
            (3) determine the total amount of overpayments recovered 
        under the demonstration program; and
            (4) develop recommendations for improving the process by 
        which overpayments are recovered by the Department of Defense.

<<NOTE: 10 USC 2461 note.>> SEC. 389. DEVELOPMENT OF STANDARD FORMS 
            REGARDING PERFORMANCE WORK STATEMENT AND REQUEST FOR 
            PROPOSAL FOR CONVERSION OF CERTAIN OPERATIONAL FUNCTIONS OF 
            MILITARY INSTALLATIONS.

    (a) Standardization of Requirements.--The Secretary of Defense is 
authorized and encouraged to develop standard forms (to be known as a 
``standard performance work statement'' and a ``standard request for 
proposal'') for use in the consideration for conversion to contractor 
performance of commercial services and functions at military 
installations. A separate standard form shall be developed for each 
service and function.
    (b) Relationship to OMB Requirements.--A standard performance work 
statement or a standard request for proposal

[[Page 111 STAT. 1715]]

developed under subsection (a) must fulfill the basic requirements of 
the performance work statement or request for proposal otherwise 
required under the procedures and requirements of Office of Management 
and Budget Circular A-76 (or any successor administrative regulation or 
policy) in effect at the time the standard form will be used.
    (c) Priority Development of Certain Forms.--In developing standard 
performance work statements and standard requests for proposal, the 
Secretary shall give first priority to those commercial services and 
functions that the Secretary determines have been successfully converted 
to contractor performance on a repeated basis.
    (d) Incentive for Use.--Beginning not later than October 1, 1998, if 
a standard performance work statement or a standard request for proposal 
is developed under subsection (a) for a particular service and function, 
the standard form may be used in lieu of the performance work statement 
or request for proposal otherwise required under the procedures and 
requirements of Office of Management and Budget Circular A-76 in 
connection with the consideration for conversion to contractor 
performance of that service or function at a military installation.
    (e) Exclusion of Multifunction Conversion.--If a commercial service 
or function for which a standard form is developed under subsection (a) 
is combined with another service or function (for which such a form has 
not yet been developed) for purposes of considering the services and 
functions at the military installation for conversion to contractor 
performance, a standard performance work statement or a standard request 
for a proposal developed under subsection (a) may not be used in the 
conversion process in lieu of the procedures and requirements of Office 
of Management and Budget Circular A-76.
    (f) Effect on Other Laws.--Nothing in this section shall be 
construed to supersede any other requirements or limitations, 
specifically contained in chapter 146 of title 10, United States Code, 
on the conversion to contractor performance of activities performed by 
civilian employees of the Department of Defense.
    (g) GAO Report.--Not later than June 1, 1999, the Secretary of 
Defense shall submit to Congress a report reviewing the implementation 
of this section.
    (h) Military Installation Defined.--For purposes of this section, 
the term ``military installation'' means a base, camp, post, station, 
yard, center, homeport facility for any ship, or other activity under 
the jurisdiction of the Department of Defense, including any leased 
facility.

SEC. 390. BASE OPERATIONS SUPPORT FOR MILITARY INSTALLATIONS ON GUAM.

    (a) Contractor Use of Nonimmigrant Aliens.--Each contract for base 
operations support to be performed on Guam shall contain a condition 
that work under the contract may not be performed by any alien who is 
issued a visa or otherwise provided nonimmigrant status under section 
101(a)(15)(H)(ii) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)(H)(ii)).
    (b) Application of Section.--This section shall apply to contracts 
entered into, amended, or otherwise modified on or after the date of the 
enactment of this Act.

[[Page 111 STAT. 1716]]

<<NOTE: 10 USC 2304 note.>> SEC. 391. WARRANTY CLAIMS RECOVERY PILOT 
            PROGRAM.

    (a) Pilot Program Required.--The Secretary of Defense may carry out 
a pilot program to use commercial sources of services to improve the 
collection of Department of Defense claims under aircraft engine 
warranties.
    (b) Contracts.--Exercising the authority provided in section 3718 of 
title 31, United States Code, the Secretary of Defense may enter into 
contracts under the pilot program to provide for the following services:
            (1) Collection services.
            (2) Determination of amounts owed the Department of Defense 
        for repair of aircraft engines for conditions covered by 
        warranties.
            (3) Identification and location of the sources of 
        information that are relevant to collection of Department of 
        Defense claims under aircraft engine warranties, including 
        electronic data bases and document filing systems maintained by 
        the Department of Defense or by the manufacturers and suppliers 
        of the aircraft engines.
            (4) Services to define the elements necessary for an 
        effective training program to enhance and improve the 
        performance of Department of Defense personnel in collecting and 
        organizing documents and other information that are necessary 
        for efficient filing, processing, and collection of Department 
        of Defense claims under aircraft engine warranties.

    (c) Contractor Fee.--Under the authority provided in section 3718(d) 
of title 31, United States Code, a contract entered into under the pilot 
program shall provide for the contractor to be paid, out of the amount 
recovered by the contractor under the program, such percentages of the 
amount recovered as the Secretary of Defense determines appropriate.
    (d) Retention of Recovered Funds.--Subject to any obligation to pay 
a fee under subsection (c), any amount collected for the Department of 
Defense under the pilot program for a repair of an aircraft engine for a 
condition covered by a warranty shall be credited to an appropriation 
available for repair of aircraft engines for the fiscal year in which 
collected and shall be available for the same purposes and same period 
as the appropriation to which credited.
    (e) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section.
    (f) Termination of Authority.--The pilot program shall terminate on 
September 30, 1999, and contracts entered into under this section shall 
terminate not later than that date.
    (g) Reporting Requirements.--(1) Not later than January 1, 2000, the 
Secretary of Defense shall submit to Congress a report on the pilot 
program. The report shall include the following:
            (A) The number of contracts entered into under the program.
            (B) The extent to which the services provided under the 
        contracts resulted in financial benefits for the Federal 
        Government.
            (C) Any additional comments and recommendations that the 
        Secretary considers appropriate regarding use of commercial 
        sources of services for collection of Department of Defense 
        claims under aircraft engine warranties.

[[Page 111 STAT. 1717]]

    (2) Not later than March 1, 2000, the Comptroller General shall 
submit to Congress a report containing the results of a review by the 
Comptroller General of the pilot program. In the review, the Comptroller 
General shall--
            (A) assess the success of the methods used in the 
        demonstration program to identify and recover Department of 
        Defense claims under aircraft engine warranties;
            (B) determine the total amount recovered by the Department 
        of Defense under the pilot program;
            (C) evaluate the report prepared by the Secretary under 
        paragraph (1); and
            (D) develop recommendations for improving the process by 
        which warranty claims are recovered by the Department of 
        Defense.

<<NOTE: 10 USC 113 note.>> SEC. 392. PROGRAM TO INVESTIGATE FRAUD, 
            WASTE, AND ABUSE WITHIN DEPARTMENT OF DEFENSE.

    The Secretary of Defense shall maintain a specific coordinated 
program for the investigation of evidence of fraud, waste, and abuse 
within the Department of Defense, particularly fraud, waste, and abuse 
regarding finance and accounting matters.

SEC. 393. MULTITECHNOLOGY AUTOMATED READER CARD DEMONSTRATION PROGRAM.

    (a) Program Required.--The Secretary of the Navy shall carry out a 
program to demonstrate expanded use of multitechnology automated reader 
cards throughout the Navy and the Marine Corps. The demonstration 
program shall include demonstration of the use of the so-called 
``smartship'' technology of the ship-to-shore work load/off load program 
of the Navy.
    (b) Period of Program.--The Secretary shall carry out the 
demonstration program for two years beginning not later than January 1, 
1998.
    (c) Report.--Not later than 90 days after termination of the 
demonstration program, the Secretary shall submit to Congress a report 
on the results of the program.
    (d) Funding.--Of the amount authorized to be appropriated pursuant 
to section 301(2) for operation and maintenance for the Navy, 
$36,000,000 shall be available for the demonstration program under this 
section, of which $6,300,000 shall be available for demonstration of the 
use of the so-called ``smartship'' technology of the ship-to-shore work 
load/off load program of the Navy.

SEC. 394. REDUCTION IN OVERHEAD COSTS OF INVENTORY CONTROL POINTS.

    (a) Report and Plan Required.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to Congress a report containing a plan 
to reduce overhead costs of the supply management activities of the 
Defense Logistics Agency and the military departments (known as 
Inventory Control Points) so that the overhead costs for each fiscal 
year after fiscal year 2000 do not exceed eight percent of net sales at 
standard price by Inventory Control Points during that year.
    (b) Additional Report Requirement.--In addition to the plan, the 
report shall include the following:
            (1) An identification of inherently governmental, core and 
        noncore functions in Inventory Control Points and Distribution 
        Depots.

[[Page 111 STAT. 1718]]

            (2) A description of efforts, other than prime vendor and 
        virtual prime vendor, underway or proposed to improve the 
        efficiency, incentives, and accountability in Department of 
        Defense supply, inventory and warehousing services and rates.
            (3) An identification and description of the benchmarks 
        established in the warehousing, distribution, and supply 
        functions of the Department and the relationship of the 
        benchmarks to performance measurement methods used in the 
        private sector.
            (4) A description of the outcome-oriented performance 
        measures that are currently being used to evaluate Inventory 
        Control Points and Distribution Depots.
            (5) A specification of any legislative, regulatory, or 
        operational impediments to achieving the requirement in 
        subsection (a) and implementing best business practices in the 
        warehousing, distribution, and supply functions of the 
        Department.

    (c) Definitions.--For purposes of this section:
            (1) The term ``overhead costs'' means the total expenses of 
        the Inventory Control Points, excluding--
                    (A) annual materiel costs; and
                    (B) military and civilian personnel related costs, 
                defined as personnel compensation and benefits under the 
                March 1996 Department of Defense Financial Management 
                Regulations, Volume 2A, Chapter 1, Budget Account Title 
                File (Object Classification Name/Code), object 
                classifications 200, 211, 220, 221, 222, and 301.
            (2) The term ``net sales at standard price'' has the meaning 
        given that term in the March 1996 Department of Defense 
        Financial Management Regulations, Volume 2B, Chapter 9, and 
        displayed in ``Exhibit Fund--14 Revenue and Expenses'' for the 
        supply management business areas.

<<NOTE: 10 USC 2458 note.>> SEC. 395. INVENTORY MANAGEMENT.

    (a) Development and Submission of Schedule.--Not later than 180 days 
after the date of the enactment of this Act, the Director of the Defense 
Logistics Agency shall develop and submit to Congress a schedule for 
implementing within the agency, for the supplies and equipment described 
in subsection (b), inventory practices identified by the Director as 
being the best commercial inventory practices for the acquisition and 
distribution of such supplies and equipment consistent with military 
requirements. The schedule shall provide for the implementation of such 
practices to be completed not later than three years after the date of 
the enactment of this Act.
    (b) Covered Supplies and Equipment.--Subsection (a) shall apply to 
the following types of supplies and equipment for the Department of 
Defense:
            (1) Medical and pharmaceutical.
            (2) Subsistence.
            (3) Clothing and textiles.
            (4) Commercially available electronics.
            (5) Construction.
            (6) Industrial.
            (7) Automotive.
            (8) Fuel.
            (9) Facilities maintenance.

[[Page 111 STAT. 1719]]

    (c) Definition.--For purposes of this section, the term ``best 
commercial inventory practice'' includes a so-called prime vendor 
arrangement and any other practice that the Director determines will 
enable the Defense Logistics Agency to reduce inventory levels and 
holding costs while improving the responsiveness of the supply system to 
user needs.
    (d) Report on Expansion of Covered Supplies and Equipment.--Not 
later than March 1, 1998, the Comptroller General shall submit to 
Congress a report evaluating the feasibility of expanding the list of 
covered supplies and equipment under subsection (b) to include 
repairable items.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
           contingencies.

                       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).

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                        Subtitle A--Active Forces

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

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 1998, as follows:
            (1) The Army, 495,000.
            (2) The Navy, 390,802.
            (3) The Marine Corps, 174,000.
            (4) The Air Force, 371,577.

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

    (a) Change in Permanent End Strengths.--Subsection (b) of section 
691 of title 10, United States Code, is amended--
            (1) in paragraph (2), by striking out ``395,000'' and 
        inserting in lieu thereof ``390,802''; and
            (2) in paragraph (4), by striking out ``381,000'' and 
        inserting in lieu thereof ``371,577''.

    (b) Increased Flexibility for the Army.--Subsection (e) of such 
section is amended by inserting ``or, in the case of the Army, by not 
more than 1.5 percent'' before the period at the end.

                       Subtitle B--Reserve Forces

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

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 30, 
1998, as follows:

[[Page 111 STAT. 1720]]

            (1) The Army National Guard of the United States, 361,516.
            (2) The Army Reserve, 208,000.
            (3) The Naval Reserve, 94,294.
            (4) The Marine Corps Reserve, 42,000.
            (5) The Air National Guard of the United States, 108,002.
            (6) The Air Force Reserve, 73,447.
            (7) The Coast Guard Reserve, 8,000.

    (b) 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, 1998, 
the following number of Reserves to be serving on full-time active duty 
or full-time duty, in the case of members of the National Guard, for the 
purpose of organizing, administering, recruiting, instructing, or 
training the reserve components:
            (1) The Army National Guard of the United States, 22,310.
            (2) The Army Reserve, 11,500.
            (3) The Naval Reserve, 16,136.
            (4) The Marine Corps Reserve, 2,559.
            (5) The Air National Guard of the United States, 10,671.
            (6) The Air Force Reserve, 867.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

    (a) Authorization for <<NOTE: 10 USC 115 note.>>  Fiscal Year 
1998.--The minimum number of military technicians (dual status) as of 
the last day of fiscal year 1998 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, 5,503.
            (2) For the Army National Guard of the United States, 
        23,125.
            (3) For the Air Force Reserve, 9,802.
            (4) For the Air National Guard of the United States, 22,853.

    (b) Requests for Future Fiscal Years.--Section 115(g) of title 10, 
United States Code, is amended by adding at the end the following new 
sentence: ``In each budget submitted by the President to Congress under 
section 1105 of title 31, the end strength requested for military 
technicians (dual status) for each

[[Page 111 STAT. 1721]]

reserve component of the Army and Air Force shall be specifically set 
forth.''.

               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 1998 a total of 
$69,470,505,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 1998.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Limitation on number of general and flag officers who may 
           serve in 
           positions outside their own service.
Sec. 502. Exclusion of certain retired officers from limitation on 
           period of recall to active duty.
Sec. 503. Clarification of officers eligible for consideration by 
           promotion boards.
Sec. 504. Authority to defer mandatory retirement for age of officers 
           serving as chaplains.
Sec. 505. Increase in number of officers allowed to be frocked to grades 
           of colonel and Navy captain.
Sec. 506. Increased years of commissioned service for mandatory 
           retirement of 
           regular generals and admirals in grades above major general 
           and rear admiral.
Sec. 507. Uniform policy for requirement of exemplary conduct by 
           commanding 
           officers and others in authority.
Sec. 508. Report on the command selection process for District Engineers 
           of the Army Corps of Engineers.

                  Subtitle B--Reserve Component Matters

Sec. 511. Individual Ready Reserve activation authority.
Sec. 512. Termination of Mobilization Income Insurance Program.
Sec. 513. Correction of inequities in medical and dental care and death 
           and disability benefits for reserve members who incur or 
           aggravate an illness in the line of duty.
Sec. 514. Authority to permit non-unit assigned officers to be 
           considered by vacancy promotion board to general officer 
           grades.
Sec. 515. Prohibition on use of Air Force Reserve AGR personnel for Air 
           Force base security functions.
Sec. 516. Involuntary separation of reserve officers in an inactive 
           status.
Sec. 517. Federal status of service by National Guard members as honor 
           guards at funerals of veterans.

                    Subtitle C--Military Technicians

Sec. 521. Authority to retain on the reserve active-status list until 
           age 60 military technicians in the grade of brigadier 
           general.
Sec. 522. Military technicians (dual status).
Sec. 523. Non-dual status military technicians.
Sec. 524. Report on feasibility and desirability of conversion of AGR 
           personnel to military technicians (dual status).

   Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit 
                                Attrition

Sec. 531. Reform of military recruiting systems.
Sec. 532. Improvements in medical prescreening of applicants for 
           military service.
Sec. 533. Improvements in physical fitness of recruits.

[[Page 111 STAT. 1722]]

               Subtitle E--Military Education and Training

                   Part I--Officer Education Programs

Sec. 541. Requirement for candidates for admission to United States 
           Naval 
           Academy to take oath of allegiance.
Sec. 542. Service academy foreign exchange program.
Sec. 543. Reimbursement of expenses incurred for instruction at service 
           academies of persons from foreign countries.
Sec. 544. Continuation of support to senior military colleges.
Sec. 545. Report on making United States nationals eligible for 
           participation in Senior Reserve Officers' Training Corps.
Sec. 546. Coordination of establishment and maintenance of Junior 
           Reserve 
           Officers' Training Corps units to maximize enrollment and 
           enhance 
           efficiency.

                    Part II--Other Education Matters

Sec. 551. United States Naval Postgraduate School.
Sec. 552. Community College of the Air Force.
Sec. 553. Preservation of entitlement to educational assistance of 
           members of the Selected Reserve serving on active duty in 
           support of a contingency 
           operation.

               Part III--Training of Army Drill Sergeants

Sec. 556. Reform of Army drill sergeant selection and training process.
Sec. 557. Training in human relations matters for Army drill sergeant 
           trainees.

  Subtitle F--Commission on Military Training and Gender-Related Issues

Sec. 561. Establishment and composition of Commission.
Sec. 562. Duties.
Sec. 563. Administrative matters.
Sec. 564. Termination of Commission.
Sec. 565. Funding.
Sec. 566. Subsequent consideration by Congress.

               Subtitle G--Military Decorations and Awards

Sec. 571. Purple Heart to be awarded only to members of the Armed 
           Forces.
Sec. 572. Eligibility for Armed Forces Expeditionary Medal for 
           participation in 
           Operation Joint Endeavor or Operation Joint Guard.
Sec. 573. Waiver of time limitations for award of certain decorations to 
           specified persons.
Sec. 574. Clarification of eligibility of members of Ready Reserve for 
           award of 
           service medal for heroism.
Sec. 575. One-year extension of period for receipt of recommendations 
           for decorations and awards for certain military intelligence 
           personnel.
Sec. 576. Eligibility of certain World War II military organizations for 
           award of unit decorations.
Sec. 577. Retroactivity of Medal of Honor special pension.

                  Subtitle H--Military Justice Matters

Sec. 581. Establishment of sentence of confinement for life without 
           eligibility for parole.
Sec. 582. Limitation on appeal of denial of parole for offenders serving 
           life 
           sentence.

                        Subtitle I--Other Matters

Sec. 591. Sexual harassment investigations and reports.
Sec. 592. Sense of the Senate regarding study of matters relating to 
           gender equity in the Armed Forces.
Sec. 593. Authority for personnel to participate in management of 
           certain non-
           Federal entities.
Sec. 594. Treatment of participation of members in Department of Defense 
           civil military programs.
Sec. 595. Comptroller General study of Department of Defense civil 
           military 
           programs.
Sec. 596. Establishment of public affairs specialty in the Army.
Sec. 597. Grade of defense attache in France.
Sec. 598. Report on crew requirements of WC-130J aircraft.
Sec. 599. Improvement of missing persons authorities applicable to 
           Department of Defense.

[[Page 111 STAT. 1723]]

                  Subtitle A--Officer Personnel Policy

SEC. 501. LIMITATION ON NUMBER OF GENERAL AND FLAG OFFICERS WHO MAY 
            SERVE IN POSITIONS OUTSIDE THEIR OWN SERVICE.

    (a) In General.--Chapter 41 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 721. General and flag officers: limitation on appointments, 
                        assignments, details, and duties outside an 
                        officer's own service

    ``(a) Limitation.--An officer described in subsection (b) may not be 
appointed, assigned, or detailed for a period in excess of 180 days to a 
position external to that officer's armed force if, immediately 
following such appointment, assignment, or detail, the number of 
officers described in subsection (b) serving in positions external to 
such officers' armed force would be in excess of 26.5 percent of the 
total number of the officers described in subsection (b).
    ``(b) Covered Officers.--The officers covered by subsection (a), and 
to be counted for the purposes of the limitation in that subsection, are 
the following:
            ``(1) Any general or flag officer counted for purposes of 
        section 526(a) of this title.
            ``(2) Any general or flag officer serving in a joint duty 
        assignment position designated by the Chairman of the Joint 
        Chiefs of Staff under section 526(b) of this title.
            ``(3) Any colonel or Navy captain counted for purposes of 
        section 777(d)(1) of this title.

    ``(c) External Positions.--For purposes of this section, the 
following positions shall be considered to be external to an officer's 
armed force:
            ``(1) Any position (including a position in joint education) 
        that is a joint duty assignment for purposes of chapter 38 of 
        this title.
            ``(2) Any position in the Office of the Secretary of 
        Defense, a Defense Agency, or a Department of Defense Field 
        Activity.
            ``(3) Any position in the Joint Chiefs of Staff, the Joint 
        Staff, or the headquarters of a combatant command (as defined in 
        chapter 6 of this title).
            ``(4) Any position in the National Guard Bureau.
            ``(5) Any position outside the Department of Defense, 
        including any position in the headquarters of the North Atlantic 
        Treaty Organization or any other international military command, 
        any combined or multinational command, or military mission.

    ``(d) Treatment of Officers Holding Multiple Positions.--(1) If an 
officer described in subsection (b) simultaneously holds both a position 
external to that officer's armed force and another position not external 
to that officer's armed force, the Secretary of Defense shall determine 
whether that officer shall be counted for the purposes of this section.
    ``(2) The Secretary of <<NOTE: Reports.>>  Defense shall submit to 
Congress an annual report on the number of officers to whom paragraph 
(1) was applicable during the year covered by the report. The report

[[Page 111 STAT. 1724]]

shall set forth the determination made by the Secretary under that 
paragraph in each such case.

    ``(e) Assignments, Etc., for Periods in Excess of 180 Days.--For 
purposes of this section, the appointment, assignment, or detail of an 
officer to a position shall be considered to be for a period in excess 
of 180 days unless the appointment, assignment, or detail specifies that 
it is made for a period of 180 days or less.
    ``(f) Waiver <<NOTE: President.>>  During Period of War or National 
Emergency.--The President may suspend the operation of this section 
during any period of war or of national emergency declared by Congress 
or the President.''.

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

``721. General and flag officers: limitation on appointments, 
           assignments, details, and duties outside an officer's own 
           service.''.

SEC. 502. EXCLUSION OF CERTAIN RETIRED OFFICERS FROM LIMITATION ON 
            PERIOD OF RECALL TO ACTIVE DUTY.

    Section 688(e) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``A member''; and
            (2) by adding at the end the following:

    ``(2) Paragraph (1) does not apply to the following officers:
            ``(A) A chaplain who is assigned to duty as a chaplain for 
        the period of active duty to which ordered.
            ``(B) A health care professional (as characterized by the 
        Secretary concerned) who is assigned to duty as a health care 
        professional for the period of active duty to which ordered.
            ``(C) An officer assigned to duty with the American Battle 
        Monuments Commission for the period of active duty to which 
        ordered.''.

SEC. 503. CLARIFICATION OF OFFICERS ELIGIBLE FOR CONSIDERATION BY 
            PROMOTION BOARDS.

    (a) Officers on the Active-Duty List.--Section 619(d) of title 10, 
United States Code, is amended--
            (1) by striking out ``grade--'' in the matter preceding 
        paragraph (1) and inserting in lieu thereof ``grade any of the 
        following officers:'';
            (2) in paragraph (1)--
                    (A) by striking out ``an officer'' and inserting in 
                lieu thereof ``An officer''; and
                    (B) by striking out ``; or'' at the end and 
                inserting in lieu thereof a period;
            (3) by redesignating paragraph (2) as paragraph (3) and in 
        that paragraph striking out ``an officer'' and inserting in lieu 
        thereof ``An officer''; and
            (4) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2) An officer who is recommended for promotion to that 
        grade in the report of an earlier selection board convened under 
        that section, in the case of such a report that has not yet been 
        approved by the President.''.

    (b) Officers on the Reserve Active-Status List.--Section 14301(c) of 
such title is amended--

[[Page 111 STAT. 1725]]

            (1) by striking out ``grade--'' in the matter preceding 
        paragraph (1) and inserting in lieu thereof ``grade any of the 
        following officers:'';
            (2) by striking out ``an officer'' in each of paragraphs 
        (1), (2), and (3) and inserting in lieu thereof ``An officer'';
            (3) by striking out the semicolon at the end of paragraph 
        (1) and inserting in lieu thereof a period;
            (4) by striking out ``; or'' at the end of paragraph (2) and 
        inserting in lieu thereof a period;
            (5) by redesignating paragraphs (2) and (3), as so amended, 
        as paragraphs (3) and (4), respectively, and in each such 
        paragraph striking out ``the next higher grade'' and inserting 
        in lieu thereof ``that grade''; and
            (6) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2) An officer who is recommended for promotion to that 
        grade in the report of an earlier selection board convened under 
        a provision referred to in paragraph (1), in the case of such a 
        report that has not yet been approved by the President.''.

    (c) Clarifying Amendments.--Paragraphs (3) and (4) of section 
14301(c) of such title, as redesignated and amended by subsection (b), 
are each amended by inserting before the period at the end the 
following: ``, if that nomination is pending before the Senate''.
    (d) Effective Date.--The <<NOTE: 10 USC 619 note.>>  amendments made 
by this section shall take effect on the date of the enactment of this 
Act and shall apply with respect to selection boards that are convened 
under section 611(a), 14101(a), or 14502 of title 10, United States 
Code, on or after that date.

SEC. 504. AUTHORITY TO DEFER MANDATORY RETIREMENT FOR AGE OF OFFICERS 
            SERVING AS CHAPLAINS.

    (a) Authority for Deferral of Retirement for Chaplains.--Subsection 
(c) of section 1251 of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):

    ``(2) The Secretary concerned may defer the retirement under 
subsection (a) of an officer who is appointed or designated as a 
chaplain if the Secretary determines that such deferral is in the best 
interest of the military department concerned.''.
    (b) Authority for Deferral of Retirement for Chief and Deputy Chief 
of Chaplains.--Such section is further amended by adding at the end the 
following new subsection:
    ``(d) The Secretary concerned may defer the retirement under 
subsection (a) of an officer who is the Chief of Chaplains or Deputy 
Chief of Chaplains of that officer's armed force. Such a deferment may 
not extend beyond the first day of the month following the month in 
which the officer becomes 68 years of age.''.
    (c) Qualification for Service as Navy Chief of Chaplains or Deputy 
Chief of Chaplains.--(1) Section 5142(b) of such title is amended by 
striking out ``, who are not on the retired list,''.
    (2) Section 5142a of such title is amended by striking ``, who is 
not on the retired list,''.

[[Page 111 STAT. 1726]]

SEC. 505. INCREASE IN NUMBER OF OFFICERS ALLOWED TO BE FROCKED TO GRADES 
            OF COLONEL AND NAVY CAPTAIN.

    Section 777(d)(2) of title 10, United States Code, is amended by 
inserting after ``1 percent'' the following: ``, or, for the grades of 
colonel and Navy captain, 2 percent,''.

SEC. 506. INCREASED YEARS OF COMMISSIONED SERVICE FOR MANDATORY 
            RETIREMENT OF REGULAR GENERALS AND ADMIRALS IN GRADES ABOVE 
            MAJOR GENERAL AND REAR ADMIRAL.

    (a) Years of Service.--Section 636 of title 10, United States Code, 
is amended--
            (1) by striking out ``Except as provided'' and inserting in 
        lieu thereof ``(a) Major Generals and Rear Admirals Serving in 
        Grade.--Except as provided in subsection (b) or (c) and''; and
            (2) by adding at the end the following:

    ``(b) Lieutenant Generals and Vice Admirals.--In the administration 
of subsection (a) in the case of an officer who is serving in the grade 
of lieutenant general or vice admiral, the number of years of active 
commissioned service applicable to the officer is 38 years.
    ``(c) Generals and Admirals.--In the administration of subsection 
(a) in the case of an officer who is serving in the grade of general or 
admiral, the number of years of active commissioned service applicable 
to the officer is 40 years.''.
    (b) Section Heading.--The heading of such section is amended to read 
as follows:

``Sec. 636. Retirement for years of service: regular officers in grades 
                        above brigadier general and rear admiral (lower 
                        half)''.

    (c) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of subchapter III of chapter 36 of 
such title is amended to read as follows:

``636. Retirement for years of service: regular officers in grades above 
           brigadier general and rear admiral (lower half).''.

SEC. 507. UNIFORM POLICY FOR REQUIREMENT OF EXEMPLARY CONDUCT BY 
            COMMANDING OFFICERS AND OTHERS IN AUTHORITY.

    (a) Army.--(1) Chapter 345 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 3583. Requirement of exemplary conduct

    ``All commanding officers and others in authority in the Army are 
required--
            ``(1) to show in themselves a good example of virtue, honor, 
        patriotism, and subordination;
            ``(2) to be vigilant in inspecting the conduct of all 
        persons who are placed under their command;
            ``(3) to guard against and suppress all dissolute and 
        immoral practices, and to correct, according to the laws and 
        regulations of the Army, all persons who are guilty of them; and
            ``(4) to take all necessary and proper measures, under the 
        laws, regulations, and customs of the Army, to promote and

[[Page 111 STAT. 1727]]

        safeguard the morale, the physical well-being, and the general 
        welfare of the officers and enlisted persons under their command 
        or charge.''.

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

``3583. Requirement of exemplary conduct.''.

    (b) Air Force.--(1) Chapter 845 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 8583. Requirement of exemplary conduct

    ``All commanding officers and others in authority in the Air Force 
are required--
            ``(1) to show in themselves a good example of virtue, honor, 
        patriotism, and subordination;
            ``(2) to be vigilant in inspecting the conduct of all 
        persons who are placed under their command;
            ``(3) to guard against and suppress all dissolute and 
        immoral practices, and to correct, according to the laws and 
        regulations of the Air Force, all persons who are guilty of 
        them; and
            ``(4) to take all necessary and proper measures, under the 
        laws, regulations, and customs of the Air Force, 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.''.

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

``8583. Requirement of exemplary conduct.''.

SEC. 508. REPORT ON THE COMMAND SELECTION PROCESS FOR DISTRICT ENGINEERS 
            OF THE ARMY CORPS OF ENGINEERS.

    Not later than March 31, 1998, the Secretary of the Army shall 
submit to Congress a report on the command selection process for 
officers serving as District Engineers of the Corps of Engineers. The 
report shall include the following:
            (1) An identification of each major Corps of Engineers 
        project that--
                    (A) is being carried out by each District Engineer 
                as of the date of the report; or
                    (B) is being planned by each District Engineer to be 
                carried out during the five-year period beginning on the 
                date of the report.
            (2) The expected start and completion dates, during that 
        period, for each major phase of each project identified under 
        paragraph (1).
            (3) The expected dates for changes in the District Engineer 
        in each Corps of Engineers District during that period.
            (4) A plan for optimizing the timing of changes in the 
        District Engineer in each such District so that there is minimal 
        disruption to major phases of major Corps of Engineers projects.
            (5) A review of the effect on the Corps of Engineers, and on 
        the mission of each District of the Corps of Engineers, of 
        allowing major command tours of District Engineers to be of two-
        to-four years in duration, with the selection of the exact 
        timing of the change of command to be at the discretion of the 
        Chief of Engineers, who shall act with the goal of optimizing

[[Page 111 STAT. 1728]]

        the timing of each change so that it has minimal disruption on 
        the mission of the District Engineer.

                  Subtitle B--Reserve Component Matters

SEC. 511. INDIVIDUAL READY RESERVE ACTIVATION AUTHORITY.

    (a) IRR Members Subject to Order to Active Duty Other Than During 
War or National Emergency.--Section 10144 of title 10, United States 
Code, is amended--
            (1) by inserting ``(a)'' before ``Within the Ready 
        Reserve''; and
            (2) by adding at the end the following new subsection:

    ``(b)(1) Within the Individual Ready Reserve of each reserve 
component there is a category of members, as designated by the Secretary 
concerned, who are subject to being ordered to active duty involuntarily 
in accordance with section 12304 of this title. A member may not be 
placed in that mobilization category unless--
            ``(A) the member volunteers for that category; and
            ``(B) the member is selected for that category by the 
        Secretary concerned, based upon the needs of the service and the 
        grade and military skills of that member.

    ``(2) A member of the Individual Ready Reserve may not be carried in 
such mobilization category of members after the end of the 24-month 
period beginning on the date of the separation of the member from active 
service.
    ``(3) The Secretary shall designate the grades and military skills 
or specialities of members to be eligible for placement in such 
mobilization category.
    ``(4) A member in such mobilization category shall be eligible for 
benefits (other than pay and training) as are normally available to 
members of the Selected Reserve, as determined by the Secretary of 
Defense.''.
    (b) Criteria for Ordering to Active Duty.--Subsection (a) of section 
12304 of title 10, United States Code, is amended by inserting after 
``of this title),'' the following: ``or any member in the Individual 
Ready Reserve mobilization category and designated as essential under 
regulations prescribed by the Secretary concerned,''.
    (c) Maximum Number.--Subsection (c) of such section is 
amended--
            (1) by inserting ``and the Individual Ready Reserve'' after 
        ``Selected Reserve''; and
            (2) by inserting ``, of whom not more than 30,000 may be 
        members of the Individual Ready Reserve'' before the period at 
        the end.

    (d) Conforming Amendments.--Such section is further 
amended--
            (1) in subsection (f), by inserting ``or Individual Ready 
        Reserve'' after ``Selected Reserve'';
            (2) in subsection (g), by inserting ``, or any member of the 
        Individual Ready Reserve,'' after ``to serve as a unit''; and
            (3) by adding at the end the following new subsection:

    ``(i) For purposes of this section, 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.''.

[[Page 111 STAT. 1729]]

    (e) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

``Sec. 12304. Selected Reserve and certain Individual Ready Reserve 
                        members; order to active duty other than during 
                        war or national emergency''.

    (2) The item relating to section 12304 in the table of sections at 
the beginning of chapter 1209 of such title is amended to read as 
follows:

``12304. Selected Reserve and certain Individual Ready Reserve members; 
           order to active duty other than during war or national 
           emergency.''.

SEC. 512. TERMINATION OF MOBILIZATION INCOME INSURANCE PROGRAM.

    (a) In General.--Chapter 1214 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 12533. Termination of program

    ``(a) In General.--The Secretary shall terminate the insurance 
program in accordance with this section.
    ``(b) Termination of New Enrollments.--The Secretary may not enroll 
a member of the Ready Reserve for coverage under the insurance program 
after the date of the enactment of this section.
    ``(c) Termination of Coverage.--(1) The enrollment under the 
insurance program of insured members other than insured members 
described in paragraph (2) is terminated as of the date of the enactment 
of this section. The enrollment of an insured member described in 
paragraph (2) is terminated as of the date of the termination of the 
period of covered service of that member described in that paragraph.
    ``(2) An insured member described in this paragraph is an insured 
member who on the date of the enactment of this section is serving on 
covered service for a period of service, or has been issued an order 
directing the performance of covered service, that satisfies or would 
satisfy the entitlement-to-benefits provisions of this chapter.
    ``(d) Termination of Payment of Benefits.--The Secretary may not 
make any benefit payment under the insurance program after the date of 
the enactment of this section other than to an insured member who on 
that date (1) is serving on an order to covered service, (2) has been 
issued an order directing performance of covered service, or (3) has 
served on covered service before that date for which benefits under the 
program have not been paid to the member.
    ``(e) Termination of Insurance Fund.--The Secretary shall close the 
Fund not later than 60 days after the date on which the last benefit 
payment from the Fund is made. Any amount remaining in the Fund when 
closed shall be covered into the Treasury as miscellaneous receipts.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``12533. Termination of program.''.

[[Page 111 STAT. 1730]]

SEC. 513. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE AND DEATH 
            AND DISABILITY BENEFITS FOR RESERVE MEMBERS WHO INCUR OR 
            AGGRAVATE AN ILLNESS IN THE LINE OF DUTY.

    (a) Medical and Dental Care for Members.--Section 1074a of title 10, 
United States Code, is amended--
            (1) in subsection (a)(3), by inserting ``while remaining 
        overnight immediately before the commencement of inactive-duty 
        training, or'' after ``in the line of duty''; and
            (2) by adding at the end the following new subsection:

    ``(e) A member of a uniformed service described in paragraph (1)(A) 
or (2)(A) of subsection (a) whose orders are modified or extended, while 
the member is being treated for (or recovering from) the injury, 
illness, or disease incurred or aggravated in the line of duty, so as to 
result in active duty for a period of more than 30 days shall be 
entitled, while the member remains on active duty, to medical and dental 
care on the same basis and to the same extent as members covered by 
section 1074(a) of this title.''.
    (b) Medical and Dental Care for Dependents.--Section 1076(a) of such 
title is amended by striking out paragraph (2) and inserting in lieu 
thereof the following new paragraph:
    ``(2) A dependent referred to in paragraph (1) is a dependent of a 
member of a uniformed service described in one of the following 
subparagraphs:
            ``(A) A member who is on active duty for a period of more 
        than 30 days or died while on that duty.
            ``(B) A member who died from an injury, illness, or disease 
        incurred or aggravated--
                    ``(i) while the member was on active duty under a 
                call or order to active duty of 30 days or less, on 
                active duty for training, or on inactive-duty training; 
                or
                    ``(ii) while the member was traveling to or from the 
                place at which the member was to perform, or had 
                performed, such active duty, active duty for training, 
                or inactive-duty training.
            ``(C) A member who died from an injury, illness, or disease 
        incurred or aggravated in the line of duty while the member 
        remained overnight immediately before the commencement of 
        inactive-duty training, or while the member remained overnight 
        between successive periods of inactive-duty training, at or in 
        the vicinity of the site of the inactive-duty training, if the 
        site was outside reasonable commuting distance from the member's 
        residence.
            ``(D) A member who incurred or aggravated an injury, 
        illness, or disease in the line of duty while serving on active 
        duty for a period of 30 days or less (or while traveling to or 
        from the place of such duty) and the member's orders are 
        modified or extended, while the member is being treated for (or 
        recovering from) the injury, illness, or disease, so as to 
        result in active duty for a period of more than 30 days. 
        However, this subparagraph entitles the dependent to medical and 
        dental care only while the member remains on active duty.''.

    (c) Eligibility for Disability Retirement or Separation.--(1) 
Section 1204(2) of such title is amended to read as follows:
            ``(2) the disability--

[[Page 111 STAT. 1731]]

                    ``(A) was incurred before September 24, 1996, as the 
                proximate result of--
                          ``(i) performing active duty or inactive-duty 
                      training;
                          ``(ii) traveling directly to or from the place 
                      at which such duty is performed; or
                          ``(iii) an injury, illness, or disease 
                      incurred or aggravated while remaining overnight, 
                      immediately before the commencement of inactive-
                      duty training, or while remaining overnight 
                      between successive periods of inactive-duty 
                      training, at or in the vicinity of the site of the 
                      inactive-duty training, if the site of the 
                      inactive-duty training is outside reasonable 
                      commuting distance of the member's residence; or
                    ``(B) is a result of an injury, illness, or disease 
                incurred or aggravated in line of duty after September 
                23, 1996--
                          ``(i) while performing active duty or 
                      inactive-duty training;
                          ``(ii) while traveling directly to or from the 
                      place at which such duty is performed; or
                          ``(iii) while remaining overnight, immediately 
                      before the commencement of inactive-duty training, 
                      or while remaining overnight between successive 
                      periods of inactive-duty training, at or in the 
                      vicinity of the site of the inactive-duty 
                      training, if the site of the inactive-duty 
                      training is outside reasonable commuting distance 
                      of the member's residence;''.

    (2) Section 1206 of such title is amended--
            (A) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (3), (4), and (5), respectively, and
            (B) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2) the disability is a result of an injury, illness, or 
        disease incurred or aggravated in line of duty while--
                    ``(A) performing active duty or inactive-duty 
                training;
                    ``(B) traveling directly to or from the place at 
                which such duty is performed; or
                    ``(C) while remaining overnight immediately before 
                the commencement of inactive-duty training, or while 
                remaining overnight between successive periods of 
                inactive-duty training, at or in the vicinity of the 
                site of the inactive-duty training, if the site is 
                outside reasonable commuting distance of the member's 
                residence;''.

    (d) Conforming Amendments and Related Clerical Amendments.--(1) The 
heading of section 1204 of title 10, United States Code, is amended to 
read as follows:

``Sec. 1204. Members on active duty for 30 days or less or on inactive-
                        duty training: retirement''.

    (2) The heading of section 1206 of such title is amended to read as 
follows:

``Sec. 1206. Members on active duty for 30 days or less or on inactive-
                        duty training: separation''.

    (3) The table of sections at the beginning of chapter 61 of such 
title is amended--

[[Page 111 STAT. 1732]]

            (A) by striking out the item relating to section 1204 and 
        inserting in lieu thereof the following:

``1204. Members on active duty for 30 days or less or on inactive-duty 
           training: 
           retirement.'';

        and
            (B) by striking out the item relating to section 1206 and 
        inserting in lieu thereof the following:

``1206. Members on active duty for 30 days or less or on inactive-duty 
           training: 
           separation.''.

    (e) Recovery, Care, and Disposition of Remains.--Section 
1481(a)(2)(D) of such title is amended by inserting ``remaining 
overnight immediately before the commencement of inactive-duty training, 
or'' after ``(D)''.
    (f) Entitlement to Basic Pay.--Section 204 of title 37, United 
States Code, is amended by inserting ``while remaining overnight 
immediately before the commencement of inactive-duty training, or'' in 
subsections (g)(1)(D) and (h)(1)(D) after ``in line of duty''.
    (g) Compensation for Inactive-Duty Training.--Section 206(a)(3)(C) 
of title 37, United States Code, is amended by inserting ``while 
remaining overnight immediately before the commencement of inactive-duty 
training, or'' after ``in line of duty''.

SEC. 514. AUTHORITY TO PERMIT NON-UNIT ASSIGNED OFFICERS TO BE 
            CONSIDERED BY VACANCY PROMOTION BOARD TO GENERAL OFFICER 
            GRADES.

    (a) Convening of Selection Boards.--Section 14101(a)(2) of title 10, 
United States Code, is amended by striking out ``(except in the case of 
a board convened to consider officers as provided in section 14301(e) of 
this title)''.
    (b) Eligibility for Consideration of Certain Army Officers.--Section 
14301 of such title is amended--
            (1) by striking out subsection (e); and
            (2) by redesignating subsections (f) and (g) as subsections 
        (e) and (f), respectively.

    (c) General Officer Promotions.--Section 14308 of such title is 
amended--
            (1) in subsection (e)(2), by inserting ``a grade below 
        colonel in'' after ``(2) an officer in''; and
            (2) in subsection (g)--
                    (A) by inserting ``or the Air Force'' in the first 
                sentence after ``of the Army'' the first place it 
                appears;
                    (B) by striking out ``in that grade'' in the first 
                sentence and all that follows through ``Secretary of the 
                Army'' and inserting in lieu thereof ``in the Army 
                Reserve or the Air Force Reserve, as the case may be, in 
                that grade''; and
                    (C) by striking out the second sentence.

    (d) Vacancy Promotions.--Section 14315(b)(1) of such title is 
amended by striking out ``duties'' in clause (A) and all that follows 
through ``as a unit,'' and inserting in lieu thereof ``duties of a 
general officer of the next higher reserve grade in the Army Reserve,''.

SEC. 515. PROHIBITION ON USE OF AIR FORCE RESERVE AGR PERSONNEL FOR AIR 
            FORCE BASE SECURITY FUNCTIONS.

    (a) In General.--Chapter 1215 of title 10, United States Code, is 
amended by striking out

[[Page 111 STAT. 1733]]

                        ``[No present sections]''

and inserting in lieu thereof the following:

``Sec.
12551. Prohibition of use of Air Force Reserve AGR personnel for Air 
           Force base security functions.

``Sec. 12551. Prohibition of use of Air Force Reserve AGR personnel for 
                        Air Force base security functions

    ``(a) Limitation.--The Secretary of the Air Force may not use 
members of the Air Force Reserve who are AGR personnel for the 
performance of force protection, base security, or security police 
functions at an Air Force facility in the United States.
    ``(b) AGR Personnel Defined.--In this section, the term `AGR 
personnel' means members of the Air Force Reserve who are on active duty 
(other than for training) in connection with organizing, administering, 
recruiting, instructing, or training the Air Force Reserve.''.
    (b) Clerical Amendment.--The items relating to chapter 1215 in the 
tables of chapters at the beginning of subtitle E, and at the beginning 
of part II of subtitle E, are amended to read as follows:

``1215. Miscellaneous Prohibitions and Penalties................12551''.

SEC. 516. INVOLUNTARY SEPARATION OF RESERVE OFFICERS IN AN INACTIVE 
            STATUS.

    (a) Authority for Involuntary Separation of Certain Inactive Status 
Officers.--Section 12683(b) of title 10, United States Code, is 
amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``apply--'' and inserting in lieu thereof ``apply to any of the 
        following:''; and
            (2) by adding at the end the following new paragraph:
            ``(4) A separation of an officer who is in an inactive 
        status in the Standby Reserve and who is not qualified for 
        transfer to the Retired Reserve or is qualified for transfer to 
        the Retired Reserve and does not apply for such a transfer.''.

    (b) Stylistic Amendments.--Such section is further 
amended--
            (1) in paragraphs (1), (2), and (3), by striking out ``to 
        a'' and inserting in lieu thereof ``A'';
            (2) by striking out the semicolon at the end of paragraph 
        (1) and inserting in lieu thereof a period; and
            (3) by striking out ``; and'' at the end of paragraph (2) 
        and inserting in lieu thereof a period.

SEC. 517. FEDERAL STATUS OF SERVICE BY NATIONAL GUARD MEMBERS AS HONOR 
            GUARDS AT FUNERALS OF VETERANS.

    (a) In General.--(1) Chapter 1 of title 32, United States Code, is 
amended by adding after section 113, as added by section 386(a), the 
following new section:

``Sec. 114. Honor guard functions at funerals for veterans

    ``(a) Subject to such regulations and restrictions as may be 
prescribed by the Secretary concerned, the performance of honor guard 
functions by members of the National Guard at funerals for veterans of 
the armed forces may be treated by the Secretary

[[Page 111 STAT. 1734]]

concerned as a Federal function for which appropriated funds may be 
used. Any such performance of honor guard functions at such a funeral 
may not be considered to be a period of drill or training otherwise 
required.
    ``(b) This section does not authorize additional appropriations for 
any fiscal year. Any expense of the National Guard that is incurred by 
reason of this section shall be paid from appropriations otherwise 
available for the National Guard.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
113, as added by section 386(b), the following new item:

``114. Honor guard functions at funerals for veterans.''.

                    Subtitle C--Military Technicians

SEC. 521. AUTHORITY TO RETAIN ON THE RESERVE ACTIVE-STATUS LIST UNTIL 
            AGE 60 MILITARY TECHNICIANS IN THE GRADE OF BRIGADIER 
            GENERAL.

    (a) Retention.--Section 14702(a) of title 10, United States Code, is 
amended--
            (1) by striking out ``section 14506 or 14507'' and inserting 
        in lieu thereof ``section 14506, 14507, or 14508''; and
            (2) by striking out ``or colonel'' and inserting in lieu 
        thereof ``colonel, or brigadier general''.

    (b) Technical Amendment.--Section 14508(c) of such title is amended 
by striking out ``not later than the date on which the officer becomes 
60 years of age'' and inserting in lieu thereof ``not later than the 
last day of the month in which the officer becomes 60 years of age''.

SEC. 522. MILITARY TECHNICIANS (DUAL STATUS).

    (a) Definition.--Subsection (a) of section 10216 of title 10, United 
States Code, is amended to read as follows:
    ``(a) In General.--(1) For purposes of this section and any other 
provision of law, a military technician (dual status) is a Federal 
civilian employee who--
            ``(A) is employed under section 3101 of title 5 or section 
        709 of title 32;
            ``(B) is required as a condition of that employment to 
        maintain membership in the Selected Reserve; and
            ``(C) is assigned to a position as a technician in the 
        administration and training of the Selected Reserve or in the 
        maintenance and repair of supplies or equipment issued to the 
        Selected Reserve or the armed forces.

    ``(2) Military technicians (dual status) shall be authorized and 
accounted for as a separate category of civilian employees.''.
    (b) Unit Membership and Dual Status Requirement.--Such section is 
further amended by striking out subsection (d) and inserting in lieu 
thereof the following:
    ``(d) Unit Membership Requirement.--(1) Unless specifically exempted 
by law, each individual who is hired as a military technician (dual 
status) after December 1, 1995, shall be required as a condition of that 
employment to maintain membership in--
            ``(A) the unit of the Selected Reserve by which the 
        individual is employed as a military technician; or

[[Page 111 STAT. 1735]]

            ``(B) a unit of the Selected Reserve that the individual is 
        employed as a military technician to support.

    ``(2) Paragraph (1) does not apply to a military technician (dual 
status) who is employed by the Army Reserve in an area other than Army 
Reserve troop program units.
    ``(e) Dual Status Requirement.--(1) Funds appropriated for the 
Department of Defense may not (except as provided in paragraph (2)) be 
used for compensation as a military technician of any individual hired 
as a military technician after February 10, 1996, who is no longer a 
member of the Selected Reserve.
    ``(2) The Secretary concerned may pay compensation described in 
paragraph (1) to an individual described in that paragraph who is no 
longer a member of the Selected Reserve for a period not to exceed six 
months following the individual's loss of membership in the Selected 
Reserve if the Secretary determines that such loss of membership was not 
due to the failure of that individual to meet military standards.''.
    (c) National Guard Dual Status Requirement.--Section 709(b) of title 
32, United States Code, is amended by striking out ``Except as 
prescribed by the Secretary concerned, a technician'' and inserting in 
lieu thereof ``A technician''.
    (d) Plan for Clarification of Statutory Authority of Military 
Technicians.--(1) The Secretary of Defense shall submit to Congress, as 
part of the budget justification materials submitted in support of the 
budget for the Department of Defense for fiscal year 1999, a legislative 
proposal to provide statutory authority and clarification under title 5, 
United States Code--
            (A) for the hiring, management, promotion, separation, and 
        retirement of military technicians who are employed in support 
        of units of the Army Reserve or Air Force Reserve; and
            (B) for the transition to the competitive service of an 
        individual who is hired as a military technician in support of a 
        unit of the Army Reserve or Air Force Reserve and who (as 
        determined by the Secretary concerned) fails to maintain 
        membership in the Selected Reserve through no fault of the 
        individual.

    (2) The legislative proposal under paragraph (1) shall be developed 
in consultation with the Director of the Office of Personnel Management.
    (e) Conforming Repeal.--Section 8016 of Public Law 104-61 (109 Stat. 
654; 10 U.S.C. 10101 note) is repealed.
    (f) Cross-Reference Corrections.--Section 10216(c)(1) of title 10, 
United States Code, is amended by striking out ``subsection (a)(1)'' in 
subparagraphs (A), (B), (C), and (D) and inserting in lieu thereof 
``subsection (b)(1)''.
    (g) Conforming Amendments to Section 10216.--Section 10216 of title 
10, United States Code, is further amended as follows:
            (1) The heading of subsection (b) is amended by inserting 
        ``(Dual Status)'' after ``Military Technicians''.
            (2) Subsection (b)(1) is amended--
                    (A) by inserting ``(dual status)'' after ``for 
                military technicians'';
                    (B) by striking out ``dual status military 
                technicians'' and inserting in lieu thereof ``military 
                technicians (dual status)''; and
                    (C) by inserting ``(dual status)'' after ``military 
                technicians'' in subparagraph (C).

[[Page 111 STAT. 1736]]

            (3) Subsection (b)(2) is amended by inserting ``(dual 
        status)'' after ``military technicians'' both places it appears.
            (4) Subsection (b)(3) is amended by inserting ``(dual 
        status)'' after ``Military technician''.
            (5) Subsection (c) is amended--
                    (A) in the matter preceding paragraph (1)(A), by 
                inserting ``(dual status)'' after ``military 
                technicians'';
                    (B) in paragraph (1), by striking out ``dual-status 
                technicians'' in subparagraphs (A), (B), (C), and (D) 
                and inserting in lieu thereof ``military technicians 
                (dual status)'';
                    (C) in paragraph (2)(A), by inserting ``(dual 
                status)'' after ``military technician''; and
                    (D) in paragraph (2)(B), by striking out 
                ``delineate--'' and all that follows through ``or other 
                reasons'' in clause (ii) and inserting in lieu thereof 
                ``delineate the specific force structure reductions''.

    (h) Clerical Amendments.--(1) The heading of section 10216 of such 
title is amended to read as follows:

``Sec. 10216. Military technicians (dual status)''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 1007 of such title is amended to read as 
follows:

``10216. Military technicians (dual status).''.

    (i) Other Conforming Amendments.--(1) Section 115(g) of such title 
is amended by inserting ``(dual status)'' in the first sentence after 
``military technicians'' and in the second sentence after ``military 
technician''.
    (2) Section 115a(h) of such title is amended--
            (A) by inserting ``(displayed in the aggregate and 
        separately for military technicians (dual status) and non-dual 
        status military technicians)'' in the matter preceding paragraph 
        (1) after ``of the following''; and
            (B) by striking out paragraph (3).

SEC. 523. NON-DUAL STATUS MILITARY TECHNICIANS.

    (a) In General.--(1) Chapter 1007 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 10217. Non-dual status military technicians

    ``(a) Definition.--For the purposes of this section and any other 
provision of law, a non-dual status military technician is a civilian 
employee of the Department of Defense serving in a military technician 
position who--
            ``(1) was hired as a military technician before the date of 
        the enactment of the National Defense Authorization Act for 
        Fiscal Year 1998 under any of the authorities specified in 
        subsection (c); and
            ``(2) as of the date of the enactment of that Act is not a 
        member of the Selected Reserve or after such date ceased to be a 
        member of the Selected Reserve.

    ``(b) Employment Authorities.--The authorities referred to in 
subsection (a) are the following:
            ``(1) Section 10216 of this title.
            ``(2) Section 709 of title 32.
            ``(3) The requirements referred to in section 8401 of 
        title 5.

[[Page 111 STAT. 1737]]

            ``(4) Section 8016 of the Department of Defense 
        Appropriations Act, 1996 (Public Law 104-61; 109 Stat. 654), and 
        any comparable provision of law enacted on an annual basis in 
        the Department of Defense Appropriations Acts for fiscal years 
        1984 through 1995.
            ``(5) Any memorandum of agreement between the Department of 
        Defense and the Office of Personnel Management providing for the 
        hiring of military technicians.''.

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

``10217. Non-dual status military technicians.''.

    (b) Limitation.--The number of civilian employees of a military 
department who are non-dual status military technicians as of September 
30, 1998, may not exceed the following:
            (1) For the Army Reserve, 1,500.
            (2) For the Army National Guard of the United States, 2,400.
            (3) For the Air Force Reserve, 0.
            (4) For the Air National Guard of the United States, 450.

    (c) 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 the number of military technician positions that are 
held by non-dual status military technicians as of September 30, 1997, 
shown separately for each of the following:
            (1) The Army Reserve.
            (2) The Army National Guard of the United States.
            (3) The Air Force Reserve.
            (4) The Air National Guard of the United States.

    (d) <<NOTE: 10 USC 10217 note.>> Plan for Full Utilization of 
Military Technicians (Dual Status).--(1) Not later than 180 days after 
the date of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a plan for ensuring that, on and after September 30, 
2007, all military technician positions are held only by military 
technicians (dual status).

    (2) The plan shall provide for achieving, by September 30, 2002, a 
50 percent reduction, by conversion of positions or otherwise, in the 
number of non-dual status military technicians that are holding military 
technicians positions, as compared with the number of non-dual status 
technicians that held military technician positions as of September 30, 
1997, as specified in the report under subsection (c).
    (3) Among the alternative actions to be considered in developing the 
plan, the Secretary shall consider the feasibility and cost of each of 
the following:
            (A) Eliminating or consolidating technician functions and 
        positions.
            (B) Contracting with private sector sources for the 
        performance of functions performed by military technicians.
            (C) Converting non-dual status military technician positions 
        to military technician (dual status) positions or to positions 
        in the competitive service or, in the case of positions of the 
        Army National Guard of the United States or the Air National 
        Guard of the United States, to positions of State employment.
            (D) Use of incentives to facilitate attainment of the 
        objectives specified for the plan in paragraphs (1) and (2).

[[Page 111 STAT. 1738]]

    (4) The Secretary shall submit with the plan any recommendations for 
legislation that the Secretary considers necessary to carry out the 
plan.
    (e) Definitions for Categories of Military Technicians.--In this 
section:
            (1) The term ``non-dual status military technician'' has the 
        meaning given that term in section 10217 of title 10, United 
        States Code, as added by subsection (a).
            (2) The term ``military technician (dual status)'' has the 
        meaning given the term in section 10216(a) of such title.

SEC. 524. REPORT ON FEASIBILITY AND DESIRABILITY OF CONVERSION OF AGR 
            PERSONNEL TO MILITARY TECHNICIANS (DUAL STATUS).

    (a) Report Required.--Not later than January 1, 1998, the Secretary 
of Defense shall submit to Congress a report on the feasibility and 
desirability of conversion of AGR personnel to military technicians 
(dual status). The report shall--
            (1) identify advantages and disadvantages of such a 
        conversion;
            (2) identify possible savings if such a conversion were to 
        be carried out; and
            (3) set forth the recommendation of the Secretary as to 
        whether such a conversion should be made.

    (b) AGR Personnel Defined.--For purposes of subsection (a), the term 
``AGR personnel'' means members of the Army or Air Force reserve 
components who are on active duty (other than for training) in 
connection with organizing, administering, recruiting, instructing, or 
training their respective reserve components.

  Subtitle D <<NOTE: 10 USC 503 note.>> --Measures To Improve Recruit 
Quality and Reduce Recruit Attrition

SEC. 531. REFORM OF MILITARY RECRUITING SYSTEMS.

    (a) In General.--The Secretary of Defense shall carry out reforms in 
the recruiting systems of the Army, Navy, Air Force, and Marine Corps in 
order to improve the quality of new recruits and to reduce attrition 
among recruits.
    (b) Specific Reforms.--As part of the reforms in military recruiting 
systems to be undertaken under subsection (a), the Secretary shall take 
the following steps:
            (1) Improve the system of pre-enlistment waivers and 
        separation codes used for recruits by (A) revising and updating 
        those waivers and codes to allow more accurate and useful data 
        collection about those separations, and (B) prescribing 
        regulations to ensure that those waivers and codes are 
        interpreted in a uniform manner by the military services.
            (2) Develop a reliable database for (A) analyzing (at both 
        the Department of Defense and service-level) data on reasons for 
        attrition of new recruits, and (B) undertaking Department of 
        Defense or service-specific measures (or both) to control and 
        manage such attrition.
            (3) Require that the Secretary of each military department 
        (A) adopt or strengthen incentives for recruiters to thoroughly 
        prescreen potential candidates for recruitment, and (B) link

[[Page 111 STAT. 1739]]

        incentives for recruiters, in part, to the ability of a 
        recruiter to screen out unqualified candidates before 
        enlistment.
            (4) Require that the Secretary of each military department 
        include as a measurement of recruiter performance the percentage 
        of persons enlisted by a recruiter who complete initial combat 
        training or basic training.
            (5) Assess trends in the number and use of waivers over the 
        1991-1997 period that were issued to permit applicants to enlist 
        with medical or other conditions that would otherwise be 
        disqualifying.
            (6) Require the Secretary of each military department to 
        implement policies and procedures (A) to ensure the prompt 
        separation of recruits who are unable to successfully complete 
        basic training, and (B) to remove those recruits from the 
        training environment while separation proceedings are pending.

    (c) Report.--Not later than March 31, 1998, the Secretary shall 
submit to Congress a report of the trends assessed under subsection 
(b)(5). The information on those trends provided in the report shall be 
shown by armed force and by category of waiver. The report shall include 
recommendations of the Secretary for changing, revising, or limiting the 
use of waivers referred to in that subsection.

SEC. 532. IMPROVEMENTS IN MEDICAL PRESCREENING OF APPLICANTS FOR 
            MILITARY SERVICE.

    (a) In General.--The Secretary of Defense shall improve the medical 
prescreening of applicants for entrance into the Army, Navy, Air Force, 
or Marine Corps.
    (b) Specific Steps.--As part of those improvements, the Secretary 
shall take the following steps:
            (1) Require that each applicant for service in the Army, 
        Navy, Air Force, or Marine Corps (A) provide to the Secretary 
        the name of the applicant's medical insurer and the names of 
        past medical providers, and (B) sign a release allowing the 
        Secretary to request and obtain medical records of the 
        applicant.
            (2) Require that the forms and procedures for medical 
        prescreening of applicants that are used by recruiters and by 
        Military Entrance Processing Commands be revised so as to ensure 
        that medical questions are specific, unambiguous, and tied 
        directly to the types of medical separations most common for 
        recruits during basic training and follow-on training.
            (3) Add medical screening tests to the examinations of 
        recruits carried out by Military Entrance Processing Stations, 
        provide more thorough medical examinations to selected groups of 
        applicants, or both, to the extent that the Secretary determines 
        that to do so could be cost effective in reducing attrition at 
        basic training.
            (4) Provide for an annual quality control assessment of the 
        effectiveness of the Military Entrance Processing Commands in 
        identifying medical conditions in recruits that existed before 
        enlistment in the Armed Forces, each such assessment to be 
        performed by an agency or contractor other than the Military 
        Entrance Processing Commands.

[[Page 111 STAT. 1740]]

SEC. 533. IMPROVEMENTS IN PHYSICAL FITNESS OF RECRUITS.

    (a) In General.--The Secretary of Defense shall take steps to 
improve the physical fitness of recruits before they enter basic 
training.
    (b) Specific Steps.--As part of those improvements, the Secretary 
shall take the following steps:
            (1) Direct the Secretary of each military department to 
        implement programs under which new recruits who are in the 
        Delayed Entry Program are encouraged to participate in physical 
        fitness activities before reporting to basic training.
            (2) Develop a range of incentives for new recruits to 
        participate in physical fitness programs, as well as for those 
        recruits who improve their level of fitness while in the Delayed 
        Entry Program, which may include access to Department of Defense 
        military fitness facilities, and access to military medical 
        facilities in the case of a recruit who is injured while 
        participating in physical activities with recruiters or other 
        military personnel.
            (3) Evaluate whether partnerships between recruiters and 
        reserve components, or other innovative arrangements, could 
        provide a pool of qualified personnel to assist in the conduct 
        of physical training programs for new recruits in the Delayed 
        Entry Program.

               Subtitle E--Military Education and Training

                   PART I--OFFICER EDUCATION PROGRAMS

SEC. 541. REQUIREMENT FOR CANDIDATES FOR ADMISSION TO UNITED STATES 
            NAVAL ACADEMY TO TAKE OATH OF ALLEGIANCE.

    (a) Requirement.--Section 6958 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d) To be admitted to the Naval Academy, an appointee must take 
and subscribe to an oath prescribed by the Secretary of the Navy. If a 
candidate for admission refuses to take and subscribe to the prescribed 
oath, the candidate's appointment is terminated.''.
    (b) Exception for Midshipmen From Foreign Countries.--Section 6957 
of such title is amended by adding at the end the following new 
subsection:
    ``(d) A person receiving instruction under this section is not 
subject to section 6958(d) of this title.''.

SEC. 542. SERVICE ACADEMY FOREIGN EXCHANGE PROGRAM.

    (a) United States Military Academy.--(1) Chapter 403 of title 10, 
United States Code, is amended by inserting after section 4344 the 
following new section:

``Sec. 4345. Exchange program with foreign military academies

    ``(a) Exchange Program Authorized.--The Secretary of the Army may 
permit a student enrolled at a military academy of a foreign country to 
receive instruction at the Academy in exchange for a cadet receiving 
instruction at that foreign military academy pursuant to an exchange 
agreement entered into between the Secretary and appropriate officials 
of the foreign country. Students receiving instruction at the Academy 
under the exchange program

[[Page 111 STAT. 1741]]

shall be in addition to persons receiving instruction at the Academy 
under section 4344 of this title.
    ``(b) Limitations on Number and Duration of Exchanges.--An exchange 
agreement under this section between the Secretary and a foreign country 
shall provide for the exchange of students on a one-for-one basis each 
fiscal year. Not more than 10 cadets and a comparable number of students 
from all foreign military academies participating in the exchange 
program may be exchanged during any fiscal year. The duration of an 
exchange may not exceed the equivalent of one academic semester at the 
Academy.
    ``(c) Costs and Expenses.--(1) A student from a military academy of 
a foreign country is not entitled to the pay, allowances, and emoluments 
of a cadet by reason of attendance at the Academy under the exchange 
program, and the Department of Defense may not incur any cost of 
international travel required for transportation of such a student to 
and from the sponsoring foreign country.
    ``(2) The Secretary may provide a student from a foreign country 
under the exchange program, during the period of the exchange, with 
subsistence, transportation within the continental United States, 
clothing, health care, and other services to the same extent that the 
foreign country provides comparable support and services to the 
exchanged cadet in that foreign country.
    ``(3) The Academy shall bear all costs of the exchange program from 
funds appropriated for the Academy. Expenditures in support of the 
exchange program may not exceed $50,000 during any fiscal year.
    ``(d) Application of Other Laws.--Subsections (c) and (d) of section 
4344 of this title shall apply with respect to a student enrolled at a 
military academy of a foreign country while attending the Academy under 
the exchange program.
    ``(e) Regulations.--The Secretary shall prescribe regulations to 
implement this section. Such regulations may include qualification 
criteria and methods of selection for students of foreign military 
academies to participate in the exchange program.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 4344 the 
following new item:

``4345. Exchange program with foreign military academies.''.

    (b) Naval Academy.--(1) Chapter 603 of title 10, United States Code, 
is amended by inserting after section 6957 the following new section:

``Sec. 6957a. Exchange program with foreign military academies

    ``(a) Exchange Program Authorized.--The Secretary of the Navy may 
permit a student enrolled at a military academy of a foreign country to 
receive instruction at the Naval Academy in exchange for a midshipman 
receiving instruction at that foreign military academy pursuant to an 
exchange agreement entered into between the Secretary and appropriate 
officials of the foreign country. Students receiving instruction at the 
Academy under the exchange program shall be in addition to persons 
receiving instruction at the Academy under section 6957 of this title.
    ``(b) Limitations on Number and Duration of Exchanges.--An exchange 
agreement under this section between the Secretary and a foreign country 
shall provide for the exchange of students

[[Page 111 STAT. 1742]]

on a one-for-one basis each fiscal year. Not more than 10 midshipmen and 
a comparable number of students from all foreign military academies 
participating in the exchange program may be exchanged during any fiscal 
year. The duration of an exchange may not exceed the equivalent of one 
academic semester at the Naval Academy.
    ``(c) Costs and Expenses.--(1) A student from a military academy of 
a foreign country is not entitled to the pay, allowances, and emoluments 
of a midshipman by reason of attendance at the Naval Academy under the 
exchange program, and the Department of Defense may not incur any cost 
of international travel required for transportation of such a student to 
and from the sponsoring foreign country.
    ``(2) The Secretary may provide a student from a foreign country 
under the exchange program, during the period of the exchange, with 
subsistence, transportation within the continental United States, 
clothing, health care, and other services to the same extent that the 
foreign country provides comparable support and services to the 
exchanged midshipman in that foreign country.
    ``(3) The Naval Academy shall bear all costs of the exchange program 
from funds appropriated for the Academy. Expenditures in support of the 
exchange program may not exceed $50,000 during any fiscal year.
    ``(d) Application of Other Laws.--Subsections (c) and (d) of section 
6957 of this title shall apply with respect to a student enrolled at a 
military academy of a foreign country while attending the Naval Academy 
under the exchange program.
    ``(e) Regulations.--The Secretary shall prescribe regulations to 
implement this section. Such regulations may include qualification 
criteria and methods of selection for students of foreign military 
academies to participate in the exchange program.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 6957 the 
following new item:

``6957a. Exchange program with foreign military academies.''.

    (c) Air Force Academy.--(1) Chapter 903 of title 10, United States 
Code, is amended by inserting after section 9344 the following new 
section:

``Sec. 9345. Exchange program with foreign military academies

    ``(a) Exchange Program Authorized.--The Secretary of the Air Force 
may permit a student enrolled at a military academy of a foreign country 
to receive instruction at the Air Force Academy in exchange for an Air 
Force cadet receiving instruction at that foreign military academy 
pursuant to an exchange agreement entered into between the Secretary and 
appropriate officials of the foreign country. Students receiving 
instruction at the Academy under the exchange program shall be in 
addition to persons receiving instruction at the Academy under section 
9344 of this title.
    ``(b) Limitations on Number and Duration of Exchanges.--An exchange 
agreement under this section between the Secretary and a foreign country 
shall provide for the exchange of students on a one-for-one basis each 
fiscal year. Not more than 10 Air Force cadets and a comparable number 
of students from all foreign military academies participating in the 
exchange program may be exchanged during any fiscal year. The duration 
of an exchange

[[Page 111 STAT. 1743]]

may not exceed the equivalent of one academic semester at the Air Force 
Academy.
    ``(c) Costs and Expenses.--(1) A student from a military academy of 
a foreign country is not entitled to the pay, allowances, and emoluments 
of an Air Force cadet by reason of attendance at the Air Force Academy 
under the exchange program, and the Department of Defense may not incur 
any cost of international travel required for transportation of such a 
student to and from the sponsoring foreign country.
    ``(2) The Secretary may provide a student from a foreign country 
under the exchange program, during the period of the exchange, with 
subsistence, transportation within the continental United States, 
clothing, health care, and other services to the same extent that the 
foreign country provides comparable support and services to the 
exchanged Air Force cadet in that foreign country.
    ``(3) The Air Force Academy shall bear all costs of the exchange 
program from funds appropriated for the Academy. Expenditures in support 
of the exchange program may not exceed $50,000 during any fiscal year.
    ``(d) Application of Other Laws.--Subsections (c) and (d) of section 
9344 of this title shall apply with respect to a student enrolled at a 
military academy of a foreign country while attending the Air Force 
Academy under the exchange program.
    ``(e) Regulations.--The Secretary shall prescribe regulations to 
implement this section. Such regulations may include qualification 
criteria and methods of selection for students of foreign military 
academies to participate in the exchange program.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 9344 the 
following new item:

``9345. Exchange program with foreign military academies.''.

    (d) Repeal of Obsolete Limitation.--Section 9353(a) of such title is 
amended by striking out ``After the date of the accrediting of the 
Academy, the'' and inserting in lieu thereof ``The''.

SEC. 543. REIMBURSEMENT OF EXPENSES INCURRED FOR INSTRUCTION AT SERVICE 
            ACADEMIES OF PERSONS FROM FOREIGN COUNTRIES.

    (a) United States Military Academy.--Section 4344(b) of title 10, 
United States Code, is amended--
            (1) in paragraph (2), by striking out the period at the end 
        and inserting in lieu thereof the following: ``, except that the 
        reimbursement rates may not be less than the cost to the United 
        States of providing such instruction, including pay, allowances, 
        and emoluments, to a cadet appointed from the United States.''; 
        and
            (2) by adding at the end the following new paragraph:

    ``(3) The amount of reimbursement waived under paragraph (2) may not 
exceed 35 percent of the per-person reimbursement amount otherwise 
required to be paid by a foreign country under such paragraph, except in 
the case of not more than five persons receiving instruction at the 
Academy under this section at any one time.''.
    (b) Naval Academy.--Section 6957(b) of such title is 
amended--
            (1) in paragraph (2), by striking out the period at the end 
        and inserting in lieu thereof the following: ``, except that

[[Page 111 STAT. 1744]]

        the reimbursement rates may not be less than the cost to the 
        United States of providing such instruction, including pay, 
        allowances, and emoluments, to a midshipman appointed from the 
        United States.''; and
            (2) by adding at the end the following new paragraph:

    ``(3) The amount of reimbursement waived under paragraph (2) may not 
exceed 35 percent of the per-person reimbursement amount otherwise 
required to be paid by a foreign country under such paragraph, except in 
the case of not more than five persons receiving instruction at the 
Naval Academy under this section at any one time.''.
    (c) Air Force Academy.--Section 9344(b) of such title is amended--
            (1) in paragraph (2), by striking out the period at the end 
        and inserting in lieu thereof the following: ``, except that the 
        reimbursement rates may not be less than the cost to the United 
        States of providing such instruction, including pay, allowances, 
        and emoluments, to a cadet appointed from the United States.''; 
        and
            (2) by adding at the end the following new paragraph:

    ``(3) The amount of reimbursement waived under paragraph (2) may not 
exceed 35 percent of the per-person reimbursement amount otherwise 
required to be paid by a foreign country under such paragraph, except in 
the case of not more than five persons receiving instruction at the Air 
Force Academy under this section at any one time.''.
    (d) <<NOTE: 10 USC 4344 note.>>  Effective Date.--The amendments 
made by this section apply with respect to students from a foreign 
country entering the United States Military Academy, the United States 
Naval Academy, or the United States Air Force Academy on or after May 1, 
1998.

SEC. 544. CONTINUATION OF SUPPORT TO SENIOR MILITARY 
            COLLEGES.

    (a) <<NOTE: 10 USC 2111a note.>>  Definition of Senior Military 
Colleges.--For purposes of this section, the term ``senior military 
colleges'' means the 
following:
            (1) Texas A&M University.
            (2) Norwich University.
            (3) The Virginia Military Institute.
            (4) The Citadel.
            (5) Virginia Polytechnic Institute and State University.
            (6) North Georgia College and State University.

    (b) <<NOTE: 10 USC 2111a note.>>  Findings.--Congress finds the 
following:
            (1) The senior military colleges consistently have provided 
        substantial numbers of highly qualified, long-serving leaders to 
        the Armed Forces.
            (2) The quality of the military leaders produced by the 
        senior military colleges is, in part, the result of the rigorous 
        military environment imposed on students attending the senior 
        military colleges by the colleges, as well as the result of the 
        long-standing close support relationship between the Corps of 
        Cadets at each college and the Reserve Officer Training Corps 
        personnel at the colleges who serve as effective leadership role 
        models and mentors.
            (3) In recognition of the quality of the young leaders 
        produced by the senior military colleges, the Department of

[[Page 111 STAT. 1745]]

        Defense and the military services have traditionally maintained 
        special relationships with the colleges, including the policy to 
        grant active duty service in the Army to graduates of the 
        colleges who desire such service and who are recommended for 
        such service by their ROTC professors of military science.
            (4) Each of the senior military colleges has demonstrated an 
        ability to adapt its systems and operations to changing 
        conditions in, and requirements of, the Armed Forces without 
        compromising the quality of leaders produced and without 
        interruption of the close relationship between the colleges and 
        the Department of Defense.

    (c) <<NOTE: 10 USC 2111a note.>>  Sense of Congress.--In light of 
the findings in subsection (b), it is the sense of Congress that--
            (1) the proposed initiative of the Secretary of the Army to 
        end the commitment to active duty service for all graduates of 
        senior military colleges who desire such service and who are 
        recommended for such service by their ROTC professors of 
        military science is short-sighted and contrary to the long-term 
        interests of the Army;
            (2) as they have in the past, the senior military colleges 
        can and will continue to accommodate to changing military 
        requirements to ensure that future graduates entering military 
        service continue to be officers of superb quality who are 
        quickly assimilated by the Armed Forces and fully prepared to 
        make significant contributions to the Armed Forces through 
        extended military careers; and
            (3) decisions of the Secretary of Defense or the Secretary 
        of a military department that fundamentally and unilaterally 
        change the long-standing relationship of the Armed Forces with 
        the senior military colleges are not in the best interests of 
        the Department of Defense or the Armed Forces and are patently 
        unfair to students who made decisions to enroll in the senior 
        military colleges on the basis of existing Department and Armed 
        Forces policy.

    (d) Continuation of Support for Senior Military 
Colleges.--Section 2111a of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (d) as subsection (f); and
            (2) by inserting after subsection (c) the following new 
        subsections:

    ``(d) Termination or Reduction of Program Prohibited.--The Secretary 
of Defense and the Secretaries of the military departments may not take 
or authorize any action to terminate or reduce a unit of the Senior 
Reserve Officers' Training Corps at a senior military college unless the 
termination or reduction is specifically requested by the college.
    ``(e) Assignment to Active Duty.--(1) The Secretary of the Army 
shall ensure that a graduate of a senior military college who desires to 
serve as a commissioned officer on active duty upon graduation from the 
college, who is medically and physically qualified for active duty, and 
who is recommended for such duty by the professor of military science at 
the college, shall be assigned to active duty. This paragraph shall 
apply to a member of the program at a senior military college who 
graduates from the college after March 31, 1997.
    ``(2) Nothing in this section shall be construed to prohibit the 
Secretary of the Army from requiring a member of the program

[[Page 111 STAT. 1746]]

who graduates from a senior military college to serve on active duty.''.
    (e) Technical Corrections.--Subsection (f) of such section, as 
redesignated by subsection (d)(1), is amended--
            (1) in paragraph (2), by striking out ``College'' and 
        inserting in lieu thereof ``University''; and
            (2) in paragraph (6), by inserting before the period the 
        following: ``and State University''.

    (f) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

``Sec. 2111a. Support for senior military colleges''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 103 of title 10, United States Code, is amended 
to read as follows:

``2111a. Support for senior military colleges.''.

SEC. 545. REPORT ON MAKING UNITED STATES NATIONALS ELIGIBLE FOR 
            PARTICIPATION IN SENIOR RESERVE OFFICERS' TRAINING CORPS.

    (a) Report.--Not later than 180 days after the date of the enactment 
of this Act, 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 utility of permitting 
United States nationals to participate in the Senior Reserve Officers' 
Training Corps program.
    (b) Required Information.--The Secretary shall include in the report 
the following information:
            (1) A brief history of the prior admission of United States 
        nationals to the Senior Reserve Officers' Training Corps, 
        including the success rate of these cadets and midshipmen and 
        how that rate compared to the average success rate of cadets and 
        midshipmen during that same period.
            (2) The advantages of permitting United States nationals to 
        participate in the Senior Reserve Officers' Training Corps 
        program.
            (3) The disadvantages of permitting United States nationals 
        to participate in the Senior Reserve Officers' Training Corps 
        program.
            (4) The incremental cost of including United States 
        nationals in the Senior Reserve Officers' Training Corps.
            (5) Methods of minimizing the risk that United States 
        nationals admitted to the Senior Reserve Officers' Training 
        Corps would be later disqualified because of ineligibility for 
        United States citizenship.
            (6) The recommendations of the Secretary on whether United 
        States nationals should be eligible to participate in the Senior 
        Reserve Officers' Training Corps program, and if so, a 
        legislative proposal which would, if enacted, achieve that 
        result.

SEC. 546. COORDINATION OF ESTABLISHMENT AND MAINTENANCE OF JUNIOR 
            RESERVE OFFICERS' TRAINING CORPS UNITS TO MAXIMIZE 
            ENROLLMENT AND ENHANCE EFFICIENCY.

    (a) Requirement.--Chapter 102 of title 10, United States Code, is 
amended by adding at the end the following new section:

[[Page 111 STAT. 1747]]

``Sec. 2032. Responsibility of the Secretaries of the military 
                        departments to maximize enrollment and enhance 
                        efficiency

    ``(a) Coordination.--The Secretary of each military department, in 
establishing, maintaining, transferring, and terminating Junior Reserve 
Officers' Training Corps units under section 2031 of this title, shall 
do so in a coordinated manner that is designed to maximize enrollment in 
the Corps and to enhance administrative efficiency in the management of 
the Corps.
    ``(b) Consideration of New School Openings and Consolidations.--In 
carrying out subsection (a), the Secretary of a military department 
shall take into consideration--
            ``(1) openings of new schools;
            ``(2) consolidations of schools; and
            ``(3) the desirability of continuing the opportunity for 
        participation in the Corps by participants whose continued 
        participation would otherwise be adversely affected by new 
        school openings and consolidations of schools.''.

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

``2032. Responsibility of the Secretaries of the military departments to 
           maximize 
           enrollment and enhance efficiency.''.

                    PART II--OTHER EDUCATION MATTERS

SEC. 551. UNITED STATES NAVAL POSTGRADUATE SCHOOL.

    (a) Authority To Admit Enlisted Members as Students.--Section 7045 
of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' after ``(a)''; and
                    (B) by adding at the end the following new 
                paragraph:

    ``(2) The Secretary may permit an enlisted member of the armed 
forces who is assigned to the Naval Postgraduate School or to a nearby 
command to receive instruction at the Naval Postgraduate School. 
Admission of enlisted members for instruction under this paragraph shall 
be on a space-available basis.'';
            (2) in subsection (b)--
                    (A) by striking out ``the students'' and inserting 
                in lieu thereof ``officers''; and
                    (B) by adding at the end the following new sentence: 
                ``In the case of an enlisted member permitted to receive 
                instruction at the Postgraduate School, the Secretary of 
                the Navy shall charge that member only for such costs 
                and fees as the Secretary considers appropriate (taking 
                into consideration the admission of enlisted members on 
                a space-available basis).''; and
            (3) in subsection (c)--
                    (A) by striking out ``officers'' both places it 
                appears and inserting in lieu thereof ``members''; and
                    (B) by striking out ``same regulations'' and 
                inserting in lieu thereof ``such regulations, as 
                determined appropriate by the Secretary of the Navy,''.

    (b) Clerical Amendments.--(1) The heading of section 7045 of such 
title is amended to read as follows:

[[Page 111 STAT. 1748]]

``Sec. 7045. Officers of the other armed forces; enlisted members: 
                        admission''.

    (2) The item relating to section 7045 in the table of sections at 
the beginning of chapter 605 of such title is amended to read as 
follows:

``7045. Officers of the other armed forces; enlisted members: 
           admission.''.

    (c) Amendment To Reflect Revised Civil Service Grade Structure.--
Section 7043(b) of such title is amended by striking out ``grade GS-18 
of the General Schedule under section 5332 of title 5'' and inserting in 
lieu thereof ``level IV of the Executive Schedule''.

SEC. 552. COMMUNITY COLLEGE OF THE AIR FORCE.

    (a) Expansion of Members Eligible for Program To Include Instructors 
at Air Force Training Schools.--Section 9315 of title 10, United States 
Code, is amended--
            (1) in subsection (a)(1), by striking out ``enlisted members 
        of the Air Force'' and inserting in lieu thereof ``enlisted 
        members described in subsection (b)'';
            (2) by striking out ``(b) Subject to subsection (c),'' and 
        inserting in lieu thereof ``(c)(1) Subject to paragraph (2),'';
            (3) by redesignating subsection (c) as paragraph (2) and in 
        that paragraph redesignating clauses (1) and (2) as clauses (A) 
        and (B), respectively; and
            (4) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Members Eligible for Programs.--Subject to such other 
eligibility requirements as the Secretary concerned may prescribe, the 
following members of the armed forces are eligible to participate in 
programs of higher education under subsection (a)(1):
            ``(1) Enlisted members of the Air Force.
            ``(2) Enlisted members of the armed forces other than the 
        Air Force who are serving as instructors at Air Force training 
        schools.''.

    (b) Clerical Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Establishment and 
        Mission.--'' after ``(a)''; and
            (2) in subsection (c), as redesignated by subsection (a)(2), 
        by inserting ``Conferral of Degrees.--'' after ``(c)''.

    (c) <<NOTE: 10 USC 9315 note.>>  Effective Date.--Subsection (b) of 
section 9315 of such title, as added by subsection (a)(4), applies with 
respect to enrollments in the Community College of the Air Force after 
March 31, 1996.

SEC. 553. PRESERVATION OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE OF 
            MEMBERS OF THE SELECTED RESERVE SERVING ON ACTIVE DUTY IN 
            SUPPORT OF A CONTINGENCY OPERATION.

    (a) Preservation of Educational Assistance.--Section 
16131(c)(3)(B)(i) of title 10, United States Code, is amended by 
striking out ``, in connection with the Persian Gulf War,''.
    (b) Extension of 10-Year Period of Availability.--Section 
16133(b)(4) of such title is amended--
            (1) by striking out ``(A)'';
            (2) by striking out ``, during the Persian Gulf War,'';
            (3) by redesignating clauses (i) and (ii) as subparagraphs 
        (A) and (B), respectively; and

[[Page 111 STAT. 1749]]

            (4) by striking out ``(B) For the purposes'' and all that 
        follows through ``title 38.''.

               PART III--TRAINING OF ARMY DRILL SERGEANTS

SEC. 556. <<NOTE: 10 USC 4318 note.>>  REFORM OF ARMY DRILL SERGEANT 
            SELECTION AND TRAINING PROCESS.

    (a) In General.--The Secretary of the Army shall reform the process 
for selection and training of drill sergeants for the Army.
    (b) Measures To Be Taken.--As part of such reform, the Secretary 
shall undertake the following measures (unless, in the case of any such 
measure, the Secretary determines that that measure would not result in 
improved effectiveness and efficiency in the drill sergeant selection 
and training process):
            (1) Review the overall process used by the Department of the 
        Army for selection of drill sergeants to determine--
                    (A) whether that process is providing drill sergeant 
                candidates in sufficient quantity and quality to meet 
                the needs of the training system; and
                    (B) whether duty as a drill sergeant is a career-
                enhancing assignment (or is seen by potential drill 
                sergeant candidates as a career-enhancing assignment) 
                and what steps could be taken to ensure that such duty 
                is in fact a career-enhancing assignment.
            (2) Incorporate into the selection process for all drill 
        sergeants the views and recommendations of the officers and 
        senior noncommissioned officers in the chain of command of each 
        candidate for selection (particularly those of senior 
        noncommissioned officers) regarding the candidate's suitability 
        and qualifications to be a drill sergeant.
            (3) Establish a requirement for psychological screening for 
        each drill sergeant candidate.
            (4) Reform the psychological screening process for drill 
        sergeant candidates to improve the quality, depth, and rigor of 
        that screening process.
            (5) Revise the evaluation system for drill sergeants in 
        training to provide for a so-called ``whole person'' assessment 
        that gives insight into the qualifications and suitability of a 
        drill sergeant candidate beyond the candidate's ability to 
        accomplish required performance tasks.
            (6) Revise the Army military personnel records system so 
        that, under conditions and circumstances to be specified in 
        regulations prescribed by the Secretary, a drill sergeant 
        trainee who fails to complete the training to be a drill 
        sergeant and is denied graduation will not have the fact of that 
        failure recorded in those personnel records.
            (7) Provide each drill sergeant in training with the 
        opportunity, before or during that training, to work with new 
        recruits in initial entry training and to be evaluated on that 
        opportunity.

    (c) Report.--Not later than March 31, 1998, 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 of the reforms adopted pursuant to this section or, in the case 
of any measure specified in any of paragraphs (1) through (7) of 
subsection (b) that was not adopted, the rationale why that measure was 
not adopted.

[[Page 111 STAT. 1750]]

SEC. 557. TRAINING IN HUMAN RELATIONS MATTERS FOR ARMY DRILL SERGEANT 
            TRAINEES.

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

``Sec. 4318. Drill sergeant trainees: human relations training

    ``(a) Human Relations Training Required.--The Secretary of the Army 
shall include as part of the training program for drill sergeants a 
course in human relations. The course shall be a minimum of two days in 
duration.
    ``(b) Resources.--In developing a human relations course under this 
section, the Secretary shall use the capabilities and expertise of the 
Defense Equal Opportunity Management Institute (DEOMI).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``4318. Drill sergeant trainees: human relations training.''.

    (b) <<NOTE: 10 USC 4318 note.>>  Effective Date.--Section 4318 of 
title 10, United States Code, as added by subsection (a), shall apply 
with respect drill sergeant trainee classes that begin after the end of 
the 90-day period beginning on the date of the enactment of this Act.

Subtitle F--Commission <<NOTE: 10 USC 113 note.>>  on Military Training 
and Gender-Related Issues

SEC. 561. ESTABLISHMENT AND COMPOSITION OF COMMISSION.

    (a) Establishment.--There is established a Commission on Military 
Training and Gender-Related Issues to review requirements and 
restrictions regarding cross-gender relationships of members of the 
Armed Forces, to review the basic training programs of the Army, Navy, 
Air Force, and Marine Corps, and to make recommendations on improvements 
to those programs, requirements, and restrictions.
    (b) Composition.--(1) The commission shall be composed of 10 
members, appointed as follows:
            (A) Five members shall be appointed jointly by the chairman 
        and ranking minority party member of the Committee on National 
        Security of the House of Representatives.
            (B) Five members shall be appointed jointly by the chairman 
        and ranking minority party member of the Committee on Armed 
        Services of the Senate.

    (2) The members of the commission shall choose one of the members to 
serve as chairman.
    (3) All members of the commission shall be appointed not later than 
45 days after the date of the enactment of this Act.
    (c) Qualifications.--Members of the commission shall be appointed 
from among private United States citizens with knowledge and expertise 
in one or more of the following:
            (1) Training of military personnel.
            (2) Social and cultural matters affecting entrance into the 
        Armed Forces and affecting military service, military training, 
        and military readiness, such knowledge and expertise to have 
        been gained through recognized research, policy making and 
        practical experience, as demonstrated by retired military 
        personnel, members of the reserve components of the Armed

[[Page 111 STAT. 1751]]

        Forces, representatives from educational organizations, and 
        leaders from civilian industry and other Government agencies.
            (3) Factors that define appropriate military job 
        qualifications, including physical, mental, and educational 
        factors.
            (4) Combat or other theater of war operations.
            (5) Organizational matters.
            (6) Legal matters.
            (7) Management.
            (8) Gender integration matters.

    (d) Appointments.--(1) Members of the commission shall be appointed 
for the life of the commission.
    (2) A vacancy in the membership shall not affect the commission's 
powers, but shall be filled in the same manner as the original 
appointment.

SEC. 562. DUTIES.

    (a) Functions Relating to Requirements and Restrictions Regarding 
Cross-Gender Relationships.--The commission shall consider issues 
relating to personal relationships of members of the Armed Forces as 
follows:
            (1) Review the laws, regulations, policies, directives, and 
        practices that govern personal relationships between men and 
        women in the Armed Forces and personal relationships between 
        members of the Armed Forces and non-military personnel of the 
        opposite sex.
            (2) Assess the extent to which the laws, regulations, 
        policies, and directives have been applied consistently 
        throughout the Armed Forces without regard to the armed force, 
        grade, rank, or gender of the individuals involved.
            (3) Assess the reports of the independent panel, the 
        Department of Defense task force, and the review of existing 
        guidance on fraternization and adultery that have been required 
        by the Secretary of Defense.

    (b) Functions Relating to Gender-Integrated and Gender-Segregated 
Basic Training.--(1) The commission shall review the parts of the 
initial entry training programs of the Army, Navy, Air Force, and Marine 
Corps that constitute the basic training of new recruits (in this 
subtitle referred to as ``basic training''). The review shall include a 
review of the basic training policies and practices of each of those 
services with regard to gender-integrated and gender-segregated basic 
training and, for each of the services, the effectiveness of gender-
integrated and gender-segregated basic training.
    (2) As part of the review under paragraph (1), the commission shall 
(with respect to each of the services) take the following 
measures:
            (A) Determine how each service defines gender-integration 
        and gender-segregation in the context of basic training.
            (B) Determine the historical rationales for the 
        establishment and disestablishment of gender-integrated or 
        gender-segregated basic training.
            (C) Examine, with respect to each service, the current 
        rationale for the use of gender-integrated or gender-segregated 
        basic training and the rationale that was current as of the time 
        the service made a decision to integrate, or to segregate, basic 
        training by gender (or as of the time of the most recent 
        decision to continue to use a gender-integrated format or a

[[Page 111 STAT. 1752]]

        gender-segregated format for basic training), and, as part of 
        the examination, evaluate whether at the time of that decision, 
        the Secretary of the military department with jurisdiction over 
        that service had substantive reason to believe, or has since 
        developed data to support, that gender-integrated basic 
        training, or gender-segregated basic training, improves the 
        readiness or performance of operational units.
            (D) Assess whether the concept of ``training as you will 
        fight'' is a valid rationale for gender-integrated basic 
        training or whether the training requirements and objectives for 
        basic training are sufficiently different from those of 
        operational units so that such concept, when balanced against 
        other factors relating to basic training, might not be a 
        sufficient rationale for gender-integrated basic training.
            (E) Identify the requirements unique to each service that 
        could affect a decision by the Secretary concerned to adopt a 
        gender-integrated or gender-segregated format for basic training 
        and assess whether the format in use by each service has been 
        successful in meeting those requirements.
            (F) Assess, with respect to each service, the degree to 
        which different standards have been established, or if not 
        established are in fact being implemented, for males and females 
        in basic training for matters such as physical fitness, physical 
        performance (such as confidence and obstacle courses), military 
        skills (such as marksmanship and hand-grenade qualifications), 
        and nonphysical tasks required of individuals and, to the degree 
        that differing standards exist or are in fact being implemented, 
        assess the effect of the use of those differing standards.
            (G) Identify the goals that each service has set forth in 
        regard to readiness, in light of the gender-integrated or 
        gender-segregated format that such service has adopted for basic 
        training, and whether that format contributes to the readiness 
        of operational units.
            (H) Assess the degree to which performance standards in 
        basic training are based on military readiness.
            (I) Evaluate the policies of each of the services regarding 
        the assignment of adequate numbers of female drill instructors 
        in gender-integrated training units who can serve as role models 
        and mentors for female trainees.
            (J) Review Department of Defense and military department 
        efforts to objectively measure or evaluate the effectiveness of 
        gender-integrated basic training, as compared to gender-
        segregated basic training, particularly with regard to the 
        adequacy and scope of the efforts and with regard to the 
        relevancy of findings to operational unit requirements, and 
        determine whether the Department of Defense and the military 
        departments are capable of measuring or evaluating the 
        effectiveness of that training format objectively.
            (K) Compare the pattern of attrition in gender-integrated 
        basic training units with the pattern of attrition in gender-
        segregated basic training units and assess the relevancy of the 
        findings of such comparison.
            (L) Compare the level of readiness and morale of gender-
        integrated basic training units with the level of readiness and 
        morale of gender-segregated units, and assess the relevancy of 
        the findings of such comparison and the implications, for 
        readiness, of any differences found.

[[Page 111 STAT. 1753]]

            (M) Compare the experiences, policies, and practices of the 
        armed forces of other industrialized nations regarding gender-
        integrated training with those of the Army, Navy, Air Force, and 
        Marine Corps.
            (N) Review, and take into consideration, the current 
        practices, relevant studies, and private sector training 
        concepts pertaining to gender-integrated training.
            (O) Assess the feasibility and implications of conducting 
        basic training (or equivalent training) at the company level and 
        below through separate units for male and female recruits, 
        including the costs and other resource commitments required to 
        implement and conduct basic training in such a manner and the 
        implications for readiness and unit cohesion.
            (P) Assess the feasibility and implications of requiring 
        drill instructors for basic training units to be of the same sex 
        as the recruits in those units if the basic training were to be 
        conducted as described in subparagraph (O).

    (c) Functions Relating to Basic Training Programs 
Generally.--The commission shall review the course objectives, 
structure, and length of the basic training programs of the Army, Navy, 
Air Force, and Marine Corps. The commission shall also review the 
relationship between those basic training objectives and the advanced 
training provided in the initial entry training programs of each of 
those services. As part of that review, the commission shall (with 
respect to each of those services) take the following measures:
            (1) Determine the current end-state objectives established 
        for graduates of basic training, particularly in regard to--
                    (A) physical conditioning;
                    (B) technical and physical skills proficiency;
                    (C) knowledge;
                    (D) military socialization, including the 
                inculcation of service values and attitudes; and
                    (E) basic combat operational requirements.
            (2) Assess whether those current end-state objectives, and 
        basic training itself, should be modified (in structure, length, 
        focus, program of instruction, training methods or otherwise) 
        based, in part, on the following:
                    (A) An assessment of the perspectives of operational 
                units on the quality and qualifications of the initial 
                entry training graduates being assigned to those units, 
                considering in particular whether the basic training 
                system produces graduates who arrive in operational 
                units with an appropriate level of skills, physical 
                conditioning, and degree of military socialization to 
                meet unit requirements and needs.
                    (B) An assessment of the demographics, backgrounds, 
                attitudes, experience, and physical fitness of new 
                recruits entering basic training, considering in 
                particular the question of whether, given the entry 
                level demographics, education, and background of new 
                recruits, the basic training systems and objectives are 
                most efficiently and effectively structured and 
                conducted to produce graduates who meet service needs.
                    (C) An assessment of the perspectives of personnel 
                who conduct basic training with regard to measures 
                required to improve basic training.

[[Page 111 STAT. 1754]]

            (3) Assess the extent to which the initial entry training 
        programs of each of the services continue, after the basic 
        training phases of the programs, effectively to reinforce and 
        advance the military socialization (including the inculcation of 
        service values and attitudes), the physical conditioning, and 
        the attainment and improvement of knowledge and proficiency in 
        fundamental military skills that are begun in basic training.

    (d) Recommendations.--The commission shall prepare--
            (1) with respect to each of the Army, Navy, Air Force, and 
        Marine Corps, an evaluation of gender-integrated and gender-
        segregated basic training programs, based upon the review under 
        subsection (b);
            (2) recommendations for such changes to the current system 
        of basic training as the commission considers warranted; and
            (3) recommendations for such changes to laws, regulations, 
        policies, directives, and practices referred to in subsection 
        (a)(1) as the commission considers warranted.

    (e) Reports.--(1) Not later than April 15, 1998, the commission 
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 a strategic plan for the work of the commission and the 
activities and initial findings of the commission.
    (2) Not later than September 16, 1998, the commission shall submit a 
final report to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives. The 
final report shall set forth the activities, findings, and 
recommendations of the commission, including any recommendations for 
congressional action and administrative action that the commission 
considers appropriate. The report shall specifically set forth the views 
of the Secretaries of the military departments regarding the matters 
described in subparagraphs (O) and (P) of subsection (b)(2).

SEC. 563. ADMINISTRATIVE MATTERS.

    (a) Meetings.--(1) The commission shall hold its first meeting not 
later than 30 days after the date on which all members have been 
appointed.
    (2) The commission shall meet upon the call of the chairman.
    (3) A majority of the members of the commission shall constitute a 
quorum, but a lesser number may hold meetings.
    (b) Authority of Individuals To Act for Commission.--Any member or 
agent of the commission may, if authorized by the commission, take any 
action which the commission is authorized to take under this title.
    (c) Powers.--(1) The commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such evidence 
as the commission considers advisable to carry out its duties.
    (2) The commission may secure directly from the Department of 
Defense and any other department or agency of the Federal Government 
such information as the commission considers necessary to carry out its 
duties. Upon the request of the chairman of the commission, the head of 
a department or agency shall furnish the requested information 
expeditiously to the commission.
    (3) The commission may use the United States mails in the same 
manner and under the same conditions as other departments and agencies 
of the Federal Government.

[[Page 111 STAT. 1755]]

    (d) Pay and Expenses of Commission Members.--(1) Each member of the 
commission who is not an employee of the Government shall be paid at a 
rate equal to the daily equivalent of the annual rate of basic pay 
prescribed for level IV of the Executive Schedule under section 5315 of 
title 5, United States Code, for each day (including travel time) during 
which such member is engaged in performing the duties of the commission.
    (2) Members and personnel of the commission may travel on aircraft, 
vehicles, or other conveyances of the Armed Forces when travel is 
necessary in the performance of a duty of the commission except when the 
cost of commercial transportation is less expensive.
    (3) The members of the commission may be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the commission.
    (4)(A) A member of the commission who is an annuitant otherwise 
covered by section 8344 or 8468 of title 5, United States Code, by 
reason of membership on the commission shall not be subject to the 
provisions of such section with respect to such membership.
    (B) A member of the commission who is a member or former member of a 
uniformed service shall not be subject to the provisions of subsections 
(b) and (c) of section 5532 of such title with respect to membership on 
the commission.
    (e) Staff and Administrative Support.--(1) The chairman of the 
commission may, without regard to civil service laws and regulations, 
appoint and terminate an executive director and up to three additional 
staff members as necessary to enable the commission to perform its 
duties. The chairman of the commission may fix the compensation of the 
executive director and other personnel without regard to the provisions 
of chapter 51, and subchapter III of chapter 53, of title 5, United 
States Code, relating to classification of positions and General 
Schedule pay rates, except that the rate of pay may not exceed the 
maximum rate of pay for grade GS-15 under the General Schedule.
    (2) Upon the request of the chairman of the commission, the head of 
any department or agency of the Federal Government may detail, without 
reimbursement, any personnel of the department or agency to the 
commission to assist in carrying out its duties. A detail of an employee 
shall be without interruption or loss of civil service status or 
privilege.
    (3) The chairman of the commission may procure temporary and 
intermittent services under section 3109(b) of title 5, United States 
Code, at rates for individuals that do not exceed the daily equivalent 
of the annual rate of basic pay prescribed for level IV of the Executive 
Schedule under section 5315 of such title.
    (4) The Secretary of Defense shall furnish to the commission such 
administrative and support services as may be requested by the chairman 
of the commission.

SEC. 564. TERMINATION OF COMMISSION.

    The commission shall terminate 60 days after the date on which it 
submits the final report under section 562(e)(2).

[[Page 111 STAT. 1756]]

SEC. 565. FUNDING.

    (a) From Department of Defense Appropriations.--Upon the request of 
the chairman of the commission, the Secretary of Defense shall make 
available to the commission, out of funds appropriated for the 
Department of Defense, such amounts as the commission may require to 
carry out its duties.
    (b) Period of Availability.--Funds made available to the commission 
shall remain available, without fiscal year limitation, until the date 
on which the commission terminates.

SEC. 566. SUBSEQUENT CONSIDERATION BY CONGRESS.

    After receipt of each report of the commission under section 562(e), 
Congress shall consider the report and, based upon the results of the 
review (and such other matters as Congress considers appropriate), 
consider whether to require by law that the Secretaries of the military 
departments conduct basic training on a gender-segregated or gender-
integrated basis.

               Subtitle G--Military Decorations and Awards

SEC. 571. PURPLE HEART TO BE AWARDED ONLY TO MEMBERS OF THE ARMED 
            FORCES.

    (a) In General.--(1) Chapter 57 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 1131. Purple Heart: limitation to members of the armed forces

    ``The decoration known as the Purple Heart (authorized to be awarded 
pursuant to Executive Order 11016) may only be awarded to a person who 
is a member of the armed forces at the time the person is killed or 
wounded under circumstances otherwise qualifying that person for award 
of the Purple Heart.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``1131. Purple Heart: limitation to members of the armed forces.''.

    (b) <<NOTE: 10 USC 1131 note.>>  Effective Date.--Section 1131 of 
title 10, United States Code, as added by subsection (a), shall apply 
with respect to persons who are killed or wounded after the end of the 
180-day period beginning on the date of the enactment of this Act.

SEC. 572. <<NOTE: 10 USC 1130 note.>>  ELIGIBILITY FOR ARMED FORCES 
            EXPEDITIONARY MEDAL FOR PARTICIPATION IN OPERATION JOINT 
            ENDEAVOR OR OPERATION JOINT GUARD.

    (a) Inclusion of Operations.--For the purpose of determining the 
eligibility of members and former members of the Armed Forces for the 
Armed Forces Expeditionary Medal, the Secretary of Defense shall 
designate participation in Operation Joint Endeavor or Operation Joint 
Guard in the Republic of Bosnia and Herzegovina, and in such other areas 
in the region as the Secretary considers appropriate, as service in an 
area that meets the general requirements for the award of that medal.
    (b) Individual Determination.--The Secretary of the military 
department concerned shall determine whether individual members

[[Page 111 STAT. 1757]]

or former members of the Armed Forces who participated in Operation 
Joint Endeavor or Operation Joint Guard meet the individual service 
requirements for award of the Armed Forces Expeditionary Medal as 
established in applicable regulations. A member or former member shall 
be considered to have participated in Operation Joint Endeavor or 
Operation Joint Guard if the member--
            (1) was deployed in the Republic of Bosnia and Herzegovina, 
        or in such other area in the region as the Secretary of Defense 
        considers appropriate, in direct support of one or both of the 
        operations;
            (2) served on board a United States naval vessel operating 
        in the Adriatic Sea in direct support of one or both of the 
        operations; or
            (3) operated in airspace above the Republic of Bosnia and 
        Herzegovina, or in such other area in the region as the 
        Secretary of Defense considers appropriate, while the operations 
        were in effect.

    (c) Operations Defined.--For purposes of this section:
            (1) The term ``Operation Joint Endeavor'' means operations 
        of the United States Armed Forces conducted in the Republic of 
        Bosnia and Herzegovina during the period beginning on November 
        20, 1995, and ending on December 20, 1996, to assist in 
        implementing the General Framework Agreement and Associated 
        Annexes, initialed on November 21, 1995, in Dayton, Ohio.
            (2) The term ``Operation Joint Guard'' means operations of 
        the United States Armed Forces conducted in the Republic of 
        Bosnia and Herzegovina as a successor to Operation Joint 
        Endeavor during the period beginning on December 20, 1996, and 
        ending on such date as the Secretary of Defense may designate.

SEC. 573. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS TO 
            SPECIFIED PERSONS.

    (a) Waiver of Time Limitation.--Any limitation established by law or 
policy for the time within which a recommendation for the award of a 
military decoration or award must be submitted shall not apply in the 
case of awards of decorations described in subsections (b), (c), and 
(d), 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) Silver Star Medal.--Subsection (a) applies to the award of the 
Silver Star Medal as follows:
            (1) To Joseph M. Moll, Jr. of Milford, New Jersey, for 
        service during World War II.
            (2) To Philip Yolinsky of Hollywood, Florida, for service 
        during the Korean Conflict.
            (3) To Robert Norman of Reno, Nevada, for service during 
        World War II.

    (c) Navy and Marine Corps Medal.--Subsection (a) applies to the 
award of the Navy and Marine Corps Medal to Gary A. Gruenwald of 
Damascus, Maryland, for service in Tunisia in October 1977.
    (d) Distinguished Flying Cross.--Subsection (a) applies to awards of 
the Distinguished Flying Cross for service during World War II or Korea 
(including multiple awards to the same individual)

[[Page 111 STAT. 1758]]

in the case of each individual 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. 574. CLARIFICATION OF ELIGIBILITY OF MEMBERS OF READY RESERVE FOR 
            AWARD OF SERVICE MEDAL FOR HEROISM.

    (a) Soldier's Medal.--Section 3750(a) of title 10, United States 
Code, is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The authority in paragraph (1) includes authority to award the 
medal to a member of the Ready Reserve who was not in a duty status 
defined in section 101(d) of this title when the member distinguished 
himself by heroism.''.
    (b) Navy and Marine Corps Medal.--Section 6246 of such title is 
amended--
            (1) by designating the text of the section as subsection 
        (a); and
            (2) by adding at the end the following new subsection:

    ``(b) The authority in subsection (a) includes authority to award 
the medal to a member of the Ready Reserve who was not in a duty status 
defined in section 101(d) of this title when the member distinguished 
himself by heroism.''.
    (c) Airman's Medal.--Section 8750(a) of such title is 
amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The authority in paragraph (1) includes authority to award the 
medal to a member of the Ready Reserve who was not in a duty status 
defined in section 101(d) of this title when the member distinguished 
himself by heroism.''.

SEC. 575. ONE-YEAR EXTENSION OF PERIOD FOR RECEIPT OF RECOMMENDATIONS 
            FOR DECORATIONS AND AWARDS FOR CERTAIN MILITARY INTELLIGENCE 
            PERSONNEL.

    Section 523(b)(1) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 311; 10 U.S.C. 1130 
note) is amended by striking out ``during the one-year period beginning 
on the date of the enactment of this Act'' and inserting in lieu thereof 
``during the period beginning on February 10, 1996, and ending on 
February 9, 1998''.

SEC. 576. <<NOTE: 10 USC 1130 note.>>  ELIGIBILITY OF CERTAIN WORLD WAR 
            II MILITARY ORGANIZATIONS FOR AWARD OF UNIT DECORATIONS.

    (a) Authority.--A unit decoration may be awarded for any unit or 
other organization of the Armed Forces (such as the Military 
Intelligence Service of the Army) that (1) supported the planning or 
execution of combat operations during World War II primarily through 
unit personnel who were attached to other units of the Armed Forces or 
of other allied armed forces, and (2) is not otherwise eligible for 
award of the decoration by reason of not usually having been deployed as 
a unit in support of such operations.

[[Page 111 STAT. 1759]]

    (b) Time for Submission of Recommendation.--Any recommendation for 
award of a unit decoration under subsection (a) shall be submitted to 
the Secretary concerned (as defined in section 101(a)(9) of title 10, 
United States Code), or to such other official as the Secretary 
concerned may designate, not later than two years after the date of the 
enactment of this Act.

SEC. 577. RETROACTIVITY OF MEDAL OF HONOR SPECIAL PENSION.

    (a) Entitlement.--In the case of Vernon J. Baker, Edward A. Carter, 
Junior, and Charles L. Thomas, who were awarded the Medal of Honor 
pursuant to section 561 of Public Law 104-201 (110 Stat. 2529) and whose 
names have been entered and recorded on the Army, Navy, Air Force, and 
Coast Guard Medal of Honor Roll, the entitlement of those persons to the 
special pension provided under section 1562 of title 38, United States 
Code (and antecedent provisions of law), shall be effective as follows:
            (1) In the case of Vernon J. Baker, for months that begin 
        after April 1945.
            (2) In the case of Edward A. Carter, Junior, for months that 
        begin after March 1945.
            (3) In the case of Charles L. Thomas, for months that begin 
        after December 1944.

    (b) Amount.--The amount of the special pension payable under 
subsection (a) for a month beginning before the date of the enactment of 
this Act shall be the amount of the special pension provided by law for 
that month for persons entered and recorded on the Army, Navy, Air 
Force, and Coast Guard Medal of Honor Roll (or an antecedent Medal of 
Honor Roll required by law).
    (c) Payment to Next of Kin.--In the case of a person referred to in 
subsection (a) who died before receiving full payment of the pension 
pursuant to this section, the Secretary of Veterans Affairs shall pay 
the total amount of the accrued pension, upon receipt of application for 
payment within one year after the date of the enactment of this Act, to 
the deceased person's spouse or, if there is no surviving spouse, then 
to the deceased person's children, per stirpes, in equal shares.

                  Subtitle H--Military Justice Matters

SEC. 581. ESTABLISHMENT OF SENTENCE OF CONFINEMENT FOR LIFE WITHOUT 
            ELIGIBILITY FOR PAROLE.

    (a) Establishment of Sentence.--(1) Chapter 47 of title 10, United 
States Code (the Uniform Code of Military Justice), is amended by 
inserting after section 856 (article 56) the following new section 
(article):

``Sec. 856a. Art. 56a. Sentence of confinement for life without 
                        eligibility for parole

    ``(a) For any offense for which a sentence of confinement for life 
may be adjudged, a court-martial may adjudge a sentence of confinement 
for life without eligibility for parole.
    ``(b) An accused who is sentenced to confinement for life without 
eligibility for parole shall be confined for the remainder of the 
accused's life unless--
            ``(1) the sentence is set aside or otherwise modified as a 
        result of--

[[Page 111 STAT. 1760]]

                    ``(A) action taken by the convening authority, the 
                Secretary concerned, or another person authorized to act 
                under section 860 of this title (article 60); or
                    ``(B) any other action taken during post-trial 
                procedure and review under any other provision of 
                subchapter IX;
            ``(2) the sentence is set aside or otherwise modified as a 
        result of action taken by a Court of Criminal Appeals, the Court 
        of Appeals for the Armed Forces, or the Supreme Court; or
            ``(3) the accused is pardoned.''.

    (2) The table of sections at the beginning of subchapter VIII of 
such chapter is amended by inserting after the item relating to section 
856 (article 56) the following new item:

``856a. 56a. Sentence of confinement for life without eligibility for 
           parole.''.

    (b) <<NOTE: 10 USC 856a note.>>  Effective Date.--Section 856a of 
title 10, United States Code (article 56a of the Uniform Code of 
Military Justice), as added by subsection (a), shall be applicable only 
with respect to an offense committed after the date of the enactment of 
this Act.

SEC. 582. LIMITATION ON APPEAL OF DENIAL OF PAROLE FOR OFFENDERS SERVING 
            LIFE SENTENCE.

    (a) Exclusive Authority To Grant Parole on Appeal of Denial.--
Section 952 of title 10, United States Code, is amended--
            (1) by inserting ``(a)'' before ``The Secretary''; and
            (2) by adding at the end the following new subsection:

    ``(b) In a case in which parole for an offender serving a sentence 
of confinement for life is denied, only the President or the Secretary 
concerned may grant the offender parole on appeal of that denial. The 
authority to grant parole on appeal in such a case may not be 
delegated.''.
    (b) <<NOTE: 10 USC 952 note.>>  Effective Date.--Subsection (b) of 
section 952 of title 10, United States Code (as added by subsection 
(a)), shall apply only with respect to any decision to deny parole made 
after the date of the enactment of this Act.

                        Subtitle I--Other Matters

SEC. 591. SEXUAL HARASSMENT INVESTIGATIONS AND REPORTS.

    (a) Investigations.--(1) Part II of subtitle A of title 10, United 
States Code, is amended by inserting after chapter 79 the following new 
chapter:

 ``CHAPTER 80--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER DUTIES

``Sec.
``1561. Complaints of sexual harassment: investigation by commanding 
           officers.

``Sec. 1561. Complaints of sexual harassment: investigation by 
                        commanding officers

    ``(a) Action on Complaints Alleging Sexual Harassment.--A commanding 
officer or officer in charge of a unit, vessel, facility, or area of the 
Army, Navy, Air Force, or Marine Corps who receives from a member of the 
command or a civilian employee under the supervision of the officer a 
complaint alleging sexual harassment by a member of the armed forces or 
a civilian employee of the

[[Page 111 STAT. 1761]]

Department of Defense shall carry out an investigation of the matter in 
accordance with this section.
    ``(b) Commencement of Investigation.--To the extent practicable, a 
commanding officer or officer in charge receiving such a complaint 
shall, within 72 hours after receipt of the complaint--
            ``(1) forward the complaint or a detailed description of the 
        allegation to the next superior officer in the chain of command 
        who is authorized to convene a general court-martial;
            ``(2) commence, or cause the commencement of, an 
        investigation of the complaint; and
            ``(3) advise the complainant of the commencement of the 
        investigation.

    ``(c) Duration of Investigation.--To the extent practicable, a 
commanding officer or officer in charge receiving such a complaint shall 
ensure that the investigation of the complaint is completed not later 
than 14 days after the date on which the investigation is commenced.
    ``(d) Report on Investigation.--To the extent practicable, a 
commanding officer or officer in charge receiving such a complaint 
shall--
            ``(1) submit a final report on the results of the 
        investigation, including any action taken as a result of the 
        investigation, to the next superior officer referred to in 
        subsection (b)(1) within 20 days after the date on which the 
        investigation is commenced; or
            ``(2) submit a report on the progress made in completing the 
        investigation to the next superior officer referred to in 
        subsection (b)(1) within 20 days after the date on which the 
        investigation is commenced and every 14 days thereafter until 
        the investigation is completed and, upon completion of the 
        investigation, then submit a final report on the results of the 
        investigation, including any action taken as a result of the 
        investigation, to that next superior officer.

    ``(e) Sexual Harassment Defined.--In this section, the term `sexual 
harassment' means any of the following:
            ``(1) Conduct (constituting a form of sex discrimination) 
        that--
                    ``(A) involves unwelcome sexual advances, requests 
                for sexual favors, and deliberate or repeated offensive 
                comments or gestures of a sexual nature when--
                          ``(i) submission to such conduct is made 
                      either explicitly or implicitly a term or 
                      condition of a person's job, pay, or career;
                          ``(ii) submission to or rejection of such 
                      conduct by a person is used as a basis for career 
                      or employment decisions affecting that person; or
                          ``(iii) such conduct has the purpose or effect 
                      of unreasonably interfering with an individual's 
                      work performance or creates an intimidating, 
                      hostile, or offensive working environment; and
                    ``(B) is so severe or pervasive that a reasonable 
                person would perceive, and the victim does perceive, the 
                work environment as hostile or offensive.
            ``(2) Any use or condonation, by any person in a supervisory 
        or command position, of any form of sexual behavior to control, 
        influence, or affect the career, pay, or job of a member of

[[Page 111 STAT. 1762]]

        the armed forces or a civilian employee of the Department of 
        Defense.
            ``(3) Any deliberate or repeated unwelcome verbal comment or 
        gesture of a sexual nature in the workplace by any member of the 
        armed forces or civilian employee of the Department of 
        Defense.''.

    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part II of subtitle A, of such title are amended by 
inserting after the item relating to chapter 79 the following new item:

``80. Miscellaneous Investigation Requirements and Other Duties..1561''.

    (b) <<NOTE: 10 USC 1561 note.>>  Reports.--(1) Not later than 
January 1 of each of 1998 and 1999, each officer receiving a complaint 
forwarded in accordance with section 1561(b) of title 10, United States 
Code, as added by subsection (a), during the preceding year shall submit 
to the Secretary of the military department concerned a report on all 
such complaints and the investigations of such complaints (including the 
results of the investigations, in cases of investigations completed 
during such preceding year).

    (2)(A) Not later than March 1 of each of 1998 and 1999, each 
Secretary receiving a report under paragraph (1) for a year shall submit 
to the Secretary of Defense a report on all such reports so received.
    (B) Not later than April 1 following receipt of a report for a year 
under subparagraph (A), the Secretary of Defense shall transmit to 
Congress all such reports received for the year under subparagraph (A) 
together with the Secretary's assessment of each such report.

SEC. 592. SENSE OF THE SENATE REGARDING STUDY OF MATTERS RELATING TO 
            GENDER EQUITY IN THE ARMED FORCES.

    (a) Findings.--The Senate makes the following findings:
            (1) In the all-volunteer force, women play an integral role 
        in the Armed Forces.
            (2) With increasing numbers of women in the Armed Forces, 
        questions arise concerning inequalities, and perceived 
        inequalities, between the treatment of men and women in the 
        Armed Forces.

    (b) Sense of the Senate.--It is the sense of the Senate that the 
Comptroller General should--
            (1) conduct a study on any inequality, or perception of 
        inequality, in the treatment of men and women in the Armed 
        Forces that arises out of the statutes and regulations governing 
        the Armed Forces; and
            (2) submit to the Senate a report on the study not later 
        than one year after the date of the enactment of this Act.

SEC. 593. AUTHORITY FOR PERSONNEL TO PARTICIPATE IN MANAGEMENT OF 
            CERTAIN NON-FEDERAL ENTITIES.

    (a) Military Personnel.--(1) Chapter 53 of title 10, United States 
Code, is amended by inserting after section 1032 the following new 
section:

``Sec. 1033. Participation in management of specified non-Federal 
                        entities: authorized activities

    ``(a) Authorization.--The Secretary concerned may authorize a member 
of the armed forces under the Secretary's jurisdiction

[[Page 111 STAT. 1763]]

to serve without compensation as a director, officer, or trustee, or to 
otherwise participate, in the management of an entity designated under 
subsection (b). Any such authorization shall be made on a case-by-case 
basis, for a particular member to participate in a specific capacity 
with a specific designated entity. Such authorization may be made only 
for the purpose of providing oversight and advice to, and coordination 
with, the designated entity, and participation of the member in the 
activities of the designated entity may not extend to participation in 
the day-to-day operations of the entity.
    ``(b) Designated Entities.--(1) The Secretary of Defense, and the 
Secretary of Transportation in the case of the Coast Guard when it is 
not operating as a service in the Navy, shall designate those entities 
for which authorization under subsection (a) may be provided. The list 
of entities so designated may not be revised more frequently than 
semiannually. In making such designations, the Secretary shall designate 
each military welfare society and may designate any other entity 
described in paragraph (3). No other entities may be designated.
    ``(2) In this section, the term `military welfare society' means the 
following:
            ``(A) Army Emergency Relief.
            ``(B) Air Force Aid Society, Inc.
            ``(C) Navy-Marine Corps Relief Society.
            ``(D) Coast Guard Mutual Assistance.

    ``(3) An entity described in this paragraph is an entity that is not 
operated for profit and is any of the following:
            ``(A) An entity that regulates and supports the athletic 
        programs of the service academies (including athletic 
        conferences).
            ``(B) An entity that regulates international athletic 
        competitions.
            ``(C) An entity that accredits service academies and other 
        schools of the armed forces (including regional accrediting 
        agencies).
            ``(D) An entity that (i) regulates the performance, 
        standards, and policies of military health care (including 
        health care associations and professional societies), and (ii) 
        has designated the position or capacity in that entity in which 
        a member of the armed forces may serve if authorized under 
        subsection (a).

    ``(c) Publication of Designated Entities and of Authorized 
Persons.--A designation <<NOTE: Federal Register, publication.>>  of an 
entity under subsection (b), and an authorization under subsection (a) 
of a member of the armed forces to participate in the management of such 
an entity, shall be published in the Federal Register.

    ``(d) Regulations.--The Secretary of Defense, and the Secretary of 
Transportation in the case of the Coast Guard when it is not operating 
as a service in the Navy, shall prescribe regulations to carry out this 
section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1032 the 
following new item:

``1033. Participation in management of specified non-Federal entities: 
           authorized activities.''.

    (b) Civilian Personnel.--(1) Chapter 81 of such title is 
amended by inserting after section 1588 the following new section:

[[Page 111 STAT. 1764]]

``Sec. 1589. Participation in management of specified non-Federal 
                        entities: authorized activities

    ``(a) Authorization.--(1) The Secretary concerned may authorize an 
employee described in paragraph (2) to serve without compensation as a 
director, officer, or trustee, or to otherwise participate, in the 
management of an entity designated under subsection (b). Any such 
authorization shall be made on a case-by-case basis, for a particular 
employee to participate in a specific capacity with a specific 
designated entity. Such authorization may be made only for the purpose 
of providing oversight and advice to, and coordination with, the 
designated entity, and participation of the employee in the activities 
of the designated entity may not extend to participation in the day-to-
day operations of the entity.
    ``(2) Paragraph (1) applies to any employee of the Department of 
Defense or, in the case of the Coast Guard when not operating as a 
service in the Navy, of the Department of Transportation. For purposes 
of this section, the term `employee' includes a civilian officer.
    ``(b) Designated Entities.--The Secretary of Defense, and the 
Secretary of Transportation in the case of the Coast Guard when it is 
not operating as a service in the Navy, shall designate those entities 
for which authorization under subsection (a) may be provided. The list 
of entities so designated may not be revised more frequently than 
semiannually. In making such designations, the Secretary shall designate 
each military welfare society named in paragraph (2) of section 1033(b) 
of this title and may designate any other entity described in paragraph 
(3) of such section. No other entities may be designated.
    ``(c) Publication of Designated Entities and of Authorized 
Persons.--A designation of <<NOTE: Federal Register, publication.>> an 
entity under subsection (b), and an authorization under subsection (a) 
of an employee to participate in the management of such an entity, shall 
be published in the Federal Register.

    ``(d) Civilians Outside the Military Departments.--In this section, 
the term `Secretary concerned' includes the Secretary of Defense with 
respect to employees of the Department of Defense who are not employees 
of a military department.
    ``(e) Regulations.--The Secretary of Defense, and the Secretary of 
Transportation in the case of the Coast Guard when it is not operating 
as a service in the Navy, shall prescribe regulations to carry out this 
section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1588 the 
following new item:

``1589. Participation in management of specified non-Federal entities: 
           authorized activities.''.

SEC. 594. TREATMENT OF PARTICIPATION OF MEMBERS IN DEPARTMENT OF DEFENSE 
            CIVIL MILITARY PROGRAMS.

    Section 2012 of title 10, United States Code, is amended--
            (1) by redesignating subsections (g) and (h) as subsections 
        (h) and (i), respectively; and
            (2) by inserting after subsection (f) the following new 
        subsection:

    ``(g) Treatment of Member's Participation in Provision of Support or 
Services.--(1) The Secretary of a military department may not require or 
request a member of the armed forces to submit

[[Page 111 STAT. 1765]]

for consideration by a selection board (including a promotion board, 
command selection board, or any other kind of selection board) evidence 
of the member's participation in the provision of support and services 
to non-Department of Defense organizations and activities under this 
section or the member's involvement in, or support of, other community 
relations and public affairs activities of the armed forces.
    ``(2) Paragraph (1) does not prevent a selection board from 
considering material submitted voluntarily by a member of the armed 
forces which provides evidence of the participation of that member or 
another member in activities described in that paragraph.''.

SEC. 595. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE CIVIL 
            MILITARY PROGRAMS.

    (a) Study Required.--The Comptroller General shall conduct a study 
to evaluate the following:
            (1) The nature, extent, and cost to the Department of 
        Defense of the support and services being provided by units and 
        members of the Armed Forces to non-Department of Defense 
        organizations and activities under the authority of section 2012 
        of title 10, United States Code.
            (2) The degree to which the Armed Forces are in compliance 
        with the requirements of such section in the provision of such 
        support and services, especially the requirements that the 
        assistance meet specific requirements relative to military 
        training and that the assistance provided be incidental to 
        military training.
            (3) The degree to which the regulations and procedures for 
        implementing such section, as required by subsection (f) of such 
        section, are consistent with the requirements of such section.
            (4) The effectiveness of the Secretary of Defense and the 
        Secretaries of the military departments in conducting oversight 
        of the implementation of such section, and the provision of such 
        support and services under such section, to ensure compliance 
        with the requirements of such section.

    (b) Submission of Report.--Not later than March 31, 1998, the 
Comptroller General shall submit to Congress a report containing the 
results of the study required by subsection (a).

SEC. 596. ESTABLISHMENT OF PUBLIC AFFAIRS SPECIALTY IN THE ARMY.

    (a) New Specialty.--Chapter 307 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 3083. Public Affairs Specialty

    ``There is a career field in the Army known as the Public Affairs 
Specialty. Members of the Army with the Public Affairs Specialty are--
            ``(1) the Chief of Public Affairs;
            ``(2) commissioned officers of the Army in the grade of 
        major or above who are selected and specifically educated, 
        trained, and experienced to perform as professional public 
        affairs officers for the remainder of their careers; and
            ``(3) other members of the Army assigned to public affairs 
        positions by the Secretary of the Army.''.

[[Page 111 STAT. 1766]]

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

``3083. Public Affairs Specialty.''.

SEC. 597. GRADE OF DEFENSE ATTACHE IN FRANCE.

    (a) In General.--Chapter 41 of title 10, United States Code, is 
amended by inserting after section 713 the following new section:

``Sec. 714. Defense attache in France: required grade

    ``An officer may not be selected for assignment to the position of 
defense attache to the United States embassy in France unless the 
officer holds (or is on a promotion list for promotion to) the grade of 
brigadier general or, in the case of the Navy, rear admiral (lower 
half).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
713 the following new item:

``714. Defense attache in France: required grade.''.

SEC. 598. REPORT ON CREW REQUIREMENTS OF WC-130J AIRCRAFT.

    (a) Study.--The Secretary of the Air Force shall conduct a study of 
the crew requirements for WC-130J aircraft to be procured for assignment 
to the aerial weather reconnaissance mission involving the eyewall 
penetration of tropical cyclones. The study shall include study of the 
anticipated operation of WC-130J aircraft in weather reconnaissance 
missions configured to carry five crewmembers, including a navigator. In 
carrying out the study, the Secretary shall provide for participation by 
members of the Armed Forces currently assigned to units engaged in 
weather reconnaissance operations.
    (b) Report.--The Secretary shall submit to Congress a report on the 
results of the study. The Secretary shall include in the report the 
views of members of the Armed Forces currently assigned to units engaged 
in weather reconnaissance operations who participated in the study. If 
as a result of the study the Secretary determines that there are 
crewmembers assigned to weather reconnaissance duties in excess of the 
crew requirements that will be applicable for WC-130J aircraft, the 
Secretary shall include in the report a plan for retraining or 
reassignment of those crewmembers. The study shall be submitted not 
later than September 30, 1998.

SEC. 599. IMPROVEMENT OF MISSING PERSONS AUTHORITIES APPLICABLE TO 
            DEPARTMENT OF DEFENSE.

    (a) Applicability to Department of Defense Civilian Employees and 
Contractor Employees.--(1) Section 1501 of title 10, United States Code, 
is amended--
            (A) by striking out subsection (c) and inserting in lieu 
        thereof the following:

    ``(c) Covered Persons.--(1) Section 1502 of this title applies in 
the case of any member of the armed forces on active duty--
            ``(A) who becomes involuntarily absent as a result of a 
        hostile action or under circumstances suggesting that the 
        involuntary absence is a result of a hostile action; and
            ``(B) whose status is undetermined or who is unaccounted 
        for.

[[Page 111 STAT. 1767]]

    ``(2) Section 1502 of this title applies in the case of any other 
person who is a citizen of the United States and a civilian officer or 
employee of the Department of Defense or (subject to paragraph (3)) an 
employee of a contractor of the Department of Defense--
            ``(A) who serves in direct support of, or accompanies, the 
        armed forces in the field under orders and becomes involuntarily 
        absent as a result of a hostile action or under circumstances 
        suggesting that the involuntary absence is a result of a hostile 
        action; and
            ``(B) whose status is undetermined or who is unaccounted 
        for.

    ``(3) The Secretary of Defense shall determine, with regard to a 
pending or ongoing military operation, the specific employees, or groups 
of employees, of contractors of the Department of Defense to be 
considered to be covered by this subsection.''; and
            (B) by adding at the end the following new subsection:

    ``(f) Secretary Concerned.--In this chapter, the term `Secretary 
concerned' includes, in the case of a civilian officer or employee of 
the Department of Defense or an employee of a contractor of the 
Department of Defense, the Secretary of the military department or head 
of the element of the Department of Defense employing the officer or 
employee or contracting with the contractor, as the case may be.''.
    (2) Section 1503(c) of such title is amended--
            (A) in paragraph (1), by striking out ``one military 
        officer'' and inserting in lieu thereof ``one individual 
        described in paragraph (2)'';
            (B) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (C) by inserting after paragraph (1) the following new 
        paragraph (2):

    ``(2) An individual referred to in paragraph (1) is the following:
            ``(A) A military officer, in the case of an inquiry with 
        respect to a member of the armed forces.
            ``(B) A civilian, in the case of an inquiry with respect to 
        a civilian employee of the Department of Defense or of a 
        contractor of the Department of Defense.''.

    (3) Section 1504(d) of such title is amended--
            (A) in paragraph (1), by striking out ``who are'' and all 
        that follows in that paragraph and inserting in lieu thereof 
        ``as follows:
            ``(A) In the case of a board that will inquire into the 
        whereabouts and status of one or more members of the armed 
        forces (and no civilians described in subparagraph (B)), the 
        board shall be composed of officers having the grade of major or 
        lieutenant commander or above.
            ``(B) In the case of a board that will inquire into the 
        whereabouts and status of one or more civilian employees of the 
        Department of Defense or contractors of the Department of 
        Defense (and no members of the armed forces), the board shall be 
        composed of--
                    ``(i) not less than three employees of the 
                Department of Defense whose rate of annual pay is equal 
                to or greater than the rate of annual pay payable for 
                grade GS-13 of the General Schedule under section 5332 
                of title 5; and

[[Page 111 STAT. 1768]]

                    ``(ii) such members of the armed forces as the 
                Secretary considers advisable.
            ``(C) In the case of a board that will inquire into the 
        whereabouts and status of both one or more members of the armed 
        forces and one or more civilians described in subparagraph (B)--
                    ``(i) the board shall include at least one officer 
                described in subparagraph (A) and at least one employee 
                of the Department of Defense described in subparagraph 
                (B)(i); and
                    ``(ii) the ratio of such officers to such employees 
                on the board shall be roughly proportional to the ratio 
                of the number of members of the armed forces who are 
                subjects of the board's inquiry to the number of 
                civilians who are subjects of the board's inquiry.''; 
                and
            (B) in paragraph (4), by striking out ``section 1503(c)(3)'' 
        and inserting in lieu thereof ``section 1503(c)(4)''.

    (4) Paragraph (1) of section 1513 of such title is amended to read 
as follows:
            ``(1) The term `missing person' means--
                    ``(A) a member of the armed forces on active duty 
                who is in a missing status; or
                    ``(B) a civilian employee of the Department of 
                Defense or an employee of a contractor of the Department 
                of Defense who serves in direct support of, or 
                accompanies, the armed forces in the field under orders 
                and who is in a missing status.
        Such term includes an unaccounted for person described in 
        section 1509(b) of this title, under the circumstances specified 
        in the last sentence of section 1509(a) of this title.''.

    (b) Transmission to Theater Component Commander of Advisory Copy of 
Missing Person Report.--(1) Section 1502 of such title is amended--
            (A) by redesignating subsection (b) as subsection (c); and
            (B) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Transmission of Advisory Copy to Theater Component 
Commander.--When transmitting a report under subsection (a)(2) 
recommending that a person be placed in a missing status, the commander 
transmitting that report shall transmit an advisory copy of the report 
to the theater component commander with jurisdiction over the missing 
person.''.
    (2) Section 1513 of such title is amended by adding at the end the 
following new paragraph:
            ``(8) The term `theater component commander' means, with 
        respect to any of the combatant commands, an officer of any of 
        the armed forces who (A) is commander of all forces of that 
        armed force assigned to that combatant command, and (B) is 
        directly subordinate to the commander of the combatant 
        command.''.

    (c) Information To Accompany Recommendation of Status of Death.--
Section 1507(b) of such title is amended by adding at the end the 
following new paragraphs:
            ``(3) A description of the location of the body, if 
        recovered.
            ``(4) If the body has been recovered and is not identifiable 
        through visual means, a certification by a forensic pathologist

[[Page 111 STAT. 1769]]

        that the body recovered is that of the missing person. In 
        determining whether to make such a certification, the forensic 
        pathologist shall consider, as determined necessary by the 
        Secretary of the military department concerned, additional 
        evidence and information provided by appropriate specialists in 
        forensic medicine or other appropriate medical sciences.''.

    (d) Missing Person's Counsel.--(1) Sections 1503(f)(1) and 
1504(f)(1) of such title are amended by adding at the end the following: 
``The identity of counsel appointed under this paragraph for a missing 
person shall be made known to the missing person's primary next of kin 
and any other previously designated person of the person.''.
    (2) Section 1503(f)(4) of such title is amended by adding at the end 
the following: ``The primary next of kin of a missing person and any 
other previously designated person of the missing person shall have the 
right to submit information to the missing person's counsel relative to 
the disappearance or status of the missing person.''.
    (e) Scope of Preenactment Review.--(1) Section 1509 of such title is 
amended by striking out subsection (a) and inserting in lieu thereof the 
following:
    ``(a) Review of Status.--(1) If new information (as defined in 
paragraph (2)) is found or received that may be related to one or more 
unaccounted for persons described in subsection (b) (whether or not such 
information specifically relates (or may specifically relate) to any 
particular such unaccounted for person), that information shall be 
provided to the Secretary of Defense. Upon receipt of such information, 
the Secretary shall ensure that the information is treated under 
paragraphs (2) and (3) of section 1505(c) of this title and under 
section 1505(d) of this title in the same manner as information received 
under paragraph (1) of section 1505(c) of this title. For purposes of 
the applicability of other provisions of this chapter in such a case, 
each such unaccounted for person to whom the new information may be 
related shall be considered to be a missing person.
    ``(2) For purposes of this subsection, new information is 
information that is credible and that--
            ``(A) is found or received after the date of the enactment 
        of the National Defense Authorization Act for Fiscal Year 1998 
        by a United States intelligence agency, by a Department of 
        Defense agency, or by a person specified in section 1504(g) of 
        this title; or
            ``(B) is identified after the date of the enactment of the 
        National Defense Authorization Act for Fiscal Year 1998 in 
        records of the United States as information that could be 
        relevant to the case of one or more unaccounted for persons 
        described in subsection (b).''.

    (2) Such section is further amended by adding at the end the 
following new subsection:
    ``(d) Establishment of Personnel Files for Korean Conflict Cases.--
The Secretary of Defense shall ensure that a personnel file is 
established for each unaccounted for person who is described in 
subsection (b)(1) if the Secretary possesses information relevant to 
that person's status. In the case of a person described in subsection 
(b)(1) for whom a personnel file does not exist, the Secretary shall 
create a personnel file for such person upon receipt of new information 
as provided in subsection (a). Each such file

[[Page 111 STAT. 1770]]

shall be handled in accordance with, and subject to the provisions of, 
section 1506 of this title in the same manner as applies to the file of 
a missing person.''.
    (f) Withholding of Classified Information.--Section 1506(b) of such 
title is amended--
            (1) by inserting ``(1)'' before ``The Secretary'';
            (2) by redesignating paragraphs (1) and (2) as subparagraphs 
        (A) and (B), respectively; and
            (3) by adding at the end the following:

    ``(2) If classified information withheld under this subsection 
refers to one or more unnamed missing persons, the Secretary shall 
ensure that notice of that withheld information, and notice of the date 
of the most recent review of the classification of that withheld 
information, is made reasonably accessible to the primary next of kin, 
members of the immediate family, and the previously designated 
person.''.
    (g) Withholding of Privileged Information.--Section 1506(d) of such 
title is amended--
            (1) in paragraph (2)--
                    (A) by inserting ``or about unnamed missing 
                persons'' in the first sentence after ``the debriefing 
                report'';
                    (B) by striking out ``the missing person'' in the 
                second sentence and inserting in lieu thereof ``each 
                missing person named in the debriefing report''; and
                    (C) by adding at the end the following new sentence: 
                ``Any information contained in the extract of the 
                debriefing report that pertains to unnamed missing 
                persons shall be made reasonably accessible to the 
                primary next of kin, members of the immediate family, 
                and the previously designated person.''; and
            (2) in paragraph (3), by inserting ``, or part of a 
        debriefing report,'' after ``a debriefing report''.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1998.
Sec. 602. Reform of basic allowance for subsistence.
Sec. 603. Consolidation of basic allowance for quarters, variable 
           housing allowance, and overseas housing allowances.
Sec. 604. Revision of authority to adjust compensation necessitated by 
           reform of subsistence and housing allowances.
Sec. 605. Protection of total compensation of members while performing 
           certain duty.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
           authorities for 
           reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
           authorities for nurse officer candidates, registered nurses, 
           and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other 
           bonuses and special pays.
Sec. 614. Increase in minimum monthly rate of hazardous duty incentive 
           pay for certain members.
Sec. 615. Increase in aviation career incentive pay.
Sec. 616. Modification of aviation officer retention bonus.
Sec. 617. Availability of multiyear retention bonus for dental officers.
Sec. 618. Increase in variable and additional special pays for certain 
           dental officers.
Sec. 619. Availability of special pay for duty at designated hardship 
           duty locations.

[[Page 111 STAT. 1771]]

Sec. 620. Definition of sea duty for purposes of career sea pay.
Sec. 621. Modification of Selected Reserve reenlistment bonus.
Sec. 622. Modification of Selected Reserve enlistment bonus for former 
           enlisted members.
Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard 
           Reserve.
Sec. 624. Increase in special pay and bonuses for nuclear-qualified 
           officers.
Sec. 625. Provision of bonuses in lieu of special pay for enlisted 
           members extending tours of duty at designated locations 
           overseas.
Sec. 626. Increase in amount of family separation allowance.
Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for dependents before 
           approval of member's court-martial sentence.
Sec. 632. Dislocation allowance.

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

Sec. 641. One-year opportunity to discontinue participation in Survivor 
           Benefit Plan.
Sec. 642. Time in which change in survivor benefit coverage from former 
           spouse to spouse may be made.
Sec. 643. Review of Federal former spouse protection laws.
Sec. 644. Annuities for certain military surviving spouses.
Sec. 645. Administration of benefits for so-called minimum income 
           widows.

                        Subtitle E--Other Matters

Sec. 651. Loan repayment program for commissioned officers in certain 
           health 
           professions.
Sec. 652. Conformance of NOAA commissioned officers separation pay to 
           separation pay for members of other uniformed services.
Sec. 653. Eligibility of Public Health Service officers and NOAA 
           commissioned corps officers for reimbursement of adoption 
           expenses.
Sec. 654. Payment of back quarters and subsistence allowances to World 
           War II veterans who served as guerrilla fighters in the 
           Philippines.
Sec. 655. Subsistence of members of the Armed Forces above the poverty 
           level.

                     Subtitle A--Pay and Allowances

SEC. 601. <<NOTE: 37 USC 1009.>>  INCREASE IN BASIC PAY FOR FISCAL YEAR 
            1998.

    (a) Waiver of Section 1009 Adjustment.--The adjustment, to become 
effective during fiscal year 1998, required by section 1009 of title 37, 
United States Code (as amended by section 604), in the rate of monthly 
basic pay authorized members of the uniformed services by section 203(a) 
of such title shall not be made.
    (b) Increase in Basic Pay.--Effective <<NOTE: Effective date.>> on 
January 1, 1998, the rates of basic pay of members of the uniformed 
services are increased by 2.8 percent.

SEC. 602. REFORM OF BASIC ALLOWANCE FOR SUBSISTENCE.

    (a) Entitlement to Allowance.--Section 402 of title 37, United 
States Code, is amended to read as follows:

``Sec. 402. Basic allowance for subsistence

    ``(a) Entitlement to Allowance.--(1) Except as provided in paragraph 
(2) or otherwise provided by law, each member of a uniformed service who 
is entitled to basic pay is entitled to a basic allowance for 
subsistence as set forth in this section.
    ``(2) An enlisted member is not entitled to the basic allowance for 
subsistence during basic training.
    ``(b) Rates of Allowance Based on Food Costs.--(1) The monthly rate 
of basic allowance for subsistence to be in effect for an enlisted 
member for a year (beginning on January 1 of that year) shall be the 
amount that is halfway between the following

[[Page 111 STAT. 1772]]

amounts, which are determined by the Secretary of Agriculture as of 
October 1 of the preceding year:
            ``(A) The amount equal to the monthly cost of a moderate-
        cost food plan for a male in the United States who is between 20 
        and 50 years of age.
            ``(B) The amount equal to the monthly cost of a liberal food 
        plan for a male in the United States who is between 20 and 50 
        years of age.

    ``(2) The monthly rate of basic allowance for subsistence to be in 
effect for an officer for a year (beginning on January 1 of that year) 
shall be the amount equal to the monthly rate of basic allowance for 
subsistence in effect for officers for the preceding year, increased by 
the same percentage by which the rate of basic allowance for subsistence 
for enlisted members for the preceding year is increased effective on 
such January 1.
    ``(c) Advance Payment.--The allowance to an enlisted member may be 
paid in advance for a period of not more than three months.
    ``(d) Special Rule for Members Authorized to Mess Separately.--(1) 
In areas prescribed by the Secretary of Defense, and the Secretary of 
Transportation with respect to the Coast Guard when it is not operating 
as a service in the Navy, an enlisted member described in paragraph (2) 
is entitled to not more than the pro rata allowance established under 
subsection (b)(1) for each meal the member buys from a source other than 
a messing facility of the United States.
    ``(2) An enlisted member referred to in paragraph (1) is a member 
who is granted permission to mess separately and whose duties require 
the member to buy at least one meal from a source other than a messing 
facility of the United States.
    ``(e) Policies on Use of Dining and Messing Facilities.--The 
Secretary of Defense, in consultation with the Secretaries concerned, 
shall prescribe policies regarding use of dining and field messing 
facilities of the uniformed services.
    ``(f) Regulations.--(1) The Secretary of Defense shall prescribe 
regulations for the administration of this section. Before prescribing 
the regulations, the Secretary shall consult with each Secretary 
concerned.
    ``(2) The regulations shall include the specific rates of basic 
allowance for subsistence required by subsection (b).''.
    (b) Conforming Amendments.--(1) Section 404 of title 37, United 
States Code, is amended--
            (A) by striking out subsection (g); and
            (B) by redesignating subsections (h), (i), (j), and (k) as 
        subsections (g), (h), (i), and (j), respectively.

    (2) Section 6081(a) of title 10, United States Code, is amended by 
striking out ``Except'' and all that follows through ``subsistence, 
each'' and inserting in lieu thereof ``Each''.
    (c) <<NOTE: 37 USC 402 note.>>  Transitional Authority To Provide 
Basic Allowance for Subsistence.--
            (1) Transitional authority.--Notwithstanding section 402 of 
        title 37, United States Code, as amended by subsection (a), 
        during the period beginning on January 1, 1998, and ending on 
        the date determined under paragraph (2)--
                    (A) the basic allowance for subsistence shall not be 
                paid under such section 402;

[[Page 111 STAT. 1773]]

                    (B) a member of the uniformed services is entitled 
                to the basic allowance for subsistence only as provided 
                in subsection (d);
                    (C) an enlisted member of the uniformed services may 
                be paid a partial basic allowance for subsistence as 
                provided in subsection (e); and
                    (D) the rates of the basic allowance for subsistence 
                are those rates determined under subsection (f).
            (2) Termination of transitional authority.--The transitional 
        authority provided under paragraph (1) shall terminate on the 
        first day of the month immediately following the first month for 
        which the monthly equivalent of the rate of basic allowance for 
        subsistence payable to enlisted members of the uniformed 
        services (when permission to mess separately is granted), as 
        determined under subsection (f)(2), is equal to or is exceeded 
        by the amount that, except for paragraph (1)(A), would otherwise 
        be the monthly rate of basic allowance for subsistence for 
        enlisted members under section 402(b)(1) of title 37, United 
        States Code, as amended by subsection (a).

    (d) <<NOTE: 37 USC 402 note.>>  Transitional Entitlement to 
Allowance.--
            (1) Enlisted members.--
                    (A) Types of entitlement.--An enlisted member is 
                entitled to the basic allowance for subsistence, on a 
                daily basis, of under one or more of the following 
                circumstances:
                          (i) When rations in kind are not available.
                          (ii) When permission to mess separately is 
                      granted.
                          (iii) When assigned to duty under emergency 
                      conditions where no messing facilities of the 
                      United States are available.
                    (B) Other entitlement circumstances.--An enlisted 
                member is entitled to the allowance while on an 
                authorized leave of absence, while confined in a 
                hospital, or while performing travel under orders away 
                from the member's designated post of duty other than 
                field duty or sea duty (as defined in regulations 
                prescribed by the Secretary of Defense). For purposes of 
                the preceding sentence, a member shall not be considered 
                to be performing travel under orders away from his 
                designated post of duty if such member--
                          (i) is an enlisted member serving the member's 
                      first tour of active duty;
                          (ii) has not actually reported to a permanent 
                      duty station pursuant to orders directing such 
                      assignment; and
                          (iii) is not actually traveling between 
                      stations pursuant to orders directing a change of 
                      station.
                    (C) Advance payment.--The allowance to an enlisted 
                member, when authorized, may be paid in advance for a 
                period of not more than three months.
            (2) Officers.--An officer of a uniformed service who is 
        entitled to basic pay is, at all times, entitled to the basic 
        allowances for subsistence. An aviation cadet of the Navy, Air 
        Force, Marine Corps, or Coast Guard is entitled to the same 
        basic allowance for subsistence as is provided for an officer of 
        the Navy, Air Force, Marine Corps, or Coast Guard, respectively.

    (e) <<NOTE: 37 USC 402 note.>>  Transitional Authority for Partial 
Allowance.--

[[Page 111 STAT. 1774]]

            (1) Enlisted members furnished subsistence in kind.--The 
        Secretary of Defense may provide in regulations for an enlisted 
        member of a uniformed service to be paid a partial basic 
        allowance for subsistence when--
                    (A) rations in kind are available to the member;
                    (B) the member is not granted permission to mess 
                separately; or
                    (C) the member is assigned to duty under emergency 
                conditions where messing facilities of the United States 
                are available.
            (2) Monthly payment.--Any partial basic allowance for 
        subsistence authorized under paragraph (1) shall be calculated 
        on a daily basis and paid on a monthly basis.

    (f) <<NOTE: 37 USC 402 note.>>  Transitional Rates.--
            (1) Allowance for officers.--The monthly rate of basic 
        allowance for subsistence for a year (beginning on January 1 of 
        that year) that is payable to officers of the uniformed services 
        shall be the amount that is equal to 101 percent of the rate of 
        basic allowance for subsistence that was payable to officers of 
        the uniformed services for the preceding year.
            (2) Allowance for enlisted member with permission to mess 
        separately.--The monthly rate of basic allowance for subsistence 
        for a year (beginning on January 1 of that year) that is payable 
        to an enlisted member of the uniformed services entitled to the 
        allowance under subsection (d)(1) shall be the amount that is 
        equal to 101 percent of the rate of basic allowance for 
        subsistence that was in effect for similarly situated enlisted 
        members of the uniformed services for the preceding year.
            (3) Partial allowance for other enlisted members.--The 
        monthly rate of any partial basic allowance for subsistence for 
        a year (beginning on January 1 of that year) payable to an 
        enlisted member of the uniformed services eligible for the 
        allowance under the regulations prescribed under subsection 
        (e)(1) shall be the amount equal to the lesser of the following:
                    (A) The sum of--
                          (i) the partial basic allowance for 
                      subsistence in effect for the preceding year; and
                          (ii) the amount equal to the difference, if 
                      any, between--
                                    (I) the monthly equivalent of the 
                                rate of basic allowance for subsistence 
                                that was in effect for the preceding 
                                year for members of the uniformed 
                                services above grade E-1 (when 
                                permission to mess separately is 
                                granted), increased by the same 
                                percentage by which the rates of basic 
                                pay for members of the uniformed 
                                services is increased for the current 
                                year; and
                                    (II) the amount equal to 101 percent 
                                of the monthly equivalent of the rate of 
                                basic allowance for subsistence that was 
                                in effect for the previous year for 
                                members of the uniformed services above 
                                grade E-1 (when permission to mess 
                                separately is granted),
                      with the amount so determined under this clause 
                      multiplied by the number of members estimated to 
                      be entitled to receive basic allowance for 
                      subsistence

[[Page 111 STAT. 1775]]

                      under subsection (d) for the current year and then 
                      divided by the number of members estimated to be 
                      eligible for the partial allowance under the 
                      regulations prescribed under subsection (e)(1) for 
                      that year.
                    (B) The amount equal to the difference between--
                          (i) the amount that, except for subsection 
                      (c)(1)(A), would otherwise be the monthly rate of 
                      basic allowance for subsistence for enlisted 
                      members under section 402(b)(1) of title 37, 
                      United States Code; and
                          (ii) the amount equal to the monthly 
                      equivalent of the value of a daily ration, as 
                      determined by the Under Secretary of Defense 
                      (Comptroller) as of October 1 of the preceding 
                      year.

    (g) <<NOTE: 37 USC 402 note.>>  Effective Date.--This section and 
the amendments made by this section shall take effect on January 1, 
1998.

SEC. 603. CONSOLIDATION OF BASIC ALLOWANCE FOR QUARTERS, VARIABLE 
            HOUSING ALLOWANCE, AND OVERSEAS HOUSING ALLOWANCES.

    (a) Consolidation of Allowances.--Section 403 of title 37, United 
States Code, is amended to read as follows:

``Sec. 403. Basic allowance for housing

    ``(a) General Entitlement.--(1) Except as otherwise provided by law, 
a member of a uniformed service who is entitled to basic pay is entitled 
to a basic allowance for housing at the monthly rates prescribed under 
this section or another provision of law with regard to the applicable 
component of the basic allowance for housing. The amount of the basic 
allowance for housing for a member will vary according to the pay grade 
in which the member is assigned or distributed for basic pay purposes, 
the dependency status of the member, and the geographic location of the 
member. The basic allowance for housing may be paid in advance.
    ``(2) A member of a uniformed service with dependents is not 
entitled to a basic allowance for housing as a member with dependents 
unless the member makes a certification to the Secretary concerned 
indicating the status of each dependent of the member. The certification 
shall be made in accordance with regulations prescribed by the Secretary 
of Defense.
    ``(b) Basic Allowance for Housing Inside the United States.--(1) The 
Secretary of Defense shall determine the costs of adequate housing in a 
military housing area in the United States for all members of the 
uniformed services entitled to a basic allowance for housing in that 
area. The Secretary shall base the determination upon the costs of 
adequate housing for civilians with comparable income levels in the same 
area.
    ``(2) Subject to paragraph (3), the monthly amount of a basic 
allowance for housing for an area of the United States for a member of a 
uniformed service is equal to the difference between--
            ``(A) the monthly cost of adequate housing in that area, as 
        determined by the Secretary of Defense, for members of the 
        uniformed services serving in the same pay grade and with the 
        same dependency status as the member; and
            ``(B) 15 percent of the national average monthly cost of 
        adequate housing in the United States, as determined by the 
        Secretary, for members of the uniformed services serving in

[[Page 111 STAT. 1776]]

        the same pay grade and with the same dependency status as the 
        member.

    ``(3) The rates of basic allowance for housing shall be reduced as 
necessary to comply with this paragraph. The total amount that may be 
paid for a fiscal year for the basic allowance for housing under this 
subsection is the product of--
            ``(A) the total amount authorized to be paid for such 
        allowance for the preceding fiscal year (as adjusted under 
        paragraph (5)); and
            ``(B) a fraction--
                    ``(i) the numerator of which is the index of the 
                national average monthly cost of housing for June of the 
                preceding fiscal year; and
                    ``(ii) the denominator of which is the index of the 
                national average monthly cost of housing for June of the 
                fiscal year before the preceding fiscal year.

    ``(4) An adjustment in the rates of the basic allowance for housing 
under this subsection as a result of the Secretary's redetermination of 
housing costs in an area shall take effect on the same date as the 
effective date of the next increase in basic pay under section 1009 of 
this title or other provision of law.
    ``(5) In making a determination under paragraph (3) for a fiscal 
year, the amount authorized to be paid for the preceding fiscal year for 
the basic allowance for housing shall be adjusted to reflect changes 
during the year for which the determination is made in the number, grade 
distribution, geographic distribution in the United States, and 
dependency status of members of the uniformed services entitled to the 
allowance from the number of such members during the preceding fiscal 
year.
    ``(6) So long as a member of a uniformed service retains 
uninterrupted eligibility to receive a basic allowance for housing 
within an area of the United States, the monthly amount of the allowance 
for the member may not be reduced as a result of changes in housing 
costs in the area, changes in the national average monthly cost of 
housing, or the promotion of the member.
    ``(7) In the case of a member without dependents who is assigned to 
duty inside the United States, the location or the circumstances of 
which make it necessary that the member be reassigned under the 
conditions of low-cost or no-cost permanent change of station or 
permanent change of assignment, the member may be treated as if the 
member were not reassigned if the Secretary concerned determines that it 
would be inequitable to base the member's entitlement to, and amount of, 
a basic allowance for housing on the cost of housing in the area to 
which the member is reassigned.
    ``(c) Basic Allowance for Housing Outside the United States.--(1) 
The Secretary of Defense may prescribe an overseas basic allowance for 
housing for a member of a uniformed service who is on duty outside of 
the United States. The Secretary shall establish the basic allowance for 
housing under this subsection on the basis of housing costs in the 
overseas area in which the member is assigned.
    ``(2) So long as a member of a uniformed service retains 
uninterrupted eligibility to receive a basic allowance for housing in an 
overseas area and the actual monthly cost of housing for the member is 
not reduced, the monthly amount of the allowance in an area outside the 
United States may not be reduced as a result

[[Page 111 STAT. 1777]]

of changes in housing costs in the area or the promotion of the member. 
The monthly amount of the allowance may be adjusted to reflect changes 
in currency rates.
    ``(d) Basic Allowance for Housing When Dependents Are Unable To 
Accompany Member.--(1) A member of a uniformed service with dependents 
who is on permanent duty at a location described in paragraph (2) is 
entitled to a family separation basic allowance for housing under this 
subsection at a monthly rate equal to the rate of the basic allowance 
for housing established under subsection (b) or the overseas basic 
allowance for housing established under subsection (c), whichever 
applies to that location, for members in the same grade at that location 
without dependents.
    ``(2) A permanent duty location referred to in paragraph (1) is a 
location--
            ``(A) to which the movement of the member's dependents is 
        not authorized at the expense of the United States under section 
        406 of this title, and the member's dependents do not reside at 
        or near the location; and
            ``(B) at which quarters of the United States are not 
        available for assignment to the member.

    ``(3) In the case of a member with dependents who is assigned to 
duty at a location or under circumstances that, as determined by the 
Secretary concerned, require the member's dependents to reside at a 
different location, the member shall receive a basic allowance for 
housing, as provided in subsection (a) or (b), as if the member were 
assigned to duty in the area in which the dependents reside, regardless 
of whether the member resides in quarters of the United States or is 
also entitled to a family separation basic allowance for housing by 
reason of paragraph (1).
    ``(4) The family separation basic allowance for housing under this 
subsection shall be in addition to any other allowance or per diem that 
the member is otherwise entitled to receive under this title. A member 
may receive a basic allowance for housing under both paragraphs (1) and 
(3).
    ``(e) Effect of Assignment to Quarters.--(1) Except as otherwise 
provided by law, a member of a uniformed service who is assigned to 
quarters of the United States or a housing facility under the 
jurisdiction of a uniformed service appropriate to the grade, rank, or 
rating of the member and adequate for the member and dependents of the 
member, if with dependents, is not entitled to a basic allowance for 
housing.
    ``(2) A member without dependents who is in a pay grade above pay 
grade E-6 and who is assigned to quarters in the United States or a 
housing facility under the jurisdiction of a uniformed service, 
appropriate to the grade or rank of the member and adequate for the 
member, may elect not to occupy those quarters and instead to receive 
the basic allowance for housing prescribed for the member's pay grade by 
this section.
    ``(3) A member without dependents who is in pay grade E-6 and who is 
assigned to quarters of the United States that do not meet the minimum 
adequacy standards established by the Secretary of Defense for members 
in such pay grade, or to a housing facility under the jurisdiction of a 
uniformed service that does not meet such standards, may elect not to 
occupy such quarters or facility and instead to receive the basic 
allowance for housing prescribed for the member's pay grade under this 
section.

[[Page 111 STAT. 1778]]

    ``(4) The Secretary concerned may deny the right to make an election 
under paragraph (2) or (3) if the Secretary determines that the exercise 
of such an election would adversely affect a training mission, military 
discipline, or military readiness.
    ``(5) A member with dependents who is assigned to quarters of the 
United States or a housing facility under the jurisdiction of a 
uniformed service may be paid the basic allowance for housing if, 
because of orders of competent authority, the dependents are prevented 
from occupying those quarters.
    ``(f) Ineligibility During Initial Field Duty or Sea Duty.--(1) A 
member of a uniformed service without dependents who makes a permanent 
change of station for assignment to a unit conducting field operations 
is not entitled to a basic allowance for housing while on that initial 
field duty unless the commanding officer of the member certifies that 
the member was necessarily required to procure quarters at the member's 
expense.
    ``(2)(A) Except as provided in subparagraphs (B) and (C), a member 
of a uniformed service without dependents who is in a pay grade below 
pay grade E-6 is not entitled to a basic allowance for housing while the 
member is on sea duty.
    ``(B) Under regulations presc <<NOTE: Regulations.>> ribed by the 
Secretary concerned, the Secretary may authorize the payment of a basic 
allowance for housing to a member of a uniformed service without 
dependents who is serving in pay grade E-5 and is assigned to sea duty. 
In prescribing regulations under this subparagraph, the Secretary 
concerned shall consider the availability of quarters for members 
serving in pay grade E-5.

    ``(C) Notwithstanding section 421 of this title, two members of the 
uniformed services in a pay grade below pay grade E-6 who are married to 
each other, have no other dependents, and are simultaneously assigned to 
sea duty are jointly entitled to one basic allowance for housing during 
the period of such simultaneous sea duty. The amount of the allowance 
shall be based on the without dependents rate for the pay grade of the 
senior member of the couple. However, this subparagraph shall not apply 
to a couple if one or both of the members are entitled to a basic 
allowance for housing under subparagraph (B).
    ``(3) The Secretary of Defense, and the Secretary of Transportation 
with respect to the Coast Guard when it is not operating as a service in 
the Department of the Navy, shall prescribe regulation defining the 
terms `field duty' and `sea duty' for purposes of this section.
    ``(g) Reserve Members.--(1) A member of a reserve component without 
dependents who is called or ordered to active duty in support of a 
contingency operation, or a retired member without dependents who is 
ordered to active duty under section 688(a) of title 10 in support of a 
contingency operation, may not be denied a basic allowance for housing 
if, because of that call or order, the member is unable to continue to 
occupy a residence--
            ``(A) which is maintained as the primary residence of the 
        member at the time of the call or order; and
            ``(B) which is owned by the member or for which the member 
        is responsible for rental payments.

    ``(2) Paragraph (1) shall not apply if the member is authorized 
transportation of household goods under section 406 of this title as 
part of the call or order to active duty described in such paragraph.

[[Page 111 STAT. 1779]]

    ``(3) The Secretary of Defense shall establish a rate of basic 
allowance for housing to be paid to a member of a reserve component 
while the member serves on active duty under a call or order to active 
duty specifying a period of less than 140 days, unless the call or order 
to active duty is in support of a contingency operation.
    ``(h) Rental of Public Quarters.--Notwithstanding any other law 
(including those restricting the occupancy of housing facilities under 
the jurisdiction of a department or agency of the United States by 
members, and their dependents, of the armed forces above specified 
grades, or by members, and their dependents, of the National Oceanic and 
Atmospheric Administration and the Public Health Service), a member of a 
uniformed service, and the dependents of the member, may be accepted as 
tenants in, and may occupy on a rental basis, any of those housing 
facilities, other than public quarters constructed or designated for 
assignment to an occupancy without charge by such a member and the 
dependents of the member, if any. Such a member may not, because of 
occupancy under this subsection, be deprived of any money allowance to 
which the member is otherwise entitled for the rental of quarters.
    ``(i) Temporary Housing Allowance While in Travel or Leave Status.--
A member of a uniformed service who is in a pay grade E-4 (4 or more 
years of service) or above is entitled to a temporary basic allowance 
for housing (at a rate determined by the Secretary of Defense) while the 
member is in a travel or leave status between permanent duty stations, 
including time granted as delay en route or proceed time, when the 
member is not assigned to quarters of the United States.
    ``(j) Aviation Cadets.--The eligibility of an aviation cadet of the 
Navy, Air Force, Marine Corps, or Coast Guard for a basic allowance for 
housing shall be determined as if the aviation cadet were a member of 
the uniformed services in pay grade E-4.
    ``(k) <<NOTE: Regulations.>>  Administration.--(1) The Secretary of 
Defense shall prescribe regulations for the administration of this 
section.

    ``(2) The Secretary concerned may make such determinations as may be 
necessary to administer this section, including determinations of 
dependency and relationship. When warranted by the circumstances, the 
Secretary concerned may reconsider and change or modify any such 
determination. The authority of the Secretary concerned under this 
subsection may be delegated. Any determination made under this section 
with regard to a member of the uniformed services is final and is not 
subject to review by any accounting officer of the United States or a 
court, unless there is fraud or gross negligence.
    ``(3) Parking facilities (including utility connections) provided 
members of the uniformed services for house trailers and mobile homes 
not owned by the Government shall not be considered to be quarters for 
the purposes of this section or any other provision of law. Any fees 
established by the Government for the use of such a facility shall be 
established in an amount sufficient to cover the cost of maintenance, 
services, and utilities and to amortize the cost of construction of the 
facility over the 25-year period beginning with the completion of such 
construction.
    ``(l) Temporary Continuation of Allowance for Dependents of Members 
Dying on Active Duty.--(1) The Secretary of Defense, or the Secretary of 
Transportation in the case of the Coast Guard when not operating as a 
service in the Navy, may

[[Page 111 STAT. 1780]]

allow the dependents of a member of the armed forces who dies on active 
duty and whose dependents are occupying family housing provided by the 
Department of Defense, or by the Department of Transportation in the 
case of the Coast Guard, other than on a rental basis on the date of the 
member's death to continue to occupy such housing without charge for a 
period of 180 days.
    ``(2) The Secretary concerned may pay a basic allowance for housing 
(at the rate that is payable for members of the same grade and 
dependency status as the deceased member for the area where the 
dependents are residing) to the dependents of a member of the uniformed 
services who dies while on active duty and whose dependents--
            ``(A) are not occupying a housing facility under the 
        jurisdiction of a uniformed service on the date of the member's 
        death;
            ``(B) are occupying such housing on a rental basis on such 
        date; or
            ``(C) vacate such housing sooner than 180 days after the 
        date of the member's death.

    ``(3) <<NOTE: Termination date.>>  The payment of the allowance 
under paragraph (2) shall terminate 180 days after the date of the 
member's death.

    ``(m) Members Paying Child Support.--(1) A member of a uniformed 
service with dependents may not be paid a basic allowance for housing at 
the with dependents rate solely by reason of the payment of child 
support by the member if--
            ``(A) the member is assigned to a housing facility under the 
        jurisdiction of a uniformed service; or
            ``(B) the member is assigned to sea duty, and elects not to 
        occupy assigned quarters for unaccompanied personnel, unless the 
        member is in a pay grade above E-4.

    ``(2) A member of a uniformed service assigned to quarters of the 
United States or a housing facility under the jurisdiction of a 
uniformed service who is not otherwise authorized a basic allowance for 
housing and who pays child support is entitled to the basic allowance 
for housing differential, except for months for which the amount payable 
for the child support is less than the rate of the differential. Payment 
of a basic allowance for housing differential does not affect any 
entitlement of the member to a partial allowance for quarters under 
subsection (n).
    ``(3) The basic allowance for housing differential to which a member 
is entitled under paragraph (2) is the amount equal to the difference 
between--
            ``(A) the rate of the basic allowance for quarters (with 
        dependents) for the member's pay grade, as such rate was in 
        effect on December 31, 1997, under this section (as in effect on 
        that date); and
            ``(B) the rate of the basic allowance for quarters (without 
        dependents) for the member's pay grade, as such rate was in 
        effect on December 31, 1997, under this section (as in effect on 
        that date).

    ``(4) Whenever the rates of basic pay for members of the uniformed 
services are increased, the monthly amount of the basic allowance for 
housing differential computed under paragraph (3) shall be increased by 
the average percentage increase in the rates of basic pay. The effective 
date of the increase shall be the same date as the effective date of the 
increase in the rates of basic pay.

[[Page 111 STAT. 1781]]

    ``(5) In the case of two members, who have one or more common 
dependents (and no others), who are not married to each other, and one 
of whom pays child support to the other, the amount of the basic 
allowance for housing paid to each member under this section shall be 
reduced in accordance with regulations prescribed by the Secretary of 
Defense. The total amount of the basic allowances for housing paid to 
the two members may not exceed the sum of the amounts of the allowance 
to which each member would be otherwise entitled under this section.
    ``(n) Partial Allowance for Members Without Dependents.--(1) A 
member of a uniformed service without dependents who is not entitled to 
receive a basic allowance for housing under subsection (b), (c), or (d) 
is entitled to a partial basic allowance for housing at a rate 
determined by the Secretary of Defense under paragraph (2).
    ``(2) The rate of the partial basic allowance for housing is the 
partial rate of the basic allowance for quarters for the member's pay 
grade as such partial rate was in effect on December 31, 1997, under 
section 1009(c)(2) of this title (as such section was in effect on such 
date).''.
    (b) <<NOTE: 37 USC 403 note.>> Transition to Basic Allowance for 
Housing.--The Secretary of Defense shall develop and implement a plan to 
incrementally manage the rate of growth of the various components of the 
basic allowance for housing authorized by section 403 of title 37, 
United States Code (as amended by subsection (a)), during a transition 
period of not more than six years. During the transition period, the 
Secretary may continue to use the authorities provided under sections 
403, 403a, 405(b), and 427(a) of title 37, United States Code (as in 
effect on the day before the date of the enactment of this Act), but 
subject to such modifications as the Secretary considers necessary, to 
provide allowances for members of the uniformed services.

    (c) Repeal of Superseded Authorities.--(1) Section 403a of title 37, 
United States Code, is repealed.
    (2) Section 405 of such title is amended--
            (A) by striking out subsection (b); and
            (B) by redesignating subsections (c) and (d) as subsections 
        (b) and (c), respectively.

    (3) Section 427 of such title is amended--
            (A) by striking out subsection (a); and
            (B) in subsection (b)--
                    (i) by striking out ``(b) Additional Separation 
                Allowance.--'' and inserting in lieu thereof ``(a) 
                Entitlement to Allowance.--'';
                    (ii) in paragraph (1)--
                          (I) by striking out ``, including subsection 
                      (a),'' in the matter preceding the subparagraphs;
                          (II) by inserting ``or'' at the end of 
                      subparagraph (B);
                          (III) by striking out ``; or'' at the end of 
                      subparagraph (C) and inserting in lieu thereof a 
                      period; and
                          (IV) by striking out subparagraph (D);
                    (iii) in paragraph (3)--
                          (I) by striking out ``(3) An allowance'' and 
                      inserting in lieu thereof ``(b) Entitlement When 
                      No Residence or Household Maintained for 
                      Dependents.--An allowance''; and

[[Page 111 STAT. 1782]]

                          (II) by striking out ``this subsection'' and 
                      inserting in lieu thereof ``subsection (a)'';
                    (iv) in paragraph (4)--
                          (I) by striking out ``(4) A member'' and 
                      inserting in lieu thereof ``(c) Effect of Election 
                      to Serve Unaccompanied Tour of Duty.--A member''; 
                      and
                          (II) by striking out ``paragraph (1)(A) of 
                      this subsection'' and inserting in lieu thereof 
                      ``subsection (a)(1)(A)''; and
                    (v) by striking out paragraph (5) and inserting in 
                lieu thereof the following new subsection:

    ``(d) Entitlement While Spouse Entitled to Basic Pay.--A member 
married to another member of the uniformed services becomes entitled, 
regardless of any other dependency status, to an allowance under 
subsection (a) by virtue of duty prescribed in subparagraph (A), (B), or 
(C) of paragraph (1) of such subsection if the members were residing 
together immediately before being separated by reasons of execution of 
military orders. Section 421 of this title does not apply to bar the 
entitlement to an allowance under this section. However, not more than 
one monthly allowance may be paid with respect to a married couple under 
this section.''.
    (4) The table of sections at the beginning of chapter 7 of title 37, 
United States Code, is amended by striking out the items relating to 
sections 403 and 403a and inserting in lieu thereof the following new 
item:

``403. Basic allowance for housing.''.

    (d) Conforming Amendments.--(1) Title 37, United States Code, is 
amended--
            (A) in section 101(25), by striking out ``basic allowance 
        for quarters (including any variable housing allowance or 
        station housing allowance)'' and inserting in lieu thereof 
        ``basic allowance for housing'';
            (B) in section 406(c), by striking out ``sections 404 and 
        405'' and inserting in lieu thereof ``sections 403(c), 404, and 
        405'';
            (C) in section 420(c), by striking out ``quarters'' and 
        inserting in lieu thereof ``housing'';
            (D) in section 551(3)(D), by striking out ``basic allowance 
        for quarters'' and inserting in lieu thereof ``basic allowance 
        for housing''; and
            (E) in section 1014(a), by striking out ``basic allowance 
        for quarters'' and inserting in lieu thereof ``basic allowance 
        for housing''.

    (2) Title 10, United States Code, is amended--
            (A) in section 708(c)(1), by striking out ``basic allowance 
        for quarters or basic allowance for subsistence'' and inserting 
        in lieu thereof ``basic allowance for housing under section 403 
        of title 37, basic allowance for subsistence under section 402 
        of such title,'';
            (B) in section 2830(a)--
                    (i) in paragraph (1), by striking out ``basic 
                allowance for quarters'' and inserting in lieu thereof 
                ``basic allowance for housing under section 403 of title 
                37''; and
                    (ii) in paragraph (2), by striking out ``basic 
                allowance for quarters'' and inserting in lieu thereof 
                ``basic allowance for housing'';

[[Page 111 STAT. 1783]]

            (C) in section 2882(b)--
                    (i) in paragraph (1), by striking out ``section 
                403(b)'' and inserting in lieu thereof ``section 403''; 
                and
                    (ii) in paragraph (2), by striking out ``basic 
                allowance for quarters'' and all that follows through 
                the end of the paragraph and inserting in lieu thereof 
                ``basic allowance for housing under section 403 of title 
                37.'';
            (D) in section 7572(b)--
                    (i) in paragraph (1), by striking out ``the total 
                of--'' and all that follows through the end of the 
                paragraph and inserting in lieu thereof ``the basic 
                allowance for housing payable under section 403 of title 
                37 to a member of the same pay grade without dependents 
                for the period during which the member is deprived of 
                quarters on board ship.''; and
                    (ii) in paragraph (2), by striking out ``basic 
                allowance for quarters'' and inserting in lieu thereof 
                ``basic allowance for housing''; and
            (E) in section 7573, by striking out ``basic allowance for 
        quarters'' and inserting in lieu thereof ``basic allowance for 
        housing under section 403 of title 37''.

    (3) Section 5561(6)(D) of title 5, United States Code, is amended by 
striking out ``basic allowance for quarters'' and inserting in lieu 
thereof ``basic allowance for housing''.
    (4) Section 107(b) of title 32, United States Code, is amended by 
striking out ``and quarters'' and inserting in lieu thereof ``and 
housing''.
    (5) Section 4(k)(10) of the Military Selective Service Act (50 
U.S.C. App. 454(k)(10)) is amended by striking out ``as such terms'' and 
all that follows through ``extended or amended'' and inserting in lieu 
thereof ``shall be entitled to receive a dependency allowance equal to 
the basic allowance for housing provided for persons in pay grade E-1 
under section 403 of title 37, United States Code,''.
    (e) <<NOTE: 5 USC 5561 note.>>  Effective Date.--This section and 
the amendments made by this section shall take effect on January 1, 
1998.

SEC. 604. REVISION OF AUTHORITY TO ADJUST COMPENSATION NECESSITATED BY 
            REFORM OF SUBSISTENCE AND HOUSING ALLOWANCES.

    (a) Removal of References to BAS and BAQ.--(1) Section 1009 of title 
37, United States Code, is amended to read as follows:

``Sec. 1009. Adjustments of monthly basic pay <<NOTE: President.>> 

    ``(a) Adjustment Required.--Whenever the General Schedule of 
compensation for Federal classified employees, as contained in section 
5332 of title 5, is adjusted upward as provided in section 5303 of such 
title, the President shall immediately make an upward adjustment in the 
monthly basic pay authorized members of the uniformed services by 
section 203(a) of this title.
    ``(b) Effectiveness of Adjustment.--An adjustment under this section 
shall--
            ``(1) have the force and effect of law; and
            ``(2) carry the same effective date as that applying to the 
        compensation adjustments provided General Schedule employees.

    ``(c) Equal Percentage Increase for All Members.--Subject to 
subsection (d), an adjustment under this section shall provide

[[Page 111 STAT. 1784]]

all eligible members with an increase in the monthly basic pay which is 
of the same percentage as the overall average percentage increase in the 
General Schedule rates of both basic pay and locality pay for civilian 
employees.
    ``(d) Allocation of Increase Among Pay Grades and Years-of-
Service.--(1) Subject to paragraph (2), whenever the President 
determines such action to be in the best interest of the Government, he 
may allocate the overall percentage increase in the monthly basic pay 
under subsection (a) among such pay grade and years-of-service 
categories as he considers appropriate.
    ``(2) In making any allocation of an overall percentage increase in 
basic pay under paragraph (1)--
            ``(A) the amount of the increase in basic pay for any given 
        pay grade and years-of-service category after any allocation 
        made under this subsection may not be less than 75 percent of 
        the amount of the increase in the monthly basic pay that would 
        otherwise have been effective with respect to such pay grade and 
        years-of-service category under subsection (c); and
            ``(B) the percentage increase in the monthly basic pay in 
        the case of any member of the uniformed services with four years 
        or less service may not exceed the overall percentage increase 
        in the General Schedule rates of basic pay for civilian 
        employees.

    ``(e) Notice of Allocations.--Whenever the President plans to 
exercise the authority of the President under subsection (d) with 
respect to any anticipated increase in the monthly basic pay of members 
of the uniformed services, the President shall advise Congress, at the 
earliest practicable time prior to the effective date of such increase, 
regarding the proposed allocation of such increase.
    ``(f) Quadrennial Assessment of Allocations.--The allocations of 
increases made under this section shall be assessed in conjunction with 
the quadrennial review of military compensation required by section 
1008(b) of this title.''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 19 of such title is amended to read as follows:

``1009. Adjustments of monthly basic pay.''.

    (b) <<NOTE: 37 USC 109 note.>>  Effective Date.--The amendments made 
by subsection (a) shall take effect on January 1, 1998.

SEC. 605. PROTECTION OF TOTAL COMPENSATION OF MEMBERS WHILE PERFORMING 
            CERTAIN DUTY.

    Section 1009 of title 37, United States Code, as amended by section 
604, is further amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following new 
        subsection:

    ``(f) Protection of Member's Total Compensation While Performing 
Certain Duty.--(1) The total daily equivalent amount of the elements of 
compensation described in paragraph (3), together with other pay and 
allowances under this title, to be paid to a member of the uniformed 
services who is temporarily assigned to duty away from the member's 
permanent duty station or to duty under field conditions at the member's 
permanent duty station shall not be less, for any day during the 
assignment period, than the total amount, for the day immediately 
preceding the date of

[[Page 111 STAT. 1785]]

the assignment, of the elements of compensation and other pay and 
allowances of the member.
    ``(2) Paragraph (1) shall not apply with respect to an element of 
compensation or other pay or allowance of a member during an assignment 
described in such paragraph to the extent that the element of 
compensation or other pay or allowance is reduced or terminated due to 
circumstances unrelated to the assignment.
    ``(3) The elements of compensation referred to in this subsection 
mean--
            ``(A) the monthly basic pay authorized members of the 
        uniformed services by section 203(a) of this title;
            ``(B) the basic allowance for subsistence authorized members 
        of the uniformed services by section 402 of this title; and
            ``(C) the basic allowance for housing authorized members of 
        the uniformed services by section 403 of this title.''.

           Subtitle B--Bonuses and Special and Incentive Pays

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

    (a) Special Pay for Health Professionals in Critically Short Wartime 
Specialties.--Section 302g(f) of title 37, United States Code, is 
amended by striking out ``September 30, 1998'' and inserting in lieu 
thereof ``September 30, 1999''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking out ``September 30, 
1998'' and inserting in lieu thereof ``September 30, 1999''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 37, 
United States Code, is amended by striking out ``September 30, 1998'' 
and inserting in lieu thereof ``September 30, 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, 1998'' and inserting in lieu 
thereof ``September 30, 1999''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1998'' and inserting in lieu thereof ``September 30, 1999''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of title 37, United States Code, is amended by striking out 
``September 30, 1998'' and inserting in lieu thereof ``September 30, 
1999''.
    (g) Prior Service Enlistment Bonus.--Section 308i(f) of title 37, 
United States Code, as redesignated by section 622, is amended by 
striking out ``September 30, 1998'' and inserting in lieu thereof 
``September 30, 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, 1998'' and 
inserting in lieu thereof ``October 1, 1999''.

[[Page 111 STAT. 1786]]

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

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking out ``September 
30, 1998'' and inserting in lieu thereof ``September 30, 1999''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking out ``September 30, 
1998'' and inserting in lieu thereof ``September 30, 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, 1998'' and inserting in lieu thereof ``September 30, 
1999''.

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

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking out ``September 30, 1998,'' 
and inserting in lieu thereof ``September 30, 1999,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of title 
37, United States Code, is amended by striking out ``September 30, 
1998'' and inserting in lieu thereof ``September 30, 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, 1998'' and inserting in lieu thereof 
``September 30, 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, 1998'' and inserting in lieu 
thereof ``September 30, 1999''.
    (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37, 
United States Code, is amended by striking out ``September 30, 1998'' 
and inserting in lieu thereof ``September 30, 1999''.
    (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of title 
37, United States Code, is amended by striking out ``October 1, 1998'' 
and inserting in lieu thereof ``October 1, 1999''.

SEC. 614. INCREASE IN MINIMUM MONTHLY RATE OF HAZARDOUS DUTY INCENTIVE 
            PAY FOR CERTAIN MEMBERS.

    (a) Aerial Flight Crewmembers.--The table in subsection (b) of 
section 301 of title 37, United States Code, is amended--
            (1) by striking out ``110'' each place it appears and 
        inserting in lieu thereof ``150''; and
            (2) by striking out ``125'' each place it appears and 
        inserting in lieu thereof ``150''.

    (b) Air Weapons Controller Aircrew.--The table in subsection 
(c)(2)(A) of such section is amended--
            (1) by striking out ``100'' in the first column of amounts 
        and inserting in lieu thereof ``150'';
            (2) by striking out ``110'' in the last column of amounts 
        and inserting in lieu thereof ``150''; and
            (3) by striking out ``125'' each place it appears and 
        inserting in lieu thereof ``150''.

[[Page 111 STAT. 1787]]

    (c) Other Members.--Subsection (c)(1) of such section is amended--
            (1) by striking out ``$110'' and inserting in lieu thereof 
        ``$150''; and
            (2) by striking out ``$165'' and inserting in lieu thereof 
        ``$225''.

SEC. 615. INCREASE IN AVIATION CAREER INCENTIVE PAY.

    (a) Amounts.--The table in subsection (b)(1) of section 301a of 
title 37, United States Code, is amended--
            (1) by inserting at the end of phase I of the table the 
        following:

        ``Over 14.................................................840'';

        and
            (2) by striking out phase II of the table and inserting in 
        lieu thereof the following:

                               ``Phase II

                              ``Monthly.................................
``Years of service as an officrate......................................

        ``Over 22................................................. $585 
        ``Over 23.................................................  495 
        ``Over 24.................................................  385 
        ``Over 25.................................................250''.

    (b) Conforming Amendments.--Such subsection is further amended in 
the matter after the table by striking out ``18 years'' both places it 
appears and inserting in lieu thereof ``22 years''.
    (c) <<NOTE: 37 USC 301a note.>>  Effective Date and Applicability.--
The amendments made by subsection (a) shall take effect on January 1, 
1999, and shall apply with respect to months beginning on or after that 
date.

SEC. 616. MODIFICATION OF AVIATION OFFICER RETENTION BONUS.

    (a) Increase in Bonus Amounts.--Subsection (c) of section 301b of 
title 37, United States Code, is amended--
            (1) in paragraph (1), by striking out ``$12,000'' and 
        inserting in lieu thereof ``$25,000''; and
            (2) in paragraph (2), by striking out ``$6,000'' and 
        inserting in lieu thereof ``$12,000''.

    (b) Duration of Agreement.--Paragraph (2) of such subsection is 
further amended by striking out ``one or two years'' and inserting in 
lieu thereof ``one, two, or three years''.
    (c) Content of Annual Report.--Subsection (i)(1) of such section is 
amended--
            (1) by inserting ``and'' at the end of subparagraph (A);
            (2) by striking out ``; and'' at the end of subparagraph (B) 
        and inserting in lieu thereof a period; and
            (3) by striking out subparagraph (C).

    (d) Definition of Aviation Specialty.--Subsection (j)(2) of such 
section is amended by inserting ``specific'' before ``community'' both 
places it appears.
    (e) <<NOTE: 37 USC 301b note.>> Effective Dates and Applicability.--
The amendments made by this section shall take effect as of October 1, 
1996, and shall apply with respect to agreements accepted under section 
301b of title 37, United States Code, on or after that date.

[[Page 111 STAT. 1788]]

SEC. 617. AVAILABILITY OF MULTIYEAR RETENTION BONUS FOR DENTAL OFFICERS.

    (a) Availability of Retention Bonus.--Chapter 5 of title 37, United 
States Code, is amended by inserting after section 301d the following 
new section:

``Sec. 301e. Multiyear retention bonus: dental officers of the armed 
                        forces

    ``(a) Bonus Authorized.--(1) A dental officer described in 
subsection (b) who executes a written agreement to remain on active duty 
for two, three, or four years after completion of any other active-duty 
service commitment may, upon acceptance of the written agreement by the 
Secretary of the military department concerned, be paid a retention 
bonus as provided in this section.
    ``(2) The amount of a retention bonus under paragraph (1) may not 
exceed $14,000 for each year covered by a four-year agreement. The 
maximum yearly retention bonus for two-year and three-year agreements 
shall be reduced to reflect the shorter service commitment.
    ``(b) <<NOTE: Applicability.>>  Officers Automatically Eligible.--
Subsection (a) applies to an officer of the armed forces who--
            ``(1) is an officer of the Dental Corps of the Army or the 
        Navy or an officer of the Air Force designated as a dental 
        officer;
            ``(2) has a dental specialty in oral and maxillofacial 
        surgery;
            ``(3) is in a pay grade below pay grade O-7;
            ``(4) has at least eight years of creditable service 
        (computed as described in section 302b(g) of this title) or has 
        completed any active-duty service commitment incurred for dental 
        education and training; and
            ``(5) has completed initial residency training (or will 
        complete such training before September 30 of the fiscal year in 
        which the officer enters into an agreement under subsection 
        (a)).

    ``(c) Extension of Bonus to Other Dental Officers.--At the 
discretion of the Secretary of the military department concerned, the 
Secretary may enter into a written agreement described in subsection 
(a)(1) with a dental officer who does not have the dental specialty 
specified in subsection (b)(2), and pay a retention bonus to such an 
officer as provided in this section, if the officer otherwise satisfies 
the eligibility requirements specified in subsection (b). The 
Secretaries shall exercise the authority provided in this section in a 
manner consistent with regulations prescribed by the Secretary of 
Defense.
    ``(d) Refunds.--(1) Refunds shall be required, on a pro rata basis, 
of sums paid under this section if the officer who has received the 
payment fails to complete the total period of active duty specified in 
the agreement, as conditions and circumstances warrant.
    ``(2) An obligation to reimburse the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) A discharge in bankruptcy under title 11, United States Code, 
that is entered less than five years after the termination of an 
agreement under this section does not discharge the member signing such 
agreement from a debt arising under such agreement

[[Page 111 STAT. 1789]]

or under paragraph (1). <<NOTE: Applicability.>> This paragraph applies 
to any case commenced under title 11 after the date of the enactment of 
the National Defense Authorization Act for Fiscal Year 1998.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
301d the following new item:

``301e. Multiyear retention bonus: dental officers of the armed 
           forces.''.

SEC. 618. INCREASE IN VARIABLE AND ADDITIONAL SPECIAL PAYS FOR CERTAIN 
            DENTAL OFFICERS.

    (a) Variable Special Pay for Junior Officers.--Paragraph (2) of 
section 302b(a) of title 37, United States Code, is amended by striking 
out subparagraphs (C), (D), (E), and (F) and inserting in lieu thereof 
the following new subparagraphs:
            ``(C) $7,000 per year, if the officer has at least six but 
        less than eight years of creditable service.
            ``(D) $12,000 per year, if the officer has at least eight 
        but less than 12 years of creditable service.
            ``(E) $10,000 per year, if the officer has at least 12 but 
        less than 14 years of creditable service.
            ``(F) $9,000 per year, if the officer has at least 14 but 
        less than 18 years of creditable service.
            ``(G) $8,000 per year, if the officer has 18 or more years 
        of creditable service.''.

    (b) Variable Special Pay for Senior Officers.--Paragraph (3) of such 
section is amended by striking out ``$1,000'' and inserting in lieu 
thereof ``$7,000''.
    (c) Additional Special Pay.--Paragraph (4) of such section is 
amended by striking out subparagraphs (B), (C), and (D) and inserting in 
lieu thereof the following new subparagraphs:
            ``(B) $6,000 per year, if the officer has at least three but 
        less than 10 years of creditable service.
            ``(C) $15,000 per year, if the officer has 10 or more years 
        of creditable service.''.

SEC. 619. AVAILABILITY OF SPECIAL PAY FOR DUTY AT DESIGNATED HARDSHIP 
            DUTY LOCATIONS.

    (a) Special Pay Authorized.--Subsection (a) of section 305 of title 
37, United States Code, is amended to read as follows:
    ``(a) Special Pay Authorized.--A member of a uniformed service who 
is entitled to basic pay may be paid special pay under this section at a 
monthly rate not to exceed $300 while the member is on duty at a 
location in the United States or outside the United States designated by 
the Secretary of Defense as a hardship duty location.''.
    (b) Cross References and Regulations.--Such section is further 
amended--
            (1) in subsection (b)--
                    (A) by inserting ``Exception for Certain Members 
                Serving in Certain Locations.--'' after ``(b)''; and
                    (B) by striking out ``as foreign duty pay'' and 
                inserting in lieu thereof ``as hardship duty location 
                pay'';
            (2) in subsection (c)--
                    (A) by inserting ``Exception for Members Receiving 
                Career Sea Pay.--'' after ``(c)''; and

[[Page 111 STAT. 1790]]

                    (B) by striking out ``special pay under this 
                section'' and inserting in lieu thereof ``hardship duty 
                location pay under subsection (a)''; and
            (3) by adding at the end the following new subsection:

    ``(d) Regulations.--The Secretary of Defense shall prescribe 
regulations for the provision of hardship duty location pay under 
subsection (a), including the specific monthly rates at which the 
special pay will be available.''.
    (c) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

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

    (2) The table of sections at the beginning of chapter 5 of title 37, 
United States Code, is amended by striking out the item relating to 
section 305 and inserting in lieu thereof the following new item:

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

    (d) Conforming Amendment.--Section 907(d) of title 37, United States 
Code, is amended by striking out ``duty at certain places'' and 
inserting in lieu thereof ``duty at a hardship duty location''.
    (e) <<NOTE: 37 USC 305 note.>> Transition.--Until such time as the 
Secretary of Defense prescribes regulations regarding the provision of 
hardship duty location pay under section 305 of title 37, United States 
Code, as amended by this section, the Secretary may continue to use the 
authority provided by such section 305, as in effect on the day before 
the date of the enactment of this Act, to provide special pay to 
enlisted members of the uniformed services on duty at certain places.

SEC. 620. DEFINITION OF SEA DUTY FOR PURPOSES OF CAREER SEA PAY.

    Section 305a(d) of title 37, United States Code, is amended--
            (1) in paragraph (1)(A), by striking out ``, ship-based 
        staff, or ship-based aviation unit'';
            (2) in paragraph (1)(B), by striking out ``or ship-based 
        staff'';
            (3) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (4) by inserting after paragraph (1) the following new 
        paragraph:

    ``(2) The Secretary concerned may designate duty performed by a 
member while serving on a ship the primary mission of which is 
accomplished either while under way or in port as `sea duty' for 
purposes of this section, even though the duty is performed while the 
member is permanently or temporarily assigned to a ship-based staff or 
other unit not covered by paragraph (1).''.

SEC. 621. MODIFICATION OF SELECTED RESERVE REENLISTMENT BONUS.

    (a) Eligible Members.--Subsection (a)(1) of section 308b of title 
37, United States Code, is amended by striking out ``ten years'' and 
inserting in lieu thereof ``14 years''.
    (b) Bonus Amounts; Payment.--Subsection (b) of such section is 
amended to read as follows:
    ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus under this 
section may not exceed--

[[Page 111 STAT. 1791]]

            ``(A) $5,000, in the case of a member who reenlists or 
        extends an enlistment for a period of six years;
            ``(B) $2,500, in the case of a member who, having never 
        received a bonus under this section, reenlists or extends an 
        enlistment for a period of three years; and
            ``(C) $2,000, in the case of a member who, having received a 
        bonus under this section for a previous three-year reenlistment 
        or extension of an enlistment, reenlists or extends the 
        enlistment for an additional period of three years.

    ``(2) Any bonus payable under this section shall be disbursed in one 
initial payment of an amount not to exceed one-half of the total amount 
of the bonus and subsequent periodic partial payments of the balance of 
the bonus. The Secretary concerned shall prescribe the amount of each 
partial payment and the schedule for making the partial payments.''.
    (c) Special Eligibility Requirements; Number of Individual 
Bonuses.--Subsection (c) of such section is amended to read as follows:
    ``(c) Condition on Eligibility; Limitation on Number of Bonuses.--
(1) To be eligible for a second bonus under this section in the amount 
specified in subsection (b)(1)(C), a member must--
            ``(A) enter into the subsequent reenlistment or extension of 
        an enlistment for a period of three years not later than the 
        date on which the enlistment or extension for which the first 
        bonus was paid would expire; and
            ``(B) still satisfy the designated skill or unit 
        requirements required under subsection (a)(2).

    ``(2) A member may not be paid more than one six-year bonus or two 
three-year bonuses under this section.''.
    (d) Effect of Failure To Serve Satisfactorily.--Subsection (d) of 
such section is amended to read as follows:
    ``(d) Repayment of Bonus.--A member who receives a bonus under this 
section and who fails, during the period for which the bonus was paid, 
to serve satisfactorily in the element of the Selected Reserve of the 
Ready Reserve with respect to which the bonus was paid shall refund to 
the United States an amount that bears the same ratio to the amount of 
the bonus paid to the member as the period that the member failed to 
serve satisfactorily bears to the total period for which the bonus was 
paid.''.
    (e) Clerical Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Authority and 
        Eligibility Requirements.--'' after ``(a)'';
            (2) in subsection (e), by inserting ``Regulations.--'' after 
        ``(e)''; and
            (3) in subsection (f), by inserting ``Termination of 
        Authority.--'' after ``(f)''.

SEC. 622. MODIFICATION OF SELECTED RESERVE ENLISTMENT BONUS FOR FORMER 
            ENLISTED MEMBERS.

    (a) Eligible Persons.--Subsection (a)(2) of section 308i of title 
37, United States Code, is amended--
            (1) in subparagraph (A), by striking out ``10 years'' and 
        inserting in lieu thereof ``14 years'';
            (2) in subparagraph (C), by striking out ``and'';
            (3) by redesignating subparagraph (D) as subparagraph (E);

[[Page 111 STAT. 1792]]

            (4) in subparagraph (E) (as so redesignated), by inserting 
        ``(except under this section)'' after ``bonus''; and
            (5) by inserting after subparagraph (C) the following new 
        subparagraph:
            ``(D) is projected to occupy a position as a member of the 
        Selected Reserve in a specialty in which--
                    ``(i) the person successfully served while a member 
                on active duty; and
                    ``(ii) the person attained a level of qualification 
                while a member on active duty commensurate with the 
                grade and years of service of the member; and''.

    (b) Bonus Amounts; Payment.--Subsection (b) of such section is 
amended to read as follows:
    ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus under this 
section may not exceed--
            ``(A) $5,000, in the case of a person who enlists for a 
        period of six years;
            ``(B) $2,500, in the case of a person who, having never 
        received a bonus under this section, enlists for a period of 
        three years; and
            ``(C) $2,000, in the case of a person who, having received a 
        bonus under this section for a previous three-year enlistment, 
        reenlists or extends the enlistment for an additional period of 
        three years.

    ``(2) Any bonus payable under this section shall be disbursed in one 
initial payment of an amount not to exceed one-half of the total amount 
of the bonus and subsequent periodic partial payments of the balance of 
the bonus. The Secretary concerned shall prescribe the amount of each 
partial payment and the schedule for making the partial payments.''.
    (c) Special Eligibility Requirements; Number of Individual 
Bonuses.--Subsection (c) of such section is amended to read as follows:
    ``(c) Condition on Eligibility; Limitation on Number of Bonuses.--
(1) To be eligible for a second bonus under this section in the amount 
specified in subsection (b)(1)(C), a person must--
            ``(A) enter into a reenlistment or extension of an 
        enlistment for a period of three years not later than the date 
        on which the enlistment for which the first bonus was paid would 
        expire; and
            ``(B) still satisfy the eligibility requirements under 
        subsection (a).

    ``(2) A person may not be paid more than one six-year bonus or two 
three-year bonuses under this section.''.
    (d) Reorganization of Section.--Such section is further amended--
            (1) by redesignating subsections (e), (f), and (g) as 
        paragraphs (2), (3), and (4), respectively, of subsection (d); 
        and
            (2) by redesignating subsections (h) and (i) as subsections 
        (e) and (f), respectively.

    (e) Conforming and Clerical Amendments.--Such section is further 
amended--
            (1) in subsection (a), by inserting ``Authority and 
        Eligibility Requirements.--'' after ``(a)'';
            (2) in subsection (d)--
                    (A) by inserting ``Repayment of Bonus.--(1)'' after 
                ``(d)'';

[[Page 111 STAT. 1793]]

                    (B) in paragraphs (2) and (4), as redesignated by 
                subsection (d)(1), by striking out ``subsection (d)'' 
                and inserting in lieu thereof ``paragraph (1)''; and
                    (C) in paragraph (3), as redesignated by subsection 
                (d)(1)--
                          (i) by striking out ``subsection (h)'' and 
                      inserting in lieu thereof ``subsection (e)''; and
                          (ii) by striking out ``subsection (d)'' and 
                      inserting in lieu thereof ``paragraph (1)'';
            (3) in subsection (e), as redesignated by subsection (d)(2), 
        by inserting ``Regulations.--'' after ``(e)''; and
            (4) in subsection (f), as redesignated by subsection (d)(2), 
        by inserting ``Termination of Authority.--'' after ``(f)''.

SEC. 623. EXPANSION OF RESERVE AFFILIATION BONUS TO INCLUDE COAST GUARD 
            RESERVE.

    Section 308e of title 37, United States Code, is amended--
            (1) in subsection (a), by striking out ``Under regulations 
        prescribed by the Secretary of Defense, the Secretary of a 
        military department'' and inserting in lieu thereof ``The 
        Secretary concerned'';
            (2) in subsection (b)(3), by striking out ``designated by 
        the Secretary of Defense for the purposes of this section'' and 
        inserting in lieu thereof ``designated for purposes of this 
        section in the regulations prescribed under subsection (f)'';
            (3) in subsection (c)(3), by striking out ``regulations 
        prescribed by the Secretary of Defense'' and inserting in lieu 
        thereof ``the regulations prescribed under subsection (f)''; and
            (4) by adding at the end the following new subsections:

    ``(f) <<NOTE: Regulations.>>  This section shall be administered 
under regulations prescribed by the Secretary of Defense for the armed 
forces under the jurisdiction of the Secretary of Defense and by the 
Secretary of Transportation for the Coast Guard when the Coast Guard is 
not operating as a service in the Navy.

    ``(g) The authority in subsection (a) does not apply to the 
Secretary of Commerce and the Secretary of Health and Human Services.''.

SEC. 624. INCREASE IN SPECIAL PAY AND BONUSES FOR NUCLEAR-QUALIFIED 
            OFFICERS.

    (a) Special Pay for Officers Extending Period of Active Service.--
Section 312(a) of title 37, United States Code, is amended by striking 
out ``$12,000'' and inserting in lieu thereof ``$15,000''.
    (b) Nuclear Career Accession Bonus.--Section 312b(a)(1) of title 37, 
United States Code, is amended by striking out ``$8,000'' and inserting 
in lieu thereof ``$10,000''.
    (c) Nuclear Career Annual Incentive Bonuses.--Section 312c of title 
37, United States Code, is amended--
            (1) in subsection (a)(1), by striking out ``$10,000'' and 
        inserting in lieu thereof ``$12,000''; and
            (2) in subsection (b)(1), by striking out ``$4,500'' and 
        inserting in lieu thereof ``$5,500''.

    (d) <<NOTE: 37 USC 312 note.>>  Effective Date.--(1) The amendments 
made by this section shall take effect as of October 1, 1997.

    (2) <<NOTE: Applicability.>>  The amendments made by subsections (a) 
and (b) shall apply with respect to agreements accepted under sections 
312(a) and 312b(a), respectively, of title 37, United States Code, on or 
after October 1, 1997.

[[Page 111 STAT. 1794]]

SEC. 625. PROVISION OF BONUSES IN LIEU OF SPECIAL PAY FOR ENLISTED 
            MEMBERS EXTENDING TOURS OF DUTY AT DESIGNATED LOCATIONS 
            OVERSEAS.

    (a) Inclusion of Bonus Incentive.--(1) Section 314 of title 37, 
United States Code, is amended to read as follows:

``Sec. 314. Special pay or bonus: qualified enlisted members extending 
                        duty at designated locations overseas

    ``(a) <<NOTE: Applicability.>>  Covered Members.--This section 
applies with respect to an enlisted member of an armed force who--
            ``(1) is entitled to basic pay;
            ``(2) has a specialty that is designated by the Secretary 
        concerned for the purposes of this section;
            ``(3) has completed a tour of duty (as defined in accordance 
        with regulations prescribed by the Secretary concerned) at a 
        location outside the 48 contiguous States and the District of 
        Columbia that is designated by the Secretary concerned for the 
        purposes of this section; and
            ``(4) at the end of that tour of duty executes an agreement 
        to extend that tour for a period of not less than one year.

    ``(b) Special Pay or Bonus Authorized.--Upon the acceptance by the 
Secretary concerned of the agreement providing for an extension of the 
tour of duty of an enlisted member described in subsection (a), the 
member is entitled, at the election of the Secretary concerned, to 
either--
            ``(1) special pay in monthly installments in an amount 
        prescribed by the Secretary, but not to exceed $80 per month; or
            ``(2) an annual bonus in an amount prescribed by the 
        Secretary, but not to exceed $2,000 per year.

    ``(c) <<NOTE: Notification.>>  Selection and Payment of Special Pay 
or Bonus.--Not later than the date on which the Secretary concerned 
accepts an agreement described in subsection (a)(4) providing for the 
extension of a member's tour of duty, the Secretary concerned shall 
notify the member regarding whether the member will receive special pay 
or a bonus under this section. The payment rate for the special pay or 
bonus shall be fixed at the time of the agreement and may not be changed 
during the period of the extended tour of duty. The Secretary concerned 
may pay a bonus under this section either in a lump sum or installments.

    ``(d) Repayment of Bonus.--(1) A member who, having entered into a 
written agreement to extend a tour of duty for a period under subsection 
(a), receives a bonus payment under subsection (b)(2) for a 12-month 
period covered by the agreement and ceases during that 12-month period 
to perform the agreed tour of duty shall refund to the United States the 
unearned portion of the bonus. The unearned portion of the bonus is the 
amount by which the amount of the bonus paid to the member exceeds the 
amount determined by multiplying the amount of the bonus paid by the 
percent determined by dividing 12 into the number of full months during 
which the member performed the duty in the 12-month period.
    ``(2) The Secretary concerned may waive the obligation of a member 
to reimburse the United States under paragraph (1) if the Secretary 
determines that conditions and circumstances warrant the waiver.

[[Page 111 STAT. 1795]]

    ``(3) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of the agreement does not 
discharge the member signing the agreement from a debt arising under the 
agreement or under paragraph (1). <<NOTE: Applicability.>> This 
paragraph applies to any case commenced under title 11 on or after the 
date of the enactment of the National Defense Authorization Act for 
Fiscal Year 1998.

    ``(e) Effect of Rest and Recuperative Absence.--A member who elects 
to receive one of the benefits specified in section 705(b) of title 10 
as part of the extension of a tour of duty is not entitled to the 
special pay authorized by subsection (b)(1) for the period of the 
extension of duty for which the benefit under such section is 
provided.''.
    (2) The item relating to section 314 in the table of sections at the 
beginning of chapter 5 of such title is amended to read as follows:

``314. Special pay or bonus: qualified enlisted members extending duty 
           at designated locations overseas.''.

    (b) <<NOTE: 37 USC 314 note.>>  Application of Amendment.--Section 
314 of title 37, United States Code, as amended by subsection (a), shall 
apply with respect to an agreement to extend a tour of duty as provided 
in such section executed on or after October 1, 1997.

SEC. 626. INCREASE IN AMOUNT OF FAMILY SEPARATION ALLOWANCE.

    Section 427 of title 37, United States Code (as amended by section 
603), is further amended in subsection (a)(1) by striking out ``$75'' 
and inserting in lieu thereof ``$100''.

SEC. 627. DEADLINE FOR PAYMENT OF READY RESERVE MUSTER DUTY ALLOWANCE.

    Section 433(c) of title 37, United States Code, is amended--
            (1) in the first sentence, by striking out ``and shall be'' 
        and all that follows through ``is performed''; and
            (2) by inserting after the first sentence the following new 
        sentence: ``The allowance may be paid to the member before, on, 
        or after the date on which the muster duty is performed, but not 
        later than 30 days after that date.''.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS BEFORE 
            APPROVAL OF MEMBER'S COURT-MARTIAL SENTENCE.

    Section 406(h)(2)(C) of title 37, United States Code, is amended by 
striking out the comma at the end of clause (iii) and all that follows 
through ``title 10.'' and inserting in lieu thereof a period.

SEC. 632. DISLOCATION ALLOWANCE.

    (a) In General.--Section 407 of title 37, United States Code, is 
amended to read as follows:

[[Page 111 STAT. 1796]]

``Sec. 407. Travel and transportation allowances: dislocation allowance

    ``(a) <<NOTE: Regulations.>>  Eligibility for Primary Dislocation 
Allowance.--(1) Under regulations prescribed by the Secretary concerned, 
a member of a uniformed service described in paragraph (2) is entitled 
to a primary dislocation allowance at the rate determined under 
subsection (c) for the member's pay grade and dependency status.

    ``(2) A member of the uniformed services referred to in paragraph 
(1) is any of the following:
            ``(A) A member who makes a change of permanent station and 
        the member's dependents actually make an authorized move in 
        connection with the change, including a move by the dependents--
                    ``(i) to join the member at the member's duty 
                station after an unaccompanied tour of duty when the 
                member's next tour of duty is an accompanied tour at the 
                same station; and
                    ``(ii) to a location designated by the member after 
                an accompanied tour of duty when the member's next tour 
                of duty is an unaccompanied tour at the same duty 
                station.
            ``(B) A member whose dependents actually move pursuant to 
        section 405a(a), 406(e), 406(h), or 554 of this title.
            ``(C) A member whose dependents actually move from their 
        place of residence under circumstances described in section 406a 
        of this title.
            ``(D) A member who is without dependents and--
                    ``(i) actually moves to a new permanent station 
                where the member is not assigned to quarters of the 
                United States; or
                    ``(ii) actually moves from a place of residence 
                under circumstances described in section 406a of this 
                title.
            ``(E) A member who is ordered to move in connection with the 
        closure or realignment of a military installation and, as a 
        result, the member's dependents actually move or, in the case of 
        a member without dependents, the member actually moves.

    ``(3) If a primary dislocation allowance is paid under this 
subsection to a member described in subparagraph (C) or (D)(ii) of 
paragraph (2), the member is not entitled to another dislocation 
allowance as a member described in subparagraph (A) or (E) of such 
paragraph in connection with the same move.
    ``(b) Secondary Allowance Authorized Under Certain Circumstances.--
(1) Under <<NOTE: Regulations.>>  regulations prescribed by the 
Secretary concerned, whenever a member is entitled to a primary 
dislocation allowance under subsection (a) as a member described in 
paragraph (2)(C) or (2)(D)(ii) of such subsection, the member is also 
entitled to a secondary dislocation allowance at the rate determined 
under subsection (c) for the member's pay grade and dependency status 
if, subsequent to the member or the member's dependents actually moving 
from their place of residence under circumstances described in section 
406a of this title, the member or member's dependents complete that move 
to a new location and then actually move from that new location to 
another location also under circumstances described in section 406a of 
this title.

    ``(2) If a secondary dislocation allowance is paid under this 
subsection, the member is not entitled to a dislocation allowance

[[Page 111 STAT. 1797]]

as a member described in paragraph (2)(A) or (2)(E) of subsection (a) in 
connection with those moves.
    ``(c) Dislocation Allowance Rates.--(1) The amount of the 
dislocation allowance to be paid under this section to a member shall be 
based on the member's pay grade and dependency status at the time the 
member becomes entitled to the allowance.
    ``(2) The initial rate for the dislocation allowance, for each pay 
grade and dependency status, shall be equal to the rate in effect for 
that pay grade and dependency status on December 31, 1997, as adjusted 
by the average percentage increase in the rates of basic pay for 
calendar year 1998. Effective on the same date that the monthly rates of 
basic pay for members are increased for a subsequent calendar year, the 
Secretary of Defense shall adjust the rates for the dislocation 
allowance for that calendar year by the percentage equal to the average 
percentage increase in the rates of basic pay for that calendar year.
    ``(d) Fiscal Year Limitation; Exceptions.--(1) A member is not 
entitled to more than one dislocation allowance under this section 
during a fiscal year unless--
            ``(A) the Secretary concerned finds that the exigencies of 
        the service require the member to make more than one change of 
        permanent station during the fiscal year;
            ``(B) the member is ordered to a service school as a change 
        of permanent station;
            ``(C) the member's dependents are covered by section 
        405a(a), 406(e), 406(h), or 554 of this title; or
            ``(D) <<NOTE: Applicability.>>  subparagraph (C) or (D)(ii) 
        of subsection (a)(2) or subsection (b) apply with respect to the 
        member or the member's dependents.

    ``(2) This subsection does not apply in time of national emergency 
or in time of war.
    ``(e) First or Last Duty.--A member is not entitled to payment of a 
dislocation allowance under this section when the member is ordered from 
the member's home to the member's first duty station or from the 
member's last duty station to the member's home.
    ``(f) Rule of Construction.--For purposes of this section, a member 
whose dependents may not make an authorized move in connection with a 
change of permanent station is considered a member without dependents.
    ``(g) Advance Payment.--A dislocation allowance payable under this 
section may be paid in advance.''.
    (b) <<NOTE: 37 USC 407 note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect on January 1, 1998.

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

SEC. 641. ONE-YEAR OPPORTUNITY TO DISCONTINUE PARTICIPATION IN SURVIVOR 
            BENEFIT PLAN.

    (a) Election To Discontinue Within One Year After Second Anniversary 
of Commencement of Payment of Retired Pay.--(1) Subchapter II of chapter 
73 of title 10, United States Code, is amended by inserting after 
section 1448 the following new section:

[[Page 111 STAT. 1798]]

``Sec. 1448a. Election to discontinue participation: one-year 
                        opportunity after second anniversary of 
                        commencement of payment of retired pay

    ``(a) Authority.--A participant in the Plan may, subject to the 
provisions of this section, elect to discontinue participation in the 
Plan at any time during the one-year period beginning on the second 
anniversary of the date on which payment of retired pay to the 
participant commences.
    ``(b) Concurrence of Spouse.--
            ``(1) Concurrence required.--A married participant may not 
        (except as provided in paragraph (2)) make an election under 
        subsection (a) without the concurrence of the participant's 
        spouse.
            ``(2) Exceptions.--A participant may make such an election 
        without the concurrence of the participant's spouse by 
        establishing to the satisfaction of the Secretary concerned that 
        one of the conditions specified in section 1448(a)(3)(C) of this 
        title exists.
            ``(3) Form of concurrence.--The concurrence of a spouse 
        under paragraph (1) shall be made in such written form and shall 
        contain such information as may be required under regulations 
        prescribed by the Secretary of Defense.

    ``(c) Limitation on Election When Former Spouse Coverage in 
Effect.--The limitation set forth in section 1450(f)(2) of this title 
applies to an election to discontinue participation in the Plan under 
subsection (a).
    ``(d) Withdrawal of Election To Discontinue.--Section 1448(b)(1)(D) 
of this title applies to an election under subsection (a).
    ``(e) Consequences of Discontinuation.--Section 1448(b)(1)(E) of 
this title applies to an election under subsection (a).
    ``(f) Notice to Affected Beneficiaries.--The Secretary concerned 
shall notify any former spouse or other natural person previously 
designated under section 1448(b) of this title of an election to 
discontinue participation under subsection (a).
    ``(g) Effective Date of Election.--An election under subsection (a) 
is effective as of the first day of the first calendar month following 
the month in which the election is received by the Secretary concerned.
    ``(h) Inapplicability of Irrevocability Provisions.--Paragraphs 
(4)(B) and (5)(C) of section 1448(a) of this title do not apply to 
prevent an election under subsection (a).''.
    (2) The table of sections at the beginning of such subchapter is 
amended by inserting after the item relating to section 1448 the 
following new item:

``1448a. Election to discontinue participation: one-year opportunity 
           after second 
           anniversary of commencement of payment of retired pay.''.

    (b) <<NOTE: 10 USC 1448a note.>>  Transition Provision for Current 
Participants.--Notwithstanding the limitation on the time for making an 
election under section 1448a of title 10, United States Code (as added 
by subsection (a)), that is specified in subsection (a) of such section, 
a participant in the Survivor Benefit Plan under subchapter II of 
chapter 73 of such title may make an election in accordance with that 
section within one year after the effective date of that section under 
subsection (c) if the second anniversary of the

[[Page 111 STAT. 1799]]

commencement of payment of retired pay to the participant precedes that 
effective date.

    (c) <<NOTE: 10 USC 1448a note.>>  Effective Date.--Section 1448a 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. 642. TIME IN WHICH CHANGE IN SURVIVOR BENEFIT COVERAGE FROM FORMER 
            SPOUSE TO SPOUSE MAY BE MADE.

    (a) Extension of Time for Change.--Section 1450(f)(1)(C) of title 
10, United States Code, is amended by adding at the end the following 
new sentence: ``Notwithstanding the preceding sentence, a change of 
election under this subsection to provide an annuity to a spouse instead 
of a former spouse may (subject to paragraph (2)) be made at any time 
after the person providing the annuity remarries without regard to the 
time limitation in section 1448(a)(5)(B) of this title.''.
    (b) <<NOTE: 10 USC 1450 note.>>  Applicability.--The amendment made 
by subsection (a) shall apply with respect to marriages occurring 
before, on, or after the date of the enactment of this Act.

SEC. 643. <<NOTE: 10 USC 1408 note.>>  REVIEW OF FEDERAL FORMER SPOUSE 
            PROTECTION LAWS.

    (a) Review Required.--The Secretary of Defense shall carry out a 
comprehensive review (including a comparison) of--
            (1) the protections, benefits, and treatment afforded under 
        Federal law to members and former members of the uniformed 
        services and former spouses of such persons; and
            (2) the protections, benefits, and treatment afforded under 
        Federal law to employees and former employees of the Government 
        and former spouses of such persons.

    (b) Military Personnel Matters To Be Reviewed.--In the case of 
members and former members of the uniformed services and former spouses 
of such persons, the review under subsection (a) shall include the 
following:
            (1) All provisions of law (principally those originally 
        enacted in the Uniformed Services Former Spouses' Protection Act 
        (title X of Public Law 97-252)) that--
                    (A) establish, provide for the enforcement of, or 
                otherwise protect interests of members and former 
                members of the uniformed services and former spouses of 
                such persons in retired or retainer pay of members and 
                former members; or
                    (B) provide other benefits for members and former 
                members of the uniformed services and former spouses of 
                such persons.
            (2) The experience of the uniformed services in 
        administering those provisions of law, including the adequacy 
        and effectiveness of the legal assistance provided by the 
        Department of Defense in matters related to the Uniformed 
        Services Former Spouses' Protection Act.
            (3) The experience of members and former members of the 
        uniformed services and former spouses of such persons in the 
        administration of those provisions of law.
            (4) The experience of members and former members of the 
        uniformed services and former spouses of such persons in the 
        application of those provisions of law by State courts.
            (5) The history of State statutes and State court 
        interpretations of the Uniformed Services Former Spouses' 
        Protection Act and other provisions of Federal law described in 
        paragraph

[[Page 111 STAT. 1800]]

        (1)(A) and the extent to which those interpretations follow 
        those laws.

    (c) Civilian Personnel Matters To Be Reviewed.--In the case of 
former spouses of employees and former employees of the Government, the 
review under subsection (a) shall include the following:
            (1) All provisions of law that--
                    (A) establish, provide for the enforcement of, or 
                otherwise protect interests of employees and former 
                employees of the Government and former spouses of such 
                persons in annuities of employees and former employees 
                under Federal employees' retirement systems; or
                    (B) provide other benefits for employees and former 
                employees of the Government and former spouses of such 
                persons.
            (2) The experience of the Office of Personnel Management and 
        other agencies of the Government in administering those 
        provisions of law.
            (3) The experience of employees and former employees of the 
        Government and former spouses of such persons in the 
        administration of those provisions of law.
            (4) The experience of employees and former employees of the 
        Government and former spouses of such persons in the application 
        of those provisions of law by State courts.

    (d) Sampling Authorized.--The Secretary may use sampling in carrying 
out the review under this section.
    (e) Report.--Not later than September 30, 1999, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the results of the review under subsection (a). The report shall 
include any recommendations for legislation that the Secretary considers 
appropriate.

SEC. 644. <<NOTE: 10 USC 1448 note.>>  ANNUITIES FOR CERTAIN MILITARY 
            SURVIVING SPOUSES.

    (a) Survivor Annuity.--(1) The Secretary concerned shall pay an 
annuity to the qualified surviving spouse of each member of the 
uniformed services who--
            (A) died before March 21, 1974, and was entitled to retired 
        or retainer pay on the date of death; or
            (B) was a member of a reserve component of the Armed Forces 
        during the period beginning on September 21, 1972, and ending on 
        October 1, 1978, and at the time of his death would have been 
        entitled to retired pay under chapter 67 of title 10, United 
        States Code (as in effect before December 1, 1994), but for the 
        fact that he was under 60 years of age.

    (2) A qualified surviving spouse for purposes of this section is a 
surviving spouse who has not remarried and who is not eligible for an 
annuity under section 4 of Public Law 92-425 (10 U.S.C. 1448 note).
    (b) Amount of Annuity.--(1) An annuity under this section shall be 
paid at the rate of $165 per month, as adjusted from time to time under 
paragraph (3).
    (2) An annuity paid to a surviving spouse under this section shall 
be reduced by the amount of any dependency and indemnity compensation 
(DIC) to which the surviving spouse is entitled under section 1311(a) of 
title 38, United States Code.

[[Page 111 STAT. 1801]]

    (3) Whenever after the date of the enactment of this Act retired or 
retainer pay is increased under section 1401a(b)(2) of title 10, United 
States Code, each annuity that is payable under this section shall be 
increased at the same time and by the same total percent. The amount of 
the increase shall be based on the amount of the monthly annuity payable 
before any reduction under this section.
    (c) Application Required.--No benefit shall be paid to any person 
under this section unless an application for such benefit is filed with 
the Secretary concerned by or on behalf of such person.
    (d) Definitions.--For purposes of this section:
            (1) The terms ``uniformed services'' and ``Secretary 
        concerned'' have the meanings given such terms in section 101 of 
        title 37, United States Code.
            (2) The term ``surviving spouse'' has the meaning given the 
        terms ``widow'' and ``widower'' in paragraphs (3) and (4) of 
        section 1447 of title 10, United States Code.

    (e) Prospective Applicability.--(1) Annuities under this section 
shall be paid for months beginning after the month in which this Act is 
enacted.
    (2) No benefit shall accrue to any person by reason of the enactment 
of this section for any period before the first month that begins after 
the month in which this Act is enacted.
    (f) Expiration of Authority.--The authority to pay annuities under 
this section shall expire on September 30, 2001.

SEC. 645. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM INCOME 
            WIDOWS.

    (a) Payments To Be Made by Secretary of Veterans Affairs.--Section 
653(d) of the National Defense Authorization Act, Fiscal Year 1989 (10 
U.S.C. 1448 note) is amended--
            (1) by inserting ``(1)'' before ``An annuity'' the first 
        place it appears; and
            (2) by adding at the end the following new paragraph:

    ``(2) Payment of annuities under this section shall be made by the 
Secretary of Veterans Affairs. In making such payments, the Secretary 
shall combine the payment under this section with the payment of any 
amount due the same person under section 4 of Public Law 92-425 (10 
U.S.C. 1448 note), as provided in subsection (e)(1) of that section. The 
Secretary concerned shall transfer amounts for payments under this 
section to the Secretary of Veterans Affairs in the same manner as is 
provided under subsection (e)(2) of section 4 of Public Law 92-425 for 
payments under that section.''.
    (b) Combination With Other Benefits.--Section 4(e)(1) of Public Law 
92-425 (10 U.S.C. 1448 note) is amended--
            (1) by inserting after the first sentence the following new 
        sentence: ``In making such payments, the Secretary shall combine 
        with the payment under this section payment of any amount due 
        the same person under section 653(d) of the National Defense 
        Authorization Act, Fiscal Year 1989 (10 U.S.C. 1448 note).''; 
        and
            (2) by inserting ``(and, if applicable, under section 653(d) 
        of the National Defense Authorization Act, Fiscal Year 1989)'' 
        after ``under this section''.

    (c) <<NOTE: Applicability. 10 USC 1448 note.>>  Effective Date.--The 
amendments made by this section take effect on the first day of the 
first month beginning after the date of the enactment of this Act and 
shall apply with respect

[[Page 111 STAT. 1802]]

to payments of benefits for months beginning on or after that date, 
except that the Secretary of Veterans Affairs may provide, if necessary 
for administrative implementation, that such amendments shall apply 
beginning with a later month, not later than the first month beginning 
more than 180 days after the date of the enactment of this Act.

                        Subtitle E--Other Matters

SEC. 651. LOAN REPAYMENT PROGRAM FOR COMMISSIONED OFFICERS IN CERTAIN 
            HEALTH PROFESSIONS.

    (a) In General.--Chapter 109 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2173. Education loan repayment program: commissioned officers in 
                        specified health professions

    ``(a) Authority To Repay Education Loans.--For the purpose of 
maintaining adequate numbers of commissioned officers of the armed 
forces on active duty who are qualified in the various health 
professions, the Secretary of a military department may repay, in the 
case of a person described in subsection (b), a loan that--
            ``(1) was used by the person to finance education regarding 
        a health profession; and
            ``(2) was obtained from a governmental entity, private 
        financial institution, school, or other authorized entity.

    ``(b) Eligible Persons.--To be eligible to obtain a loan repayment 
under this section, a person must--
            ``(1) satisfy one of the requirements specified in 
        subsection (c);
            ``(2) be fully qualified for, or hold, an appointment as a 
        commissioned officer in one of the health professions; and
            ``(3) sign a written agreement to serve on active duty, or, 
        if on active duty, to remain on active duty for a period in 
        addition to any other incurred active duty obligation.

    ``(c) Academic and Professional Requirements.--One of the following 
academic requirements must be satisfied for purposes of determining the 
eligibility of a person for a loan repayment under this section:
            ``(1) The person is fully qualified in a health care 
        profession that the Secretary of the military department 
        concerned has determined to be necessary to meet identified 
        skill shortages.
            ``(2) The person is enrolled as a full-time student in the 
        final year of a course of study at an accredited educational 
        institution leading to a degree in a health profession other 
        than medicine or osteopathic medicine.
            ``(3) The person is enrolled in the final year of an 
        approved graduate program leading to specialty qualification in 
        medicine, dentistry, osteopathic medicine, or other health 
        profession.

    ``(d) Certain Persons Ineligible.--Participants of the Armed Forces 
Health Professions Scholarship and Financial Assistance program under 
subchapter I of chapter 105 of this title and students of the Uniformed 
Services University of the Health Sciences established under section 
2112 of this title are not eligible for the repayment of an education 
loan under this section.
    ``(e) Loan Repayments.--(1) Subject to the limits established by 
paragraph (2), a loan repayment under this section may consist

[[Page 111 STAT. 1803]]

of payment of the principal, interest, and related expenses of a loan 
obtained by a person described in subsection (b) for--
            ``(A) all educational expenses, comparable to all 
        educational expenses recognized under section 2127(a) of this 
        title for participants in the Armed Forces Health Professions 
        Scholarship and Financial Assistance program; and
            ``(B) reasonable living expenses, not to exceed expenses 
        comparable to the stipend paid under section 2121(d) of this 
        title for participants in the Armed Forces Health Professions 
        Scholarship and Financial Assistance program.

    ``(2) For each year of obligated service that a person agrees to 
serve in an agreement described in subsection (b)(3), the Secretary of 
the military department concerned may pay not more than $22,000 on 
behalf of the person. <<NOTE: Effective date.>>  This maximum amount 
shall be increased annually by the Secretary of Defense effective 
October 1 of each year by the percentage equal to the percent increase 
in the average annual cost of educational expenses and stipend costs of 
a single scholarship under the Armed Forces Health Professions 
Scholarship and Financial Assistance program. The total amount that may 
be repaid on behalf of any person may not exceed an amount determined on 
the basis of a four-year active duty service obligation.

    ``(f)Active Duty Service Obligation.--(1) A person entering into an 
agreement described in subsection (b)(3) incurs an active duty service 
obligation. <<NOTE: Regulations.>> The length of this obligation shall 
be determined under regulations prescribed by the Secretary of Defense, 
but those regulations may not provide for a period of obligation of less 
than one year for each maximum annual amount, or portion thereof, paid 
on behalf of the person for qualified loans.

    ``(2) For persons on active duty before entering into the agreement, 
the active duty service obligation shall be served consecutively to any 
other obligation incurred under the agreement.
    ``(g) Effect of Failure To Complete Obligation.--A commissioned 
officer who is relieved of the officer's active duty obligation under 
this section before the completion of that obligation may be given, with 
or without the consent of the officer, any alternative obligation 
comparable to any of the alternative obligations authorized by section 
2123(e) of this title for participants in the Armed Forces Health 
Professions Scholarship and Financial Assistance program.
    ``(h) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section, including standards for qualified 
loans and authorized payees and other terms and conditions for the 
making of loan repayments.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2173. Education loan repayment program: commissioned officers in 
           specified health professions.''.

SEC. 652. CONFORMANCE OF NOAA COMMISSIONED OFFICERS SEPARATION PAY TO 
            SEPARATION PAY FOR MEMBERS OF OTHER UNIFORMED SERVICES.

    (a) Elimination of Limitations on Amount of Separation Pay.--Section 
9 of the Coast and Geodetic Survey Commissioned Officers' Act of 1948 
(33 U.S.C. 853h) is amended--

[[Page 111 STAT. 1804]]

            (1) in subsection (b)(1), by striking out ``, or $30,000, 
        whichever is less'';
            (2) in subsection (b)(2), by striking out ``, but in no 
        event more than $15,000''; and
            (3) in subsection (d), by striking out ``(1)'', and by 
        striking out paragraph (2).

    (b) Waiver of Recoupment of Amounts Withheld for Tax Purposes From 
Certain Separation Pay.--Section 9(e)(2) of the Coast and Geodetic 
Survey Commissioned Officers' Act of 1948 (33 U.S.C. 853h(e)(2)) is 
amended in the first sentence by inserting before the period at the end 
the following: ``, less the amount of Federal income tax withheld from 
such pay (such withholding being at the flat withholding rate for 
Federal income tax withholding, as in effect pursuant to regulations 
prescribed under chapter 24 of the Internal Revenue Code of 1986)''.
    (c) <<NOTE: 33 USC 853h note.>> Effective Date and Application.--The 
amendments made by this section shall take effect as of October 1, 1997, 
and shall apply to payments of separation pay that are made after 
September 30, 1997.

SEC. 653. ELIGIBILITY OF PUBLIC HEALTH SERVICE OFFICERS AND NOAA 
            COMMISSIONED CORPS OFFICERS FOR REIMBURSEMENT OF ADOPTION 
            EXPENSES.

    (a) Public Health Service.--Section 221(a) of the Public Health 
Service Act (42 U.S.C. 213a(a)) is amended by adding at the end the 
following new paragraph:
            ``(16) Section 1052, Reimbursement for adoption expenses.''.

    (b) National Oceanic and Atmospheric Administration.--Section 3(a) 
of the Act of August 10, 1956 (33 U.S.C. 857a(a)), is amended by adding 
at the end the following new paragraph:
            ``(16) Section 1052, Reimbursement for adoption expenses.''.

    (c) <<NOTE: 33 USC 857a note.>>  Prospective Applicability.--The 
amendments made by this section shall apply only to adoptions that are 
completed on or after the date of the enactment of this Act.

SEC. 654. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES TO WORLD 
            WAR II VETERANS WHO SERVED AS GUERRILLA FIGHTERS IN THE 
            PHILIPPINES.

    (a) In General.--The Secretary of the military department concerned 
shall pay, upon request, to an individual described in subsection (b) 
the amount determined with respect to that individual under subsection 
(c).
    (b) Covered Individuals.--A payment under subsection (a) shall be 
made to any individual who as a member of the Armed Forces during World 
War II--
            (1) was captured within the territory of the Philippines by 
        Japanese forces;
            (2) escaped from captivity; and
            (3) served as a guerrilla fighter in the Philippines during 
        the period from January 1942 through February 1945.

    (c) Amount To Be Paid.--The amount of a payment under subsection (a) 
shall be the amount of quarters and subsistence allowance which accrued 
to an individual described in subsection (b) during the period specified 
in paragraph (3) of subsection (b) and which was not paid to that 
individual. For the purposes of this subsection, the Secretary of War 
shall be deemed to have determined that conditions in the Philippines 
during the specified period justified payment under applicable 
regulations of quarters

[[Page 111 STAT. 1805]]

and subsistence allowances at the maximum special rate for duty where 
emergency conditions existed. The Secretary shall apply interest 
compounded at the three-month Treasury bill rate.
    (d) Payment to Survivors.--In the case of any individual described 
in subsection (b) who is deceased, payment under this section with 
respect to that individual shall be made to that individual's nearest 
surviving relative, as determined by the Secretary concerned.

SEC. 655. SUBSISTENCE OF MEMBERS OF THE ARMED FORCES ABOVE THE POVERTY 
            LEVEL.

    (a) Study and Report.--(1) The Secretary of Defense shall conduct a 
study of members of the Armed Forces and their families who subsist at, 
near, or below the poverty level. The study shall include the following:
            (A) An analysis of potential solutions for ensuring that 
        members of the Armed Forces and their families do not have to 
        subsist at, near, or below the poverty level, including 
        potential solutions involving changes in the system of 
        allowances for members.
            (B) Identification of the military populations most likely 
        to need income support under Federal Government programs, 
        including--
                    (i) the populations living in areas of the United 
                States where housing costs are notably high;
                    (ii) the populations living outside the United 
                States; and
                    (iii) the number of persons in each identified 
                population.
            (C) The desirability of increasing rates of basic pay and 
        allowances for members over a defined period of years by a range 
        of percentages that provides for higher percentage increases for 
        lower ranking members than for higher ranking members.

    (2) Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report 
containing the results of the study and such recommendations as the 
Secretary considers to be appropriate.
    (b) Implementation of Department of Defense Special Supplemental 
Food Program for Personnel Outside the United States.--(1) Subsection 
(b) of section 1060a of title 10, United States Code, is amended to read 
as follows:
    ``(b) Federal Payments and Commodities.--For the purpose of 
obtaining Federal payments and commodities in order to carry out the 
program referred to in subsection (a), the Secretary of Agriculture 
shall make available to the Secretary of Defense the same payments and 
commodities as are made for the special supplemental food program in the 
United States under section 17 of the Child Nutrition Act of 1966 (42 
U.S.C. 1786). The Secretary of Defense may use funds available for the 
Department of Defense to carry out the program under subsection (a).''.
    (2) <<NOTE: 10 USC 1060a note.>>  Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense shall submit 
to Congress a report regarding the intentions of the Secretary regarding 
implementation of the program authorized under section 1060a of title 
10, United States Code, including any plans to implement the program.

[[Page 111 STAT. 1806]]

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Expansion of retiree dental insurance plan to include 
           surviving spouse and child dependents of certain deceased 
           members.
Sec. 702. Provision of prosthetic devices to covered beneficiaries.
Sec. 703. <<NOTE: 10 USC 1073 note.>>  Study concerning the provision of 
           comparative information.

                       Subtitle B--TRICARE Program

Sec. 711. Addition of definition of TRICARE program to title 10.
Sec. 712. Plan for expansion of managed care option of TRICARE program.

           Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Implementation of designated provider agreements for Uniformed 

           Services Treatment Facilities.
Sec. 722. Continued acquisition of reduced-cost drugs.
Sec. 723. Limitation on total payments.

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

Sec. 731. Improvements in health care coverage and access for members 
           assigned to certain duty locations far from sources of care.
Sec. 732. Waiver or reduction of copayments under overseas dental 
           program.
Sec. 733. Premium collection requirements for medical and dental 
           insurance 
           programs; extension of deadline for implementation of dental 
           insurance program for military retirees.
Sec. 734. Dental insurance plan coverage for retirees of the Public 
           Health Service and NOAA.
Sec. 735. Consistency between CHAMPUS and Medicare in payment rates for 
           services.
Sec. 736. Use of personal services contracts for provision of health 
           care services and legal protection for providers.
Sec. 737. Portability of State licenses for Department of Defense health 
           care 
           professionals.
Sec. 738. Standard form and requirements regarding claims for payment 
           for 
           services.
Sec. 739. Chiropractic health care demonstration program.

                        Subtitle E--Other Matters

Sec. 741. Continued admission of civilians as students in physician 
           assistant training program of Army Medical Department.
Sec. 742. Payment for emergency health care overseas for military and 
           civilian 
           personnel of the On-Site Inspection Agency.
Sec. 743. Authority for agreement for use of medical resource facility, 
           Alamogordo, New Mexico.
Sec. 744. Disclosures of cautionary information on prescription 
           medications.
Sec. 745. Competitive procurement of certain ophthalmic services.
Sec. 746. Comptroller General study of adequacy and effect of maximum 
           allowable charges for physicians under CHAMPUS.
Sec. 747. Comptroller General study of Department of Defense pharmacy 
           programs.
Sec. 748. Comptroller General study of Navy graduate medical education 
           program.
Sec. 749. Study of expansion of pharmaceuticals by mail program to 
           include 
           additional Medicare-eligible covered beneficiaries.
Sec. 750. Comptroller General study of requirement for military medical 
           facilities in National Capital Region.
Sec. 751. Report on policies and programs to promote healthy lifestyles 
           for 
           members of the Armed Forces and their dependents.
Sec. 752. Sense of Congress regarding quality health care for retirees.

                    Subtitle F--Persian Gulf Illness

Sec. 761. Definitions.
Sec. 762. Plan for health care services for Persian Gulf veterans.
Sec. 763. Comptroller General study of revised disability criteria for 
           physical 
           evaluation boards.
Sec. 764. Medical care for certain reserves who served in Southwest Asia 
           during the Persian Gulf War.
Sec. 765. Improved medical tracking system for members deployed overseas 
           in 
           contingency or combat operations.

[[Page 111 STAT. 1807]]

Sec. 766. Notice of use of investigational new drugs or drugs unapproved 
           for their applied use.
Sec. 767. Report on plans to track location of members in a theater of 
           operations.
Sec. 768. Sense of Congress regarding the deployment of specialized 
           units for 
           detecting and monitoring chemical, biological, and similar 
           hazards in a theater of operations.
Sec. 769. Report on effectiveness of research efforts regarding Gulf War 
           illnesses.
Sec. 770. Persian Gulf illness clinical trials program.
Sec. 771. Sense of Congress concerning Gulf War illness.

                    Subtitle A--Health Care Services

SEC. 701. EXPANSION OF RETIREE DENTAL INSURANCE PLAN TO INCLUDE 
            SURVIVING SPOUSE AND CHILD DEPENDENTS OF CERTAIN DECEASED 
            MEMBERS.

    Section 1076c(b)(4) of title 10, United States Code, is amended--
            (1) in subparagraph (A)--
                    (A) by striking out ``dies'' and inserting in lieu 
                thereof ``died''; and
                    (B) by striking out ``or'' at the end of the 
                subparagraph;
            (2) by striking out the period at the end of subparagraph 
        (B) and inserting in lieu thereof ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) who died while on active duty for a period of 
                more than 30 days and whose eligible dependents are not 
                eligible, or no longer eligible, for dental benefits 
                under section 1076a of this title pursuant to subsection 
                (i)(2) of such section.''.

SEC. 702. PROVISION OF PROSTHETIC DEVICES TO COVERED BENEFICIARIES.

    (a) Inclusion Among Authorized Care.--Subsection (a) of section 1077 
of title 10, United States Code, is amended by adding at the end the 
following new paragraph:
            ``(15) Prosthetic devices, as determined by the Secretary of 
        Defense to be necessary because of significant conditions 
        resulting from trauma, congenital anomalies, or disease.''.

    (b) Conforming Amendment.--Subsection (b) of such section is amended 
by striking out paragraph (2) and inserting in lieu thereof the 
following new paragraph:
            ``(2) Hearing aids, orthopedic footwear, and spectacles, 
        except that, outside of the United States and at stations inside 
        the United States where adequate civilian facilities are 
        unavailable, such items may be sold to dependents at cost to the 
        United States.''.

<<NOTE: 10 USC 1073 note.>> SEC. 703. STUDY CONCERNING THE PROVISION OF 
            COMPARATIVE INFORMATION.

    (a) Study.--The Secretary of Defense shall conduct a study 
concerning the provision of the information described in subsection (b) 
to beneficiaries under the TRICARE program established under the 
authority of chapter 55 of title 10, United States Code, and prepare and 
submit to Congress a report concerning such study.
    (b) Provision of Comparative Information.--Information described in 
this subsection, with respect to a managed care entity that contracts 
with the Secretary of Defense to provide medical assistance under the 
program described in subsection (a), shall include the following:
            (1) The benefits covered by the entity involved, including--

[[Page 111 STAT. 1808]]

                    (A) covered items and services beyond those provided 
                under a traditional fee-for-service program;
                    (B) any beneficiary cost sharing; and
                    (C) any maximum limitations on out-of-pocket 
                expenses.
            (2) The net monthly premium, if any, under the entity.
            (3) The service area of the entity.
            (4) To the extent available, quality and performance 
        indicators for the benefits under the entity (and how they 
        compare to such indicators under the traditional fee-for-service 
        programs in the area involved), including--
                    (A) disenrollment rates for enrollees electing to 
                receive benefits through the entity for the previous two 
                years (excluding disenrollment due to death or moving 
                outside the service area of the entity);
                    (B) information on enrollee satisfaction;
                    (C) information on health process and outcomes;
                    (D) grievance procedures;
                    (E) the extent to which an enrollee may select the 
                health care provider of their choice, including health 
                care providers within the network of the entity and out-
                of-network health care providers (if the entity covers 
                out-of-network items and services); and
                    (F) an indication of enrollee exposure to balance 
                billing and the restrictions on coverage of items and 
                services provided to such enrollee by an out-of-network 
                health care provider.
            (5) Whether the entity offers optional supplemental benefits 
        and the terms and conditions (including premiums) for such 
        coverage.
            (6) An overall summary description as to the method of 
        compensation of participating physicians.

                       Subtitle B--TRICARE Program

SEC. 711. ADDITION OF DEFINITION OF TRICARE PROGRAM TO 
            TITLE 10.

    Section 1072 of title 10, United States Code, is amended by adding 
at the end the following new paragraph:
            ``(7) The term `TRICARE program' means the managed health 
        care program that is established by the Department of Defense 
        under the authority of this chapter, principally section 1097 of 
        this title, and includes the competitive selection of 
        contractors to financially underwrite the delivery of health 
        care services under the Civilian Health and Medical Program of 
        the Uniformed Services.''.

SEC. 712. PLAN FOR EXPANSION OF MANAGED CARE OPTION OF TRICARE PROGRAM.

    (a) Plan For Expansion of TRICARE Prime.--The Secretary of Defense 
shall prepare a plan for the expansion of the managed care option of the 
TRICARE Program, known as TRICARE Prime, into areas of the United States 
located outside of the catchment areas of medical treatment facilities 
of the uniformed services, but in which the managed care option is a 
cost-effective alternative because of--

[[Page 111 STAT. 1809]]

            (1) the significant number of members of the uniformed 
        services and covered beneficiaries under chapter 55 of title 10, 
        United States Code (including retired members of the Armed 
        Forces and their dependents), who reside in the areas; and
            (2) the presence in the areas of sufficient nonmilitary 
        health care provider networks.

    (b) Alternatives.--As an alternative to expansion of TRICARE Prime 
to areas of the United States in which there are few or no nonmilitary 
health care provider networks, the Secretary shall include in the plan 
required under subsection (a) an evaluation of the feasibility and cost-
effectiveness of providing a member of the Armed Forces on active duty 
who is stationed in such an area, or whose dependents reside in such an 
area, with one or both of the following:
            (1) A monetary stipend to assist the member in obtaining 
        health care services for the member or the member's dependents.
            (2) A reduction in the cost-sharing requirements applicable 
        to the TRICARE program options otherwise available to the member 
        to match the reduced cost-sharing responsibilities of the 
        managed care option of the TRICARE program.

    (c) Submission of Plan.--Not later than March 1, 1998, the Secretary 
shall submit to Congress the plan required under subsection (a).

           Subtitle C--Uniformed Services Treatment Facilities

SEC. 721. IMPLEMENTATION OF DESIGNATED PROVIDER AGREEMENTS FOR UNIFORMED 
            SERVICES TREATMENT FACILITIES.

    (a) Commencement of Health Care Services Under Agreement.--
Subsection (c) of section 722 of the National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 104-201, 10 U.S.C. 1073 note) is 
amended--
            (1) by redesignating paragraphs (1) and (2) as subparagraphs 
        (A) and (B);
            (2) by inserting ``(1)'' before ``Unless''; and
            (3) by adding at the end the following new paragraph:

    ``(2) The Secretary may modify the effective date established under 
paragraph (1) for an agreement to permit a transition period of not more 
than six months between the date on which the agreement is executed by 
the parties and the date on which the designated provider commences the 
delivery of health care services under the agreement.''.
    (b) Temporary Continuation of Existing Participation Agreements.--
Subsection (d) of such section is amended by inserting before the period 
at the end the following: ``, including any transitional period provided 
by the Secretary under paragraph (2) of such subsection''.

SEC. 722. CONTINUED ACQUISITION OF REDUCED-COST DRUGS.

    Section 722 of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) is amended by adding 
at the end the following new subsection:

[[Page 111 STAT. 1810]]

    ``(g) Continued Acquisition of Reduced-Cost Drugs.--A designated 
provider shall be treated as part of the Department of Defense for 
purposes of section 8126 of title 38, United States Code, in connection 
with the provision by the designated provider of health care services to 
covered beneficiaries pursuant to the participation agreement of the 
designated provider under section 718(c) of the National Defense 
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 42 U.S.C. 
248c note) or pursuant to the agreement entered into under subsection 
(b).''.

SEC. 723. LIMITATION ON TOTAL PAYMENTS.

    Section 726(b) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) is amended by adding 
at the end the following new sentence: ``In establishing the ceiling 
rate for enrollees with the designated providers who are also eligible 
for the Civilian Health and Medical Program of the Uniformed Services, 
the Secretary of Defense shall take into account the health status of 
the enrollees.''.

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

SEC. 731. IMPROVEMENTS IN HEALTH CARE COVERAGE AND ACCESS FOR MEMBERS 
            ASSIGNED TO CERTAIN DUTY LOCATIONS FAR FROM SOURCES OF CARE.

    (a) Supplemental Care Program.--(1) Section 1074(c) of title 10, 
United States Code, is amended--
            (A) by inserting ``(1)'' after ``(c)''; and
            (B) by adding at the end the following new paragraphs:

    ``(2)(A) Subject to such exceptions as the Secretary of Defense 
considers necessary, coverage for medical care for members of the armed 
forces under this subsection, and standards with respect to timely 
access to such care, shall be comparable to coverage for medical care 
and standards for timely access to such care under the managed care 
option of the TRICARE program known as TRICARE Prime.
    `` <<NOTE: Contracts.>> (B) The Secretary of Defense shall enter 
into arrangements with contractors under the TRICARE program or with 
other appropriate contractors for the timely and efficient processing of 
claims under this subsection.

    ``(3)(A) The Secretary of Defense may not require a member of the 
armed forces described in subparagraph (B) to receive routine primary 
medical care at a military medical treatment facility.
    ``(B) A member referred to in subparagraph (A) is a member of the 
armed forces on active duty who is entitled to medical care under this 
subsection and who--
            ``(i) receives a duty assignment described in subparagraph 
        (C); and
            ``(ii) pursuant to the assignment of such duty, resides at a 
        location that is more than 50 miles, or approximately one hour 
        of driving time, from the nearest military medical treatment 
        facility adequate to provide the needed care.

    ``(C) A duty assignment referred to in subparagraph (B) means any of 
the following:
            ``(i) Permanent duty as a recruiter.

[[Page 111 STAT. 1811]]

            ``(ii) Permanent duty at an educational institution to 
        instruct, administer a program of instruction, or provide 
        administrative services in support of a program of instruction 
        for the Reserve Officers' Training Corps.
            ``(iii) Permanent duty as a full-time adviser to a unit of a 
        reserve component.
            ``(iv) Any other permanent duty designated by the Secretary 
        concerned for purposes of this paragraph.''.

    (2) <<NOTE: Applicability. 10 USC 1074 note.>> The amendments made 
by paragraph (1) shall apply with respect to coverage of medical care 
for, and the provision of such care to, a member of the Armed Forces 
under section 1074(c) of title 10, United States Code, on and after the 
later of the following:
            (A) April 1, 1998.
            (B) The date on which the TRICARE program is in place in the 
        service area of the member.

    (b) <<NOTE: 10 USC 1074 note.>>  Temporary Authority for Managed 
Care Expansion to Members on Active Duty at Certain Remote Locations.--
(1) A member of the Armed Forces described in subsection (c) is entitled 
to receive care under the Civilian Health and Medical Program of the 
Uniformed Services. In connection with such care, the Secretary of 
Defense shall waive the obligation of the member to pay a deductible, 
copayment, or annual fee that would otherwise be applicable under that 
program for care provided to the members under the program.

    (2) A member who is entitled under paragraph (1) to receive health 
care services under CHAMPUS shall receive such care from a network 
provider under the TRICARE program if such a provider is available in 
the service area of the member.
    (3) <<NOTE: Effective date. Expiration date.>> Paragraph (1) shall 
take effect on the date of the enactment of this Act and shall expire 
with respect to a member upon the later of the following:
            (A) The date that is one year after the date of the 
        enactment of this Act.
            (B) The date on which the amendments made by subsection (a) 
        apply with respect to the coverage of medical care for, and 
        provision of such care to, the member.

    (c) <<NOTE: 10 USC 1074 note.>>  Eligible Members.--A member 
referred to in subsection (b) is a member of the Armed Forces on active 
duty who--
            (1) receives a duty assignment described in subsection (d); 
        and
            (2) pursuant to the assignment of such duty, resides at a 
        location that is more than 50 miles, or approximately one hour 
        of driving time, from--
                    (A) the nearest health care facility of the 
                uniformed services adequate to provide the needed care 
                under chapter 55 of title 10, United States Code; and
                    (B) the nearest source of the needed care that is 
                available to the member under the TRICARE Prime plan.

    (d) <<NOTE: 10 USC 1074 note.>>  Duty Assignments Covered.--A duty 
assignment referred to in subsection (c)(1) means any of the following:
            (1) Permanent duty as a recruiter.
            (2) Permanent duty at an educational institution to 
        instruct, administer a program of instruction, or provide 
        administrative services in support of a program of instruction 
        for the Reserve Officers' Training Corps.

[[Page 111 STAT. 1812]]

            (3) Permanent duty as a full-time adviser to a unit of a 
        reserve component of the Armed Forces.
            (4) Any other permanent duty designated by the Secretary 
        concerned for purposes of this subsection.

    (e) <<NOTE: 10 USC 1074 note.>>  Payment of Costs.--Deductibles, 
copayments, and annual fees not payable by a member by reason of a 
waiver granted under the regulations prescribed pursuant to subsection 
(b) shall be paid out of funds available to the Department of Defense 
for the Defense Health Program.

    (f) <<NOTE: 10 USC 1074 note.>>  Definitions.--In this section:
            (1) The term ``TRICARE program'' has the meaning given that 
        term in section 1072(7) of title 10, United States Code.
            (2) The term ``TRICARE Prime plan'' means a plan under the 
        TRICARE program that provides for the voluntary enrollment of 
        persons for the receipt of health care services to be furnished 
        in a manner similar to the manner in which health care services 
        are furnished by health maintenance organizations.

SEC. 732. WAIVER OR REDUCTION OF COPAYMENTS UNDER OVERSEAS DENTAL 
            PROGRAM.

    Section 1076a(h) of title 10, United States Code, is amended--
            (1) in the first sentence, by striking out ``Secretary'' and 
        inserting in lieu thereof ``Secretary of Defense''; and
            (2) by adding at the end the following new sentence: ``In 
        the case of such an overseas dental plan, the Secretary may 
        waive or reduce the copayments otherwise required by subsection 
        (e) to the extent the Secretary determines appropriate for the 
        effective and efficient operation of the plan.''.

SEC. 733. <<NOTE: Regulations.>>  PREMIUM COLLECTION REQUIREMENTS FOR 
            MEDICAL AND DENTAL INSURANCE PROGRAMS; EXTENSION OF DEADLINE 
            FOR IMPLEMENTATION OF DENTAL INSURANCE PROGRAM FOR MILITARY 
            RETIREES.

    (a) Premium Collection For Selected Reserve Dental Insurance.--
Paragraph (3) of section 1076b(b) of title 10, United States Code, is 
amended to read as follows:
    ``(3) The Secretary of Defense shall establish procedures for the 
collection of the member's share of the premium for coverage by the 
dental insurance plan. To the maximum extent practicable, a member's 
share shall be deducted and withheld from the basic pay payable to the 
member for inactive duty training or basic pay payable to the member for 
active duty (if pay is available to the member). Such share shall be 
used to pay the premium for coverage by the dental insurance plan.''.
    (b) Premium Collection For Retiree Dental Insurance Plan.--Paragraph 
(2) of section 1076c(c) of such title is amended to read as follows:
    ``(2) The Secretary of Defense shall establish procedures for the 
collection of the premiums charged for coverage by the dental insurance 
plan. To the maximum extent practicable, the premiums payable by a 
member entitled to retired pay shall be deducted and withheld from the 
retired pay of the member (if pay is available to the member).''.
    (c) <<NOTE: 10 USC 1076b note.>>  Report to Congress.--Not later 
than March 1, 1998, the Secretary of Defense shall submit to Congress a 
report on the premium collection procedures established pursuant to 
paragraph (3) of section 1076b(b) of title 10, United States Code, and 
paragraph

[[Page 111 STAT. 1813]]

(2) of section 1076c(c) of such title. The report shall describe the 
extent to which premium collections are made under such paragraphs 
through deductions and withholding from pay.

    (d) <<NOTE: 10 USC 1076b note.>>  Limitation on Implementation of 
Alternative Collection Procedures.--The Secretary of Defense may not 
implement procedures for collecting premiums under section 1076b(b)(3) 
of title 10, United States Code, or section 1076c(c)(2) of such title 
other than by deductions and withholding from pay until 120 days after 
the date that the Secretary submits a report to Congress describing the 
justifications for implementing such alternative procedures.

    (e) Extension of Deadline For Implementation of Dental Insurance 
Plan For Military Retirees.--Section 703(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2590) <<NOTE: 10 USC 1076c note.>>  is amended by striking ``October 1, 
1997'' and inserting ``April 1, 1998''.

SEC. 734. DENTAL INSURANCE PLAN COVERAGE FOR RETIREES OF THE PUBLIC 
            HEALTH SERVICE AND NOAA.

    (a) Eligibility.--(1) Subsection (a) of section 1076c of title 10, 
United States Code, is amended by striking out ``military retirees'' and 
inserting in lieu thereof ``retirees of the uniformed services''.
    (2) Subsection (b)(1) of such section is amended by striking out 
``Armed Forces'' and inserting in lieu thereof ``uniformed services''.
    (b) Officials Responsible.--(1) Subsection (a) of such section (as 
amended by subsection (a)) is further amended by inserting ``, in 
consultation with the other administering Secretaries,'' after 
``Secretary of Defense''.
    (2) Subsection (h) of such section is amended by striking out 
``Secretary of Transportation'' and inserting in lieu thereof ``other 
administering Secretaries''.

SEC. 735. CONSISTENCY BETWEEN CHAMPUS AND MEDICARE IN PAYMENT RATES FOR 
            SERVICES.

    (a) Conformity Between Rates.--Section 1079(h) of title 10, United 
States Code, is amended by striking out paragraphs (1), (2), and (3) and 
inserting in lieu thereof the following new paragraph:
    ``(1) Except as provided in paragraphs (2) and (3), payment for a 
charge for services by an individual health care professional (or other 
noninstitutional health care provider) for which a claim is submitted 
under a plan contracted for under subsection (a) shall be equal to an 
amount determined to be appropriate, to the extent practicable, in 
accordance with the same reimbursement rules as apply to payments for 
similar services under title XVIII of the Social Security Act (42 U.S.C. 
1395 et seq.). The Secretary of Defense shall determine the appropriate 
payment amount under this paragraph in consultation with the other 
administering Secretaries.''.
    (b) Reduced Rates Authorized.--Paragraph (5) of such section is 
amended by adding at the end the following new sentence: ``With the 
consent of the health care provider, the Secretary is also authorized to 
reduce the authorized payment for certain health care services below the 
amount otherwise required by the payment limitations under paragraph 
(1).''.

[[Page 111 STAT. 1814]]

    (c) Conforming Amendments.--Such section is further 
amended--
            (1) in paragraph (5), by striking out ``paragraph (4), the 
        Secretary'' and inserting in lieu thereof ``paragraph (2), the 
        Secretary of Defense''; and
            (2) by redesignating paragraphs (4), (5), and (6) as 
        paragraphs (2), (3), and (4), respectively.

SEC. 736. USE OF PERSONAL SERVICES CONTRACTS FOR PROVISION OF HEALTH 
            CARE SERVICES AND LEGAL PROTECTION FOR PROVIDERS.

    (a) Use of Contracts Outside Medical Treatment Facilities.--Section 
1091(a) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``The Secretary of 
        Defense''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The Secretary of Defense, and the Secretary of Transportation 
with respect to the Coast Guard when it is not operating as a service in 
the Navy, may also enter into personal services contracts to carry out 
other health care responsibilities of the Secretary (such as the 
provision of medical screening examinations at Military Entrance 
Processing Stations) at locations outside medical treatment facilities, 
as determined necessary pursuant to regulations prescribed by the 
Secretary. The Secretary may not enter into a contract under this 
paragraph after the end of the one-year period beginning on the date of 
the enactment of this paragraph.''.
    (b) Defense of Suits.--Section 1089 of such title is amended--
            (1) in subsection (a), by adding at the end the following 
        new sentence: <<NOTE: Applicability.>>  ``This subsection shall 
        also apply if the physician, dentist, nurse, pharmacist, or 
        paramedical or other supporting personnel (or the estate of such 
        person) involved is serving under a personal services contract 
        entered into under section 1091 of this title.''; and
            (2) in subsection (f)--
                    (A) by inserting ``(1)'' after ``(f)''; and
                    (B) by adding at the end the following new 
                paragraph:

    ``(2) With respect to the Secretary of Defense and the Armed Forces 
Retirement Home Board, the authority provided by paragraph (1) also 
includes the authority to provide for reasonable attorney's fees for 
persons described in subsection (a), as determined necessary pursuant to 
regulations prescribed by the head of the agency concerned.''.
    (c) Report.--Not later than March 31, 1998, the Secretary of Defense 
shall submit to Congress a report on the feasible alternative means for 
performing the medical screening examinations that are routinely 
performed at Military Entrance Processing Stations. The report shall 
contain a discussion of the feasibility and cost of the use of--
            (1) the TRICARE system for the performance of the 
        examinations; and
            (2) each other alternative identified in the report.

SEC. 737. PORTABILITY OF STATE LICENSES FOR DEPARTMENT OF DEFENSE HEALTH 
            CARE PROFESSIONALS.

    Section 1094 of title 10, United States Code, is amended--
            (1) by redesignating subsection (d) as subsection (e); and

[[Page 111 STAT. 1815]]

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

    ``(d)(1) Notwithstanding any law regarding the licensure of health 
care providers, a health-care professional described in paragraph (2) 
may practice the health profession or professions of the health-care 
professional in any State, the District of Columbia, or a Commonwealth, 
territory, or possession of the United States, regardless of whether the 
practice occurs in a health care facility of the Department of Defense, 
a civilian facility affiliated with the Department of Defense, or any 
other location authorized by the Secretary of Defense.
    ``(2) A health-care professional referred to in paragraph (1) is a 
member of the armed forces who--
            ``(A) has a current license to practice medicine, 
        osteopathic medicine, dentistry, or another health profession; 
        and
            ``(B) is performing authorized duties for the Department of 
        Defense.''.

SEC. 738. <<NOTE: Regulations.>>  STANDARD FORM AND REQUIREMENTS 
            REGARDING CLAIMS FOR PAYMENT FOR SERVICES.

    (a) Clarification of Existing Requirements.--Section 1106 of title 
10, United States Code, is amended to read as follows:

``Sec. 1106. Submittal of claims: standard form; time limits

    ``(a) Standard Form.--The Secretary of Defense, after consultation 
with the other administering Secretaries, shall prescribe by regulation 
a standard form for the submission of claims for the payment of health 
care services provided under this chapter.
    ``(b) Time for Submission.--A claim for payment for services 
provided under this chapter shall be submitted as provided in such 
regulations not later than one year after the services are provided.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 55 of title 10, United States Code, is amended by striking out 
the item relating to section 1106 and inserting in lieu thereof the 
following new item:

``1106. Submittal of claims: standard form; time limits.''.

SEC. 739. CHIROPRACTIC HEALTH CARE DEMONSTRATION PROGRAM.

    (a) Two-Year Extension.--Subsection (b) of section 731 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337; 10 U.S.C. 1092 note) is amended by striking out ``1997'' and 
inserting in lieu thereof ``1999''.
    (b) Expansion to at Least Three Additional Treatment Facilities.--
Subsection (a)(2)(A) of such section is amended by striking out ``not 
less than 10'' and inserting in lieu thereof ``the National Naval 
Medical Center, the Walter Reed Army Medical Center, and not less than 
11 other''.
    (c) Reports.--Subsection (c) of such section is amended--
            (1) by striking paragraph (3); and
            (2) by adding at the end the following new paragraphs:

    ``(3) Not later than January 30, 1998, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
that identifies the additional treatment facilities designated to 
furnish chiropractic care under the program that were not so designated 
before the report required by paragraph

[[Page 111 STAT. 1816]]

(1) was prepared, together with the plan for the conduct of the program 
at the additional treatment facilities.
    ``(4) Not later than May 1, 1998, the Secretary of Defense shall 
modify the plan for evaluating the program submitted pursuant to 
paragraph (2) in order to provide for the evaluation of the program at 
all of the designated treatment facilities under the program, including 
the treatment facilities referred to in paragraph (3).
    ``(5) Not later than May 1, 2000, the Secretary shall submit to the 
committees referred to in paragraph (3) a final report in accordance 
with the plan submitted pursuant to paragraph (2).''.

                        Subtitle E--Other Matters

SEC. 741. CONTINUED ADMISSION OF CIVILIANS AS STUDENTS IN PHYSICIAN 
            ASSISTANT TRAINING PROGRAM OF ARMY MEDICAL DEPARTMENT.

    (a) Civilian Attendance.--(1) Chapter 407 of title 10, United States 
Code, is amended by adding at the end the following new section:

``Sec. 4416. Academy of Health Sciences: admission of civilians in 
                        physician assistant training program

    ``(a) In General.--The Secretary of the Army may, pursuant to an 
agreement entered into with an accredited institution of higher 
education--
            ``(1) permit students of the institution to attend the 
        didactic portion of the physician assistant training program 
        conducted by the Army Medical Department at the Academy of 
        Health Sciences at Fort Sam Houston, Texas; and
            ``(2) accept from the institution academic services to 
        support the physician assistant training program at the Academy.

    ``(b) Agreement for Exchange of Services.--An agreement entered into 
with an institution of higher education under this section shall require 
the institution, in exchange for services provided under paragraph (1) 
of subsection (a), to provide academic services described in paragraph 
(2) of such subsection that the Secretary and authorized representatives 
of the institution consider appropriate.
    ``(c) <<NOTE: Regulations.>>  Selection of Students.--In 
consultation with the authorized representatives of the institution of 
higher education concerned, the Secretary shall prescribe the 
qualifications and methods of selection for students of the institution 
to receive instruction at the Academy under this section. The 
qualifications shall be comparable to those generally required for 
admission to the physician assistant training program at the Academy.

    ``(d) Rules of Attendance.--Except as the Secretary determines 
necessary, a student who receives instruction at the Academy under this 
section shall be subject to the same regulations governing attendance, 
discipline, discharge, and dismissal as apply to other persons attending 
the Academy.
    ``(e) Limitations.--The Secretary shall ensure the following:
            ``(1) That the Army Medical Department, in carrying out an 
        agreement under this section, does not incur costs in excess of 
        the costs that the department would incur to obtain, by means 
        other than the agreement, academic services that are

[[Page 111 STAT. 1817]]

        comparable to those provided by the institution pursuant to the 
        agreement.
            ``(2) That attendance of civilian students at the Academy 
        under this section does not cause a decrease in the number of 
        members of the armed forces enrolled in the physician assistant 
        training program at the Academy.

    ``(f) Annual Report.--(1) Each year, the Secretary shall submit to 
Congress a report on the exchange of services under this section during 
the year. The report shall contain the following:
            ``(A) The number of civilian students who receive 
        instruction at the Academy under this section.
            ``(B) An assessment of the benefits derived by the United 
        States.

    ``(2) Reports are required under paragraph (1) only for years during 
which an agreement is in effect under this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``4416. Academy of Health Sciences: admission of civilians in physician 
           assistant training program.''.

    (b) Effect on Existing Demonstration Program.--An agreement entered 
into under the demonstration program for the admission of civilians as 
physician assistant students at the Academy of Health Sciences, Fort Sam 
Houston, Texas, established pursuant to section 732 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2810) shall be treated as an agreement entered into under section 
4416 of title 10, United States Code (as added by subsection (a)). The 
agreement may be extended in such manner and for such period as the 
parties to the agreement consider appropriate consistent with section 
4416.

SEC. 742. PAYMENT FOR EMERGENCY HEALTH CARE OVERSEAS FOR MILITARY AND 
            CIVILIAN PERSONNEL OF THE ON-SITE INSPECTION AGENCY.

    (a) Payment of Costs.--The Secretary of Defense may pay the costs of 
any emergency health care that--
            (1) is needed by a member of the Armed Forces, civilian 
        employee of the Department of Defense, or civilian employee of a 
        contractor operating under a contract with the Department of 
        Defense while the member or employee is performing temporary or 
        permanent duty with the On-Site Inspection Agency outside the 
        United States; and
            (2) is furnished to such person during fiscal year 1998 by a 
        source outside the United States.

    (b) Funding.--Funds authorized to be appropriated for the expenses 
of the On-Site Inspection Agency for fiscal year 1998 by this Act shall 
be available to cover payments for emergency health care provided under 
subsection (a).

SEC. 743. AUTHORITY FOR AGREEMENT FOR USE OF MEDICAL RESOURCE FACILITY, 
            ALAMOGORDO, NEW MEXICO.

    (a) Authority.--(1) The Secretary of the Air Force may enter into an 
agreement with Gerald Champion Hospital, Alamogordo, New Mexico, under 
which the Secretary may furnish health care services to eligible 
individuals in a medical resource facility in Alamogordo, New Mexico, 
that is constructed and equipped, in part, using funds provided by the 
Secretary under the agreement.
    (2) For purposes of this section:

[[Page 111 STAT. 1818]]

            (A) The term ``eligible individual'' means any individual 
        eligible for medical and dental care under chapter 55 of title 
        10, United States Code, including any member of the uniformed 
        services entitled to such care under section 1074(a) of that 
        title.
            (B) The terms ``medical resource facility'' and ``facility'' 
        mean the medical resource facility to be constructed and 
        equipped pursuant to the agreement authorized by paragraph (1).
            (C) The term ``Hospital'' means Gerald Champion Hospital, 
        Alamogordo, New Mexico.

    (b) Content of Agreement.--Any agreement entered into under 
subsection (a) shall specify, at a minimum, the following:
            (1) The relationship between the Hospital and the Secretary 
        of the Air Force in the provision of health care services to 
        eligible individuals in the medical resource facility, 
        including--
                    (A) whether or not the Secretary and the Hospital 
                are to use and administer the facility jointly or 
                independently; and
                    (B) under what circumstances the Hospital is to act 
                as a provider of health care services under the managed 
                care option of the TRICARE program known as TRICARE 
                Prime.
            (2) Matters relating to the administration of the agreement, 
        including--
                    (A) the duration of the agreement;
                    (B) the rights and obligations of the Secretary and 
                the Hospital under the agreement, including any 
                contracting or grievance procedures applicable under the 
                agreement;
                    (C) the types of care to be provided to eligible 
                individuals under the agreement, including the cost to 
                the Department of the Air Force of providing the care to 
                eligible individuals during the term of the agreement;
                    (D) the access of Air Force medical personnel to the 
                facility under the agreement;
                    (E) the rights and responsibilities of the Secretary 
                and the Hospital upon termination of the agreement; and
                    (F) any other matters jointly identified by the 
                Secretary and the Hospital.
            (3) The nature of the arrangement between the Secretary and 
        the Hospital with respect to the ownership of the facility and 
        any property under the agreement, including--
                    (A) the nature of that arrangement while the 
                agreement is in force;
                    (B) the nature of that arrangement upon termination 
                of the agreement; and
                    (C) any requirement for reimbursement of the 
                Secretary by the Hospital as a result of the arrangement 
                upon termination of the agreement.
            (4) The amount of the funds made available under subsection 
        (c) that the Secretary will contribute for the construction and 
        equipping of the facility.
            (5) Any conditions or restrictions relating to the 
        construction, equipping, or use of the facility.

    (c) Availability of Funds for Construction and Equipping of 
Facility.--(1) Of the amount authorized to be appropriated

[[Page 111 STAT. 1819]]

pursuant to section 301(4) for operation and maintenance for the Air 
Force, not more than $7,000,000 may be used by the Secretary of the Air 
Force to make a contribution toward the construction and equipping of 
the medical resource facility in the event that the Secretary enters 
into the agreement authorized by subsection (a). Notwithstanding any 
other provision of law, the Secretary may not use other sources of funds 
to make a contribution toward the construction or equipping of the 
facility.
    (2) Notwithstanding subsection (b)(3) regarding the ownership and 
reimbursement issues to be addressed in the agreement authorized by 
subsection (a), the Secretary may not contribute funds made available 
under paragraph (1) toward the construction and equipping of the 
facility unless the agreement requires, in exchange for the 
contribution, that the Hospital provide health care services to eligible 
individuals without charge to the Secretary or at a reduced rate. The 
value of the services provided by the Hospital shall be at least equal 
to the amount of the contribution made by the Secretary, and the 
Hospital shall complete the provision of services equal in value to the 
Secretary's contribution within seven years after the facility becomes 
operational. The provision of additional discounted services to be 
provided by the Hospital shall be included in the agreement. The value 
and types of services to be provided by the Hospital shall be negotiated 
in accordance with principles of resource-sharing agreements under the 
TRICARE program.
    (d) Notice and Wait.--The Secretary of the Air Force may not enter 
into the agreement authorized by subsection (a) until 90 days after the 
Secretary of Defense submits to the congressional defense committees the 
report required by subsection (e).
    (e) Report on Proposed Agreement.--The Secretary of Defense shall 
submit to Congress a report containing an analysis of, and 
recommendations regarding, the agreement proposed to be entered into 
under subsection (a), in particular, the implications of the agreement 
on regional health care costs and its effect on implementation of the 
TRICARE program in the region. The report shall also include a copy of 
the agreement, the results of a cost-benefit analysis conducted by the 
Secretary of the Air Force with respect to the agreement, and such other 
information with respect to the agreement as the Secretary of Defense 
and the Secretary of the Air Force considers appropriate. The cost-
benefit analysis shall consider the effects of the agreement on 
operation and maintenance and military construction requirements at 
Holloman Air Force Base, New Mexico.
    (f) Subsequent Reports.--If the Secretary of the Air Force enters 
into the agreement authorized by subsection (a), the Secretary shall 
submit to Congress an annual report containing a revised cost-benefit 
analysis of the consequences of the agreement as in effect during the 
year covered by the report, including a full accounting of any cost 
savings realized by the Department of the Air Force as a result of the 
agreement. A report shall be submitted for each year in which the 
agreement is in effect or until the Hospital provides the full value of 
health care services required under subsection (c)(2), whichever occurs 
first.

[[Page 111 STAT. 1820]]

SEC. <<NOTE: 10 USC 1073 note.>>  744. DISCLOSURES OF CAUTIONARY 
            INFORMATION ON PRESCRIPTION MEDICATIONS.

    (a) Regulations Required.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense, in consultation 
with the administering Secretaries referred to in section 1073 of title 
10, United States Code, shall prescribe regulations to require each 
source described in subsection (d) that dispenses a prescription 
medication to a beneficiary under chapter 55 of such title to include 
with the medication the written cautionary information required by 
subsection (b).
    (b) Information To Be Disclosed.--Information required to be 
disclosed about a medication under the regulations shall include 
appropriate cautions about usage of the medication, including possible 
side effects and potentially hazardous interactions with foods.
    (c) Form of Information.--The regulations shall require that 
information be furnished in a form that, to the maximum extent 
practicable, is easily read and understood.
    (d) Covered Sources.--The regulations shall apply to the following:
            (1) Pharmacies and any other dispensers of prescription 
        medications in medical facilities of the uniformed services.
            (2) Sources of prescription medications under any mail order 
        pharmaceuticals program provided by any of the administering 
        Secretaries under chapter 55 of title 10, United States Code.
            (3) Pharmacies paid under the Civilian Health and Medical 
        Program of the Uniformed Services (including the TRICARE 
        program).
            (4) Pharmacies, and any other pharmaceutical dispensers, of 
        designated providers referred to in section 721(5) of the 
        National Defense Authorization Act for Fiscal Year 1997 (Public 
        Law 104-201; 110 Stat. 2593; 10 U.S.C. 1073 note).

SEC. 745. <<NOTE: 10 USC 1073 note.>>  COMPETITIVE PROCUREMENT OF 
            CERTAIN OPHTHALMIC SERVICES.

    (a) Competitive Procurement Required.--Beginning not later than 
October 1, 1998, the Secretary of Defense shall competitively procure 
from private-sector sources, or other sources outside of the Department 
of Defense, all ophthalmic services related to the provision of single 
vision and multivision eyeware for members of the Armed Forces, retired 
members, and certain covered beneficiaries under chapter 55 of title 10, 
United States Code, who would otherwise receive such ophthalmic services 
through the Department of Defense.
    (b) Exception.--Subsection (a) shall not apply to the extent that 
the Secretary of Defense determines that the use of sources within the 
Department of Defense to provide such ophthalmic 
services--
            (1) is necessary to meet the readiness requirements of the 
        Armed Forces; or
            (2) is more cost effective.

    (c) Completion of Existing Orders.--Subsection (a) shall not apply 
to orders for ophthalmic services received on or before September 30, 
1998.

[[Page 111 STAT. 1821]]

SEC. 746. COMPTROLLER GENERAL STUDY OF ADEQUACY AND EFFECT OF MAXIMUM 
            ALLOWABLE CHARGES FOR PHYSICIANS UNDER CHAMPUS.

    (a) Study Required.--The Comptroller General shall conduct a study 
regarding the adequacy of the maximum allowable charges for physicians 
established under the Civilian Health and Medical Program of the 
Uniformed Services (CHAMPUS) and the effect of such charges on the 
participation of physicians in CHAMPUS. The study shall include an 
evaluation of the following:
            (1) The methodology used by the Secretary of Defense to 
        establish maximum allowable charges for physicians under 
        CHAMPUS, and whether such methodology conforms to the 
        requirements of section 1079(h) of title 10, United States Code.
            (2) The differences between the established charges under 
        CHAMPUS and reimbursement rates for similar services under title 
        XVIII of the Social Security Act and other health care programs.
            (3) The basis for physician complaints that the CHAMPUS 
        established charges are too low.
            (4) The difficultly of CHAMPUS in ensuring physician 
        compliance with the CHAMPUS established charges in the absence 
        of legal mechanisms to enforce compliance, and the effect of 
        noncompliance on patient out-of-pocket expenses.
            (5) The effect of the established charges under CHAMPUS on 
        the participation of physicians in CHAMPUS, and the extent and 
        success of Department of Defense efforts to increase physician 
        participation in areas with low participation rates.

    (b) Submission of Report.--Not later than March 1, 1998, the 
Comptroller General shall submit to Congress a report containing the 
results of the study required by subsection (a).

SEC. 747. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE PHARMACY 
            PROGRAMS.

    (a) Study.--Not later than March 31, 1998, the Comptroller General 
shall submit to Congress a study evaluating the pharmacy programs of the 
Department of Defense. The study shall examine the impact of such 
pharmacy programs on the aggregate cost, quality, and accessibility of 
health care provided to covered beneficiaries under chapter 55 of title 
10, United States Code, and shall include an examination of the 
following:
            (1) The merits and feasibility of establishing a uniform 
        formulary for military treatment facility pharmacies and 
        civilian contractor pharmacy benefit administrators.
            (2) The reasons that military treatment facilities deny 
        covered beneficiaries access to pharmacy care and shift such 
        beneficiaries to other sources of pharmacy care.
            (3) The merits and feasibility of using private sector cost 
        control mechanisms implemented by authorized civilian 
        contractors in the Department of Defense medical programs, and 
        the existence of any barriers to the use of such mechanisms, 
        including factors that may undermine the incentives of such 
        contractors to optimize treatment outcomes in managing the care 
        of covered beneficiaries without exceeding budgeted resources.
            (4) The cost impacts, if any, of the use of commercial 
        managed care methods of furnishing pharmaceuticals to covered 
        beneficiaries by TRICARE program contractors instead of

[[Page 111 STAT. 1822]]

        procuring pharmaceuticals at discounted prices pursuant to 
        section 8126 of title 38, United States Code.
            (5) The existence of options for increasing the discounts 
        available to TRICARE program contractors without undermining 
        controls for preventing diversion of items procured by the 
        Department of Defense to nonmilitary populations.

    (b) <<NOTE: Reports.>>  Response to Study.--Not later than 90 days 
after the Comptroller General submits to Congress the study required by 
subsection (a), the Secretary of Defense shall submit to Congress a 
report on the feasibility and advisability of implementing changes to 
the pharmacy programs of the Department of Defense based on the findings 
and conclusions of the study.

SEC. 748. COMPTROLLER GENERAL STUDY OF NAVY GRADUATE MEDICAL EDUCATION 
            PROGRAM.

    (a) Study Required.--The Comptroller General shall conduct a study 
to evaluate the validity of the recommendations made by the Medical 
Education Policy Council of the Bureau of Medicine and Surgery of the 
Navy regarding restructuring the graduate medical education program of 
the Department of the Navy. The study shall specifically address the 
Council's recommendations relating to residency training conducted at 
the Naval Medical Center, Portsmouth, Virginia, and the National Naval 
Medical Center, Bethesda, Maryland.
    (b) Submission of Report.--Not later than March 1, 1998, the 
Comptroller General shall submit to Congress and the Secretary of the 
Navy a report containing the results of the study required by subsection 
(a).
    (c) Moratorium on Restructuring.--Until the report required by 
subsection (b) is submitted to Congress, the Secretary of the Navy may 
not make any change in the types of residency programs conducted under 
the Navy graduate medical education program or the locations at which 
such residency programs are conducted or otherwise restructure the Navy 
graduate medical education program.

<<NOTE: Reports.>> SEC. 749. STUDY OF EXPANSION OF PHARMACEUTICALS BY 
            MAIL PROGRAM TO INCLUDE ADDITIONAL MEDICARE-ELIGIBLE COVERED 
            BENEFICIARIES.

    Not later than six months after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report 
regarding the feasibility and advisability of expanding the category of 
persons eligible to participate in the demonstration project for the 
purchase of prescription pharmaceuticals by mail, as required by section 
702(a) of the National Defense Authorization Act for Fiscal Year 1993 
(Public Law 102-484; 10 U.S.C. 1079 note), to include persons referred 
to in subsection (c) of section 1086 of title 10, United States Code, 
who are covered by subsection (d)(1) of such section and reside in the 
United States outside of the catchment area of a medical treatment 
facility of the uniformed services.

SEC. 750. COMPTROLLER GENERAL STUDY OF REQUIREMENT FOR MILITARY MEDICAL 
            FACILITIES IN NATIONAL CAPITAL REGION.

    (a) Study Required.--The Comptroller General shall conduct a study 
to evaluate the requirements for Army, Navy, and Air Force medical 
facilities in the National Capital Region (as defined

[[Page 111 STAT. 1823]]

in section 2674(f)(2) of title 10, United States Code). The study 
shall--
            (1) specifically address requirements with respect to 
        geography, facilities, integrated residencies, and medical 
        environments; and
            (2) provide specific recommendations with respect to how 
        medical and health care provided by these facilities may be 
        better coordinated to more efficiently serve, throughout the 
        National Capital Region, members of the Armed Forces on active 
        duty and covered beneficiaries under chapter 55 of title 10, 
        United States Code.

    (b) Submission of Report.--Not later than six months after the date 
of the enactment of this Act, the Comptroller General shall submit to 
Congress and the Secretary of Defense a report containing the results of 
the study required by subsection (a).

SEC. 751. REPORT ON POLICIES AND PROGRAMS TO PROMOTE HEALTHY LIFESTYLES 
            FOR MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS.

    (a) Report.--Not later than March 30, 1998, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the effectiveness of the policies and programs of the Department of 
Defense intended to promote healthy lifestyles for members of the Armed 
Forces and their dependents.
    (b) Policies and Programs To Be Assessed.--The report under 
subsection (a) shall include an assessment of the effectiveness of the 
following:
            (1) Programs intended to educate members of the Armed Forces 
        and their dependents about the potential health consequences of 
        the use of alcohol and tobacco.
            (2) Policies of the commissaries, post exchanges, and 
        service clubs, and for entertainment activities of the 
        Department of Defense, relating to the sale and use of alcohol 
        and tobacco.
            (3) Programs intended to provide support to members of the 
        Armed Forces and their dependents who choose to reduce or 
        eliminate their use of alcohol or tobacco.
            (4) Any other policies or programs intended to promote 
        healthy lifestyles for members of the Armed Forces and their 
        dependents.

SEC. 752. SENSE OF CONGRESS REGARDING QUALITY HEALTH CARE FOR RETIREES.

    (a) Findings.--Congress makes the following findings:
            (1) Many retired military personnel believe that they were 
        promised lifetime health care in exchange for 20 or more years 
        of service.
            (2) Military retirees are the only Federal Government 
        personnel who have been prevented from using their employer-
        provided health care at or after 65 years of age.
            (3) Military health care has become increasingly difficult 
        to obtain for military retirees as the Department of Defense 
        reduces its health care infrastructure.
            (4) Military retirees deserve to have a health care program 
        that is at least comparable with that of retirees from civilian 
        employment by the Federal Government.

[[Page 111 STAT. 1824]]

            (5) The availability of quality, lifetime health care is a 
        critical recruiting incentive for the Armed Forces.
            (6) Quality health care is a critical aspect of the quality 
        of life of the men and women serving in the Armed Forces.

    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the United States has incurred a moral obligation to 
        provide health care to members and former members of the Armed 
        Forces who are entitled to retired or retainer pay (or its 
        equivalent);
            (2) it is, therefore, necessary to provide quality, 
        affordable health care to such retirees; and
            (3) Congress and the President should take steps to address 
        the problems associated with the availability of health care for 
        such retirees within two years after the date of the enactment 
        of this Act.

                    Subtitle F--Persian Gulf Illness

<<NOTE: 10 USC 1074 note.>> SEC. 761. DEFINITIONS.

    For purposes of this subtitle:
            (1) The term ``Gulf War illness'' means any one of the 
        complex of illnesses and symptoms that might have been 
        contracted by members of the Armed Forces as a result of service 
        in the Southwest Asia theater of operations during the Persian 
        Gulf War.
            (2) The term ``Persian Gulf War'' has the meaning given that 
        term in section 101 of title 38, United States Code.
            (3) The term ``Persian Gulf veteran'' means an individual 
        who served on active duty in the Armed Forces in the Southwest 
        Asia theater of operations during the Persian Gulf War.
            (4) The term ``contingency operation'' has the meaning given 
        that term in section 101(a) of title 10, United States Code, and 
        includes a humanitarian operation, peacekeeping operation, or 
        similar operation.

<<NOTE: 10 USC 1074 note.>> SEC. 762. PLAN FOR HEALTH CARE SERVICES FOR 
            PERSIAN GULF VETERANS.

    (a) Plan Required.--The Secretary of Defense and the Secretary of 
Veterans Affairs, acting jointly, shall prepare a plan to provide 
appropriate health care to Persian Gulf veterans (and dependents 
eligible by law) who suffer from a Gulf War illness.
    (b) Contents of Plan.--In preparing the plan, the Secretaries 
shall--
            (1) use the presumptions of service connection and illness 
        specified in paragraphs (1) and (2) of section 721(d) of the 
        National Defense Authorization Act for Fiscal Year 1995 (Public 
        Law 103-337; 10 U.S.C. 1074 note) to determine the Persian Gulf 
        veterans (and dependents eligible by law) who should be covered 
        by the plan;
            (2) consider the need and methods available to provide 
        health care services to Persian Gulf veterans who are no longer 
        on active duty in the Armed Forces, such as Persian Gulf 
        veterans who are members of the reserve components and Persian 
        Gulf veterans who have been separated from the Armed Forces; and

[[Page 111 STAT. 1825]]

            (3) estimate the costs to the Government of providing full 
        or partial health care services under the plan to covered 
        Persian Gulf veterans (and covered dependents eligible by law).

    (c) Follow-up Treatment.--The plan required by subsection (a) shall 
specifically address the measures to be used to monitor the quality, 
appropriateness, and effectiveness of, and patient satisfaction with, 
health care services provided to Persian Gulf veterans after their 
initial medical examination as part of registration in the Persian Gulf 
War Veterans Health Registry or the Comprehensive Clinical Evaluation 
Program.
    (d) Submission of Plan.--Not later than March 1, 1998, the 
Secretaries shall submit to Congress the plan required by subsection 
(a).

SEC. 763. COMPTROLLER GENERAL STUDY OF REVISED DISABILITY CRITERIA FOR 
            PHYSICAL EVALUATION BOARDS.

    Not later than March 1, 1998, the Comptroller General shall submit 
to Congress a study evaluating the revisions made by the Secretary of 
Defense (as required by section 721(e) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 
1074 note)) to the Physical Evaluation Board criteria used to set 
disability ratings for members of the Armed Forces who are no longer 
medically qualified for continuation on active duty so as to ensure 
accurate disability ratings related to a diagnosis of a Gulf War 
illness.

SEC. 764. MEDICAL CARE FOR CERTAIN RESERVES WHO SERVED IN SOUTHWEST ASIA 
            DURING THE PERSIAN GULF WAR.

    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1074d the following new section:

``Sec. 1074e. Medical care: certain Reserves who served in Southwest 
                        Asia during the Persian Gulf Conflict

    ``(a) Entitlement to Medical Care.--A member of the armed forces 
described in subsection (b) is entitled to medical care for a qualifying 
Persian Gulf symptom or illness to the same extent and under the same 
conditions (other than the requirement that the member be on active 
duty) as a member of a uniformed service who is entitled to such care 
under section 1074(a) of this title.
    ``(b) Covered Members.--Subsection (a) applies to a member of a 
reserve component who--
            ``(1) is a Persian Gulf veteran;
            ``(2) has a qualifying Persian Gulf symptom or illness; and
            ``(3) is not otherwise entitled to medical care for such 
        symptom or illness under this chapter and is not otherwise 
        eligible for hospital care and medical services for such symptom 
        or illness under section 1710 of title 38.

    ``(c) Definitions.--In this section:
            ``(1) The term `Persian Gulf veteran' means a member of the 
        armed forces who served on active duty in the Southwest Asia 
        theater of operations during the Persian Gulf Conflict.
            ``(2) The term `qualifying Persian Gulf symptom or illness' 
        means, with respect to a member described in subsection (b), a 
        symptom or illness--
                    ``(A) that the member registered before September 1, 
                1997, in the Comprehensive Clinical Evaluation Program

[[Page 111 STAT. 1826]]

                of the Department of Defense and that is presumed under 
                section 721(d) of the National Defense Authorization Act 
                for Fiscal Year 1995 (10 U.S.C. 1074 note) to be a 
                result of service in the Southwest Asia theater of 
                operations during the Persian Gulf Conflict; or
                    ``(B) that the member registered before September 1, 
                1997, in the Persian Gulf War Veterans Health Registry 
                maintained by the Department of Veterans Affairs 
                pursuant to section 702 of the Persian Gulf War 
                Veterans' Health Status Act (38 U.S.C. 527 note).''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1074d the following new item:

``1074e. Medical care: certain Reserves who served in Southwest Asia 
           during the Persian Gulf Conflict.''.

SEC. 765. IMPROVED MEDICAL TRACKING SYSTEM FOR MEMBERS DEPLOYED OVERSEAS 
            IN CONTINGENCY OR COMBAT OPERATIONS.

    (a) System Required.--(1) Chapter 55 of title 10, United States 
Code, is amended by inserting after section 1074e (as added by section 
764) the following new section:

``Sec. 1074f. Medical tracking system for members deployed overseas

    ``(a) System Required.--The Secretary of Defense shall establish a 
system to assess the medical condition of members of the armed forces 
(including members of the reserve components) who are deployed outside 
the United States or its territories or possessions as part of a 
contingency operation (including a humanitarian operation, peacekeeping 
operation, or similar operation) or combat operation.
    ``(b) Elements of System.--The system described in subsection (a) 
shall include the use of predeployment medical examinations and 
postdeployment medical examinations (including an assessment of mental 
health and the drawing of blood samples) to accurately record the 
medical condition of members before their deployment and any changes in 
their medical condition during the course of their deployment. The 
postdeployment examination shall be conducted when the member is 
redeployed or otherwise leaves an area in which the system is in 
operation (or as soon as possible thereafter).
    ``(c) Recordkeeping.--The results of all medical examinations 
conducted under the system, records of all health care services 
(including immunizations) received by members described in subsection 
(a) in anticipation of their deployment or during the course of their 
deployment, and records of events occurring in the deployment area that 
may affect the health of such members shall be retained and maintained 
in a centralized location to improve future access to the records.
    ``(d) Quality Assurance.--The Secretary of Defense shall establish a 
quality assurance program to evaluate the success of the system in 
ensuring that members described in subsection (a) receive predeployment 
medical examinations and postdeployment medical examinations and that 
the recordkeeping requirements with respect to the system are met.''.

[[Page 111 STAT. 1827]]

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1074e (as added 
by section 764) the following new item:

``1074f. Medical tracking system for members deployed overseas.''.

    (b) Report.--Not later than March 1, 1998, the Secretary of Defense 
shall submit to Congress an analysis of the administrative implications 
of establishing and administering the medical tracking system required 
by section 1074f of title 10, United States Code, as added by subsection 
(a). The report shall include, for fiscal year 1999 and the 5 successive 
fiscal years, a separate analysis and specification of the projected 
costs and operational considerations for each of the following required 
aspects of the system:
            (1) Predeployment medical examinations.
            (2) Postdeployment medical examinations.
            (3) Recordkeeping.

SEC. 766. NOTICE OF USE OF INVESTIGATIONAL NEW DRUGS OR DRUGS UNAPPROVED 
            FOR THEIR APPLIED USE.

    (a) Notice Requirements.--Chapter 55 of title 10, United States 
Code, is amended by adding at the end the following new section:

``Sec. 1107. Notice of use of an investigational new drug or a drug 
                        unapproved for its applied use

    ``(a) Notice Required.--(1) Whenever the Secretary of Defense 
requests or requires a member of the armed forces to receive an 
investigational new drug or a drug unapproved for its applied use, the 
Secretary shall provide the member with notice containing the 
information specified in subsection (d).
    ``(2) The Secretary shall also ensure that health care providers who 
administer an investigational new drug or a drug unapproved for its 
applied use, or who are likely to treat members who receive such a drug, 
receive the information required to be provided under paragraphs (3) and 
(4) of subsection (d).
    ``(b) Time of Notice.--The notice required to be provided to a 
member under subsection (a)(1) shall be provided before the 
investigational new drug or drug unapproved for its applied use is first 
administered to the member, if practicable, but in no case later than 30 
days after the drug is first administered to the member.
    ``(c) Form of Notice.--The notice required under subsection (a)(1) 
shall be provided in writing unless the Secretary of Defense determines 
that the use of written notice is impractical because of the number of 
members receiving the investigational new drug or drug unapproved for 
its applied use, time constraints, or similar reasons. If the Secretary 
provides notice under subsection (a)(1) in a form other than in writing, 
the Secretary shall submit to Congress a report describing the 
notification method used and the reasons for the use of the alternative 
method.
    ``(d) Content of Notice.--The notice required under subsection 
(a)(1) shall include the following:
            ``(1) Clear notice that the drug being administered is an 
        investigational new drug or a drug unapproved for its applied 
        use.
            ``(2) The reasons why the investigational new drug or drug 
        unapproved for its applied use is being administered.

[[Page 111 STAT. 1828]]

            ``(3) Information regarding the possible side effects of the 
        investigational new drug or drug unapproved for its applied use, 
        including any known side effects possible as a result of the 
        interaction of such drug with other drugs or treatments being 
        administered to the members receiving such drug.
            ``(4) Such other information that, as a condition of 
        authorizing the use of the investigational new drug or drug 
        unapproved for its applied use, the Secretary of Health and 
        Human Services may require to be disclosed.

    ``(e) Records of Use.--The Secretary of Defense shall ensure that 
the medical records of members accurately document--
            ``(1) the receipt by members of any investigational new drug 
        or drug unapproved for its applied use; and
            ``(2) the notice required by subsection (a)(1).

    ``(f) Definitions.--In this section:
            ``(1) The term `investigational new drug' means a drug 
        covered by section 505(i) of the Federal Food, Drug, and 
        Cosmetic Act (21 U.S.C. 355(i)).
            ``(2) The term `drug unapproved for its applied use' means a 
        drug administered for a use not described in the approved 
        labeling of the drug under section 505 of the Federal Food, 
        Drug, and Cosmetic Act (21 U.S.C. 355).''.

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

``1107. Notice of use of an investigational new drug or a drug 
           unapproved for its 
           applied use.''.

SEC. 767. REPORT ON PLANS TO TRACK LOCATION OF MEMBERS IN A THEATER OF 
            OPERATIONS.

    Not later than March 1, 1998, the Secretary of Defense shall submit 
to Congress a report containing a plan for collecting and maintaining 
information regarding the daily location of units of the Armed Forces, 
and to the extent practicable individual members of such units, serving 
in a theater of operations during a contingency operation or combat 
operation.

SEC. 768. SENSE OF CONGRESS REGARDING THE DEPLOYMENT OF SPECIALIZED 
            UNITS FOR DETECTING AND MONITORING CHEMICAL, BIOLOGICAL, AND 
            SIMILAR HAZARDS IN A THEATER OF OPERATIONS.

    It is the sense of Congress that the Secretary of Defense, in 
conjunction with the Chairman of the Joint Chiefs of Staff, should take 
such actions as are necessary to ensure that the units of the Armed 
Forces deployed in the theater of operations for each contingency 
operation or combat operation include specialized units with sufficient 
capability (including personnel with the appropriate training and 
expertise, and the appropriate equipment) to detect and monitor the 
presence of chemical, biological, and similar hazards to which members 
of the Armed Forces could be exposed in that theater during the 
operation.

SEC. 769. REPORT ON EFFECTIVENESS OF RESEARCH EFFORTS REGARDING GULF WAR 
            ILLNESSES.

    Not later than March 1, 1998, the Secretary of Defense shall submit 
to Congress a report evaluating the effectiveness of medical research 
initiatives regarding Gulf War illnesses. The report shall address the 
following:

[[Page 111 STAT. 1829]]

            (1) The type and effectiveness of previous research efforts, 
        including the activities undertaken pursuant to section 743 of 
        the National Defense Authorization Act for Fiscal Year 1997 
        (Public Law 104-201; 10 U.S.C. 1074 note), section 722 of the 
        National Defense Authorization Act for Fiscal Year 1995 (Public 
        Law 103-337; 10 U.S.C. 1074 note), and sections 270 and 271 of 
        the National Defense Authorization Act for Fiscal Year 1994 
        (Public Law 103-160; 107 Stat. 1613).
            (2) Recommendations regarding additional research regarding 
        Gulf War illnesses, including research regarding the nature and 
        causes of Gulf War illnesses and appropriate treatments for such 
        illnesses.
            (3) The adequacy of Federal funding and the need for 
        additional funding for medical research initiatives regarding 
        Gulf War illnesses.

SEC. 770. <<NOTE: 10 USC 1074 note.>>  PERSIAN GULF ILLNESS CLINICAL 
            TRIALS PROGRAM.

    (a) Findings.--Congress finds the following:
            (1) There are many ongoing studies that investigate risk 
        factors which may be associated with the health problems 
        experienced by Persian Gulf veterans; however, there have been 
        no studies that examine health outcomes and the effectiveness of 
        the treatment received by such veterans.
            (2) The medical literature and testimony presented in 
        hearings on Gulf War illnesses indicate that there are 
        therapies, such as cognitive behavioral therapy, that have been 
        effective in treating patients with symptoms similar to those 
        seen in many Persian Gulf veterans.

    (b) Establishment of Program.--The Secretary of Defense and the 
Secretary of Veterans Affairs, acting jointly, shall establish a program 
of cooperative clinical trials at multiple sites to assess the 
effectiveness of protocols for treating Persian Gulf veterans who suffer 
from ill-defined or undiagnosed conditions. Such protocols shall include 
a multidisciplinary treatment model, of which cognitive behavioral 
therapy is a component.
    (c) Funding.--Of the funds authorized to be appropriated in section 
201(1) for research, development, test, and evaluation for the Army, the 
sum of $4,500,000 shall be available for program element 62787A (medical 
technology) in the budget of the Department of Defense for fiscal year 
1998 to carry out the clinical trials program established pursuant to 
subsection (b).

SEC. 771. SENSE OF CONGRESS CONCERNING GULF WAR ILLNESS.

    (a) Findings.--Congress makes the following findings:
            (1) Americans served in the Persian Gulf Conflict of 1991 in 
        defense of vital national security interests of the United 
        States.
            (2) It was known to United States intelligence and military 
        commanders that biological and chemical agents were in theater 
        throughout the conflict.
            (3) An undetermined amount of these agents were released 
        into theater.
            (4) A large number of United States military veterans and 
        allied veterans who served in the Southwest Asia theater of 
        operations have been stricken with a variety of severe 
        illnesses.

[[Page 111 STAT. 1830]]

            (5) Previous efforts to discern the causes of those 
        illnesses have been inadequate, and those illnesses are 
        affecting the health of both veterans and their families.

    (b) Sense of Congress.--It is the sense of Congress that all 
promising technology and treatments relating to Gulf War illnesses 
should be fully explored and tested to facilitate treatment for members 
of the Armed Forces and veterans who served the United States in the 
Persian Gulf conflict and are stricken with unexplainable illness.

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

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

Sec. 801. Expansion of authority to enter into contracts crossing fiscal 
           years to all severable service contracts not exceeding a 
           year.
Sec. 802. Vesting of title in the United States under contracts paid 
           under progress payment arrangements or similar arrangements.
Sec. 803. Restriction on undefinitized contract actions.
Sec. 804. Limitation and report on payment of restructuring costs under 
           defense contracts.
Sec. 805. Increased price limitation on purchases of right-hand drive 
           vehicles.
Sec. 806. Multiyear procurement contracts.
Sec. 807. Audit of procurement of military clothing and clothing-related 
           items by military installations in the United States.
Sec. 808. Limitation on allowability of compensation for certain 
           contractor personnel.
Sec. 809. Elimination of certification requirement for grants.
Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts.
Sec. 811. Item-by-item and country-by-country waivers of domestic source 
           limitations.

               Subtitle B--Acquisition Assistance Programs

Sec. 821. One-year extension of pilot mentor-protege program.
Sec. 822. Test program for negotiation of comprehensive subcontracting 
           plans.

                  Subtitle C--Administrative Provisions

Sec. 831. Retention of expired funds during the pendency of contract 
           litigation.
Sec. 832. Protection of certain information from disclosure.
Sec. 833. Unit cost reports.
Sec. 834. Plan for providing contracting information to general public 
           and small businesses.
Sec. 835. Two-year extension of crediting of certain purchases toward 
           meeting 
           subcontracting goals.

                        Subtitle D--Other Matters

Sec. 841. Repeal of certain acquisition requirements and reports
Sec. 842. Use of major range and test facility installations by 
           commercial entities.
Sec. 843. Requirement to develop and maintain list of firms not eligible 
           for defense contracts.
Sec. 844. Sense of Congress regarding allowability of costs of employee 
           stock ownership plans.
Sec. 845. Expansion of personnel eligible to participate in 
           demonstration project 
           relating to acquisition workforce.
Sec. 846. Time for submission of annual report relating to Buy American 
           Act.
Sec. 847. Repeal of requirement for contractor guarantees on major 
           weapon 
           systems.
Sec. 848. Requirements relating to micro-purchases.
Sec. 849. Promotion rate for officers in an acquisition corps.
Sec. 850. Use of electronic commerce in Federal procurement.
Sec. 851. Conformance of policy on performance based management of 
           civilian 
           acquisition programs with policy established for defense 
           acquisition programs.

[[Page 111 STAT. 1831]]

Sec. 852. Modification of process requirements for the solutions-based 
           contracting pilot program.
Sec. 853. Guidance and standards for defense acquisition workforce 
           training 
           requirements.
Sec. 854. Study and report to Congress assessing dependence on foreign 
           sources for resistors and capacitors.
Sec. 855. Department of Defense and Federal Prison Industries joint 
           study.

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

SEC. 801. EXPANSION OF AUTHORITY TO ENTER INTO CONTRACTS CROSSING FISCAL 
            YEARS TO ALL SEVERABLE SERVICE CONTRACTS NOT EXCEEDING A 
            YEAR.

    (a) Expanded Authority.--Section 2410a of title 10, United States 
Code, is amended to read as follows:

``Sec. 2410a. Severable service contracts for periods crossing fiscal 
                        years

    ``(a) Authority.--The Secretary of Defense, the Secretary of a 
military department, or the Secretary of Transportation with respect to 
the Coast Guard when it is not operating as a service in the Navy, may 
enter into a contract for procurement of severable services for a period 
that begins in one fiscal year and ends in the next fiscal year if 
(without regard to any option to extend the period of the contract) the 
contract period does not exceed one year.
    ``(b) Obligation of Funds.--Funds made available for a fiscal year 
may be obligated for the total amount of a contract entered into under 
the authority of subsection (a).''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 141 of such title is 
amended to read as follows:

``2410a. Severable service contracts for periods crossing fiscal 
           years.''.

SEC. 802. VESTING OF TITLE IN THE UNITED STATES UNDER CONTRACTS PAID 
            UNDER PROGRESS PAYMENT ARRANGEMENTS OR SIMILAR ARRANGEMENTS.

    Section 2307 of title 10, United States Code, is amended--
            (1) by redesignating subsection (h) as subsection (i); and
            (2) by inserting after subsection (g) the following new 
        subsection (h):

    ``(h) Vesting of Title in the United States.--If a contract paid by 
a method authorized under subsection (a)(1) provides for title to 
property to vest in the United States, the title to the property shall 
vest in accordance with the terms of the contract, regardless of any 
security interest in the property that is asserted before or after the 
contract is entered into.''.

SEC. 803. RESTRICTION ON UNDEFINITIZED CONTRACT ACTIONS.

    (a) Applicability of Waiver Authority to Humanitarian or 
Peacekeeping Operations.--Section 2326(b)(4) of title 10, United States 
Code, is amended to read as follows:
    ``(4) The head of an agency may waive the provisions of this 
subsection with respect to a contract of that agency if that head

[[Page 111 STAT. 1832]]

of an agency determines that the waiver is necessary in order to support 
any of the following operations:
            ``(A) A contingency operation.
            ``(B) A humanitarian or peacekeeping operation.''.

    (b) Humanitarian or Peacekeeping Operation Defined.--Section 2302(7) 
of such title is amended--
            (1) by striking out ``(7)(A)'' and inserting in lieu thereof 
        ``(7)''; and
            (2) by striking out ``(B) In subparagraph (A), the'' and 
        inserting in lieu thereof ``(8) The''.

SEC. 804. LIMITATION AND REPORT ON PAYMENT OF RESTRUCTURING COSTS UNDER 
            DEFENSE CONTRACTS.

    (a) In General.--(1) Chapter 137 of title 10, United States Code, is 
amended by inserting after section 2324 the following new section:

``Sec. 2325. Restructuring costs

    ``(a) Limitation on Payment of Restructuring Costs.--(1) The 
Secretary of Defense may not pay, under section 2324 of this title, a 
defense contractor for restructuring costs associated with a business 
combination of the contractor unless the Secretary determines in writing 
either--
            ``(A) that the amount of projected savings for the 
        Department of Defense associated with the restructuring will be 
        at least twice the amount of the costs allowed; or
            ``(B) that the amount of projected savings for the 
        Department of Defense associated with the restructuring will 
        exceed the amount of the costs allowed and that the business 
        combination will result in the preservation of a critical 
        capability that otherwise might be lost to the Department.

    ``(2) The Secretary may not delegate the authority to make a 
determination under paragraph (1) to an official of the Department of 
Defense below the level of an Assistant Secretary of Defense.
    ``(b) Report.--Not later than March 1 in each of 1998, 1999, 2000, 
2001, and 2002, the Secretary of Defense shall submit to Congress a 
report that contains, with respect to business combinations occurring on 
or after August 15, 1994, the following:
            ``(1) For each defense contractor to which the Secretary has 
        paid, under section 2324 of this title, restructuring costs 
        associated with a business combination, a summary of the 
        following:
                    ``(A) An estimate of the amount of savings for the 
                Department of Defense associated with the restructuring 
                that has been realized as of the end of the preceding 
                calendar year.
                    ``(B) An estimate of the amount of savings for the 
                Department of Defense associated with the restructuring 
                that is expected to be achieved on defense contracts.
            ``(2) An identification of any business combination for 
        which the Secretary has paid restructuring costs under section 
        2324 of this title during the preceding calendar year and, for 
        each such business combination--
                    ``(A) the supporting rationale for allowing such 
                costs;

[[Page 111 STAT. 1833]]

                    ``(B) factual information associated with the 
                determination made under subsection (a) with respect to 
                such costs; and
                    ``(C) a discussion of whether the business 
                combination would have proceeded without the payment of 
                restructuring costs by the Secretary.
            ``(3) For business combinations of major defense contractors 
        that took place during the year preceding the year of the 
        report--
                    ``(A) an assessment of any potentially adverse 
                effects that the business combinations could have on 
                competition for Department of Defense contracts 
                (including potential horizontal effects, vertical 
                effects, and organizational conflicts of interest), the 
                national technology and industrial base, or innovation 
                in the defense industry; and
                    ``(B) the actions taken to mitigate the potentially 
                adverse effects.

    ``(c) Definition.--In this section, the term `business combination' 
includes a merger or acquisition.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2324 the 
following new item:

``2325. Restructuring costs.''.

    (b) GAO <<NOTE: 10 USC 2325 note.>>  Reports.--(1) Not later than 
April 1, 1998, the Comptroller General shall--
            (A) in consultation with appropriate officials in the 
        Department of Defense--
                    (i) identify major market areas affected by business 
                combinations of defense contractors since January 1, 
                1990; and
                    (ii) develop a methodology for determining the 
                savings from business combinations of defense 
                contractors on the prices paid on particular defense 
                contracts; and
            (B) submit to the congressional defense committees a report 
        describing, for each major market area identified pursuant to 
        subparagraph (A)(i), the changes in numbers of businesses 
        competing for major defense contracts since January 1, 1990.

    (2) Not later than December 1, 1998, the Comptroller General shall 
submit to the congressional defense committees a report containing the 
following:
            (A) Updated information on--
                    (i) restructuring costs of business combinations 
                paid by the Department of Defense pursuant to 
                certifications under section 818 of the National Defense 
                Authorization Act for Fiscal Year 1995, and
                    (ii) savings realized by the Department of Defense 
                as a result of the business combinations for which the 
                payment of restructuring costs was so certified.
            (B) An assessment of the savings from business combinations 
        of defense contractors on the prices paid on a meaningful sample 
        of defense contracts, determined in accordance with the 
        methodology developed pursuant to paragraph (1)(A)(ii), as well 
        as a description of the methodology.
            (C) Any recommendations that the Comptroller General 
        considers appropriate.

[[Page 111 STAT. 1834]]

    (3) In this subsection, the term ``business combination'' has the 
meaning given that term in section 2325(c) of title 10, United States 
Code, as added by subsection (a).
    (c) Effective Date.--Section <<NOTE: 10 USC 2325 note.>>  2325(a) of 
title 10, United States Code, as added by subsection (a), shall apply 
with respect to business combinations that occur after the date of the 
enactment of this Act.

    (d) Repeal of Superseded Provisions.--Subsections (a) and (g)(3) of 
section 818 of the National Defense Authorization Act for Fiscal Year 
1995 (10 U.S.C. 2324 note) are repealed.

SEC. 805. INCREASED PRICE LIMITATION ON PURCHASES OF RIGHT-HAND DRIVE 
            VEHICLES.

    Section 2253(a)(2) of title 10, United States Code, is amended by 
striking out ``$12,000'' and inserting in lieu thereof ``$30,000''.

SEC. 806. MULTIYEAR PROCUREMENT CONTRACTS.

    (a) Requirement for Authorization by Law in Acts Other Than 
Appropriations Acts.--(1) Subsection (i) of section 2306b of title 10, 
United States Code, is amended by adding at the end the following new 
paragraph:
    ``(3) In the case of the Department of Defense, a multiyear contract 
in an amount equal to or greater than $500,000,000 may not be entered 
into for any fiscal year under this section unless the contract is 
specifically authorized by law in an Act other than an appropriations 
Act.''.
    (2) Paragraph <<NOTE: 10 USC 2306b note.>>  (3) of section 2306b(i) 
of title 10, United States Code, as added by paragraph (1), shall not 
apply with respect to a contract authorized by law before the date of 
the enactment of this Act.

    (b) Codification of Annual Recurring Multiyear Procurement 
Requirements.--(1) Such section is further amended by adding at the end 
the following new subsection:
    ``(l) Various Additional Requirements With Respect to Multiyear 
Defense Contracts.--(1)(A) The head of an agency may not initiate a 
contract described in subparagraph (B) unless the congressional defense 
committees are notified of the proposed contract at least 30 days in 
advance of the award of the proposed contract.
    ``(B) Subparagraph (A) applies to the following contracts:
            ``(i) A multiyear contract--
                    ``(I) that employs economic order quantity 
                procurement in excess of $20,000,000 in any one year of 
                the contract; or
                    ``(II) that includes an unfunded contingent 
                liability in excess of $20,000,000.
            ``(ii) Any contract for advance procurement leading to a 
        multiyear contract that employs economic order quantity 
        procurement in excess of $20,000,000 in any one year.

    ``(2) The head of an agency may not initiate a multiyear contract 
for which the economic order quantity advance procurement is not funded 
at least to the limits of the Government's liability.
    ``(3) The head of an agency may not initiate a multiyear procurement 
contract for any system (or component thereof) if the value of the 
multiyear contract would exceed $500,000,000 unless authority for the 
contract is specifically provided in an appropriations Act.

[[Page 111 STAT. 1835]]

    ``(4) The head of an agency may not terminate a multiyear 
procurement contract until 10 days after the date on which notice of the 
proposed termination is provided to the congressional defense 
committees.
    ``(5) The execution of multiyear contracting authority shall require 
the use of a present value analysis to determine lowest cost compared to 
an annual procurement.
    ``(6) This subsection does not apply to the National Aeronautics and 
Space Administration or to the Coast Guard.
    ``(7) In this subsection, the term `congressional defense 
committees' means the following:
            ``(A) The Committee on Armed Services of the Senate and the 
        Subcommittee on Defense of the Committee on Appropriations of 
        the Senate.
            ``(B) The Committee on National Security of the House of 
        Representatives and the Subcommittee on National Security of the 
        Committee on Appropriations of the House of Representatives.''.

    (2) The amendment made <<NOTE: Effective date. 10 USC 2306b note.>>  
by paragraph (1) shall take effect on October 1, 1998.

    (c) Technical and Conforming Amendments.--Such section is further 
amended as follows:
            (1) Subsection (a) is amended--
                    (A) by striking out ``finds--'' in the matter 
                preceding paragraph (1) and inserting in lieu thereof 
                ``finds each of the following:'';
                    (B) by capitalizing the initial letter of the first 
                word in each of paragraphs (1) through (6);
                    (C) by striking out the semicolon at the end of 
                paragraphs (1) through (4) and inserting in lieu thereof 
                a period; and
                    (D) by striking out ``; and'' at the end of 
                paragraph (5) and inserting in lieu thereof a period.
            (2) Subsection (d)(1) is amended by striking out ``paragraph 
        (1)'' and inserting in lieu thereof ``subsection (a)''.
            (3) Subsection (i)(1) is amended by striking ``five-year'' 
        and inserting in lieu thereof ``future-years''.

SEC. 807. AUDIT OF PROCUREMENT OF MILITARY CLOTHING AND CLOTHING-RELATED 
            ITEMS BY MILITARY INSTALLATIONS IN THE UNITED STATES.

    (a) Audit Requirement.--Not later than September 30, 1998, the 
Inspector General of the Department of Defense shall perform an audit of 
purchases of military clothing and clothing-related items in excess of 
the micro-purchase threshold by military installations during fiscal 
years 1996 and 1997 to determine the extent to which such installations 
procured military clothing and clothing-related items in violation of 
the Buy American Act (41 U.S.C. 10a et seq.) during those fiscal years.
    (b) Installations To Be Audited.--The audit under subsection (a)--
            (1) shall include an audit of the procurement of military 
        clothing and clothing-related items by a military installation 
        of each of the Army, Navy, Air Force, and Marine Corps; and
            (2) shall not cover procurements of clothing and clothing-
        related items by the Defense Logistics Agency.

[[Page 111 STAT. 1836]]

    (c) Definition.--The term ``micro-purchase threshold'' has the 
meaning provided by section 32(f) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 428(f)).
    (d) Report.--Not later than October 31, 1998, the Inspector General 
of the Department of Defense shall submit to Congress a report on the 
results of the audit performed under subsection (a).

SEC. 808. LIMITATION ON ALLOWABILITY OF COMPENSATION FOR CERTAIN 
            CONTRACTOR PERSONNEL.

    (a) Certain Compensation Not Allowable as Costs Under Defense 
Contracts.--(1) Subsection (e)(1) of section 2324 of title 10, United 
States Code, is amended by adding at the end the following:
            ``(P) Costs of compensation of senior executives of 
        contractors for a fiscal year, regardless of the contract 
        funding source, to the extent that such compensation exceeds the 
        benchmark compensation amount determined applicable for the 
        fiscal year by the Administrator for Federal Procurement Policy 
        under section 39 of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 435).''.

    (2) Subsection (l) of such section is amended by adding at the end 
the following:
            ``(4) The term `compensation', for a year, means the total 
        amount of wages, salary, bonuses and deferred compensation for 
        the year, whether paid, earned, or otherwise accruing, as 
        recorded in an employer's cost accounting records for the year.
            ``(5) The term `senior executive', with respect to a 
        contractor, means--
                    ``(A) the chief executive officer of the contractor 
                or any individual acting in a similar capacity for the 
                contractor;
                    ``(B) the four most highly compensated employees in 
                management positions of the contractor other than the 
                chief executive officer; and
                    ``(C) in the case of a contractor that has 
                components which report directly to the contractor's 
                headquarters, the five most highly compensated employees 
                in management positions at each such component.
            ``(6) The term `fiscal year' means a fiscal year established 
        by a contractor for accounting purposes.''.

    (b) Certain Compensation Not Allowable as Costs Under Non-Defense 
Contracts.--(1) Subsection (e)(1) of section 306 of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 256) is amended by 
adding at the end the following:
            ``(P) Costs of compensation of senior executives of 
        contractors for a fiscal year, regardless of the contract 
        funding source, to the extent that such compensation exceeds the 
        benchmark compensation amount determined applicable for the 
        fiscal year by the Administrator for Federal Procurement Policy 
        under section 39 of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 435).''.

    (2) Such section is further amended by adding at the end the 
following:
    ``(m) Other Definitions.--In this section:

[[Page 111 STAT. 1837]]

            ``(1) The term `compensation', for a fiscal year, means the 
        total amount of wages, salary, bonuses and deferred compensation 
        for the fiscal year, whether paid, earned, or otherwise 
        accruing, as recorded in an employer's cost accounting records 
        for the fiscal year.
            ``(2) The term `senior executive', with respect to a 
        contractor, means--
                    ``(A) the chief executive officer of the contractor 
                or any individual acting in a similar capacity for the 
                contractor;
                    ``(B) the four most highly compensated employees in 
                management positions of the contractor other than the 
                chief executive officer; and
                    ``(C) in the case of a contractor that has 
                components which report directly to the contractor's 
                headquarters, the five most highly compensated 
                individuals in management positions at each such 
                component.
            ``(3) The term `fiscal year' means a fiscal year established 
        by a contractor for accounting purposes.''.

    (c) Levels of Compensation Not Allowable.--(1) The Office of Federal 
Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by adding at 
the end the following:

``SEC. 39. LEVELS <<NOTE: 41 USC 435.>>  OF COMPENSATION OF CERTAIN 
            CONTRACTOR PERSONNEL NOT ALLOWABLE AS COSTS UNDER CERTAIN 
            CONTRACTS.

    ``(a) Determination Required.--For purposes of section 2324(e)(1)(P) 
of title 10, United States Code, and section 306(e)(1)(P) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 
256(e)(1)(P)), the Administrator shall review commercially available 
surveys of executive compensation and, on the basis of the results of 
the review, determine a benchmark compensation amount to apply for each 
fiscal year. In making determinations under this subsection the 
Administrator shall consult with the Director of the Defense Contract 
Audit Agency and such other officials of executive agencies as the 
Administrator considers appropriate.
    ``(b) Benchmark Compensation Amount.--The benchmark compensation 
amount applicable for a fiscal year is the median amount of the 
compensation provided for all senior executives of all benchmark 
corporations for the most recent year for which data is available at the 
time the determination under subsection (a) is made.
    ``(c) Definitions.--In this section:
            ``(1) The term `compensation', for a fiscal year, means the 
        total amount of wages, salary, bonuses and deferred compensation 
        for the fiscal year, whether paid, earned, or otherwise 
        accruing, as recorded in an employer's cost accounting records 
        for the fiscal year.
            ``(2) The term `senior executive', with respect to a 
        corporation, means--
                    ``(A) the chief executive officer of the corporation 
                or any individual acting in a similar capacity for the 
                corporation;
                    ``(B) the four most highly compensated employees in 
                management positions of the corporation other than the 
                chief executive officer; and

[[Page 111 STAT. 1838]]

                    ``(C) in the case of a corporation that has 
                components which report directly to the corporate 
                headquarters, the five most highly compensated 
                individuals in management positions at each such 
                component.
            ``(3) The term `benchmark corporation', with respect to a 
        fiscal year, means a publicly-owned United States corporation 
        that has annual sales in excess of $50,000,000 for the fiscal 
        year.
            ``(4) The term `publicly-owned United States corporation' 
        means a corporation organized under the laws of a State of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, or a possession of the United States the voting 
        stock of which is publicly traded.
            ``(5) The term `fiscal year' means a fiscal year established 
        by a contractor for accounting purposes.''.

    (2) The table of sections in section 1(b) of such Act is amended by 
adding at the end the following:

``Sec. 39. Levels of compensation of certain contractor personnel not 
           allowable as costs under certain contracts.''.

    (d) Regulations.--Regulations <<NOTE: 41 USC 435 note.>>  
implementing the amendments made by this section shall be published in 
the Federal Register not later than the effective date of the amendments 
under subsection (e).

    (e) Effective Date.--The <<NOTE: 41 USC 435 note.>>  amendments made 
by this section shall--
            (1) take effect on the date that is 90 days after the date 
        of the enactment of this Act; and
            (2) apply with respect <<NOTE: Applicability.>>  to costs of 
        compensation incurred after January 1, 1998, under covered 
        contracts entered into before, on, or after the date of the 
        enactment of this Act.

    (f) Exclusive <<NOTE: 41 USC 435 note.>>  Applicability.--
Notwithstanding any other provision of law, no other limitation in law 
on the allowability of costs of compensation of senior executives under 
covered contracts shall apply to such costs of compensation incurred 
after January 1, 1998.

    (g) Definitions.--In <<NOTE: 41 USC 435 note.>>  this section:
            (1) The term ``covered contract'' has the meaning given such 
        term 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)).
            (2) The terms ``compensation'' and ``senior executive'' have 
        the meanings given such terms in section 2324(l) of title 10, 
        United States Code, and section 306(m) of the Federal Property 
        and Administrative Services Act of 1949.

SEC. 809. ELIMINATION OF CERTIFICATION REQUIREMENT FOR GRANTS.

    Section 5153 of the Drug-Free Workplace Act of 1988 (Public Law 100-
690; 102 Stat. 4306; 41 U.S.C. 702) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking out ``has 
                certified to the granting agency that it will'' and 
                inserting in lieu thereof ``agrees to''; and
                    (B) in paragraph (2), by striking out ``certifies to 
                the agency'' and inserting in lieu thereof ``agrees''; 
                and
            (2) in subsection (b)(1)--
                    (A) by striking out subparagraph (A);

[[Page 111 STAT. 1839]]

                    (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (A) and (B), respectively; and
                    (C) in subparagraph (A), as so redesignated, by 
                striking out ``such certification by failing to carry 
                out''.

SEC. 810. REPEAL OF LIMITATION ON ADJUSTMENT OF SHIPBUILDING CONTRACTS.

    (a) Repeal.--(1) Section 2405 of title 10, United States Code, is 
repealed.
    (2) The table of sections at the beginning of chapter 141 of such 
title is amended by striking out the item relating to section 2405.
    (b) Applicability.--(1) Except <<NOTE: 10 USC 2405 note.>>  as 
provided in paragraph (2), the repeal made by subsection (a) shall be 
effective with respect to claims, requests for equitable adjustment, and 
demands for payment under shipbuilding contracts that have been or are 
submitted before, on, or after the date of the enactment of this Act.

    (2) Section 2405 of title 10, United States Code, as in effect 
immediately before the date of the enactment of this Act, shall continue 
to apply to a contractor's claim, request for equitable adjustment, or 
demand for payment under a shipbuilding contract that was submitted 
before such date if--
            (A) a contracting officer denied the claim, request, or 
        demand, and the period for appealing the decision to a court or 
        board under the Contract Disputes Act of 1978 expired before 
        such date;
            (B) a court or board of contract appeals considering the 
        claim, request, or demand (including any appeal of a decision of 
        a contracting officer to deny the claim, request, or demand) 
        denied or dismissed the claim, request, or demand (or the 
        appeal), and the action of the court or board became final and 
        unappealable before such date; or
            (C) the contractor released or releases the claim, request, 
        or demand.

SEC. 811. ITEM-BY-ITEM AND COUNTRY-BY-COUNTRY WAIVERS OF DOMESTIC SOURCE 
            LIMITATIONS.

    (a) Item-by-Item and Country-by-Country Implementation of Certain 
Waiver Authority.--Section 2534 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(i) Implementation of Certain Waiver Authority.--(1) The Secretary 
of Defense may exercise the waiver authority described in paragraph (2) 
only if the waiver is made for a particular item listed in subsection 
(a) and for a particular foreign country.
    ``(2) This <<NOTE: Applicability.>>  subsection applies to the 
waiver authority provided by subsection (d) on the basis of the 
applicability of paragraph (2) or (3) of that subsection.

    ``(3) The waiver authority described in paragraph (2) may not be 
delegated below the Under Secretary of Defense for Acquisition and 
Technology.
    ``(4) At <<NOTE: Federal Register, publication. Notice.>>  least 15 
days before the effective date of any waiver made under the waiver 
authority described in paragraph (2), the Secretary shall publish in the 
Federal Register and submit to the congressional defense committees a 
notice of the determination to exercise the waiver authority.

[[Page 111 STAT. 1840]]

    ``(5) Any waiver made by the Secretary under the waiver authority 
described in paragraph (2) shall be in effect for a period not greater 
than one year, as determined by the Secretary.''.
    (b) Effective <<NOTE: Applicability. 10 USC 2534 note.>>  Date.--
Subsection (i) of section 2534 of such title, as added by subsection 
(a), shall apply with respect to--
            (1) contracts and subcontracts entered into on or after the 
        date of the enactment of this Act; and
            (2) options for the procurement of items that are exercised 
        after such date under contracts that are entered into before 
        such date if the option prices are adjusted for any reason other 
        than the application of a waiver granted under subsection (d) of 
        such section 2534, on the basis of the applicability of 
        paragraph (2) or (3) of that subsection.

               Subtitle B--Acquisition Assistance Programs

SEC. 821. ONE-YEAR EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

    (a) One-Year Extension of Pilot Mentor-Protege Program.--Section 
831(j) of the National Defense Authorization Act for Fiscal Year 1991 
(10 U.S.C. 2302 note) is amended--
            (1) in paragraph (1), by striking out ``1998'' and inserting 
        in lieu thereof ``1999'';
            (2) in paragraph (2), by striking out ``1999'' and inserting 
        in lieu thereof ``2000''; and
            (3) in paragraph (3), by striking out ``1999'' and inserting 
        in lieu thereof ``2000''.

    (b) Study on Implementation of Pilot Mentor-Protege Program.--(1) 
The Comptroller General shall conduct a study on the implementation of 
the Mentor-Protege Program established under section 831 of the National 
Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note) and 
the extent to which the program is achieving the purposes established 
under that section.
    (2) The study also shall include the following:
            (A) A review of the manner in which funds for the program 
        have been obligated.
            (B) An identification and assessment of the average amount 
        spent by the Department of Defense on individual mentor-protege 
        agreements and the correlation between levels of funding and the 
        business development of the protege firms.
            (C) An evaluation of the effectiveness of the incentives 
        provided to mentor firms to participate in the program.
            (D) An assessment of the success of the Mentor-Protege 
        Program in enhancing the business competitiveness and financial 
        independence of protege firms.

    (3) The <<NOTE: Reports.>>  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 results of the 
study not later than March 31, 1998.

SEC. 822. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE SUBCONTRACTING 
            PLANS.

    (a) Content of Subcontracting Plans.--Subsection (b)(2) of section 
834 of the National Defense Authorization Act for Fiscal

[[Page 111 STAT. 1841]]

Years 1990 and 1991 (Public Law 101-189; 15 U.S.C. 637 note) is 
amended--
            (1) by striking out ``plan--'' and inserting in lieu thereof 
        ``plan of a contractor--'';
            (2) by striking out subparagraph (A);
            (3) by redesignating subparagraph (B) as subparagraph (A) 
        and by striking out the period at the end of such subparagraph 
        and inserting in lieu thereof ``; and''; and
            (4) by adding at the end the following:
            ``(B) shall cover each Department of Defense contract that 
        is entered into by the contractor and each subcontract that is 
        entered into by the contractor as the subcontractor under a 
        Department of Defense contract.''.

    (b) Extension of Program.--Subsection (e) of such section is amended 
by striking out ``September 30, 1998'' in the second sentence and 
inserting in lieu thereof ``September 30, 2000.''.

                  Subtitle C--Administrative Provisions

SEC. 831. RETENTION OF EXPIRED FUNDS DURING THE PENDENCY OF CONTRACT 
            LITIGATION.

    (a) In General.--Chapter 141 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2410m. Retention of amounts collected from contractor during the 
                        pendency of contract dispute

    ``(a) Retention of Funds.--Notwithstanding sections 1552(a) and 
3302(b) of title 31, any amount, including interest, collected from a 
contractor as a result of a claim made by a military department or 
Defense Agency under the Contract Disputes Act of 1978 (41 U.S.C. 601 et 
seq.), shall remain available in accordance with this section to pay--
            ``(1) any settlement of the claim by the parties;
            ``(2) any judgment rendered in the contractor's favor on an 
        appeal of the decision on that claim to the Armed Services Board 
        of Contract Appeals under section 7 of such Act (41 U.S.C. 606); 
        or
            ``(3) any judgment rendered in the contractor's favor in an 
        action on that claim in a court of the United States.

    ``(b) Period of Availability.--(1) The period of availability of an 
amount under subsection (a), in connection with a claim--
            ``(A) expires 180 days after the expiration of the period 
        for bringing an action on that claim in the United States Court 
        of Federal Claims under section 10(a) of the Contract Disputes 
        Act of 1978 (41 U.S.C. 609(a)) if, within that 180-day period--
                    ``(i) no appeal on the claim is commenced at the 
                Armed Services Board of Contract Appeals under section 7 
                of such Act; and
                    ``(ii) no action on the claim is commenced in a 
                court of the United States; or
            ``(B) if not expiring under subparagraph (A), expires--
                    ``(i) in the case of a settlement of the claim, 180 
                days after the date of the settlement; or
                    ``(ii) in the case of a judgment rendered on the 
                claim in an appeal to the Armed Services Board of 
                Contract

[[Page 111 STAT. 1842]]

                Appeals under section 7 of the Contract Disputes Act of 
                1978 or an action in a court of the United States, 180 
                days after the date on which the judgment becomes final 
                and not appealable.

    ``(2) While available under this section, an amount may be obligated 
or expended only for a purpose described in subsection (a).
    ``(3) Upon the expiration of the period of availability of an amount 
under paragraph (1), the amount shall be covered into the Treasury as 
miscellaneous receipts.
    ``(c) Reporting Requirement.--Each year, the Under Secretary of 
Defense (Comptroller) shall submit to Congress a report on the amounts, 
if any, that are available for obligation pursuant to this section. The 
report shall include, at a minimum, the following:
            ``(1) The total amount available for obligation.
            ``(2) The total amount collected from contractors during the 
        year preceding the year in which the report is submitted.
            ``(3) The total amount disbursed in such preceding year and 
        a description of the purpose for each disbursement.
            ``(4) The total amount returned to the Treasury in such 
        preceding year.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 141 of title 10, United States Code, is amended by adding at the 
end the following new item:

``2410m. Retention of amounts collected from contractor during the 
           pendency of contract dispute.''.

SEC. 832. PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.

    Section 2371 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(i) Protection of Certain Information From Disclosure.--(1) 
Disclosure of information described in paragraph (2) is not required, 
and may not be compelled, under section 552 of title 5 for five years 
after the date on which the information is received by the Department of 
Defense.
    ``(2)(A) Paragraph (1) applies to information described in 
subparagraph (B) that is in the records of the Department of Defense if 
the information was submitted to the Department in a competitive or 
noncompetitive process having the potential for resulting in an award, 
to the party submitting the information, of a cooperative agreement that 
includes a clause described in subsection (d) or another transaction 
authorized by subsection (a).
    ``(B) The information referred to in subparagraph (A) is the 
following:
            ``(i) A proposal, proposal abstract, and supporting 
        documents.
            ``(ii) A business plan submitted on a confidential basis.
            ``(iii) Technical information submitted on a confidential 
        basis.''.

SEC. 833. UNIT COST REPORTS.

    (a) Immediate Report Required Only for Previously Unreported 
Increased Costs.--Subsection (c) of section 2433 of title 10, United 
States Code, is amended by striking out ``during the current fiscal year 
(other than the last quarterly unit cost report

[[Page 111 STAT. 1843]]

under subsection (b) for the preceding fiscal year)'' in the matter 
following paragraph (3).
    (b) Immediate Report Not Required for Cost Variances or Schedule 
Variances of Major Contracts.--Subsection (c) of such section is further 
amended--
            (1) by inserting ``or'' at the end of paragraph (1);
            (2) by striking out ``or'' at the end of paragraph (2); and
            (3) by striking out paragraph (3).

    (c) Congressional Notification of Increased Cost Not Conditioned on 
Discovery Since Beginning of Fiscal Year.--Subsection (d)(3) of such 
section is amended by striking out ``(for the first time since the 
beginning of the current fiscal year)'' in the first sentence.

SEC. 834. PLAN FOR PROVIDING CONTRACTING INFORMATION TO GENERAL PUBLIC 
            AND SMALL BUSINESSES.

    (a) Requirement for Plan.--The Secretary of Defense shall develop a 
plan for improving the responsiveness of the Department of Defense to 
persons from the general public and small businesses seeking information 
on how to pursue contracting and technology development opportunities 
with the department. The plan shall include an assessment and 
recommendation on the designation of a central point of contact in the 
department to provide such information.
    (b) Submission.--Not later than March 31, 1998, the Secretary shall 
submit the plan developed under subsection (a) to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives.

SEC. 835. TWO-YEAR EXTENSION OF CREDITING OF CERTAIN PURCHASES TOWARD 
            MEETING SUBCONTRACTING GOALS.

    Section 2410d(c) of title 10, United States Code, is amended, 
effective as of September 30, 1997, by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1999''.

                        Subtitle D--Other Matters

SEC. 841. REPEAL OF CERTAIN ACQUISITION REQUIREMENTS AND REPORTS

    (a) Repeal of Reporting Requirement for Nonmajor Acquisition 
Programs.--Section 2220(b) of title 10, United States Code, is amended 
by striking out ``and nonmajor'' in the first sentence.
    (b) Repeal of Additional Approval Requirement Under Competition 
Exception for International Agreements.--Section 2304(f)(2)(E) of title 
10, United States Code, is amended by striking out ``and such document 
is approved by the competition advocate for the procuring activity''.
    (c) Content of Limited Selected Acquisition Reports.--Section 
2432(h)(2) of title 10, United States Code, is amended--
            (1) by striking out subparagraph (D); and
            (2) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (D) and (E), respectively.

    (d) Repeal of Report Relating to Procurement Regulations.--Section 
25 of the Office of Federal Procurement Policy Act (41 U.S.C. 421) is 
amended by striking out subsection (g).

[[Page 111 STAT. 1844]]

SEC. 842. USE OF MAJOR RANGE AND TEST FACILITY INSTALLATIONS BY 
            COMMERCIAL ENTITIES.

    (a) Extension of Authority.--Subsection (g) of section 2681 of title 
10, United States Code, is amended by striking out ``1998'' and 
inserting in lieu thereof ``2002''.
    (b) Revised Reporting Requirement.--Subsection (h) of such section 
is amended to read as follows:
    ``(h) Report.--Not later than March 1, 1998, the Secretary of 
Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives a 
report identifying existing and proposed procedures to ensure that the 
use of Major Range and Test Facility Installations by commercial 
entities does not compete with private sector test and evaluation 
services.''.

SEC. 843. REQUIREMENT TO DEVELOP AND MAINTAIN LIST OF FIRMS NOT ELIGIBLE 
            FOR DEFENSE CONTRACTS.

    Section 2327 of title 10, United States Code, is amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsections:

    ``(d) List of Firms Subject to Prohibition.--(1) The Secretary of 
Defense shall develop and maintain a list of all firms and subsidiaries 
of firms that the Secretary has identified as being subject to the 
prohibition in subsection (b).
    ``(2)(A) A person may request the Secretary to include on the list 
maintained under paragraph (1) any firm or subsidiary of a firm that the 
person believes to be owned or controlled by a foreign government 
described in subsection (b)(2). Upon receipt of such a request, the 
Secretary shall determine whether the conditions in paragraphs (1) and 
(2) of subsection (b) exist in the case of that firm or subsidiary. If 
the Secretary determines that such conditions do exist, the Secretary 
shall include the firm or subsidiary on the list.
    ``(B) A firm or subsidiary of a firm included on the list may 
request the Secretary to remove such firm or subsidiary from the list on 
the basis that it has been erroneously included on the list or its 
ownership circumstances have significantly changed. Upon receipt of such 
a request, the Secretary shall determine whether the conditions in 
paragraphs (1) and (2) of subsection (b) exist in the case of that firm 
or subsidiary. If the Secretary determines that such conditions do not 
exist, the Secretary shall remove the firm or subsidiary from the list.
    ``(C) The <<NOTE: Regulations.>>  Secretary shall establish 
procedures to carry out this paragraph.

    ``(3) The head of an agency shall prohibit each firm or subsidiary 
of a firm awarded a contract by the agency from entering into a 
subcontract under that contract in an amount in excess of $25,000 with a 
firm or subsidiary included on the list maintained under paragraph (1) 
unless there is a compelling reason to do so. In the case of any 
subcontract requiring consent by the head of an agency, the head of the 
agency shall not consent to the award of the subcontract to a firm or 
subsidiary included on such list unless there is a compelling reason for 
such approval.
    ``(e) Distribution of List.--The Administrator of General Services 
shall ensure that the list developed and maintained under

[[Page 111 STAT. 1845]]

subsection (d) is made available to Federal agencies and the public in 
the same manner and to the same extent as the list of suspended and 
debarred contractors compiled pursuant to subpart 9.4 of the Federal 
Acquisition Regulation.''.

SEC. 844. SENSE OF CONGRESS REGARDING ALLOWABILITY OF COSTS OF EMPLOYEE 
            STOCK OWNERSHIP PLANS.

    It is the sense of Congress that the Secretary of Defense should not 
disallow, under Department of Defense contracts, the following costs:
            (1) Interest costs associated with deferred compensation 
        employee stock ownership plans that were incurred before January 
        1, 1994.
            (2) Costs related to employee stock ownership plan (ESOP) 
        debt, control premiums, or marketability discounts associated 
        with the valuation of ESOP stock of closely held companies that 
        were incurred before January 1, 1995.

SEC. 845. EXPANSION OF PERSONNEL ELIGIBLE TO PARTICIPATE IN 
            DEMONSTRATION PROJECT RELATING TO ACQUISITION WORKFORCE.

    (a) Covered Personnel.--(1) Subsection (a) of section 4308 of the 
National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 10 U.S.C. 1701 note) is amended by adding before the period at the 
end the following: ``and supporting personnel assigned to work directly 
with the acquisition workforce''.
    (2) Subsection (b)(3)(A) of such section is amended by inserting 
before the semicolon the following: ``or involves a team of personnel 
more than half of which consists of members of the acquisition workforce 
and the remainder of which consists of supporting personnel assigned to 
work directly with the acquisition workforce''.
    (b) Commencement of Project.--Subsection (b)(3)(B) of such section 
is amended by striking out ``this Act'' and inserting in lieu thereof 
``the National Defense Authorization Act for Fiscal Year 1998''.
    (c) Limitation on Number of Participants.--Such section is further 
amended by adding at the end the following:
    ``(d) Limitation on Number of Participants.--The total number of 
persons who may participate in the demonstration project under this 
section may not exceed 95,000.''.

SEC. 846. TIME FOR SUBMISSION OF ANNUAL REPORT RELATING TO BUY AMERICAN 
            ACT.

    Section 827 of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2611; 41 U.S.C. 10b-3) is 
amended by striking out ``120 days'' and inserting in lieu thereof ``90 
days''.

SEC. 847. REPEAL OF REQUIREMENT FOR CONTRACTOR GUARANTEES ON MAJOR 
            WEAPON SYSTEMS.

    (a) Repeal.--Section 2403 of title 10, United States Code, is 
repealed.
    (b) Clerical and Conforming Amendments.--(1) The table of sections 
at the beginning of chapter 141 of such title is amended by striking out 
the item relating to section 2403.
    (2) Section 803 of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2604; 10 U.S.C. 2430 note) is 
amended--

[[Page 111 STAT. 1846]]

            (A) in subsection (a), by striking out ``2403,'';
            (B) by striking out subsection (c); and
            (C) by redesignating subsection (d) as subsection (c).

SEC. 848. REQUIREMENTS <<NOTE: 10 USC 2304 note.>>  RELATING TO MICRO-
            PURCHASES.

    (a) Requirement.--(1) Not later than October 1, 1998, at least 60 
percent of all eligible purchases made by the Department of Defense for 
an amount less than the micro-purchase threshold shall be made through 
streamlined micro-purchase procedures.
    (2) Not later than October 1, 2000, at least 90 percent of all 
eligible purchases made by the Department of Defense for an amount less 
than the micro-purchase threshold shall be made through streamlined 
micro-purchase procedures.
    (b) Eligible Purchases.--The Secretary of Defense shall establish 
which purchases are eligible for purposes of subsection (a). In 
establishing which purchases are eligible, the Secretary may exclude 
those categories of purchases determined not to be appropriate or 
practicable for streamlined micro-purchase procedures.
    (c) Plan.--Not later than March 1, 1998, the Secretary of Defense 
shall provide to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a plan to 
implement this section.
    (d) Report.--Not later than March 1 in each of the years 1999, 2000, 
and 2001, the Secretary of Defense shall submit to the congressional 
defense committees a report on the implementation of this section. Each 
report shall include--
            (A) the total dollar amount of all Department of Defense 
        purchases for an amount less than the micro-purchase threshold 
        in the fiscal year preceding the year in which the report is 
        submitted;
            (B) the total dollar amount of such purchases that were 
        considered to be eligible purchases;
            (C) the total amount of such eligible purchases that were 
        made through a streamlined micro-purchase method; and
            (D) a description of the categories of purchases excluded 
        from the definition of eligible purchases established under 
        subsection (b).

    (e) 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 ``streamlined micro-purchase procedures'' means 
        procedures providing for the use of the Government-wide 
        commercial purchase card or any other method for carrying out 
        micro-purchases that the Secretary of Defense prescribes in the 
        regulations implementing this subsection.

SEC. 849. PROMOTION <<NOTE: 10 USC 1731 note.>>  RATE FOR OFFICERS IN AN 
            ACQUISITION CORPS.

    (a) Review of Acquisition Corps Promotion Selections.--Upon the 
approval of the President or his designee of the report of a selection 
board convened under section 611(a) of title 10, United States Code, 
which considered members of an Acquisition Corps of a military 
department for promotion to a grade above O-4, the Secretary of the 
military department shall submit a copy of the report to the Under 
Secretary of Defense for Acquisition and Technology for review.

[[Page 111 STAT. 1847]]

    (b) Reporting Requirement.--Not later than January 31 of each year, 
the Under Secretary of Defense for Acquisition and Technology shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
containing the Under Secretary's assessment of the extent to which each 
military department is complying with the requirement set forth in 
section 1731(b) of title 10, United States Code.
    (c) Termination of Requirements.--This section shall cease to be 
effective on October 1, 2000.

SEC. 850. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.

    (a) Policy.--Section 30 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 426) is amended to read as follows:

``SEC. 30. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.

    ``(a) In General.--The head of each executive agency, after 
consulting with the Administrator, shall establish, maintain, and use, 
to the maximum extent that is practicable and cost-effective, procedures 
and processes that employ electronic commerce in the conduct and 
administration of its procurement system.
    ``(b) Applicable Standards.--In conducting electronic commerce, the 
head of an agency shall apply nationally and internationally recognized 
standards that broaden interoperability and ease the electronic 
interchange of information.
    ``(c) Agency Procedures.--The head of each executive agency shall 
ensure that systems, technologies, procedures, and processes established 
pursuant to this section--
            ``(1) are implemented with uniformity throughout the agency, 
        to the extent practicable;
            ``(2) are implemented only after granting due consideration 
        to the use or partial use, as appropriate, of existing 
        electronic commerce and electronic data interchange systems and 
        infrastructures such the Federal acquisition computer network 
        architecture known as FACNET;
            ``(3) facilitate access to Federal Government procurement 
        opportunities, including opportunities for small business 
        concerns, socially and economically disadvantaged small business 
        concerns, and business concerns owned predominantly by women; 
        and
            ``(4) ensure that any notice of agency requirements or 
        agency solicitation for contract opportunities is provided in a 
        form that allows convenient and universal user access through a 
        single, Government-wide point of entry.

    ``(d) Implementation.--The Administrator shall, in carrying out the 
requirements of this section--
            ``(1) issue policies to promote, to the maximum extent 
        practicable, uniform implementation of this section by executive 
        agencies, with due regard for differences in program 
        requirements among agencies that may require departures from 
        uniform procedures and processes in appropriate cases, when 
        warranted because of the agency mission;
            ``(2) ensure that the head of each executive agency complies 
        with the requirements of subsection (c) with respect to the 
        agency systems, technologies, procedures, and processes 
        established pursuant to this section; and

[[Page 111 STAT. 1848]]

            ``(3) consult with the heads of appropriate Federal agencies 
        with applicable technical and functional expertise, including 
        the Office of Information and Regulatory Affairs, the National 
        Institute of Standards and Technology, the General Services 
        Administration, and the Department of Defense.

    ``(e) Report.--Not later than March 1, 1998, and every year 
afterward through 2003, the Administrator shall submit to Congress a 
report setting forth in detail the progress made in implementing the 
requirements of this section. The report shall include the 
following:
            ``(1) A strategic plan for the implementation of a 
        Government-wide electronic commerce capability.
            ``(2) An agency-by-agency summary of implementation of the 
        requirements of subsection (c), including timetables, as 
        appropriate, addressing when individual agencies will come into 
        full compliance.
            ``(3) A specific assessment of compliance with the 
        requirement in subsection (c) to provide universal public access 
        through a single, Government-wide point of entry.
            ``(4) Beginning with the report submitted on March 1, 1999, 
        an agency-by-agency summary of the volume and dollar value of 
        transactions that were conducted using electronic commerce 
        methods during the previous calendar year.
            ``(5) A discussion of possible incremental changes to the 
        electronic commerce capability referred to in subsection (c)(4) 
        to increase the level of government contract information 
        available to the private sector, including an assessment of the 
        advisability of including contract award information in the 
        electronic commerce functional standard.

    ``(f) Electronic Commerce Defined.--For the purposes of this 
section, the term `electronic commerce' means electronic techniques for 
accomplishing business transactions, including electronic mail or 
messaging, World Wide Web technology, electronic bulletin boards, 
purchase cards, electronic funds transfers, and electronic data 
interchange.''.
    (b) Repeal of Requirements for Implementation of FACNET 
Capability.--Section 30A of the Office of Federal Procurement Policy Act 
(41 U.S.C. 426a) is repealed.
    (c) Repeal of Requirement for GAO Report.--Section 9004 of the 
Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 426a note) is 
repealed.
    (d) Repeal of Condition for Use of Simplified Acquisition 
Procedures.--Section 31 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 427) is amended--
            (1) by striking out subsection (e); and
            (2) by redesignating subsections (f) and (g) as subsections 
        (e) and (f), respectively.

    (e) Amendments to Procurement Notice Requirements.--(1) Section 
8(g)(1) of the Small Business Act (15 U.S.C. 637(g)(1)) is amended--
            (A) by striking out subparagraphs (A) and (B);
            (B) by redesignating subparagraphs (C), (D), (E), (F), (G), 
        and (H) as subparagraphs (B), (C), (D), (E), (F), and (G), 
        respectively; and
            (C) by inserting before subparagraph (B), as so 
        redesignated, the following new subparagraph (A):

[[Page 111 STAT. 1849]]

            ``(A) the proposed procurement is for an amount not greater 
        than the simplified acquisition threshold and is to be conducted 
        by--
                    ``(i) using widespread electronic public notice of 
                the solicitation in a form that allows convenient and 
                universal user access through a single, Government-wide 
                point of entry; and
                    ``(ii) permitting the public to respond to the 
                solicitation electronically.''.

    (2) Section 18(c)(1) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 416(c)(1)) is amended--
            (A) by striking out subparagraphs (A) and (B);
            (B) by redesignating subparagraphs (C), (D), (E), (F), (G), 
        and (H) as subparagraphs (B), (C), (D), (E), (F), and (G), 
        respectively; and
            (C) by inserting before subparagraph (B), as so 
        redesignated, the following new subparagraph (A):
            ``(A) the proposed procurement is for an amount not greater 
        than the simplified acquisition threshold and is to be conducted 
        by--
                    ``(i) using widespread electronic public notice of 
                the solicitation in a form that allows convenient and 
                universal user access through a single, Government-wide 
                point of entry; and
                    ``(ii) permitting the public to respond to the 
                solicitation electronically.''.

    (3) The amendments <<NOTE: 15 USC 637 note.>>  made by paragraphs 
(1) and (2) shall be implemented in a manner consistent with any 
applicable international agreements.

    (f) Conforming and Technical Amendments.--(1) Section 5061 of the 
Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 413 note) is 
amended--
            (A) in subsection (c)(4)--
                    (i) by striking out ``the Federal acquisition 
                computer network (`FACNET')'' and inserting in lieu 
                thereof ``the electronic commerce''; and
                    (ii) by striking out ``(as added by section 9001)''; 
                and
            (B) in subsection (e)(9)(A), by striking out ``, or by 
        dissemination through FACNET,''.

    (2) Section 5401 of the Clinger-Cohen Act of 1996 (divisions D and E 
of Public Law 104-106; 40 U.S.C. 1501) is amended--
            (A) in subsection (a)--
                    (i) by striking out ``through the Federal 
                Acquisition Computer Network (in this section referred 
                to as `FACNET')''; and
                    (ii) by striking out the last sentence;
            (B) in subsection (b)--
                    (i) by striking out ``Additional FACNET 
                Functions.--'' and all that follows through ``(41 U.S.C. 
                426(b)), the FACNET architecture'' and inserting in lieu 
                thereof ``Functions.--(1) The system for providing on-
                line computer access''; and
                    (ii) in paragraph (2), by striking out ``The FACNET 
                architecture'' and inserting in lieu thereof ``The 
                system for providing on-line computer access'';

[[Page 111 STAT. 1850]]

            (C) in subsection (c)(1), by striking out ``the FACNET 
        architecture'' and inserting in lieu thereof ``the system for 
        providing on-line computer access''; and
            (D) by striking out subsection (d).

    (3)(A) Section 2302c of title 10, United States Code, is amended to 
read as follows:

``Sec. 2302c. Implementation of electronic commerce capability

    ``(a) Implementation of Electronic Commerce Capability.--(1) The 
head of each agency named in paragraphs (1), (5), and (6) shall 
implement the electronic commerce capability required by section 30 of 
the Office of Federal Procurement Policy Act (41 U.S.C. 426).
    ``(2) The Secretary of Defense shall act through the Under Secretary 
of Defense for Acquisition and Technology to implement the capability 
within the Department of Defense.
    ``(3) In implementing the electronic commerce capability pursuant to 
paragraph (1), the head of an agency referred to in paragraph (1) shall 
consult with the Administrator for Federal Procurement Policy.
    ``(b) Designation of Agency Official.--The head of each agency named 
in paragraph (5) or (6) of section 2303 of this title shall designate a 
program manager to implement the electronic commerce capability for that 
agency. The program manager shall report directly to an official at a 
level not lower than the senior procurement executive designated for the 
agency under section 16(3) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 414(3)).''.
    (B) Section 2304(g)(4) of such title is amended by striking out 
``31(g)'' and inserting in lieu thereof ``31(f)''.
    (4)(A) Section 302C of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 252c) is amended to read as follows:

``SEC. 302C. IMPLEMENTATION OF ELECTRONIC COMMERCE CAPABILITY.

    ``(a) Implementation of Electronic Commerce Capability.--(1) The 
head of each executive agency shall implement the electronic commerce 
capability required by section 30 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 426).
    ``(2) In implementing the electronic commerce capability pursuant to 
paragraph (1), the head of an executive agency shall consult with the 
Administrator for Federal Procurement Policy.
    ``(b) Designation of Agency Official.--The head of each executive 
agency shall designate a program manager to implement the electronic 
commerce capability for that agency. The program manager shall report 
directly to an official at a level not lower than the senior procurement 
executive designated for the executive agency under section 16(3) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 414(3)).''.
    (B) Section 303(g)(5) of the Federal Property and Administrative 
Services Act (41 U.S.C. 253(g)(5)) is amended by striking out ``31(g)'' 
and inserting in lieu thereof ``31(f)''.
    (g) Effective Date.--(1) Except <<NOTE: 10 USC 2302c note.>>  as 
provided in paragraph (2), the amendments made by this section shall 
take effect 180 days after the date of the enactment of this Act.

    (2) The repeal made by subsection (c) of this section shall take 
effect on the date of the enactment of this Act.

[[Page 111 STAT. 1851]]

SEC. 851. CONFORMANCE OF POLICY ON PERFORMANCE BASED MANAGEMENT OF 
            CIVILIAN ACQUISITION PROGRAMS WITH POLICY ESTABLISHED FOR 
            DEFENSE ACQUISITION PROGRAMS.

    (a) Performance Goals.--Section 313(a) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 263(a)) is amended to 
read as follows:
    ``(a) Congressional Policy.--It is the policy of Congress that the 
head of each executive agency should achieve, on average, 90 percent of 
the cost, performance, and schedule goals established for major 
acquisition programs of the agency.''.
    (b) Conforming Amendment to Reporting Requirement.--Section 6(k) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 405(k)) is 
amended by inserting ``regarding major acquisitions that is'' in the 
first sentence after ``policy''.

SEC. 852. MODIFICATION OF PROCESS REQUIREMENTS FOR THE SOLUTIONS-BASED 
            CONTRACTING PILOT PROGRAM.

    (a) Source Selection.--Paragraph (9) of section 5312(c) of the 
Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-106; 40 
U.S.C. 1492(c)) is amended--
            (1) in subparagraph (A), by striking out ``, and ranking of 
        alternative sources,'' and inserting in lieu thereof ``or 
        sources,'';
            (2) in subparagraph (B)--
                    (A) in the matter preceding clause (i), by inserting 
                ``(or a longer period, if approved by the 
                Administrator)'' after ``30 to 60 days'';
                    (B) in clause (i), by inserting ``or sources'' after 
                ``source''; and
                    (C) in clause (ii), by striking out ``that source'' 
                and inserting in lieu thereof ``the source whose offer 
                is determined to be most advantageous to the 
                Government''; and
            (3) in subparagraph (C), by striking out ``with alternative 
        sources (in the order ranked)''.

    (b) Time Management Discipline.--Paragraph (12) of such section is 
amended by inserting before the period at the end the following: ``, 
except that the Administrator may approve the application of a longer 
standard period''.

SEC. 853. GUIDANCE <<NOTE: 10 USC 1723 note.>>  AND STANDARDS FOR 
            DEFENSE ACQUISITION WORKFORCE TRAINING REQUIREMENTS.

    The Secretary of Defense shall develop appropriate guidance and 
standards to ensure that the Department of Defense will continue, where 
appropriate and cost-effective, to enter into contracts for the training 
requirements of sections 1723, 1724, and 1735 of title 10, United States 
Code, while maintaining appropriate control over the content and quality 
of such training.

SEC. 854. STUDY AND REPORT TO CONGRESS ASSESSING DEPENDENCE ON FOREIGN 
            SOURCES FOR RESISTORS AND CAPACITORS.

    (a) Study.--The Secretary of Defense shall conduct a study of the 
capacitor and resistor industries in the United States and the degree of 
United States dependence on foreign sources for resistors and 
capacitors.

[[Page 111 STAT. 1852]]

    (b) Report.--Not later than May 1, 1998, the Secretary shall submit 
to Congress a report on the results of the study under subsection (a). 
The report shall include the following:
            (1) An assessment of the industrial base for the production 
        of resistors and capacitors within the United States and a 
        projection of any changes in that base that are likely to occur 
        after the implementation of relevant tariff reductions required 
        by the Information Technology Agreement entered into at the 
        World Trade Organization Ministerial in Singapore in December 
        1996.
            (2) An assessment of the level of dependence on foreign 
        sources for procurement of resistors and capacitors and a 
        projection of the level of dependence on foreign sources that is 
        likely to occur after the implementation of relevant tariff 
        reductions required by the Information Technology Agreement.
            (3) The implications for the national security of the United 
        States of the projections reported under paragraphs (1) and (2).
            (4) Recommendations for appropriate changes, if any, in 
        defense procurement policies or other Federal policies based on 
        such implications.

SEC. 855. DEPARTMENT OF DEFENSE AND FEDERAL PRISON INDUSTRIES JOINT 
            STUDY.

    (a) Study of Existing Procurement Procedures.--The Secretary of 
Defense and the Director of Federal Prison Industries shall jointly 
conduct a study of the procurement procedures, regulations, and statutes 
that govern procurement transactions between the Department of Defense 
and Federal Prison Industries.
    (b) Report.--(1) The Secretary and the Director shall, not later 
than 180 days after the date of the enactment of this Act, submit to the 
committees listed in paragraph (2) a report containing the findings of 
the study and recommendations on the means to improve the efficiency and 
reduce the cost of transactions described in subsection (a).
    (2) The committees referred to in paragraph (1) are the 
following:
            (A) The Committee on Armed Services and the Committee on the 
        Judiciary of the Senate.
            (B) The Committee on National Security and the Committee on 
        the Judiciary of the House of Representatives.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Positions and Organizations and Other 
                             General Matters

Sec. 901. Assistants <<NOTE: 10 USC 155 note.>>  to the Chairman of the 
           Joint Chiefs of Staff for National Guard matters and for 
           Reserve matters.

Sec. 902. Use of CINC Initiative Fund for force protection.
Sec. 903. Revision to required frequency for provision of policy 
           guidance for contingency plans.
Sec. 904. Annual justification for Department of Defense advisory 
           committees.
Sec. 905. Airborne reconnaissance management.
Sec. 906. Termination of the Armed Services Patent Advisory Board.
Sec. 907. Coordination of Department of Defense criminal investigations 
           and 
           audits.

[[Page 111 STAT. 1853]]

         Subtitle B--Department of Defense Personnel Management

Sec. 911. Reduction in personnel assigned to management headquarters and 
           headquarters support activities.
Sec. 912. Defense acquisition workforce.

          Subtitle C--Department of Defense Schools and Centers

Sec. 921. Professional military education schools.
Sec. 922. Center for Hemispheric Defense Studies.
Sec. 923. Correction to reference to George C. Marshall European Center 
           for 
           Security Studies.

     Subtitle D--Department of Defense Intelligence-Related Matters

Sec. 931. Transfer of certain military department programs from TIARA 
           budget 
           aggregation.
Sec. 932. Report on coordination of access of commanders and deployed 
           units to 
           intelligence collected and analyzed by the intelligence 
           community.
Sec. 933. Protection of imagery, imagery intelligence, and geospatial 
           information and data.
Sec. 934. POW/MIA intelligence analysis.

Subtitle A--Department of Defense Positions and Organizations and Other 
                             General Matters

SEC. 901. <<NOTE: 10 USC 155 note.>>  ASSISTANTS TO THE CHAIRMAN OF THE 
            JOINT CHIEFS OF STAFF FOR NATIONAL GUARD MATTERS AND FOR 
            RESERVE MATTERS.

    (a) Establishment of Positions.--The Secretary of Defense shall 
establish the following positions within the Joint Staff:
            (1) Assistant to the Chairman of the Joint Chiefs of Staff 
        for National Guard Matters.
            (2) Assistant to the Chairman of the Joint Chiefs of Staff 
        for Reserve Matters.

    (b) Selection.--(1) The Assistant to the Chairman of the Joint 
Chiefs of Staff for National Guard Matters shall be selected by the 
Chairman from officers of the Army National Guard of the United States 
or the Air Guard of the United States who--
            (A) are recommended for such selection by their respective 
        Governors or, in the case of the District of Columbia, the 
        commanding general of the District of Columbia National Guard;
            (B) have had at least 10 years of federally recognized 
        commissioned service in the National Guard; and
            (C) are in a grade above the grade of colonel.

    (2) The Assistant to the Chairman of the Joint Chiefs of Staff for 
Reserve Matters shall be selected by the Chairman from officers of the 
Army Reserve, the Naval Reserve, the Marine Corps Reserve, or the Air 
Force Reserve who--
                    (A) are recommended for such selection by the 
                Secretary of the military department concerned;
                    (B) have had at least 10 years of commissioned 
                service in their reserve component; and
                    (C) are in a grade above the grade of colonel or, in 
                the case of the Naval Reserve, captain.

    (c) Term of Office.--Each Assistant to the Chairman under subsection 
(a) serves at the pleasure of the Chairman for a term of two years and 
may be continued in that assignment in the same manner for one 
additional term. However, in time of war there is no limit on the number 
of terms.

[[Page 111 STAT. 1854]]

    (d) Grade.--Each Assistant to the Chairman, while so serving, holds 
the grade of major general or, in the case of the Naval Reserve, rear 
admiral. Each such officer shall be considered to be serving in a 
position external to that officer's Armed Force for purposes of section 
721 of title 10, United States Code, as added by section 501(a).
    (e) Duties.--The Assistant to the Chairman for National Guard 
Matters is an adviser to the Chairman on matters relating to the 
National Guard and performs the duties prescribed for that position by 
the Chairman. The Assistant to the Chairman for Reserve Matters is an 
adviser to the Chairman on matters relating to the reserves and performs 
the duties prescribed for that position by the Chairman.
    (f) Other Reserve Component Representation on Joint Staff.--(1) The 
Secretary of Defense, in consultation with the Chairman of the Joint 
Chiefs, shall develop appropriate policy guidance to ensure that, to the 
maximum extent practicable, the level of reserve component officer 
representation within the Joint Staff is commensurate with the 
significant role of the reserve components within the Total Force.
    (2) Not later than <<NOTE: Reports.>>  March 1, 1998, the Secretary 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
describing the steps taken and being taken to implement this subsection.

    (g) Effective Date.--The positions specified in subsection (a) shall 
be established by the Secretary of Defense not later than 60 days after 
the date of the enactment of this Act.

SEC. 902. USE OF CINC INITIATIVE FUND FOR FORCE PROTECTION.

    Section 166a(b) of title 10, United States Code, is amended by 
adding at the end the following:
            ``(9) Force protection.''.

SEC. 903. REVISION TO REQUIRED FREQUENCY FOR PROVISION OF POLICY 
            GUIDANCE FOR CONTINGENCY PLANS.

    Section 113(g)(2) of title 10, United States Code, is amended--
            (1) in the first sentence, by striking out ``annually''; and
            (2) in the second sentence, by inserting ``be provided every 
        two years or more frequently as needed and shall'' after ``Such 
        guidance shall''.

SEC. 904. ANNUAL JUSTIFICATION FOR DEPARTMENT OF DEFENSE ADVISORY 
            COMMITTEES.

    (a) Annual Justification Required.--Chapter 7 of title 10, United 
States Code, is amended by adding after section 182, as added by section 
382(a)(1), the following new section:

``Sec. 183. Advisory committees: annual justification required

    ``(a) Annual Report.--The Secretary of Defense shall include in the 
annual report of the Secretary under section 113(c) of this title a 
report on advisory committees of the Department of Defense. In each such 
report, the Secretary shall--
            ``(1) identify each advisory committee that the Secretary 
        proposes to support, or that the Secretary is required by law or 
        direction from the President to support, during the next fiscal 
        year; and

[[Page 111 STAT. 1855]]

            ``(2) for each committee identified under paragraph (1), set 
        forth--
                    ``(A) the justification or requirement for that 
                committee; and
                    ``(B) the projected cost to the Department of 
                Defense to support that committee during the next fiscal 
                year.

    ``(b) Advisory Committee Defined.--In this section, the term 
`advisory committee' means an entity that is subject to the provisions 
of the Federal Advisory Committee Act (5 U.S.C. App.).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
182, as added by section 382(a)(2), the following new item:

``183. Advisory committees: annual justification required.''.

SEC. 905. AIRBORNE RECONNAISSANCE MANAGEMENT.

    (a) Reorganization of Defense Airborne Reconnaissance Management.--
Not later than September 30, 1998, the Secretary of Defense shall 
reorganize the management of defense airborne reconnaissance within the 
Department of Defense in accordance with the plan developed under 
subsection (b).
    (b) Plan and Report.--(1) The Secretary of Defense shall develop a 
plan to reorganize the following organizations by transferring functions 
as required under subsections (c) and (d):
            (A) The organization within the Department of Defense that 
        is subordinate to the Under Secretary of Defense for Acquisition 
        and Technology and known as the Defense Airborne Reconnaissance 
        Office.
            (B) The organization within the Department of Defense that 
        is subordinate to the Secretary of the Navy and known as the 
        Unmanned Aerial Vehicle Joint Program Office.

    (2) The Secretary shall submit to the congressional defense 
committees a report containing--
            (A) the plan developed under paragraph (1); and
            (B) an explanation of how the plan addresses the findings 
        and recommendations in the final report of the Task Force on 
        Defense Reform (established by the Secretary of Defense on May 
        14, 1997, and headed by the Deputy Secretary of Defense).

    (3) The plan under paragraph (1) shall be developed, and the report 
under paragraph (2) shall be submitted, not later than March 1, 1998.
    (c) Transfer of Certain Functions to Secretaries of Military 
Departments.--(1) Not later than September 30, 1998, the Secretary of 
Defense shall transfer to the Secretaries of the military departments 
those functions specified in paragraph (2) that were performed on the 
day before the date of the enactment of this Act by the Defense Airborne 
Reconnaissance Office and the Unmanned Aerial Vehicle Joint Program 
Office.
    (2) The functions referred to in paragraph (1) are the functions of 
the Defense Airborne Reconnaissance Office and the Unmanned Aerial 
Vehicle Joint Program Office relating to their responsibilities for 
acquisition of systems, budgeting, program management (for research, 
development, test, and evaluation, for procurement, for life-cycle 
support, and for operations), and related responsibilities for 
individual airborne reconnaissance programs.

[[Page 111 STAT. 1856]]

    (d) Transfer of Certain Functions to Defense Airborne Reconnaissance 
Office.--(1) Not later than September 30, 1998, the Secretary of Defense 
shall transfer to the Defense Airborne Reconnaissance Office those 
functions specified in paragraph (2) that were performed on the day 
before the date of the enactment of this Act by the Unmanned Aerial 
Vehicle Joint Program Office.
    (2) The functions referred to in paragraph (1) are the functions of 
the Unmanned Aerial Vehicle Joint Program Office relating to its 
responsibilities for management and oversight of defense airborne 
reconnaissance architecture, requirements, and system interfaces (other 
than the responsibilities specified in subsection (c)(2)).

SEC. 906. TERMINATION OF THE ARMED SERVICES PATENT ADVISORY BOARD.

    (a) Termination of Board.--The organization within the Department of 
Defense known as the Armed Services Patent Advisory Board is terminated. 
No funds available for the Department of Defense may be used for the 
operation of that Board after the effective date specified in subsection 
(c).
    (b) Transfer of Functions.--All functions performed on the day 
before the date of the enactment of this Act by the Armed Services 
Patent Advisory Board (including performance of the responsibilities of 
the Department of Defense for security review of patent applications 
under chapter 17 of title 35, United States Code) shall be transferred 
to the Defense Technology Security Administration.
    (c) Effective Date.--Subsection (a) shall take effect at the end of 
the 120-day period beginning on the date of the enactment of this Act.

SEC. 907. COORDINATION <<NOTE: 10 USC 113 note.>>  OF DEPARTMENT OF 
            DEFENSE CRIMINAL INVESTIGATIONS AND AUDITS.

    (a) Military Department Criminal Investigative Organizations.--(1) 
The heads of the military department criminal investigative 
organizations shall take such action as may be practicable to conserve 
the limited resources available to the military department criminal 
investigative organizations by sharing personnel, expertise, 
infrastructure, training, equipment, software, and other resources.
    (2) The heads of the military department criminal investigative 
organizations shall meet on a regular basis to determine the manner in 
which and the extent to which the military department criminal 
investigative organizations will be able to share resources.
    (b) Defense Auditing Organizations.--(1) The heads of the defense 
auditing organizations shall take such action as may be practicable to 
conserve the limited resources available to the defense auditing 
organizations by sharing personnel, expertise, infrastructure, training, 
equipment, software, and other resources.
    (2) The heads of the defense auditing organizations shall meet on a 
regular basis to determine the manner in which and the extent to which 
the defense auditing organizations will be able to share resources.
    (c) Implementation Plan.--Not later than December 31, 1997, the 
Secretary of Defense shall submit to Congress a plan designed to 
maximize the resources available to the military department criminal 
investigative organizations and the defense auditing organizations, as 
required by this section.

[[Page 111 STAT. 1857]]

    (d) Definitions.--For purposes of this section:
            (1) The term ``military department criminal investigative 
        organizations'' means--
                    (A) the Army Criminal Investigation Command;
                    (B) the Naval Criminal Investigative Service; and
                    (C) the Air Force Office of Special Investigations.
            (2) The term ``defense auditing organizations'' means--
                    (A) the Office of the Inspector General of the 
                Department of Defense;
                    (B) the Defense Contract Audit Agency;
                    (C) the Army Audit Agency;
                    (D) the Naval Audit Service; and
                    (E) the Air Force Audit Agency.

         Subtitle B--Department of Defense Personnel Management

SEC. 911. REDUCTION IN PERSONNEL ASSIGNED TO MANAGEMENT HEADQUARTERS AND 
            HEADQUARTERS SUPPORT ACTIVITIES.

    (a) In General.--(1) Chapter 3 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 130a. Management headquarters and headquarters support activities 
                        personnel: limitation

    ``(a) Limitation.--Effective <<NOTE: Effective date.>>  October 1, 
2002, the number of management headquarters and headquarters support 
activities personnel in the Department of Defense may not exceed 75 
percent of the baseline number.

    ``(b) Phased Reduction.--The number of management headquarters and 
headquarters support activities personnel in the Department of Defense--
            ``(1) as of October 1, 1998, may not exceed 95 percent of 
        the baseline number;
            ``(2) as of October 1, 1999, may not exceed 90 percent of 
        the baseline number;
            ``(3) as of October 1, 2000, may not exceed 85 percent of 
        the baseline number; and
            ``(4) as of October 1, 2001, may not exceed 80 percent of 
        the baseline number.

    ``(c) Baseline Number.--In this section, the term `baseline number' 
means the number of management headquarters and headquarters support 
activities personnel in the Department of Defense as of October 1, 1997.
    ``(d) Limitation on Management Headquarters and Headquarters Support 
Personnel Assigned to the United States Transportation Command.--(1) 
Effective <<NOTE: Effective date.>>  October 1, 1998, the number of 
management headquarters activities and management headquarters support 
activities personnel assigned to, or employed in, the United States 
Transportation Command may not exceed the number equal to 95 percent of 
the number of such personnel as of October 1, 1997.

    ``(2) For purposes of paragraph (1), the United States 
Transportation Command shall be considered to include the following:
            ``(A) The United States Transportation Command Headquarters.

[[Page 111 STAT. 1858]]

            ``(B) The Air Mobility Command of the Air Force.
            ``(C) The Military Sealift Command of the Navy.
            ``(D) The Military Traffic Management Command of the Army.
            ``(E) The Defense Courier Service.
            ``(F) Any other element of the Department of Defense 
        assigned to the United States Transportation Command.

    ``(3) The Secretary of Defense may waive or suspend operation of 
paragraph (1) in the event of a war or national emergency.
    ``(e) Management Headquarters and Headquarters Support Activities 
Personnel Defined.--In this section:
            ``(1) The term `management headquarters and headquarters 
        support activities personnel' means military and civilian 
        personnel of the Department of Defense who are assigned to, or 
        employed in, functions in management headquarters activities or 
        in management headquarters support activities.
            ``(2) The terms `management headquarters activities' and 
        `management headquarters support activities' have the meanings 
        given those terms in Department of Defense Directive 5100.73, 
        entitled `Department of Defense Management Headquarters and 
        Headquarters Support Activities', as in effect on November 12, 
        1996.

    ``(f) Limitation on Reassignment of Functions.--In carrying out 
reductions in the number of personnel assigned to, or employed in, 
management headquarters and headquarters support activities in order to 
comply with this section, the Secretary of Defense and the Secretaries 
of the military departments may not reassign functions in order to evade 
the requirements of this section.
    ``(g) Flexibility.--If the Secretary of Defense determines, and 
certifies to Congress, that the limitation in subsection (b) with 
respect to any fiscal year would adversely affect United States national 
security, the Secretary may waive the limitation under that subsection 
with respect to that fiscal year. If the Secretary of Defense 
determines, and certifies to Congress, that the limitation in subsection 
(a) during fiscal year 2001 would adversely affect United States 
national security, the Secretary may waive the limitation under that 
subsection with respect to that fiscal year. The authority under this 
subsection may be used only once, with respect to a single fiscal 
year.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``130a. Management headquarters and headquarters support activities 
           personnel: limitation.''.

    (b) Implementation <<NOTE: 10 USC 130a note.>>  Report.--Not later 
than January 15, 1998, the Secretary of Defense shall submit to Congress 
a report--
            (1) containing a plan to achieve the personnel reductions 
        required by section 130a of title 10, United States Code, as 
        added by subsection (a); and
            (2) including the recommendations of the Secretary 
        regarding--
                    (A) the revision, replacement, or augmentation of 
                Department of Defense Directive 5100.73, entitled 
                ``Department of Defense Management Headquarters and 
                Headquarters Support Activities'', as in effect on 
                November 12, 1996; and

[[Page 111 STAT. 1859]]

                    (B) the revision of the definitions of the terms 
                ``management headquarters activities'' and ``management 
                headquarters support activities'' under that Directive 
                so that those terms apply uniformly throughout the 
                Department of Defense.

    (c)  Duties of Task Force on Defense Reform To Include Consideration 
Of Management Headquarters Activities.--(1) The Secretary of Defense 
shall require that the areas of study of the Task Force on Defense 
Reform (established by the Secretary of Defense on May 14, 1997, and 
headed by the Deputy Secretary of Defense) include an examination of the 
missions, functions, and responsibilities of the various management 
headquarters activities and management headquarters support activities 
of the Department of Defense. In carrying out that examination of those 
activities, the Task Force shall identify areas of duplication in those 
activities and recommend to the Secretary options to streamline, reduce, 
and eliminate redundancies.
    (2) The examination of the missions, functions, and responsibilities 
of the various management headquarters activities and management 
headquarters support activities of the Department of Defense under 
paragraph (1) shall include the following:
            (A) An assessment of benefits of consolidation or selected 
        elimination of Department of Defense management headquarters 
        activities and management headquarters support activities.
            (B) An assessment of the opportunities to streamline the 
        management headquarters and management headquarters support 
        infrastructure that were realized as a result of the enactment 
        of the Federal Acquisition Streamlining Act of 1994 (Public Law 
        103-355) and the Clinger-Cohen Act of 1996 (divisions D and E of 
        Public Law 104-106) or as result of other management reform 
        initiatives implemented administratively during the period from 
        1993 through 1997.
            (C) An assessment of such other options for streamlining or 
        restructuring the management headquarters and management 
        headquarters support infrastructure as the Task Force considers 
        appropriate and as can be carried out under existing provisions 
        of law.

    (3) Not later than March <<NOTE: Reports.>>  1, 1998, the Secretary 
of Defense shall submit to Congress a report on the results of the 
examination by the Task Force under this subsection. The Secretary shall 
include in the report any report to the Secretary from the Task Force 
with respect to the matters described in paragraphs (1) and (2).

    (d) Codification of Prior Permanent Limitation on OSD Personnel.--
(1) Chapter 4 of title 10, United States Code, is amended by adding at 
the end a new section 143 consisting of--
            (A) a heading as follows:

``Sec. 143. Office of the Secretary of Defense personnel: limitation'';

            and
            (B) a text consisting of the text of subsections (a) through 
        (f) of section 903 of the National Defense Authorization Act for 
        Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2617).

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

``143. Office of the Secretary of Defense personnel: limitation.''.


[[Page 111 STAT. 1860]]



    (3) Section 903 of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2617) is repealed.

SEC. 912. DEFENSE <<NOTE: 10 USC 131 note.>>  ACQUISITION WORKFORCE.

    (a) Reduction of Defense Acquisition Workforce.--(1) The Secretary 
of Defense shall accomplish reductions in defense acquisition personnel 
positions during fiscal year 1998 so that the total number of such 
personnel as of October 1, 1998, is less than the total number of such 
personnel as of October 1, 1997, by at least the applicable number 
determined under paragraph (2).
    (2)(A) The applicable number for purposes of paragraph (1) is 
25,000. However, the Secretary of Defense may specify a lower number, 
which may not be less than 10,000, as the applicable number for purposes 
of paragraph (1) if the Secretary determines, and certifies to Congress 
not later than June 1, 1998, 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 would adversely affect military readiness.
    (B) The Secretary shall include with such a certification a detailed 
explanation of each of the matters certified.
    (C) The authority of the Secretary under subparagraph (A) may only 
be delegated to the Deputy Secretary of Defense.
    (3) For purposes of this subsection, the term ``defense acquisition 
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).
    (b) Report on Specific Acquisition Positions Previously 
Eliminated.--Not later than 30 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a report on 
reductions in the defense acquisition workforce made since fiscal year 
1989. The report shall show aggregate reductions by fiscal year and 
shall show for each fiscal year reductions identified by specific job 
title, classification, or position. The report shall also identify those 
reductions carried out pursuant to law (and how the Secretary 
implemented any statutory requirement for such reductions, including 
definition of the workforce subject to the reduction) and those 
reductions carried out as a result of base closures and realignments 
under the so-called BRAC process. The Secretary shall include in the 
report a definition of the term ``defense acquisition workforce'' that 
is to be applied uniformly throughout the Department of Defense.
    (c) Implementation Plan <<NOTE: Reports.>>  To Streamline and 
Improve Acquisition Organizations.--(1) Not later than April 1, 1998, 
the Secretary of Defense shall submit to Congress a report containing a 
plan to streamline the acquisition organizations, workforce, and 
infrastructure of the Department of Defense. The Secretary shall include 
with the report a detailed discussion of the recommendations of the 
Secretary based on the review under subsection (d) and the assessment of 
the Task Force on Defense Reform pursuant to subsection (e), together 
with a request for the enactment of any legislative changes necessary 
for implementation of the plan. The Secretary shall include in the 
report the results of the review under subsection (d) and the 
independent assessment of the Task Force on Defense Reform pursuant to 
subsection (e).

[[Page 111 STAT. 1861]]

    (2) In carrying out this subsection and subsection (d), the 
Secretary of Defense shall formally consult with the Chairman of the 
Joint Chiefs of Staff, the Director of Program Analysis and Evaluation, 
the Under Secretary of Defense (Comptroller), and the Under Secretary 
for Acquisition and Technology.
    (d) Review of Acquisition Organizations and Functions.--The 
Secretary of Defense shall conduct a review of the organizations and 
functions of the Department of Defense acquisition activities and of the 
personnel required to carry out those functions. The review shall 
identify the following:
            (1) Opportunities for cross-service, cross-functional 
        arrangements within the military services and defense agencies.
            (2) Specific areas of overlap, duplication, and redundancy 
        among the various acquisition organizations.
            (3) Opportunities to further streamline acquisition 
        processes.
            (4) Benefits of an enhanced Joint Requirements Oversight 
        Council in the acquisition process.
            (5) Alternative consolidation options for acquisition 
        organizations.
            (6) Alternative methods for performing industry oversight 
        and quality assurance.
            (7) Alternative options to shorten the procurement cycle.
            (8) Alternative acquisition infrastructure reduction options 
        within current authorities.
            (9) Alternative organizational arrangements that capitalize 
        on core acquisition competencies among the military services and 
        defense agencies.
            (10) Future acquisition personnel requirements of the 
        Department.
            (11) Adequacy of the Program, Plans, and Budgeting System in 
        fulfilling current and future acquisition needs of the 
        Department.
            (12) Effect of technology and advanced management tools in 
        the future acquisition system.
            (13) Applicability of more flexible alternative approaches 
        to the current civil service system for the acquisition 
        workforce.
            (14) Adequacy of Department of Defense Instruction numbered 
        5000.58 dated January 14, 1992.

    (e)  Duties of Task Force on Defense Reform To Include Consideration 
Of Acquisition Organizations.--(1) The Secretary of Defense shall 
require that the areas of study of the Task Force on Defense Reform 
(established by the Secretary of Defense on May 14, 1997, and headed by 
the Deputy Secretary of Defense) include an examination of the missions, 
functions, and responsibilities of the various acquisition organizations 
of the Department of Defense, including the acquisition workforce of the 
Department. In carrying out that examination of those organizations and 
that workforce, the Task Force shall identify areas of duplication in 
defense acquisition organization and recommend to the Secretary options 
to streamline, reduce, and eliminate redundancies.
    (2) The examination of the missions, functions, and responsibilities 
of the various acquisition organizations of the Department of Defense 
under paragraph (1) shall include the following:
            (A) An assessment of benefits of consolidation or selected 
        elimination of Department of Defense acquisition organizations.

[[Page 111 STAT. 1862]]

            (B) An assessment of the opportunities to streamline the 
        defense acquisition infrastructure that were realized as a 
        result of the enactment of the Federal Acquisition Streamlining 
        Act of 1994 (Public Law 103-355) and the Clinger-Cohen Act of 
        1996 (divisions D and E of Public Law 104-106) or as result of 
        other acquisition reform initiatives implemented 
        administratively during the period from 1993 through 1997.
            (C) An assessment of such other options for streamlining or 
        restructuring the defense acquisition infrastructure as the Task 
        Force considers appropriate and as can be carried out under 
        existing provisions of law.

    (3) Not later than <<NOTE: Reports.>>  March 1, 1998, the Task Force 
shall submit to the Secretary a report on the results of its review of 
the acquisition organizations of the Department of Defense, including 
any recommendations of the Task Force for improvements to those 
organizations.

    (f) Technical Reference Correction.--Section 1721(c) of title 10, 
United States Code, is amended by striking out ``November 25, 1988'' and 
inserting in lieu thereof ``November 12, 1996''.

          Subtitle C--Department of Defense Schools and Centers

SEC. 921. PROFESSIONAL MILITARY EDUCATION SCHOOLS.

    (a) Component Institutions of the National Defense University.--(1) 
Chapter 108 of title 10, United States Code, is amended by adding at the 
end the following new section:

``Sec. 2165. National Defense University: component institutions

    ``(a) In General.--There is a National Defense University in the 
Department of Defense.
    ``(b) Component Institutions.--The National Defense University 
consists of the following institutions:
            ``(1) The National War College.
            ``(2) The Industrial College of the Armed Forces.
            ``(3) The Armed Forces Staff College.
            ``(4) The Institute for National Strategic Studies.
            ``(5) The Information Resources Management College.''.

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

``2165. National Defense University: component institutions.''.

    (b) Marine Corps University as Professional Military Education 
School.--Subsection (d) of section 2162 of such title is amended to read 
as follows:
    ``(d) Professional Military Education Schools.--This section applies 
to each of the following professional military education schools:
            ``(1) The National Defense University.
            ``(2) The Army War College.
            ``(3) The College of Naval Warfare.
            ``(4) The Air War College.
            ``(5) The United States Army Command and General Staff 
        College.
            ``(6) The College of Naval Command and Staff.
            ``(7) The Air Command and Staff College.

[[Page 111 STAT. 1863]]

            ``(8) The Marine Corps University.''.

    (c) Repeal of Duplicative Definition.--Section 1595(d) of such title 
is amended--
            (1) by striking out ``(1)'' before ``In the case of''; and
            (2) by striking out paragraph (2).

SEC. 922. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

    (a) Institution of the National Defense University.--Subsection (b) 
of section 2165 of title 10, United States Code, as added by section 
921(a)(1), is amended by adding at the end the following new paragraph:
            ``(6) The Center for Hemispheric Defense Studies.''.

    (b) Civilian Faculty Members.--Section 1595 of title 10, United 
States Code, is amended by striking out subsections (e) and (f) and 
inserting in lieu thereof the following:
    ``(e) Applicability to Director and Deputy Director at Certain 
Institutions.--In addition to the persons specified in subsection (a), 
this section also applies with respect to the Director and the Deputy 
Director of the following:
            ``(1) The George C. Marshall European Center for Security 
        Studies.
            ``(2) The Asia-Pacific Center for Security Studies.
            ``(3) The Center for Hemispheric Defense Studies.''.

SEC. 923. CORRECTION TO REFERENCE TO GEORGE C. MARSHALL EUROPEAN CENTER 
            FOR SECURITY STUDIES.

    (a) Correction to Reference to Name of Center.--Subsection (a) of 
section 506 of the Intelligence Authorization Act, Fiscal Year 1990 
(Public Law 101-193; 8 U.S.C. 1430 note), is amended by striking out 
``the United States Army Russian Institute'' and inserting in lieu 
thereof ``the George C. Marshall European Center for Security Studies''.
    (b) Section Heading.--The heading of such section is amended to read 
as follows:

``requirements for citizenship for staff of george c. marshall european 
                     center for security studies''.

         Subtitle D--Department of Defense Intelligence Matters

SEC. 931. TRANSFER OF CERTAIN MILITARY DEPARTMENT PROGRAMS FROM TIARA 
            BUDGET AGGREGATION.

    (a) Transfer.--Effective <<NOTE: Effective date.>>  March 1, 1998, 
the Secretary of Defense shall, for each program identified by the 
Secretary under subsection (c)(2), transfer the management and budgeting 
of funds for that program from the TIARA budget aggregation to a 
nonintelligence budget activity of the military department responsible 
for that program.

    (b) Assessment.--The Secretary of Defense shall conduct an 
assessment of the policy of the Department of Defense that is used for 
determining the programs of the Department that are included within the 
TIARA budget aggregation. In conducting the assessment, the Secretary--

[[Page 111 STAT. 1864]]

            (1) shall consider whether the current policy is in need of 
        revision to reflect changes in technology and battlefield use of 
        TIARA systems;
            (2) shall specifically consider the appropriateness of the 
        continued inclusion in the TIARA budget aggregation of each of 
        the programs described in subsection (e); and
            (3) may consider the appropriateness of the continued 
        inclusion in the TIARA budget aggregation of any other program 
        (in addition to the programs described to in subsection (e)) 
        that as of the date of the enactment of this Act is managed and 
        budgeted as part of the TIARA budget aggregation.

    (c) Report.--Not later than March 1, 1998, the Secretary of Defense 
shall submit to Congress a report on the assessment carried out under 
section (b). The Secretary shall include in the report--
            (1) a description of any proposed changes to Department of 
        Defense policies for determining which programs are included in 
        the TIARA budget aggregation; and
            (2) identification of each program (among the programs 
        considered pursuant to paragraphs (2) and (3) of subsection (b)) 
        for which the management and budgeting of funds is to be 
        transferred under subsection (a).

    (d) Identification of Programs.--(1) In specifying the programs to 
be included on the list under subsection (c)(2), the 
Secretary--
            (A) shall (except as otherwise provided pursuant to a waiver 
        under paragraph (2)) include each program described in 
        subsection (e); and
            (B) may include such additional programs considered in the 
        assessment pursuant to subsection (b)(3) as the Secretary 
        determines appropriate.

    (2) The Secretary, after considering the results of the assessment 
under subsection (c), may waive the applicability of paragraph (1)(A) to 
any program described in subsection (e). The Secretary shall include in 
the report under subsection (c) identification of each such program for 
which the Secretary has granted such a waiver and supporting rationale 
for each waiver.
    (e) Covered Programs.--The programs described in this subsection are 
the following (each of which, as of the date of the enactment of this 
Act, is managed and budgeted as part of the TIARA budget aggregation):
            (1) Each targeting or target acquisition program of the 
        Department of Defense, including the Joint Surveillance and 
        Target Attack Radar System (JSTARS) and the Advanced Deployable 
        System.
            (2) Each Tactical Warning and Attack Assessment program of 
        the Department of Defense, including the Defense Support 
        Program, the Space-Based Infrared Program, and early warning 
        radars.
            (3) Each tactical communications system of the Department of 
        Defense, including the Joint Tactical Terminal.

    (f) TIARA Budget Aggregation Defined.--For purposes of this section, 
the term ``TIARA budget aggregation'' means the aggregation of programs 
of the Department of Defense for which funds are managed and budgeted 
through a common designation as Tactical Intelligence and Related 
Activities (TIARA) of the Department of Defense.

[[Page 111 STAT. 1865]]

SEC. 932. REPORT ON COORDINATION OF ACCESS OF COMMANDERS AND DEPLOYED 
            UNITS TO INTELLIGENCE COLLECTED AND ANALYZED BY THE 
            INTELLIGENCE COMMUNITY.

    (a) Findings.--Congress makes the following findings:
            (1) Coordination of operational intelligence support for the 
        commanders of the combatant commands and deployed units of the 
        Armed Forces has proven to be inadequate.
            (2) Procedures used to reconcile information among various 
        intelligence community and Department of Defense data bases have 
        proven to be inadequate and, being inadequate, have diminished 
        the usefulness of that information and have precluded commanders 
        and planners within the Armed Forces from fully benefiting from 
        key information that should have been available to them.
            (3) Excessive compartmentalization of responsibilities and 
        information within the Department of Defense and the other 
        elements of the intelligence community has resulted in 
        inaccurate analysis of important intelligence material.
            (4) Excessive restrictions on the distribution of 
        information within the executive branch have disadvantaged units 
        of the Armed Forces that would have benefited most from the 
        information.
            (5) Procedures used in the Department of Defense to ensure 
        that critical intelligence information is provided to the right 
        combat units in a timely manner failed during the Persian Gulf 
        War and, as a result, information about potential chemical 
        weapons storage locations did not reach the units that 
        eventually destroyed those storage areas.
            (6) A recent, detailed review of the events leading to and 
        following the destruction of chemical weapons by members of the 
        Armed Forces at Khamisiyah, Iraq, during the Persian Gulf War 
        has revealed a number of inadequacies in the way the Department 
        of Defense and the other elements of the intelligence community 
        handled, distributed, recorded, and stored intelligence 
        information about the threat of exposure of United States forces 
        to chemical weapons and the toxic agents in those weapons.
            (7) The inadequacy of procedures for recording the receipt 
        of, and reaction to, intelligence reports provided by the 
        intelligence community to combat units of the Armed Forces 
        during the Persian Gulf War has caused it to be impossible to 
        analyze the failures in transmission of intelligence-related 
        information on the location of chemical weapons at Khamisiyah, 
        Iraq, that resulted in the demolition of chemical weapons by 
        members of the Armed Forces unaware of the hazards to which they 
        were exposed.

    (b) Report Requirement.--Not later than March 1, 1998, the Secretary 
of Defense shall submit to Congress a report that identifies the 
specific actions that have been taken or are being taken to ensure that 
there is adequate coordination of access of commanders of the combatant 
commands and deployed units of the Armed Forces to intelligence 
collected and analyzed by the intelligence community.

[[Page 111 STAT. 1866]]

SEC. 933. PROTECTION OF IMAGERY, IMAGERY INTELLIGENCE, AND GEOSPATIAL 
            INFORMATION AND DATA.

    (a) Protection of Information on Capabilities.--Paragraph (1)(B) of 
section 455(b) of title 10, United States Code, is amended by inserting 
``, or capabilities,'' after ``methods''.
    (b) Products Protected.--(1) Paragraph (2) of such section is 
amended to read as follows:
    ``(2) In this subsection, the term `geodetic product' means imagery, 
imagery intelligence, or geospatial information.''.
    (2) Section 467(4) of title 10, United States Code, is amended--
            (A) by inserting ``and'' at the end of subparagraph (A);
            (B) in subparagraph (B), by striking out ``and geodetic 
        data; and'' and inserting in lieu thereof ``geodetic data, and 
        related products.''; and
            (C) by striking out subparagraph (C).

SEC. 934. POW/MIA <<NOTE: 10 USC 1501 note.>>  INTELLIGENCE ANALYSIS.

    (a) Intelligence Analysis.--The Director of Central Intelligence, in 
consultation with the Secretary of Defense, shall provide intelligence 
analysis on matters concerning prisoners of war and missing persons (as 
defined in chapter 76 of title 10, United States Code) to all 
departments and agencies of the Federal Government involved in such 
matters.
    (b) Use of Intelligence in Analysis of POW/MIA Cases in Department 
of Defense.--The Secretary of Defense shall ensure that the Defense 
Prisoner of War/Missing Personnel Office of the Department of Defense 
takes into full account all intelligence regarding matters concerning of 
prisoners of war and missing persons (as defined in chapter 76 of title 
10, United States Code) in analyzing cases involving such persons.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of unauthorized fiscal year 1997 
           defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations 
           for fiscal year 1997.
Sec. 1005. Increase in fiscal year 1996 transfer authority.
Sec. 1006. Revision of authority for Fisher House trust funds.
Sec. 1007. Flexibility in financing closure of certain outstanding 
           contracts for which a small final payment is due.
Sec. 1008. Biennial financial management improvement plan.
Sec. 1009. Estimates and requests for procurement and military 
           construction for the reserve components.
Sec. 1010. Sense of Congress regarding funding for reserve component 
           modernization not requested in President's budget.
Sec. 1011. Management of working-capital funds.
Sec. 1012. Authority of Secretary of Defense to settle claims relating 
           to pay, 
           allowances, and other benefits.
Sec. 1013. Payment of claims by members for loss of personal property 
           due to 
           flooding in Red River Basin.
Sec. 1014. Advances for payment of public services.
Sec. 1015. United States Man and the Biosphere Program limitation.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Procedures for sale of vessels stricken from the Naval Vessel 
           Register.
Sec. 1022. Authority to enter into a long-term charter for a vessel in 
           support of the Surveillance Towed-Array Sensor (SURTASS) 
           program.
Sec. 1023. Transfer of two specified obsolete tugboats of the Army.

[[Page 111 STAT. 1867]]

Sec. 1024. Congressional review period with respect to transfer of ex-
           U.S.S. Hornet (CV-12) and ex-U.S.S. Midway (CV-41).
Sec. 1025. Transfers of naval vessels to certain foreign countries.
Sec. 1026. Reports relating to export of vessels that may contain 
           polychlorinated biphenyls.
Sec. 1027. Conversion of defense capability preservation authority to 
           Navy shipbuilding capability preservation authority.

                   Subtitle C--Counter-Drug Activities

Sec. 1031. Use of National Guard for State drug interdiction and 
           counter-drug 
           activities.
Sec. 1032. Authority to provide additional support for counter-drug 
           activities of Mexico.
Sec. 1033. Authority to provide additional support for counter-drug 
           activities of Peru and Colombia.
Sec. 1034. Annual report on development and deployment of narcotics 
           detection technologies.

        Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1041. Repeal of miscellaneous reporting requirements.
Sec. 1042. Study of transfer of modular airborne fire fighting system.
Sec. 1043. Overseas infrastructure requirements.
Sec. 1044. Additional matters for annual report on activities of the 
           General 
           Accounting Office.
Sec. 1045. Eye safety at small arms firing ranges.
Sec. 1046. Reports on Department of Defense procedures for investigating 
           military aviation accidents and for notifying and assisting 
           families of victims.

                Subtitle E--Matters Relating to Terrorism

Sec. 1051. Oversight of counterterrorism and antiterrorism activities; 
           report.
Sec. 1052. Provision of adequate troop protection equipment for Armed 
           Forces 
           personnel engaged in peace operations; report on 
           antiterrorism activities and protection of personnel.

            Subtitle F--Matters Relating to Defense Property

Sec. 1061. Lease of nonexcess personal property of military departments.
Sec. 1062. Lease of nonexcess property of Defense Agencies.
Sec. 1063. Donation of excess chapel property to churches damaged or 
           destroyed by arson or other acts of terrorism.
Sec. 1064. Authority of the Secretary of Defense concerning disposal of 
           assets under cooperative agreements on air defense in Central 
           Europe.
Sec. 1065. Sale of excess, obsolete, or unserviceable ammunition and 
           ammunition components.
Sec. 1066. Transfer of B-17 aircraft to museum.
Sec. 1067. Report on disposal of excess and surplus materials.

                        Subtitle G--Other Matters

Sec. 1071. Authority for special agents of the Defense Criminal 
           Investigative 
           Service to execute warrants and make arrests.
Sec. 1072. Study of investigative practices of military criminal 
           investigative organizations relating to sex crimes.
Sec. 1073. Technical and clerical amendments.
Sec. 1074. Sustainment and operation of the Global Positioning System.
Sec. 1075. Protection of safety-related information voluntarily provided 
           by air 
           carriers.
Sec. 1076. National Guard Challenge Program to create opportunities for 
           civilian youth.
Sec. 1077. Disqualification from certain burial-related benefits for 
           persons 
           convicted of capital crimes.
Sec. 1078. Restrictions on the use of human subjects for testing of 
           chemical or 
           biological agents.
Sec. 1079. Treatment of military flight operations.
Sec. 1080. Naturalization of certain foreign nationals who serve 
           honorably in the Armed Forces during a period of conflict.
Sec. 1081. Applicability of certain pay authorities to members of 
           specified 
           independent study organizations.
Sec. 1082. Display of POW/MIA flag.
Sec. 1083. Program to commemorate 50th anniversary of the Korean 
           conflict.
Sec. 1084. Commendation of members of the Armed Forces and Government 
           civilian personnel who served during the Cold War; 
           certificate of recognition.

[[Page 111 STAT. 1868]]

Sec. 1085. Sense of Congress on granting of statutory Federal charters.
Sec. 1086. Sense of Congress regarding military voting rights.
Sec. 1087. Designation of Bob Hope as an honorary veteran of the Armed 
           Forces of the United States.
Sec. 1088. Five-year extension of aviation insurance program.

                      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 
1998 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the authorization 
to which transferred.
    (2) The total amount of authorizations that the Secretary of Defense 
may transfer under the authority of this section may not exceed 
$2,000,000,000.
    (b) Limitations.--The authority provided by this section to transfer 
authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.

    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount is 
transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. INCORPORATION <<NOTE: 10 USC 114 note.>>  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. 1119 of the One Hundred Fifth Congress and transmitted to the 
President is hereby incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts 
specified in the Classified Annex are not in addition to amounts 
authorized to be appropriated by other provisions of this Act.
    (c) Limitation on Use of Funds.--Funds appropriated pursuant to an 
authorization contained in this Act that are made available for a 
program, project, or activity referred to in the Classified Annex may 
only be expended for such program, project, or activity in accordance 
with such terms, conditions, limitations, restrictions, and requirements 
as are set out for that program, project, or activity in the Classified 
Annex.
    (d) Distribution of Classified Annex.--The President shall provide 
for appropriate distribution of the Classified Annex, or of appropriate 
portions of the annex, within the executive branch of the Government.

[[Page 111 STAT. 1869]]

SEC. 1003. AUTHORITY FOR OBLIGATION OF UNAUTHORIZED FISCAL YEAR 1997 
            DEFENSE APPROPRIATIONS.

    (a) Authority.--The amounts described in subsection (b) may be 
obligated and expended for programs, projects, and activities of the 
Department of Defense in accordance with fiscal year 1997 defense 
appropriations.
    (b) Covered Amounts.--The amounts referred to in subsection (a) are 
the amounts provided for programs, projects, and activities of the 
Department of Defense in fiscal year 1997 defense appropriations that 
are in excess of the amounts provided for such programs, projects, and 
activities in fiscal year 1997 defense authorizations.
    (c) Definitions.--For the purposes of this section:
            (1) Fiscal year 1997 defense appropriations.--The term 
        ``fiscal year 1997 defense appropriations'' means amounts 
        appropriated or otherwise made available to the Department of 
        Defense for fiscal year 1997 in the Department of Defense 
        Appropriations Act, 1997 (as contained in section 101(b) of 
        Public Law 104-208).
            (2) Fiscal year 1997 defense authorizations.--The term 
        ``fiscal year 1997 defense authorizations'' means amounts 
        authorized to be appropriated for the Department of Defense for 
        fiscal year 1997 in the National Defense Authorization Act for 
        Fiscal Year 1997 (Public Law 104-201).

SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
            FOR FISCAL YEAR 1997.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 1997 in the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201) 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 1997 
Emergency Supplemental Appropriations Act for Recovery from Natural 
Disasters, and for Overseas Peacekeeping Efforts, Including Those in 
Bosnia (Public Law 105-18).

SEC. 1005. INCREASE IN FISCAL YEAR 1996 TRANSFER AUTHORITY.

    Section 1001(a)(2) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 100 Stat. 414) is amended by 
striking out ``$2,000,000,000'' and inserting in lieu thereof 
``$3,100,000,000''.

SEC. 1006. REVISION OF AUTHORITY FOR FISHER HOUSE TRUST FUNDS.

    (a) Correction To Eliminate Use of Term Associated With Funding 
Authorities.--Section 2221(c) of title 10, United States Code, is 
amended by striking out ``or maintenance'' each place it appears.
    (b) Corpus <<NOTE: 10 USC 2221 note.>>  of Air Force Trust Fund.--
The Secretary of the Air Force shall deposit in the Fisher House Trust 
Fund, Department of the Air Force, an amount that the Secretary 
determines appropriate to establish the corpus of the fund.

SEC. 1007. FLEXIBILITY IN FINANCING CLOSURE OF CERTAIN OUTSTANDING 
            CONTRACTS FOR WHICH A SMALL FINAL PAYMENT IS DUE.

    (a) Closure of <<NOTE: Applicability.>>  Outstanding Contracts.--The 
Secretary of Defense may make the final payment on a contract to which 
this

[[Page 111 STAT. 1870]]

section applies from the account established pursuant to subsection (d).

    (b) Covered <<NOTE: Applicability.>>  Contracts.--This section 
applies to any contract of the Department of Defense--
            (1) that was entered into before December 5, 1990; and
            (2) for which an unobligated balance of an appropriation 
        that had been initially applied to the contract was canceled 
        before December 5, 1990, pursuant to section 1552 of title 31, 
        United States Code, as in effect before that date.

    (c) Authority Limited to Small Final Payments.--The Secretary may 
use the authority provided by this section only for a contract for which 
the amount of the final payment due is not greater than the micro-
purchase threshold (as defined in section 32 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 428)).
    (d) Account.--The Secretary may establish an account for the 
purposes of this section. The Secretary may from time to time transfer 
into the account, from funds made available to the Department of Defense 
for procurement or for research, development, test, and evaluation, such 
amounts as the Secretary determines to be needed for the purposes of the 
account, except that the total of such transfers may not exceed 
$1,000,000. Amounts in the account may be used only for the purposes of 
this section.
    (e) Closure of Account.--When the Secretary determines that all 
contracts to which this section applies have been closed and there is no 
further need for the account established under subsection (d), the 
Secretary shall close the account. Any amounts remaining in the account 
shall be covered into the Treasury as miscellaneous receipts.

SEC. 1008. BIENNIAL FINANCIAL MANAGEMENT IMPROVEMENT PLAN.

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

``Sec. 2222. Biennial financial management improvement plan

    ``(a) Biennial Plan Required.--The Secretary of Defense shall submit 
to Congress a biennial strategic plan for the improvement of financial 
management within the Department of Defense. The plan shall be submitted 
not later than September 30 of each even-numbered year.
    ``(b) Concept of Operations.--Each plan under subsection (a) shall 
include a statement of the Secretary of Defense's concept of operations 
for the financial management of the Department of Defense. Each such 
statement shall be a clear description of the manner in which the 
Department's financial management operations are carried out or will be 
carried out under the improvements set forth in the plan under 
subsection (a), including identification of operations that must be 
performed.
    ``(c) Matters To Be Addressed in Plan.--(1) Each plan under 
subsection (a) shall address all aspects of financial management within 
the Department of Defense, including the finance systems, accounting 
systems, and data feeder systems of the Department that support 
financial functions of the Department.
    ``(2) For the purposes of paragraph (1), a data feeder system is an 
automated or manual system from which information is derived for a 
financial management system or an accounting system.''.

[[Page 111 STAT. 1871]]

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

``2222. Biennial financial management improvement plan.''.

    (b) Additional <<NOTE: 10 USC 2222 note.>>  Content of First Plan.--
The first financial management improvement plan submitted under section 
2222 of title 10, United States Code (as added by subsection (a)), shall 
include the following:
            (1) A description of the costs and benefits of integrating 
        the various finance and accounting systems of the Department of 
        Defense and reducing the total number of such systems, together 
        with the Secretary's assessment of the feasibility of 
        implementing such an integration.
            (2) Identification of problems with the accuracy of data 
        included in the finance systems, accounting systems, and data 
        feeder systems that support financial functions of the 
        Department of Defense, together with a description of the 
        actions that the Secretary can take to address those problems.
            (3) Identification of weaknesses in the internal controls of 
        the systems referred to in paragraph (2), together with a 
        description of the actions that the Secretary can take to 
        address those weaknesses.
            (4) A description of actions that the Secretary can take to 
        eliminate negative unliquidated obligations, unmatched 
        disbursements, and in-transit disbursements and to avoid such 
        obligations and disbursements in the future.
            (5) A description of the status of the efforts being 
        undertaken in the Department to consolidate and eliminate--
                    (A) redundant or unneeded finance systems; and
                    (B) redundant or unneeded accounting systems.
            (6) A description of efforts being undertaken to consolidate 
        or eliminate redundant personnel data systems, acquisition data 
        systems, asset accounting systems, time and attendance systems, 
        and other data feeder systems of the Department.
            (7) A description of efforts being undertaken to integrate 
        the data feeder systems of the Department with the finance and 
        accounting systems of the Department.
            (8) A description of problems with the organization or 
        performance of the Operating Locations and Service Centers of 
        the Defense Finance and Accounting Service, together with a 
        description of the actions the Secretary can take to address 
        those problems.
            (9) A description of the costs and benefits of reorganizing 
        the Operating Locations and Service Centers of the Defense 
        Finance and Accounting Service according to function, together 
        with the Secretary's assessment of the feasibility of carrying 
        out such a reorganization.
            (10) A description of the costs and benefits of contracting 
        for private-sector performance of specific functions currently 
        performed by the Defense Finance and Accounting Service, 
        together with the Secretary's assessment of the feasibility of 
        contracting for such performance.
            (11) A description of actions that can be taken to ensure 
        that each comptroller position (and comparable position) in the 
        Department of Defense, whether filled by a member of the Armed 
        Forces or by a civilian employee, is held by a person who, by 
        reason of education, technical competence, and

[[Page 111 STAT. 1872]]

        experience, has the core competencies for financial management.
            (12) A description of any other change in the financial 
        management structure of the Department or revision of the 
        financial processes and business practices of the Department 
        that the Secretary considers necessary to improve financial 
        management in the Department.

    (c) Additional <<NOTE: 10 USC 2222 note.>>  Matters.--For each of 
the problems and actions identified pursuant to paragraphs (1) through 
(12) of subsection (b) or in any other part of the plan covered by that 
subsection, the Secretary shall include statements of objectives, 
performance measures, and schedules and shall specify the individual and 
organizational responsibilities.

    (d) Definition.--In <<NOTE: 10 USC 2222 note.>>  subsection (b), the 
term ``data feeder system'' has the meaning given that term in 
subsection (c)(2) of section 2222 of title 10, United States Code, as 
added by subsection (a).

SEC. 1009. ESTIMATES AND REQUESTS FOR PROCUREMENT AND MILITARY 
            CONSTRUCTION FOR THE RESERVE COMPONENTS.

    (a) Detailed Presentation in Future-Years Defense Program.--Section 
10543 of title 10, United States Code, is amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        Secretary of Defense''; and
            (2) by adding at the end the following:

    ``(b) Associated Annexes.--The associated annexes of the future-
years defense program shall specify, at the same level of detail as is 
set forth in the annexes for the active components, the amount requested 
for--
            ``(1) procurement of each item of equipment to be procured 
        for each reserve component; and
            ``(2) each military construction project to be carried out 
        for each reserve component, together with the location of the 
        project.

    ``(c) Report.--(1) If the aggregate of the amounts specified in 
paragraphs (1) and (2) of subsection (b) for a fiscal year is less than 
the amount equal to 90 percent of the average authorized amount 
applicable for that fiscal year under paragraph (2), the Secretary of 
Defense shall submit to Congress a report specifying for each reserve 
component the additional items of equipment that would be procured, and 
the additional military construction projects that would be carried out, 
if that aggregate amount were an amount equal to such average authorized 
amount. The report shall be at the same level of detail as is required 
by subsection (b).
    ``(2) In this subsection, the term `average authorized amount', with 
respect to a fiscal year, means the average of--
            ``(A) the aggregate of the amounts authorized to be 
        appropriated for the preceding fiscal year for the procurement 
        of items of equipment, and for military construction, for the 
        reserve components; and
            ``(B) the aggregate of the amounts authorized to be 
        appropriated for the fiscal year preceding the fiscal year 
        referred to in subparagraph (A) for the procurement of items of 
        equipment, and for military construction, for the reserve 
        components.''.

    (b) Prohibition.--The <<NOTE: 10 USC 10543 note.>>  level of detail 
provided for procurement and military construction in the future-years 
defense programs for fiscal years after fiscal year 1998 may not be less 
than the

[[Page 111 STAT. 1873]]

level of detail provided for procurement and military construction in 
the future-years defense program for fiscal year 1998.

SEC. 1010. SENSE OF CONGRESS REGARDING FUNDING FOR RESERVE COMPONENT 
            MODERNIZATION NOT REQUESTED IN PRESIDENT'S BUDGET.

    (a) Criteria.--It is the sense of Congress that, to the maximum 
extent practicable, Congress should authorize appropriations for 
procurement of reserve component modernization equipment for a fiscal 
year for equipment that is not included in the budget of the President 
for that fiscal year only if--
            (1) there is a requirement for that equipment that has been 
        validated by the Joint Requirements Oversight Council;
            (2) procurement of that equipment is included for reserve 
        component modernization in the modernization plan of the 
        military department concerned and is incorporated into the 
        current future-years defense program;
            (3) procurement of that equipment is consistent with planned 
        use of reserve component forces under Department of Defense war 
        plans; and
            (4) funds for that procurement, if authorized and 
        appropriated for that fiscal year, could be obligated during 
        that fiscal year.

    (b) Consideration of Views of Chairman of Joint Chiefs of Staff.--It 
is further the sense of Congress that, in applying the criteria set 
forth in subsection (a) with respect to procurement of reserve component 
modernization equipment, Congress should obtain the views of the 
Chairman of the Joint Chiefs of Staff on whether, under Department of 
Defense war plans, that equipment is appropriate for procurement for, 
and assignment to, reserve component forces.

SEC. 1011. MANAGEMENT OF WORKING-CAPITAL FUNDS.

    (a) Contracting for Capital Assets Procurement in Advance of 
Funds.--Section 2208 of title 10, United States Code, is amended by 
striking out subsection (k) and inserting in lieu thereof the following 
new subsection:
    ``(k)(1) Subject to paragraph (2), a contract for the procurement of 
a capital asset financed by a working-capital fund may be awarded in 
advance of the availability of funds in the working-capital fund for the 
procurement.
    ``(2) Paragraph (1) applies to any of the following capital assets 
that have a development or acquisition cost of not less than $100,000:
            ``(A) An unspecified minor military construction project 
        under section 2805(c)(1) of this title.
            ``(B) Automatic data processing equipment or software.
            ``(C) Any other equipment.
            ``(D) Any other capital improvement.''.

    (b) Use of Advance Billing.--Such section is further amended by 
adding at the end the following new subsection:
    ``(l)(1) An advance billing of a customer of a working-capital fund 
may be made if the Secretary of the military department concerned 
submits to Congress written notification of the advance billing within 
30 days after the end of the month in which the advanced billing was 
made. The notification shall include the 
following:
            ``(A) The reasons for the advance billing.

[[Page 111 STAT. 1874]]

            ``(B) An analysis of the effects of the advance billing on 
        military readiness.
            ``(C) An analysis of the effects of the advance billing on 
        the customer.

    ``(2) The Secretary of Defense may waive the notification 
requirements of paragraph (1)--
            ``(A) during a period war or national emergency; or
            ``(B) to the extent that the Secretary determines necessary 
        to support a contingency operation.

    ``(3) In this subsection:
            ``(A) The term `advance billing', with respect to a working-
        capital fund, means a billing of a customer by the fund, or a 
        requirement for a customer to reimburse or otherwise credit the 
        fund, for the cost of goods or services provided (or for other 
        expenses incurred) on behalf of the customer that is rendered or 
        imposed before the customer receives the goods or before the 
        services have been performed.
            ``(B) The term `customer' means a requisitioning component 
        or agency.''.

    (c) Fiscal Year Limitations.--(1) The total amount of advance 
billings for Department of the Navy working-capital funds and the 
Defense Business Operations Fund may not exceed--
            (A) $1,000,000,000 for fiscal year 1998; and
            (B) $800,000,000 for fiscal year 1999.

    (2) For purposes of paragraph (1), the term ``advance billing'' has 
the meaning given such term in section 2208(l)(3) of title 10, United 
States Code, as added by subsection (b).

SEC. 1012. AUTHORITY OF SECRETARY OF DEFENSE TO SETTLE CLAIMS RELATING 
            TO PAY, ALLOWANCES, AND OTHER BENEFITS.

    Section 3702(e) of title 31, United States Code, is amended--
            (1) in paragraph (1), by striking out ``Comptroller 
        General'' and inserting in lieu thereof ``Secretary of 
        Defense''; and
            (2) by striking out paragraph (2) and inserting in lieu 
        thereof the following new paragraph:

    ``(2) Payment of a claim settled under paragraph (1) shall be made 
from an appropriation that is available, for the fiscal year in which 
the payment is made, for the same purpose as the appropriation to which 
the obligation claimed would have been charged if the obligation had 
been timely paid.''.

SEC. 1013. PAYMENT OF CLAIMS BY MEMBERS FOR LOSS OF PERSONAL PROPERTY 
            DUE TO FLOODING IN RED RIVER BASIN.

    (a) Payment Authorized.--Notwithstanding section 3721(e) of title 
31, United States Code, the Secretary of a military department may pay 
the claim of a member of the Armed Forces who resided (or whose 
dependents resided) in the vicinity of Grand Forks Air Force Base, North 
Dakota, during April and May 1997 for loss and damage to personal 
property incurred by the member as a direct result of the flooding in 
the Red River Basin during such months.
    (b) Report on <<NOTE: 10 USC 2731 note.>>  Department Policy.--The 
Secretary of Defense shall submit to Congress a report describing the 
Department of Defense policy regarding the payment of a claim by a 
member of the Armed Forces who is not assigned to quarters of the United 
States for losses and damage to personal property of the member incurred 
at the member's residence as a result of a natural disaster. The report 
shall include a description of the number of such claims

[[Page 111 STAT. 1875]]

received over the past 10 years, the number of claims paid, and the 
number of claims rejected. If the Secretary determines the Department of 
Defense should modify its policy in order to accept additional claims by 
members who are not assigned to quarters of the United States for losses 
and damage to personal property, the Secretary shall also include in the 
report any legislative changes that the Secretary considers necessary to 
enable the Secretary to implement the policy change.

SEC. 1014. ADVANCES FOR PAYMENT OF PUBLIC SERVICES.

    (a) In General.--Subsection (a) of section 2396 of title 10, United 
States Code, is amended--
            (1) by striking out ``and'' at the end of paragraph (2);
            (2) by striking out the period at the end of paragraph (3) 
        and inserting in lieu thereof ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(4) public service utilities.''.

    (b) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

``Sec. 2396. Advances for payments for compliance with foreign laws, 
                        rent in foreign countries, tuition, public 
                        utility services, and pay and supplies of armed 
                        forces of friendly foreign countries''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 141 of such title is amended to read as 
follows:

``2396. Advances for payments for compliance with foreign laws, rent in 
           foreign countries, tuition, public utility services, and pay 
           and supplies of armed forces of friendly foreign 
           countries.''.

SEC. 1015. UNITED STATES MAN AND THE BIOSPHERE PROGRAM LIMITATION.

    During fiscal year 1998, the Secretary of Defense may not take any 
steps to carry out or support the United States Man and the Biosphere 
Program or any related project.

                 Subtitle B--Naval Vessels and Shipyards

SEC. 1021. PROCEDURES FOR SALE OF VESSELS STRICKEN FROM THE NAVAL VESSEL 
            REGISTER.

    Section 7305(c) of title 10, United States Code, is amended to read 
as follows:
    ``(c) Procedures for Sale.--(1) A vessel stricken from the Naval 
Vessel Register and not subject to disposal under any other law may be 
sold under this section.
    ``(2) In such a case, the Secretary may--
            ``(A) sell the vessel to the highest acceptable bidder, 
        regardless of the appraised value of the vessel, after publicly 
        advertising the sale of the vessel for a period of not less than 
        30 days; or
            ``(B) subject to paragraph (3), sell the vessel by 
        competitive negotiation to the acceptable offeror who submits 
        the offer that is most advantageous to the United States (taking 
        into account price and such other factors as the Secretary 
        determines appropriate).

[[Page 111 STAT. 1876]]

    ``(3) Before <<NOTE: Publication.>>  entering into negotiations to 
sell a vessel under paragraph (2)(B), the Secretary shall publish notice 
of the intention to do so in the Commerce Business Daily sufficiently in 
advance of initiating the negotiations that all interested parties are 
given a reasonable opportunity to prepare and submit proposals. The 
Secretary shall afford an opportunity to participate in the negotiations 
to all acceptable offerors submitting proposals that the Secretary 
considers as having the potential to be the most advantageous to the 
United States (taking into account price and such other factors as the 
Secretary determines appropriate).''.

SEC. 1022. AUTHORITY TO ENTER INTO A LONG-TERM CHARTER FOR A VESSEL IN 
            SUPPORT OF THE SURVEILLANCE TOWED-ARRAY SENSOR (SURTASS) 
            PROGRAM.

    The Secretary of the Navy is authorized to enter into a contract in 
accordance with section 2401 of title 10, United States Code, for the 
charter, for a period through fiscal year 2003, of the vessel RV CORY 
CHOUEST (United States official number 933435) in support of the 
Surveillance Towed-Array Sensor (SURTASS) program.

SEC. 1023. TRANSFER OF TWO SPECIFIED OBSOLETE TUGBOATS OF THE ARMY.

    (a) Authority To Transfer Vessels.--The Secretary of the Army may 
transfer the two obsolete tugboats of the Army described in subsection 
(b) to the Brownsville Navigation District, Brownsville, Texas.
    (b) Vessels Covered.--Subsection (a) applies to the following two 
decommissioned tugboats of the Army, each of which is listed as of the 
date of the enactment of this Act as being surplus to the needs of the 
Army: the Normandy (LT-1971) and the Salerno (LT-1953).
    (c) Transfers To Be at No Cost to United States.--A transfer 
authorized by this section shall be made at no cost to the United 
States.
    (d) Terms and Conditions.--The Secretary may require such additional 
terms and conditions in connection with the transfers authorized by this 
section as the Secretary considers appropriate.

SEC. 1024. CONGRESSIONAL REVIEW PERIOD WITH RESPECT TO TRANSFER OF EX-
            U.S.S. HORNET (CV-12) AND EX-U.S.S. MIDWAY (CV-41).

    (a) Reduction in Congressional Review Period.--In applying section 
7306 of title 10, United States Code, with respect to the transfer of a 
vessel specified in subsection (c), subsection (d)(1)(B) of that section 
shall be applied by substituting ``30 days'' for ``60 days''.
    (b) Waiver if Only One Qualified Entity Applies for Transfer of 
Vessel.--If in the case of a vessel specified in subsection (c) only a 
single qualified entity, as determined by the Secretary of the Navy, 
applies for transfer of the vessel, the Secretary may carry out the 
transfer of the vessel under section 7306 of title 10, United States 
Code, without regard to subsection (d)(1)(B) of that section. In such a 
case, the transfer may be made only after 10 days of continuous session 
of Congress (determined in the manner specified in section 7306(d)(2) of 
title 10, United States Code) have expired following the date on which 
the Secretary submits

[[Page 111 STAT. 1877]]

to Congress a certification that only a single qualified entity applied 
for transfer of the vessel.
    (c) Covered Vessels.--This section applies to the following vessels 
(each of which is a decommissioned aircraft carrier):
            (1) Ex-U.S.S. HORNET (CV-12).
            (2) Ex-U.S.S. MIDWAY (CV-41).

SEC. 1025. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

    (a) Authority.--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 HUNLEY class submarine 
        tender HOLLAND (AS 32).
            (2) To the Government of Chile, the KAISER class oiler 
        ISHERWOOD (T-AO 191).
            (3) To the Government of Egypt:
                    (A) The following frigates of the KNOX class:
                          (i) The PAUL (FF 1080).
                          (ii) The MILLER (FF 1091).
                          (iii) The JESSE L. BROWN (FFT 1089).
                          (iv) The MOINESTER (FFT 1097).
                    (B) The following frigates of the OLIVER HAZARD 
                PERRY class:
                          (i) The FAHRION (FFG 22).
                          (ii) The LEWIS B. PULLER (FFG 23).
            (4) To the Government of Israel, the NEWPORT class tank 
        landing ship PEORIA (LST 1183).
            (5) To the Government of Malaysia, the NEWPORT class tank 
        landing ship BARBOUR COUNTY (LST 1195).
            (6) To the Government of Mexico, the KNOX class frigate 
        ROARK (FF 1053).
            (7) To the Taipei 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), the following frigates of the KNOX class:
                    (A) The WHIPPLE (FF 1062).
                    (B) The DOWNES (FF 1070).
            (8) To the Government of Thailand, the NEWPORT class tank 
        landing ship SCHENECTADY (LST 1185).

    (b) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by subsection (a) shall be 
charged to the recipient.
    (c) 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.
    (d) Expiration of Authority.--The authority to transfer a vessel 
under subsection (a) shall expire at the end of the two-year period 
beginning on the date of the enactment of this Act.

[[Page 111 STAT. 1878]]

SEC. 1026. REPORTS RELATING TO EXPORT OF VESSELS THAT MAY CONTAIN 
            POLYCHLORINATED BIPHENYLS.

    (a) Reports Required.--Not later than March 1, 1998, the Secretary 
of the Navy (with respect to the Navy), the Administrator of the 
Maritime Administration (with respect to the Maritime Administration), 
and the Administrator of the Environmental Protection Agency (with 
respect to the Environmental Protection Agency) shall each submit to 
Congress a report on the implementation of the agreement between the 
Department of the Navy and the Environmental Protection Agency that 
became effective August 6, 1997, and that is titled ``Export of Naval 
Vessels that May Contain Polychlorinated Biphenyls for Scrapping Outside 
the United States''.
    (b) Contents of Reports.--The reports required by subsection (a) 
shall address, at a minimum, the following:
            (1) An assessment of the effects of the notification 
        requirements regarding the export of vessels for scrapping, any 
        impediments that those requirements may create for the export of 
        vessels, and any changes to the agreement that may be required 
        to address those impediments.
            (2) An explanation of the process by which it is determined 
        which solid items containing polychlorinated biphenyls are 
        readily removable and must be removed before the export of a 
        vessel for scrapping, what types of polychlorinated biphenyls 
        have been determined to be readily removable pursuant to this 
        process, any impediments that such determinations may create for 
        the export of vessels, and any changes to the agreement that may 
        be required to address those impediments or to ensure protection 
        of human health and the environment.

    (c) Amendments Relating to Disposal of Obsolete Vessels From the 
National Defense Reserve Fleet.--Section 6 of the National Maritime 
Heritage Act of 1994 (Public Law 103-451; 108 Stat. 4776; 16 U.S.C. 
5405) is amended--
            (1) in subsections (a)(1) and (b)(2)--
                    (A) by inserting ``or 510(i)'' after ``508''; and
                    (B) by inserting ``or 1160(i)'' after ``1158'';
            (2) in subsection (b)(2), by striking out ``first 6'' and 
        inserting in lieu thereof ``first 8''; and
            (3) in subsection (c)(1)(A), by striking out ``1999'' and 
        inserting in lieu thereof ``2001''.

SEC. 1027. CONVERSION OF DEFENSE CAPABILITY PRESERVATION AUTHORITY TO 
            NAVY SHIPBUILDING CAPABILITY PRESERVATION AUTHORITY.

    (a) In General.--(1) Chapter 633 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 7315. Preservation of Navy shipbuilding capability

    ``(a) Shipbuilding Capability Preservation Agreements.--The 
Secretary of the Navy may enter into an agreement, to be known as a 
`shipbuilding capability preservation agreement', with a shipbuilder 
under which the cost reimbursement rules described in subsection (b) 
shall be applied to the shipbuilder under a Navy contract for the 
construction of a ship. Such an agreement may be entered into in any 
case in which the Secretary determines

[[Page 111 STAT. 1879]]

that the application of such cost reimbursement rules would facilitate 
the achievement of the policy objectives set forth in section 2501(b) of 
this title.
    ``(b) Cost Reimbursement Rules.--The cost reimbursement rules 
applicable under an agreement entered into under subsection (a) are as 
follows:
            ``(1) The Secretary of the Navy shall, in determining the 
        reimbursement due a shipbuilder for its indirect costs of 
        performing a contract for the construction of a ship for the 
        Navy, allow the shipbuilder to allocate indirect costs to its 
        private sector work only to the extent of the shipbuilder's 
        allocable indirect private sector costs, subject to paragraph 
        (3).
            ``(2) For purposes of paragraph (1), the allocable indirect 
        private sector costs of a shipbuilder are those costs of the 
        shipbuilder that are equal to the sum of the following:
                    ``(A) The incremental indirect costs attributable to 
                such work.
                    ``(B) The amount by which the revenue attributable 
                to such private sector work exceeds the sum of--
                          ``(i) the direct costs attributable to such 
                      private sector work; and
                          ``(ii) the incremental indirect costs 
                      attributable to such private sector work.
            ``(3) The total amount of allocable indirect private sector 
        costs for a contract covered by the agreement may not exceed the 
        amount of indirect costs that a shipbuilder would have allocated 
        to its private sector work during the period covered by the 
        agreement in accordance with the shipbuilder's established 
        accounting practices.

    ``(c) Authority To Modify Cost Reimbursement Rules.--The cost 
reimbursement rules set forth in subsection (b) may be modified by the 
Secretary of the Navy for a particular agreement if the Secretary 
determines that modifications are appropriate to the particular 
situation to facilitate achievement of the policy set forth in section 
2501(b) of this title.
    ``(d) Applicability.--(1) An agreement entered into with a 
shipbuilder under subsection (a) shall apply to each of the following 
Navy contracts with the shipbuilder:
            ``(A) A contract that is in effect on the date on which the 
        agreement is entered into.
            ``(B) A contract that is awarded during the term of the 
        agreement.

    ``(2) In a shipbuilding capability preservation agreement applicable 
to a shipbuilder, the Secretary may agree to apply the cost 
reimbursement rules set forth in subsection (b) to allocations of 
indirect costs to private sector work performed by the shipbuilder only 
with respect to costs that the shipbuilder incurred on or after the date 
of the enactment of the National Defense Authorization Act for Fiscal 
Year 1998 under a contract between the shipbuilder and a private sector 
customer of the shipbuilder that became effective on or after January 
26, 1996.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``7315. Preservation of Navy shipbuilding capability.''.


[[Page 111 STAT. 1880]]



    (b) Implementation.--Not <<NOTE: Regulations. 10 USC 7315 note.>>  
later than 30 days after the date of the enactment of this Act, the 
Secretary of the Navy shall establish application procedures and 
procedures for expeditious consideration of shipbuilding capability 
preservation agreements as authorized by section 7315 of title 10, 
United States Code, as added by subsection (a).

    (c) Report.--Not later than February 15, 1998, the Secretary of the 
Navy shall submit to Congress a report on applications for shipbuilding 
capability preservation agreements under section 7315 of title 10, 
United States Code, as added by subsection (a). The report shall specify 
the number of the applications received, the number of the applications 
approved, and a discussion of the reasons for disapproval of any 
application disapproved.
    (d) Repeal of Superseded Provision.--Section 808 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 393; 10 U.S.C. 2501 note) is repealed.

                   Subtitle C--Counter-Drug Activities

SEC. 1031. USE OF NATIONAL GUARD FOR STATE DRUG INTERDICTION AND 
            COUNTER-DRUG ACTIVITIES.

    (a) Relationship to Training and Readiness.--Subsection (b) of 
section 112 of title 32, United States Code, is amended--
            (1) by inserting ``(1)'' before ``Under regulations''; and
            (2) by adding at the end the following new paragraphs:

    ``(2) 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 is not detrimental to the training and readiness of such 
units and personnel, the requirements of section 2012(d) of title 10 
shall apply in determining the drug interdiction and counter-drug 
activities that units and personnel of the National Guard of a State may 
perform.
    ``(3) Section 508 of this title, regarding the provision of 
assistance to certain specified youth and charitable organizations, 
shall apply in any case in which a unit or member of the National Guard 
of a State is proposed to be used pursuant to a State drug interdiction 
and counter-drug activities plan to provide to an organization specified 
in subsection (d) of such section any of the services described in 
subsection (b) of such section or services regarding counter-drug 
education.''.
    (b) Engineer-Type Activities.--Subsection (c) of such section is 
amended--
            (1) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively; and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) certify that any engineer-type activities (as defined 
        by the Secretary of Defense) under the plan will be performed 
        only by units and members of the National Guard;''.

    (c) Annual Report.--Such section is further amended--
            (1) by redesignating subsections (g) and (h) as subsections 
        (h) and (i), respectively; and
            (2) by inserting after subsection (f) the following new 
        subsection:

    ``(g) Annual Report.--The Secretary of Defense shall submit to 
Congress an annual report regarding assistance provided and

[[Page 111 STAT. 1881]]

activities carried out under this section during the preceding fiscal 
year. The report shall include the following:
            ``(1) The number of members of the National Guard excluded 
        under subsection (e) from the computation of end strengths.
            ``(2) A description of the drug interdiction and counter-
        drug activities conducted under State drug interdiction and 
        counter-drug activities plans referred to in subsection (c) with 
        funds provided under this section.
            ``(3) An accounting of the amount of funds provided to each 
        State.
            ``(4) A description of the effect on military training and 
        readiness of using units and personnel of the National Guard to 
        perform activities under the State drug interdiction and 
        counter-drug activities plans.''.

    (d) Conforming Amendments.--Subsection (e) of such section is 
amended--
            (1) by striking out ``(1)'' before ``Members''; and
            (2) by striking out paragraph (2).

SEC. 1032. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG 
            ACTIVITIES OF MEXICO.

    (a) Extension of Authority; Consultation of Secretary of State.--
Subsection (a) of section 1031 of the National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2637), is amended--
            (1) by striking out ``fiscal year 1997'' and inserting in 
        lieu thereof ``fiscal years 1997 and 1998''; and
            (2) by inserting after the first sentence the following new 
        sentence: ``In providing support to the Government of Mexico 
        under this section, the Secretary of Defense shall consult with 
        the Secretary of State.''.

    (b) Extension of Availability of Funds.--Subsection (d) of such 
section is amended--
            (1) by striking out ``not more than'' and inserting in lieu 
        thereof ``an amount not to exceed''; and
            (2) by adding at the end the following new sentences: 
        ``Funds made available for fiscal year 1997 under this 
        subsection and unobligated by September 30, 1997, may be 
        obligated during fiscal year 1998. No funds are authorized to be 
        appropriated for fiscal year 1998 for the provision of support 
        under this section.''.

SEC. 1033. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG 
            ACTIVITIES OF PERU AND COLOMBIA.

    (a) Authority To Provide Support.--Subject to subsection (f), during 
fiscal years 1998 through 2002, the Secretary of Defense may provide 
either or both of the foreign governments named in subsection (b) with 
the support described in subsection (c) for the counter-drug activities 
of that government. In providing support to a government under this 
section, the Secretary of Defense shall consult with the Secretary of 
State. The support provided under the authority of this section shall be 
in addition to support provided to the governments under any other 
provision of law.
    (b) Governments Eligible To Receive Support.--The foreign 
governments eligible to receive counter-drug support under this section 
are as follows:
            (1) The Government of Peru.

[[Page 111 STAT. 1882]]

            (2) The Government of Colombia.

    (c) Types of Support.--The authority under subsection (a) is limited 
to the provision of the following types of support to a government named 
in subsection (b):
            (1) The types of support specified in paragraphs (1), (2), 
        and (3) of section 1031(b) of the National Defense Authorization 
        Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2637).
            (2) The transfer of riverine patrol boats.
            (3) The maintenance and repair of equipment of the 
        government that is used for counter-drug activities.

    (d) Applicability of Other Support Authorities.--Except as otherwise 
provided in this section, the provisions of section 1004 of the National 
Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 
U.S.C. 374 note) shall apply to the provision of support under this 
section.
    (e) Fiscal Year 1998 Funding; Limitation on Obligations.--(1) Of the 
amount authorized to be appropriated under section 301(20) for drug 
interdiction and counter-drug activities, an amount not to exceed 
$9,000,000 shall be available for the provision of support under this 
section.
    (2) Amounts made available to carry out this section shall remain 
available until expended, except that the total amount obligated and 
expended under this section may not exceed $20,000,000 during any of the 
fiscal years 1999 through 2002.
    (f) Condition on Provision of Support.--(1) The Secretary of Defense 
may not obligate or expend funds during a fiscal year to provide support 
under this section to a government named in subsection (b) until the end 
of the 15-day period beginning on the date on which the Secretary 
submits to the congressional committees the written certification 
described in subsection (g) for that fiscal year.
    (2) In the case of the first fiscal year in which support is to be 
provided under this section to a government named in subsection (b), the 
obligation or expenditure of funds under this section to provide support 
to that government shall also be subject to the condition that--
            (A) the Secretary submit to the congressional committees the 
        riverine counter-drug plan described in subsection (h); and
            (B) a period of 60 days expires after the date on which the 
        report is submitted.

    (3) In the case of subsequent fiscal years in which support is to be 
provided under this section to a government named in subsection (b), the 
obligation or expenditure of funds under this section to provide support 
to that government shall also be subject to the condition that the 
Secretary submit to the congressional committees any revision of the 
counter-drug plan described in subsection (h) applicable to that 
government.
    (4) For purposes of this subsection, the term ``congressional 
committees'' means the following:
            (A) The Committee on Armed Services and the Committee on 
        Foreign Relations of the Senate.
            (B) The Committee on National Security and the Committee on 
        International Relations of the House of Representatives.

    (g) Required Certification.--The written certification required by 
subsection (f)(1) for a fiscal year is a certification of the following 
with respect to each government to receive support under this section:

[[Page 111 STAT. 1883]]

            (1) That the provision of the support to the government will 
        not adversely affect the military preparedness of the United 
        States Armed Forces.
            (2) That the equipment and materiel provided as support will 
        be used only by officials and employees of the government who 
        have undergone background investigations by that government and 
        have been approved by that government to perform counter-drug 
        activities on the basis of the background investigations.
            (3) That the government has certified to the Secretary of 
        Defense that--
                    (A) the equipment and materiel provided as support 
                will be used only by the officials and employees 
                referred to in paragraph (2);
                    (B) none of the equipment or materiel will be 
                transferred (by sale, gift, or otherwise) to any person 
                or entity not authorized by the United States to receive 
                the equipment or materiel; and
                    (C) the equipment and materiel will be used only for 
                the purposes intended by the United States Government.
            (4) That the government has implemented, to the satisfaction 
        of the Secretary of Defense, a system that will provide an 
        accounting and inventory of the equipment and materiel provided 
        as support.
            (5) That the departments, agencies, and instrumentalities of 
        the government will grant United States Government personnel 
        access to any of the equipment or materiel provided as support, 
        or to any of the records relating to such equipment or materiel, 
        under terms and conditions similar to the terms and conditions 
        imposed with respect to such access under section 505(a)(3) of 
        the Foreign Assistance Act of 1961 (22 U.S.C. 2314(a)(3)).
            (6) That the government will provide security with respect 
        to the equipment and materiel provided as support that is 
        substantially the same degree of security that the United States 
        Government would provide with respect to such equipment and 
        materiel.
            (7) That the government will permit continuous observation 
        and review by United States Government personnel of the use of 
        the equipment and materiel provided as support under terms and 
        conditions similar to the terms and conditions imposed with 
        respect to such observation and review under section 505(a)(3) 
        of the Foreign Assistance Act of 1961 (22 U.S.C. 2314(a)(3)).

    (h) Riverine Counter-Drug Plan.--The Secretary of Defense, in 
consultation with the Secretary of State, shall prepare for fiscal year 
1998 (and revise as necessary for subsequent fiscal years) a riverine 
counter-drug plan involving the governments named in subsection (b) to 
which support will be provided under this section. The plan for a fiscal 
year shall include the following with respect to each government to 
receive support under this section:
            (1) A detailed security assessment, including a discussion 
        of the threat posed by illicit drug traffickers in the foreign 
        country.
            (2) An evaluation of previous and ongoing riverine counter-
        drug operations by the government.

[[Page 111 STAT. 1884]]

            (3) An assessment of the monitoring of past and current 
        assistance provided by the United States under this section to 
        the government to ensure the appropriate use of such assistance.
            (4) A description of the centralized management and 
        coordination among Federal agencies involved in the development 
        and implementation of the plan.
            (5) A description of the roles and missions and coordination 
        among agencies of the government involved in the development and 
        implementation of the plan.
            (6) A description of the resources to be contributed by the 
        Department of Defense and the Department of State for the fiscal 
        year or years covered by the plan and the manner in which such 
        resources will be utilized under the plan.
            (7) For the first fiscal year in which support is to be 
        provided under this section, a schedule for establishing a 
        riverine counter-drug program that can be sustained by the 
        government within five years, and for subsequent fiscal years, a 
        description of the progress made in establishing and carrying 
        out the program.
            (8) A reporting system to measure the effectiveness of the 
        riverine counter-drug program.
            (9) A detailed discussion of how the riverine counter-drug 
        program supports the national drug control strategy of the 
        United States.

SEC. 1034. ANNUAL <<NOTE: 21 USC 1505a.>>  REPORT ON DEVELOPMENT AND 
            DEPLOYMENT OF NARCOTICS DETECTION TECHNOLOGIES.

    (a) Report Requirement.--Not later than December 1st of each year, 
the Director of the Office of National Drug Control Policy shall submit 
to Congress and the President a report on the development and deployment 
of narcotics detection technologies by Federal agencies. Each such 
report shall be prepared in consultation with the Secretary of Defense, 
the Secretary of State, the Secretary of Transportation, and the 
Secretary of the Treasury.
    (b) Matters To Be Included.--Each report under subsection (a) shall 
include--
            (1) a description of each project implemented by a Federal 
        agency relating to the development or deployment of narcotics 
        detection technology;
            (2) the agency responsible for each project described in 
        paragraph (1);
            (3) the amount of funds obligated or expended to carry out 
        each project described in paragraph (1) during the fiscal year 
        in which the report is submitted or during any fiscal year 
        preceding the fiscal year in which the report is submitted;
            (4) the amount of funds estimated to be obligated or 
        expended for each project described in paragraph (1) during any 
        fiscal year after the fiscal year in which the report is 
        submitted to Congress; and
            (5) a detailed timeline for implementation of each project 
        described in paragraph (1).

[[Page 111 STAT. 1885]]

        Subtitle D--Miscellaneous Report Requirements and Repeals

SEC. 1041. REPEAL OF MISCELLANEOUS REPORTING REQUIREMENTS.

    (a) Requirement for Notice of Conversion of Certain Heating Systems 
at Installations in Europe.--Section 2690(b) of title 10, United States 
Code, is amended by striking out ``unless the Secretary--'' and all that 
follows and inserting in lieu 
thereof the following: ``unless the Secretary determines that the 
conversion--
            ``(1) is required by the government of the country in which 
        the facility is located; or
            ``(2) is cost-effective over the life cycle of the 
        facility.''.

    (b) Report on Availability of Suitable Alternative 
Housing.--Section 2823 of title 10, United States Code, is 
amended--
            (1) by striking out subsection (b); and
            (2) by redesignating subsections (c) and (d) as subsections 
        (b) and (c), respectively.

    (c) Report on Stretchout of Major Defense Acquisition Programs.--
Section 117 of the National Defense Authorization Act, Fiscal Year 1989 
(Public Law 100-456; 102 Stat. 1933; 10 U.S.C. 2431 note), is repealed.
    (d) Elimination of Requirement for Quarterly Report Concerning 
Travel Funding for Chemical Demilitarization Citizens' Advisory 
Commissioners.--(1) Section 1412(g) of the National Defense 
Authorization Act for Fiscal Year 1986 (50 U.S.C. 1521(g)) is amended--
            (A) by striking out paragraph (3);
            (B) by striking out the last sentence of paragraph (4); and
            (C) by redesignating paragraph (4) (as so amended) as 
        paragraph (3).

    (2) Section 153(b) of the National Defense Authorization Act for 
Fiscal Year 1996 (50 U.S.C. 1521 note) <<NOTE: 50 USC 1521.>>  is 
amended--
            (A) by striking out ``Quarterly'' in the heading; and
            (B) by striking out paragraphs (4) and (5).

SEC. 1042. STUDY OF TRANSFER OF MODULAR AIRBORNE FIRE FIGHTING SYSTEM.

    Not later than six months after the date of the enactment of this 
Act, the Secretary of Defense, in consultation with the Secretary of 
Agriculture, shall submit to Congress a report evaluating the 
feasibility of transferring jurisdiction over units of the Modular 
Airborne Fire Fighting System from the Department of Agriculture to the 
Department of Defense.

SEC. 1043. OVERSEAS INFRASTRUCTURE REQUIREMENTS.

    (a) Findings.--Congress makes the following findings:
            (1) United States military forces have been withdrawn from 
        the Philippines.
            (2) United States military forces are to be withdrawn from 
        Panama by 2000.
            (3) There continues to be local opposition to the continued 
        presence of United States military forces in Okinawa.

[[Page 111 STAT. 1886]]

            (4) The Quadrennial Defense Review lists ``the loss of U.S. 
        access to critical facilities and lines of communication in key 
        regions'' as one of the so-called ``wild card'' scenarios 
        covered in the review.
            (5) The National Defense Panel states that ``U.S. forces' 
        long-term access to forward bases, to include air bases, ports, 
        and logistics facilities, cannot be assumed''.

    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the President should develop alternatives to the current 
        arrangement for forward basing of the Armed Forces outside the 
        United States, including alternatives to the existing 
        infrastructure for forward basing of forces and alternatives to 
        the existing international agreements that provide for basing of 
        United States forces in foreign countries; and
            (2) because the Pacific Rim continues to emerge as a region 
        of significant economic and military importance to the United 
        States, a continued presence of the Armed Forces in that region 
        is vital to the capability of the United States to timely 
        protect its interests in the region.

    (c) Report Required.--Not later than March 31, 1998, the Secretary 
of Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives a 
report on the overseas infrastructure requirements of the Armed Forces.
    (d) Content.--The report shall contain the following:
            (1) The quantity and types of forces that the United States 
        must station in each region of the world in order to support the 
        current national military strategy of the United States.
            (2) The quantity and types of forces that the United States 
        will need to station in each region of the world in order to 
        meet the expected or potential future threats to the national 
        security interests of the United States.
            (3) The requirements for access to, and use of, air space 
        and ground maneuver areas in each such region for training for 
        the quantity and types of forces identified for the region 
        pursuant to paragraphs (1) and (2).
            (4) A list of the international agreements, currently in 
        force, that the United States has entered into with foreign 
        countries regarding the basing of United States forces in those 
        countries and the dates on which the agreements expire.
            (5) A discussion of any anticipated political opposition or 
        other opposition to the renewal of any of those international 
        agreements.
            (6) A discussion of future overseas basing requirements for 
        United States forces, taking into account expected changes in 
        national security strategy, national security environment, and 
        weapons systems.
            (7) The expected costs of maintaining the overseas 
        infrastructure for foreign based forces of the United States, 
        including the costs of constructing any new facilities that will 
        be necessary overseas to meet emerging requirements relating to 
        the national security interests of the United States.

    (e) Form of Report.--The report may be submitted in a classified or 
unclassified form.

[[Page 111 STAT. 1887]]

SEC. 1044. ADDITIONAL MATTERS FOR ANNUAL REPORT ON ACTIVITIES OF THE 
            GENERAL ACCOUNTING OFFICE.

    Section 719(b) of title 31, United States Code, is amended by adding 
at the end the following:
    ``(3) The report under subsection (a) shall also include a statement 
of the staff hours and estimated cost of work performed on audits, 
evaluations, investigations, and related work during each of the three 
fiscal years preceding the fiscal year in which the report is submitted, 
stated separately for each division of the General Accounting Office by 
category as follows:
            ``(A) A category for work requested by the chairman of a 
        committee of Congress, the chairman of a subcommittee of such a 
        committee, or any other Member of Congress.
            ``(B) A category for work required by law to be performed by 
        the Comptroller General.
            ``(C) A category for work initiated by the Comptroller 
        General in the performance of the Comptroller General's general 
        responsibilities.''.

SEC. 1045. EYE SAFETY AT SMALL ARMS FIRING RANGES.

    (a) Actions Required.--The Secretary of the Defense shall--
            (1) conduct a study of eye safety at small arms firing 
        ranges of the Armed Forces; and
            (2) develop for the use of the Armed Forces a protocol for 
        reporting eye injuries incurred in small arms firing activities 
        at the ranges.

    (b) Agency Tasking.--The Secretary may delegate authority to carry 
out the responsibilities set forth in subsection (a) to the United 
States Army Center for Health Promotion and Preventive Medicine or any 
other element of the Department of Defense that the Secretary considers 
well qualified to carry out those responsibilities.
    (c) Content of Study.--The study under subsection (a)(1) shall 
include the following:
            (1) An evaluation of the existing policies, procedures, and 
        practices of the Armed Forces regarding medical surveillance of 
        eye injuries resulting from weapons fire at the small arms 
        ranges.
            (2) An examination of the existing policies, procedures, and 
        practices of the Armed Forces regarding reporting on vision 
        safety issues resulting from weapons fire at the small arms 
        ranges.
            (3) Determination of rates of eye injuries, and trends in 
        eye injuries, resulting from weapons fire at the small arms 
        ranges.
            (4) An evaluation of the costs and benefits of a requirement 
        for use of eye protection devices by all personnel firing small 
        arms at the ranges.

    (d) Report.--The Secretary shall submit a report on the activities 
required under this section to the Committees on Armed Services and on 
Veterans' Affairs of the Senate and the Committees on National Security 
and on Veterans' Affairs of the House of Representatives. The report 
shall include--
            (1) the findings resulting from the study under paragraph 
        (1) of subsection (a); and
            (2) the protocol developed under paragraph (2) of such 
        subsection.

[[Page 111 STAT. 1888]]

    (e) Schedule.--(1) The Secretary shall ensure that the study is 
commenced not later than January 1, 1998, and is completed not later 
than six months after the date on which it is commenced.
    (2) The Secretary shall submit the report required under subsection 
(d) not later than 30 days after the completion of the study.

SEC. 1046. REPORTS ON DEPARTMENT OF DEFENSE PROCEDURES FOR INVESTIGATING 
            MILITARY AVIATION ACCIDENTS AND FOR NOTIFYING AND ASSISTING 
            FAMILIES OF VICTIMS.

    (a) Report on Aviation Accident Investigation Procedures.--Not later 
than February 1, 1998, the Secretary of Defense shall submit to Congress 
a report on the advisability of establishing a process for investigating 
Department of Defense aviation accidents that combines accident 
investigation with safety investigation into a single, public 
investigation process, similar to the accident investigation process of 
the National Transportation Safety Board. The report shall include a 
discussion of the advantages and disadvantages of adopting such an 
investigation process.
    (b) Report on Family Assistance.--Not later than April 2, 1998, the 
Secretary of Defense shall submit to Congress a report on assistance 
provided by the Department of Defense to families of casualties among 
military and civilian personnel of the department in the case of 
aviation accidents involving such personnel. The report shall include--
            (1) a discussion of the adequacy and effectiveness of the 
        family notification procedures of the Department of Defense, 
        including the procedures of the military departments; and
            (2) a description of the assistance provided to members of 
        the families of such personnel.

    (c) Report by Department of Defense Inspector General.--Not later 
than December 1, 1997, the Inspector General of the Department of 
Defense shall review the procedures of the Federal Aviation 
Administration and the National Transportation Safety Board for 
providing information and assistance to members of families of 
casualties of nonmilitary aviation accidents and shall submit to 
Congress a report on the review. The report shall include a discussion 
of the following:
            (1) Designation of an experienced non-profit organization to 
        provide assistance in meeting the needs of families of accident 
        casualties.
            (2) An assessment of the system and procedures for 
        providing families with information on accidents and accident 
        investigations.
            (3) Protection of members of families from unwanted 
        solicitations relating to the accident.
            (4) A recommendation regarding whether the procedures 
        reviewed (including the matters discussed under paragraphs (1), 
        (2), and (3)) or similar procedures should be adopted by the 
        Department of Defense for use by the Department in providing 
        information and assistance to members of families of casualties 
        of military aviation accidents and, if the recommendation is not 
        to adopt such procedures, a detailed justification for the 
        recommendation.

    (d) Unclassified Form of Reports.--The reports under this section 
shall be submitted in unclassified form.

[[Page 111 STAT. 1889]]

                Subtitle E--Matters Relating to Terrorism

SEC. 1051. OVERSIGHT <<NOTE: 31 USC 1113 note.>>  OF COUNTERTERRORISM 
            AND ANTITERRORISM ACTIVITIES; REPORT.

    (a) Oversight of Counterterrorism and Antiterrorism Activities.--Not 
later than 120 days after the date of the enactment of this Act, the 
Director of the Office of Management and Budget shall--
            (1) establish a reporting system for executive agencies with 
        respect to the budget and expenditure of funds by such agencies 
        for the purpose of carrying out counterterrorism and 
        antiterrorism programs and activities; and
            (2) using such reporting system, collect information on--
                    (A) the budget and expenditure of funds by executive 
                agencies during the current fiscal year for purposes of 
                carrying out counterterrorism and antiterrorism programs 
                and activities; and
                    (B) the specific programs and activities for which 
                such funds were expended.

    (b) Report.--Not <<NOTE: President.>>  later that March 1 of each 
year, the President shall submit to Congress a report in classified and 
unclassified form (using the information described in subsection (a)(2)) 
describing, for each executive agency and for the executive branch as a 
whole, the following:
            (1) The amounts proposed to be expended for counterterrorism 
        and antiterrorism programs and activities for the fiscal year 
        beginning in the calendar year in which the report is submitted.
            (2) The amounts proposed to be expended for counterterrorism 
        and antiterrorism programs and activities for the fiscal year in 
        which the report is submitted and the amounts that have already 
        been expended for such programs and activities for that fiscal 
        year.
            (3) The specific counterterrorism and antiterrorism programs 
        and activities being implemented, any priorities with respect to 
        such programs and activities, and whether there has been any 
        duplication of efforts in implementing such programs and 
        activities.

SEC. 1052. PROVISION <<NOTE: 10 USC 113 note.>>  OF ADEQUATE TROOP 
            PROTECTION EQUIPMENT FOR ARMED FORCES PERSONNEL ENGAGED IN 
            PEACE OPERATIONS; REPORT ON ANTITERRORISM ACTIVITIES AND 
            PROTECTION OF PERSONNEL.

    (a) Protection of Personnel.--The Secretary of Defense shall take 
appropriate actions to ensure that units of the Armed Forces engaged in 
a peace operation are provided adequate troop protection equipment for 
that operation.
    (b) Specific Actions.--In taking actions under subsection (a), the 
Secretary shall--
            (1) identify the additional troop protection equipment, if 
        any, required to equip a division (or the equivalent of a 
        division) with adequate troop protection equipment for peace 
        operations; and
            (2) establish <<NOTE: Regulations.>>  procedures to 
        facilitate the exchange or transfer of troop protection 
        equipment among units of the Armed Forces.

[[Page 111 STAT. 1890]]

    (c) Designation of Responsible Official.--The Secretary of Defense 
shall designate an official within the Department of Defense to be 
responsible for--
            (1) ensuring the appropriate allocation of troop protection 
        equipment among the units of the Armed Forces engaged in peace 
        operations; and
            (2) monitoring the availability, status or condition, and 
        location of such equipment.

    (d) Troop Protection Equipment Defined.--In this section, the term 
``troop protection equipment'' means the equipment required by units of 
the Armed Forces to defend against any hostile threat that is likely 
during a peace operation, including an attack by a hostile crowd, small 
arms fire, mines, and a terrorist bombing attack.
    (e) Report on Antiterrorism Activities of the Department of Defense 
and Protection of Personnel.--Not later than 120 days after the date of 
the enactment of this Act, the Secretary of Defense shall submit to 
Congress a report, in classified and unclassified form, on antiterrorism 
activities of the Department of Defense and the actions taken by the 
Secretary under subsections (a), (b), and (c). The report shall include 
the following:
            (1) A description of the programs designed to carry out 
        antiterrorism activities of the Department of Defense, any 
        deficiencies in those programs, and any actions taken by the 
        Secretary to improve implementation of such programs.
            (2) An assessment of the current policies and practices of 
        the Department of Defense with respect to the protection of 
        members of the Armed Forces overseas against terrorist attack, 
        including any modifications to such policies or practices that 
        are proposed or implemented as a result of the assessment.
            (3) An assessment of the procedures of the Department of 
        Defense for determining accountability, if any, in the command 
        structure of the Armed Forces in instances in which a terrorist 
        attack results in the loss of life at an overseas military 
        installation or facility.
            (4) A detailed description of the roles of the Office of the 
        Secretary of Defense, the Chairman of the Joint Chiefs of Staff, 
        the Secretaries of the military departments, and the combatant 
        commanders in providing guidance and support with respect to the 
        protection of members of the Armed Forces deployed overseas 
        against terrorist attack (both before and after the November 
        1995 bombing in Riyadh, Saudi Arabia) and how these roles have 
        changed since the June 25, 1996, terrorist bombing at Khobar 
        Towers in Dhahran, Saudi Arabia.
            (5) A description of the actions taken by the Secretary of 
        Defense under subsections (a), (b), and (c) to provide adequate 
        troop protection equipment for units of the Armed Forces engaged 
        in a peace operation.

[[Page 111 STAT. 1891]]

            Subtitle F--Matters Relating to Defense Property

SEC. 1061. LEASE OF NON-EXCESS PERSONAL PROPERTY OF MILITARY 
            DEPARTMENTS.

    (a) Receipt of Fair Market Value.--Subsection (b)(4) of section 2667 
of title 10, United States Code, is amended by striking out ``, in the 
case of the lease of real property,''.
    (b) Competitive Selection.--Such section is further 
amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f) the following new 
        subsection:

    ``(g)(1) If a proposed lease under subsection (a) involves only 
personal property, the lease term exceeds one year, and the fair market 
value of the lease interest exceeds $100,000, as determined by the 
Secretary concerned, the Secretary shall use competitive procedures to 
select the lessee.
    ``(2) Not <<NOTE: Notice.>>  later than 45 days before entering into 
a lease described in paragraph (1), the Secretary concerned shall submit 
to Congress written notice describing the terms of the proposed lease 
and the competitive procedures used to select the lessee.''.

    (c) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

``Sec. 2667. Leases: non-excess property of military departments''.

    (2) The table of sections at the beginning of chapter 159 of title 
10, United States Code, is amended by striking out the item relating to 
section 2667 and inserting in lieu thereof the following new item:

``2667. Leases: non-excess property of military departments.''.

    (d) Conforming Amendment.--Section 2490a(f)(2) of title 10, United 
States Code, is amended by striking out ``section 2667(g)'' and 
inserting in lieu thereof ``section 2667(h)''.

SEC. 1062. LEASE OF NON-EXCESS PROPERTY OF DEFENSE AGENCIES.

    (a) Lease Authority.--Chapter 159 of title 10, United States Code, 
is amended by inserting after section 2667 the following new section:

``Sec. 2667a. Leases: non-excess property of Defense agencies

    ``(a) Lease Authority.--Whenever the Secretary of Defense considers 
it advantageous to the United States, the Secretary may lease to such 
lessee and upon such terms as the Secretary considers will promote the 
national defense or to be in the public interest, personal property that 
is--
            ``(1) under the control of a Defense agency;
            ``(2) not for the time needed for public use; and
            ``(3) not excess property, as defined by section 3 of the 
        Federal Property and Administrative Services Act of 1949 (40 
        U.S.C. 472).

    ``(b) Limitation, Terms, and Conditions.--A lease under subsection 
(a)--

[[Page 111 STAT. 1892]]

            ``(1) may not be for more than five years unless the 
        Secretary of Defense determines that a lease for a longer period 
        will promote the national defense or be in the public interest;
            ``(2) may give the lessee the first right to buy the 
        property if the lease is revoked to allow the United States to 
        sell the property under any other provision of law;
            ``(3) shall permit the Secretary to revoke the lease at any 
        time, unless the Secretary determines that the omission of such 
        a provision will promote the national defense or be in the 
        public interest;
            ``(4) shall provide for the payment (in cash or in kind) by 
        the lessee of consideration in an amount that is not less than 
        the fair market value of the lease interest, as determined by 
        the Secretary; and
            ``(5) may provide, notwithstanding any other provision of 
        law, for the improvement, maintenance, protection, repair, 
        restoration, or replacement by the lessee, of the property 
        leased as the payment of part or all of the consideration for 
        the lease.

    ``(c) Competitive Selection.--(1) If the term of a proposed lease 
under subsection (a) exceeds one year and the fair market value of the 
lease interest exceeds $100,000, as determined by the Secretary of 
Defense, the Secretary shall use competitive procedures to select the 
lessee.
    ``(2) Not later <<NOTE: Notice.>>  than 45 days before entering into 
a lease described in paragraph (1), the Secretary shall submit to 
Congress a written notice describing the terms of the proposed lease and 
the competitive procedures used to select the lessee.

    ``(d) Disposition of Money Rent.--Money rentals received pursuant to 
a lease entered into by the Secretary of Defense under subsection (a) 
shall be deposited in a special account in the Treasury established for 
the Defense agency whose property is subject to the lease. Amounts in a 
Defense agency's special account shall be available, to the extent 
provided in appropriations Acts, solely for the maintenance, repair, 
restoration, or replacement of the leased property.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2667 the following new item:

``2667a. Leases: non-excess property of Defense agencies.''.

SEC. 1063. DONATION OF EXCESS CHAPEL PROPERTY TO CHURCHES DAMAGED OR 
            DESTROYED BY ARSON OR OTHER ACTS OF TERRORISM.

    (a) Authority To Donate.--Chapter 153 of title 10, United States 
Code, is amended by adding at the end the following new section:

``Sec. 2580. Donation of excess chapel property

    ``(a) Authority To Donate.--The Secretary of a military department 
may donate personal property specified in subsection (b) to an 
organization described in section 501(c)(3) of the Internal Revenue Code 
of 1986 that is a religious organization in order to assist the 
organization in restoring or replacing property of the organization that 
has been damaged or destroyed as a result of an act of arson or 
terrorism, as determined pursuant to procedures prescribed by the 
Secretary of Defense.

[[Page 111 STAT. 1893]]

    ``(b) Property Covered.--(1) The property authorized to be donated 
under subsection (a) is furniture and other personal property that--
            ``(A) is in, or was formerly in, a chapel under the 
        jurisdiction of the Secretary of a military department and 
        closed or being closed; and
            ``(B) is determined by the Secretary to be excess to the 
        requirements of the armed forces.

    ``(2) No real property may be donated under this section.
    ``(c) Donees Not To Be Charged.--No charge may be imposed by the 
Secretary of a military department on a donee of property under this 
section in connection with the donation. However, the donee shall agree 
to defray any expense for shipping or other transportation of property 
donated under this section from the location of the property when 
donated to any other location.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2580. Donation of excess chapel property.''.

SEC. 1064. AUTHORITY OF THE SECRETARY OF DEFENSE CONCERNING DISPOSAL OF 
            ASSETS UNDER COOPERATIVE AGREEMENTS ON AIR DEFENSE IN 
            CENTRAL EUROPE.

    (a) General Authorities.--The Secretary of Defense, pursuant to an 
amendment or amendments to the European air defense agreements, may 
dispose of any defense articles owned by the United States and acquired 
to carry out such agreements by providing such articles to the Federal 
Republic of Germany. In carrying out such disposal, the Secretary--
            (1) may provide without monetary charge to the Federal 
        Republic of Germany articles specified in the agreements; and
            (2) may accept from the Federal Republic of Germany (in 
        exchange for the articles provided under paragraph (1)) 
        articles, services, or any other consideration, as determined 
        appropriate by the Secretary.

    (b) Definition of European Air Defense Agreements.--For the purposes 
of this section, the term ``European air defense agreements'' means--
            (1) the agreement entitled ``Agreement between the Secretary 
        of Defense of the United States of America and the Minister of 
        Defense of the Federal Republic of Germany on Cooperative 
        Measures for Enhancing Air Defense for Central Europe'', signed 
        on December 6, 1983; and
            (2) the agreement entitled ``Agreement between the Secretary 
        of Defense of the United States of America and the Minister of 
        Defense of the Federal Republic of Germany in implementation of 
        the 6 December 1983 Agreement on Cooperative Measures for 
        Enhancing Air Defense for Central Europe'', signed on July 12, 
        1984.

SEC. 1065. SALE OF EXCESS, OBSOLETE, OR UNSERVICEABLE AMMUNITION AND 
            AMMUNITION COMPONENTS.

    (a) Authority.--(1) Chapter 443 of title 10, United States Code, is 
amended by adding at the end the following new section:

[[Page 111 STAT. 1894]]

``Sec. 4687. Sale of excess, obsolete, or unserviceable ammunition and 
                        ammunition components

    ``(a) Authority To Sell Outside DoD.--The Secretary of the Army may 
sell to an eligible purchaser described in subsection (c) ammunition or 
ammunition components that are excess, obsolete, or unserviceable and 
have not been demilitarized if--
            ``(1) the purchaser enters into an agreement, in advance, 
        with the Secretary--
                    ``(A) to demilitarize the ammunition or components; 
                and
                    ``(B) to reclaim, recycle, or reuse the component 
                parts or materials; or
            ``(2) the Secretary, or an official of the Department of the 
        Army designated by the Secretary, approves the use of the 
        ammunition or components proposed by the purchaser as being 
        consistent with the public interest.

    ``(b) Method of Sale.--The Secretary shall use competitive 
procedures to sell ammunition and ammunition components under this 
section, except that the Secretary may use procedures other than 
competitive procedures in any case in which the Secretary determines 
that there is only one potential buyer of the items being offered for 
sale.
    ``(c) Eligible Purchasers.--To be eligible to purchase excess, 
obsolete, or unserviceable ammunition or ammunition components under 
this section, the purchaser shall be a licensed manufacturer (as defined 
in section 921(10) of title 18) that, as determined by the Secretary, 
has a capability to modify, reclaim, transport, and either store or sell 
the ammunition or ammunition components sought to be purchased.
    ``(d) Hold Harmless Agreement.--The Secretary shall require a 
purchaser of ammunition or ammunition components under this section to 
agree to hold harmless and indemnify the United States from any claim 
for damages for death, injury, or other loss resulting from a use of the 
ammunition or ammunition components, except in a case of willful 
misconduct or gross negligence of a representative of the United States.
    ``(e) Verification <<NOTE: Regulations.>>  of Demilitarization.--The 
Secretary shall establish procedures for ensuring that a purchaser of 
ammunition or ammunition components under this section demilitarizes the 
ammunition or ammunition components in accordance with any agreement to 
do so under subsection (a)(1). The procedures shall include onsite 
verification of demilitarization activities.

    ``(f) Consideration.--The Secretary may accept ammunition, 
ammunition components, or ammunition demilitarization services as 
consideration for ammunition or ammunition components sold under this 
section. The fair market value of any such consideration shall be equal 
to or exceed the fair market value or, if higher, the sale price of the 
ammunition or ammunition components sold.
    ``(g) Relationship to Arms Export Control Act.--Nothing in this 
section shall be construed to affect the applicability of section 38 of 
the Arms Export Control Act (22 U.S.C. 2778) to sales of ammunition or 
ammunition components on the United States Munitions List.
    ``(h) Definitions.--In this section:
            ``(1) The term `excess, obsolete, or unserviceable', with 
        respect to ammunition or ammunition components, means that

[[Page 111 STAT. 1895]]

        the ammunition or ammunition components are no longer necessary 
        for war reserves or for support of training of the Army or 
        production of ammunition or ammunition components.
            ``(2) The term `demilitarize', with respect to ammunition or 
        ammunition components--
                    ``(A) means to destroy the military offensive or 
                defensive advantages inherent in the ammunition or 
                ammunition components; and
                    ``(B) includes any mutilation, scrapping, melting, 
                burning, or alteration that prevents the use of the 
                ammunition or ammunition components for the military 
                purposes for which the ammunition or ammunition 
                components was designed or for a lethal purpose.''.

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

``4687. Sale of excess, obsolete, or unserviceable ammunition and 
           ammunition components.''.

    (b) Review <<NOTE: 10 USC 4687 note.>>  of Initial Sales.--(1) For 
each of the first three fiscal years during which the Secretary of the 
Army sells ammunition or ammunition components under the authority of 
section 4687 of title 10, United States Code, as added by subsection 
(a), the Director of the Army Audit Agency shall conduct a review of 
sales under such section to ensure that--
            (A) purchasers that enter into an agreement under subsection 
        (a)(1) of such section to demilitarize the purchased ammunition 
        or ammunition components fully comply with the agreement; and
            (B) purchasers that are authorized under subsection (a)(2) 
        of such section to use the purchased ammunition or ammunition 
        components actually use the ammunition or ammunition components 
        in the manner proposed.

    (2) Not <<NOTE: Reports.>>  later than 180 days after the end of 
each fiscal year in which the review is conducted, the Secretary of the 
Army shall submit to Congress a report containing the results of the 
review for the fiscal year covered by the report.

SEC. 1066. TRANSFER <<NOTE: California.>>  OF B-17 AIRCRAFT TO MUSEUM.

    (a) Authority.--The Secretary of the Air Force may convey, without 
consideration to the Planes of Fame Museum, Chino, California (in this 
section referred to as the ``museum''), all right, title, and interest 
of the United States in and to the B-17 aircraft known as the 
``Picadilly Lilly'', an aircraft that has been in the possession of the 
museum since 1959. Such a 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 museum 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 Transfer of Ownership or Possession.--The 
Secretary shall include in the instrument of conveyance of the 
aircraft--

[[Page 111 STAT. 1896]]

            (1) a condition that the museum not convey any ownership 
        interest in, or transfer possession of, the aircraft to any 
        other party without the prior approval of the Secretary of the 
        Air Force; and
            (2) a condition that if the Secretary of the Air Force 
        determines at any time that the museum has conveyed an ownership 
        interest in, or transferred possession of, the aircraft to any 
        other party without the prior approval of the Secretary, 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 
authorized by this section shall be made at no cost to the United 
States. Any costs associated with such conveyance, including costs of 
determining compliance with subsection (b), shall be borne by the 
museum.
    (e) Additional Terms and Conditions.--The Secretary of the Air Force 
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 conveyance of ownership of the B-17 aircraft specified in 
subsection (a) to the museum, 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.

SEC. 1067. REPORT ON DISPOSAL OF EXCESS AND SURPLUS MATERIALS.

    (a) Report Required.--Not later than January 31, 1998, the Secretary 
of Defense shall submit to Congress a report on the actions that have 
been taken or are planned to be taken within the Department of Defense 
to address problems with the sale or other disposal of materials that 
are excess or surplus to the needs of the Department of Defense.
    (b) Required Content.--At a minimum, the report shall address the 
following issues:
            (1) The effort to standardize the coding of military 
        equipment for demilitarization at all stages of the process, 
        from initial acquisition through disposal.
            (2) The changes underway to improve the methods used for the 
        demilitarization of military equipment.
            (3) Recent efforts to improve the accuracy of coding 
        performed by Government employees and contractor employees.
            (4) Recent efforts to improve the enforcement of the 
        penalties that are applicable to Government employees and 
        contractor employees who fail to comply with rules or procedures 
        applicable to the demilitarization of military equipment.
            (5) The methods of oversight and enforcement used by the 
        Department of Defense to review the demilitarization of military 
        equipment by the purchasers of the equipment.
            (6) The current and planned controls designed to prevent the 
        inappropriate transfer of excess military equipment outside the 
        United States.
            (7) The current procedures used by the Department, including 
        repurchase, to recover military equipment that is sold or

[[Page 111 STAT. 1897]]

        otherwise disposed of without appropriate action having been 
        taken to demilitarize the equipment or to provide for 
        demilitarization of the equipment.
            (8) The legislative changes, if any, that would be necessary 
        to improve the recovery rate under the procedures identified 
        under paragraph (7).

    (c) Identification of Frequent Errors and Misuse.--Based on fiscal 
year 1997 findings, the Secretary of Defense shall identify in the 
report--
            (1) the 50 categories of military equipment that most 
        frequently received an erroneous demilitarization code; and
            (2) the categories of military equipment that are 
        particularly vulnerable to improper use after disposal.

                        Subtitle G--Other Matters

SEC. 1071. AUTHORITY FOR SPECIAL AGENTS OF THE DEFENSE CRIMINAL 
            INVESTIGATIVE SERVICE TO EXECUTE WARRANTS AND MAKE ARRESTS.

    (a) Authority.--Chapter 81 of title 10, United States Code, is 
amended by inserting after section 1585 the following new section:

``Sec. 1585a. Special agents of the Defense Criminal Investigative 
                        Service: authority to execute warrants and make 
                        arrests

    ``(a) Authority.--The Secretary of Defense may authorize any DCIS 
special agent described in subsection (b)--
            ``(1) to execute and serve any warrant or other process 
        issued under the authority of the United States; and
            ``(2) to make arrests without a warrant--
                    ``(A) for any offense against the United States 
                committed in the presence of that agent; and
                    ``(B) for any felony cognizable under the laws of 
                the United States if the agent has probable cause to 
                believe that the person to be arrested has committed or 
                is committing the felony.

    ``(b) Agents To <<NOTE: Applicability.>>  Have Authority.--
Subsection (a) applies to any DCIS special agent whose duties include 
conducting, supervising, or coordinating investigations of criminal 
activity in programs and operations of the Department of Defense.

    ``(c) Guidelines on Exercise of Authority.--The authority provided 
under subsection (a) shall be exercised in accordance with guidelines 
prescribed by the Inspector General of the Department of Defense and 
approved by the Attorney General and any other applicable guidelines 
prescribed by the Secretary of Defense or the Attorney General.
    ``(d) DCIS Special Agent Defined.--In this section, the term `DCIS 
special agent' means an employee of the Department of Defense who is a 
special agent of the Defense Criminal Investigative Service (or any 
successor to that service).''.

[[Page 111 STAT. 1898]]

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1585 the following new item:

``1585a. Special agents of the Defense Criminal Investigative Service: 
           authority to execute warrants and make arrests.''.

SEC. 1072. STUDY <<NOTE: 10 USC 113 note.>>  OF INVESTIGATIVE PRACTICES 
            OF MILITARY CRIMINAL INVESTIGATIVE ORGANIZATIONS RELATING TO 
            SEX CRIMES.

    (a) Independent Study Required.--(1) The Secretary of Defense shall 
provide for an independent study of the policies, procedures, and 
practices of the military criminal investigative organizations for the 
conduct of investigations of complaints of sex crimes and other criminal 
sexual misconduct arising in the Armed Forces.
    (2) The Secretary shall provide for the study to be conducted by the 
National Academy of Public Administration. The amount of a contract for 
the study may not exceed $2,000,000.
    (3) The Secretary shall require that all components of the 
Department of Defense cooperate fully with the organization carrying out 
the study.
    (b) Matters To Be Included in Study.--The Secretary shall require 
that the organization conducting the study under this section 
specifically consider each of the following matters:
            (1) The need (if any) for greater organizational 
        independence and autonomy for the military criminal 
        investigative organizations than exists under current chain-of-
        command structures within the military departments.
            (2) The authority of each of the military criminal 
        investigative organizations to investigate allegations of sex 
        crimes and other criminal sexual misconduct and the policies of 
        those organizations for carrying out such investigations.
            (3) The training (including training in skills and 
        techniques related to the conduct of interviews) provided by 
        each of those organizations to agents or prospective agents 
        responsible for conducting or providing support to 
        investigations of alleged sex crimes and other criminal sexual 
        misconduct, including--
                    (A) the extent to which that training is comparable 
                to the training provided by the Federal Bureau of 
                Investigation and other civilian law enforcement 
                agencies; and
                    (B) the coordination of training and investigative 
                policies related to alleged sex crimes and other 
                criminal sexual misconduct of each of those 
                organizations with the Federal Bureau of Investigation 
                and other civilian Federal law enforcement agencies.
            (4) The procedures and relevant professional standards of 
        each military criminal investigative organization with regard to 
        recruitment and hiring of agents, including an evaluation of the 
        extent to which those procedures and standards provide for--
                    (A) sufficient screening of prospective agents based 
                on background investigations; and
                    (B) obtaining sufficient information about the 
                qualifications and relevant experience of prospective 
                agents.
            (5) The advantages and disadvantages of establishing, within 
        each of the military criminal investigative organizations or 
        within the Defense Criminal Investigative Service only, a

[[Page 111 STAT. 1899]]

        special unit for the investigation of alleged sex crimes and 
        other criminal sexual misconduct.
            (6) The clarity of guidance for, and consistency of 
        investigative tactics used by, each of the military criminal 
        investigative organizations for the investigation of alleged sex 
        crimes and other criminal sexual misconduct, together with a 
        comparison with the guidance and tactics used by the Federal 
        Bureau of Investigation and other civilian law enforcement 
        agencies for such investigations.
            (7) The number of allegations of agent misconduct in the 
        investigation of sex crimes and other criminal sexual misconduct 
        for each of those organizations, together with a comparison with 
        the number of such allegations concerning agents of the Federal 
        Bureau of Investigation and other civilian law enforcement 
        agencies for such investigations.
            (8) The procedures of each of the military criminal 
        investigative organizations for administrative identification 
        (known as ``titling'') of persons suspected of committing sex 
        crimes or other criminal sexual misconduct, together with a 
        comparison with the comparable procedures of the Federal Bureau 
        of Investigation and other civilian Federal law enforcement 
        agencies for such investigations.
            (9) The accuracy, timeliness, and completeness of reporting 
        of sex crimes and other criminal sexual misconduct by each of 
        the military criminal investigative organizations to the 
        National Crime Information Center maintained by the Department 
        of Justice.
            (10) Any recommendation for legislation or administrative 
        action to revise the organizational or operational arrangements 
        of the military criminal investigative organizations or to alter 
        recruitment, training, or operational procedures, as they 
        pertain to the investigation of sex crimes and other criminal 
        sexual misconduct.

    (c) Report.--(1) The Secretary of Defense shall require the 
organization conducting the study under this section to submit to the 
Secretary a report on the study not later than one year after the date 
of the enactment of this Act. The organization shall include in the 
report its findings and conclusions concerning each of the matters 
specified in subsection (b).
    (2) The Secretary shall submit the report under paragraph (1), 
together with the Secretary's comments on the report, to Congress not 
later than 30 days after the date on which the report is submitted to 
the Secretary under paragraph (1).
    (d) Military Criminal Investigative Organization Defined.--For the 
purposes of this section, the term ``military criminal investigative 
organization'' means any of the following:
            (1) The Army Criminal Investigation Command.
            (2) The Naval Criminal Investigative Service.
            (3) The Air Force Office of Special Investigations.
            (4) The Defense Criminal Investigative Service.

    (e) Criminal Sexual Misconduct Defined.--For the purposes of this 
section, the term ``criminal sexual misconduct'' means conduct by a 
member of the Armed Forces involving sexual abuse, sexual harassment, or 
other sexual misconduct that constitutes an offense under the Uniform 
Code of Military Justice.

[[Page 111 STAT. 1900]]

SEC. 1073. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
            (1) The tables of chapters at the beginning of subtitle A, 
        and at the beginning of part I of subtitle A, are each amended 
        by striking out ``471'' in the item relating to chapter 23 and 
        inserting in lieu thereof ``481''.
            (2) The tables of chapters at the beginning of subtitle A, 
        and at the beginning of part IV of subtitle A, are each amended 
        by striking out ``2540'' in the item relating to chapter 152 and 
        inserting in lieu thereof ``2541''.
            (3) Section 116(b)(2) is amended by striking out ``such 
        subsection'' and inserting in lieu thereof ``subsection (a)''.
            (4) Section 129c(e)(1) is amended by striking out ``section 
        115a(g)(2)'' and inserting in lieu thereof ``section 
        115a(e)(2)''.
            (5) Section 193(d)(1) is amended by striking out 
        ``performs'' and inserting in lieu thereof ``perform''.
            (6) Section 382(g) is amended by striking out ``the date of 
        the enactment of the National Defense Authorization Act for 
        Fiscal Year 1997'' and inserting in lieu thereof ``September 23, 
        1996''.
            (7) Section 443(b)(1) is amended by striking out the period 
        at the end and inserting in lieu thereof a semicolon.
            (8) Section 445 is amended--
                    (A) by striking ``(1)'' before ``Except with'';
                    (B) by redesignating subparagraphs (A), (B), and (C) 
                as paragraphs (1), (2), and (3), respectively;
                    (C) by striking ``(2)'' before ``Whenever it 
                appears'' and inserting ``(b) Injunctive Relief.--''; 
                and
                    (D) by striking out ``paragraph (1)'' and inserting 
                in lieu thereof ``subsection (a)''.
            (9) Section 858b(a)(1) is amended in the first sentence by 
        striking out ``forfeiture'' and all that follows through ``due 
        that member'' and inserting in lieu thereof ``forfeiture of pay, 
        or of pay and allowances, due that member''.
            (10) The item relating to section 895 (article 95) in the 
        table of sections at the beginning of subchapter X of chapter 47 
        is amended by striking out ``Art.''.
            (11) Section 943(c) is amended--
                    (A) by capitalizing the initial letter of the third 
                word of the subsection heading;
                    (B) in the second sentence, by striking out 
                ``Court'' and inserting in lieu thereof ``court''; and
                    (C) in the third sentence, by striking out ``such 
                positions'' and inserting in lieu thereof ``positions 
                referred to in the preceding sentences''.
            (12) Section 954 is amended by striking out ``this'' and 
        inserting in lieu thereof ``his''.
            (13) Section 971(b)(4) is amended by capitalizing the first 
        letter of the fifth and sixth words.
            (14) Section 972(b) is amended by striking out ``the date of 
        the enactment of the National Defense Authorization Act for 
        Fiscal Year 1996'' in the matter preceding paragraph (1) and 
        inserting in lieu thereof ``February 10, 1996''.
            (15) Section 976(f) is amended by striking out ``shall,'' 
        and all that follows and inserting in lieu thereof ``shall be 
        fined under title 18 or imprisoned not more than 5 years, or 
        both,

[[Page 111 STAT. 1901]]

        except that, in the case of an organization (as defined in 
        section 18 of such title), the fine shall not be less than 
        $25,000.''.
            (16) Section 977 is amended--
                    (A) in subsection (c), by striking out ``Beginning 
                on October 1, 1996, not more than'' and inserting in 
                lieu thereof ``Not more than''; and
                    (B) in subsection (d)(2), by striking out ``before 
                October 1, 1996,'' and all that follows through ``so 
                assigned'' the second place it appears.
            (17) Section 1078a(g)(4)(B)(iii)(II) is amended by striking 
        out ``section 1447(8)'' and inserting in lieu thereof ``section 
        1447(13)''.
            (18) Section 1129(c) is amended--
                    (A) by striking out ``the date of the enactment of 
                this section,'' and inserting in lieu thereof ``November 
                30, 1993,''; and
                    (B) by striking out ``before the date of the 
                enactment of this section or'' and inserting in lieu 
                thereof ``before such date or''.
            (19) Section 1151(b) is amended by capitalizing the first 
        letter of the second word in the subsection heading.
            (20) Section 1152(g) is amended by inserting ``(1)'' before 
        ``The Secretary may''.
            (21) Section 1143(d) is amended by striking out ``section 
        806(a)(2) of the Military Family Act of 1985'' and inserting in 
        lieu thereof ``section 1784(a)(2) of this title''.
            (22) Section 1174(a)(1) is amended by striking out ``, 
        1177,''.
            (23) Section 1406 is amended--
                    (A) by striking out ``3962(b)'' in footnote number 3 
                in the table in subsection (b)(1) and in footnote number 
                1 in the table in subsection (c)(1) and inserting in 
                lieu thereof ``3962''; and
                    (B) by striking out ``8962(b)'' in footnote number 3 
                in the table in subsection (b)(1) and in footnote number 
                1 in the table in subsection (e)(1) and inserting in 
                lieu thereof ``8962''.
            (24) Section 1408(d) is amended--
                    (A) by decapitalizing the first letter of the fifth 
                word in the subsection heading;
                    (B) by redesignating the second paragraph (6) as 
                paragraph (7); and
                    (C) in paragraph (7), as so redesignated, by 
                striking out ``out-of State'' in subparagraph (A) and 
                inserting in lieu thereof ``out-of-State''.
            (25) Section 1408(g) is amended by decapitalizing the first 
        letter of the second and ninth words in the subsection heading.
            (26) Section 1444a(b) is amended by striking out ``section 
        1455(c)'' and inserting in lieu thereof ``section 1455(d)(2)''.
            (27) Section 1448 is amended by capitalizing the first 
        letter of the third word of the section heading.
            (28) Section 1451(a)(2) is amended by inserting a period in 
        the paragraph heading before the one-em dash.
            (29) Section 1452 is amended--
                    (A) in subsection (a)(1)(A), by striking out 
                ``providing'' in the matter preceding clause (i) and 
                inserting in lieu thereof ``provided''; and

[[Page 111 STAT. 1902]]

                    (B) in subsection (e), by striking out ``section 
                8339(i)'' and ``section 8331(b)'' and inserting in lieu 
                thereof ``section 8339(j)'' and ``section 8341(b)'', 
                respectively.
            (30) Section 1504(i)(1) is amended by striking out ``this 
        subsection'' and inserting in lieu thereof ``this section''.
            (31) Section 1599c(c)(1)(F) is amended by striking out 
        ``Sections 106(f)'' and inserting in lieu thereof ``Sections 
        106(e)''.
            (32) Section 1613(a) is amended by striking out ``1604'' and 
        inserting in lieu thereof ``1603''.
            (33) Section 1763 is amended--
                    (A) by striking out ``On and after October 1, 1993, 
                the Secretary of Defense'' and inserting in lieu thereof 
                ``The Secretary of Defense''; and
                    (B) by striking out ``secretaries'' and inserting in 
                lieu thereof ``Secretaries''.
            (34) Section 1792 is amended--
                    (A) in subsection (a)(1), by striking out the comma 
                after ``implementing''; and
                    (B) in subsection (d)(2), by striking out ``section 
                1794'' and inserting in lieu thereof ``section 1784''.
            (35) Section 2010(e) is repealed.
            (36) Section 2107a(g) is amended by inserting ``the'' after 
        ``August 1, 1979, as a member of''.
            (37) Section 2109(c)(1)(A) is amended by striking out 
        ``section 2106(b)(6)'' and inserting in lieu thereof ``section 
        2104(b)(6)''.
            (38) Section 2114(h) is amended by striking out ``section 
        2123(e)(1)'' and inserting in lieu thereof ``section 2123(e)''.
            (39) Section 2198(c) is amended by striking out ``identified 
        in'' and all that follows through the period at the end and 
        inserting in lieu thereof ``that is identified under section 
        2505 of this title as critical for attaining the national 
        security objectives set forth in section 2501(a) of this 
        title.''.
            (40) Section 2249a(a)(1) is amended by striking out ``50 
        App. 2405(j)'' and inserting in lieu thereof ``50 U.S.C. App. 
        2405(j)(1)(A)''.
            (41) Section 2302d(a)(2) is amended by striking out 
        ``procurement of'' and inserting in lieu thereof ``procurement 
        for the system is estimated to be''.
            (42) Section 2304(c)(5) is amended by striking out 
        ``subsection (j)'' and inserting in lieu thereof ``subsection 
        (k)''.
            (43) Section 2304(f) is amended--
                    (A) in paragraph (1)(B)(iii), by striking out 
                ``(6)(C)'' and inserting in lieu thereof ``(6)(B)''; and
                    (B) in paragraph (6)--
                          (i) by striking out subparagraph (B); and
                          (ii) by redesignating subparagraph (C) as 
                      subparagraph (B) and in that subparagraph by 
                      striking out ``paragraph (1)(B)(iv)'' and 
                      inserting in lieu thereof ``paragraph 
                      (1)(B)(iii)''.
            (44) Section 2305a(a) is amended by striking out ``(41 
        U.S.C.'' and inserting in lieu thereof ``(40 U.S.C.''.
            (45) Section 2306(h) is amended by inserting ``for the 
        purchase of property'' after ``Multiyear contracting 
        authority''.
            (46) Section 2306a(a)(5) is amended by striking out 
        ``subsection (b)(1)(B)'' and inserting in lieu thereof 
        ``subsection (b)(1)(C)''.

[[Page 111 STAT. 1903]]

            (47) Section 2306b is amended by striking out ``this 
        subsection'' in the first sentence of subsection (k) and 
        inserting in lieu thereof ``this section''.
            (48)(A) The heading of section 2306b is amended to read as 
        follows:

``Sec. 2306b. Multiyear contracts: acquisition of property''.

            (B) The item relating to such section in the table of 
        sections at the beginning of chapter 137 is amended to read as 
        follows:

``2306b. Multiyear contracts: acquisition of property.''.

            (49) Section 2315(a) is amended by striking out ``the 
        Information Technology Management Reform Act of 1996'' and 
        inserting in lieu thereof ``division E of the Clinger-Cohen Act 
        of 1996 (40 U.S.C. 1401 et seq.)''.
            (50) Section 2371a is amended by inserting ``Defense'' 
        before ``Advanced Research Projects Agency''.
            (51) Section 2375(c) is amended--
                    (A) by striking out ``provisions relating to 
                exceptions'' and inserting in lieu thereof ``a provision 
                relating to an exception''; and
                    (B) by striking out ``section 2306a(d)'' and 
                inserting in lieu thereof ``section 2306a(b)''.
            (52) Section 2401a(a) is amended by striking out ``leasing 
        of such vehicles'' and inserting in lieu thereof ``such 
        leasing''.
            (53) Section 2491(8) is amended by striking out ``that 
        appears'' and all that follows through the period at the end and 
        inserting in lieu thereof ``that is identified under section 
        2505 of this title as critical for attaining the national 
        security objectives set forth in section 2501(a) of this 
        title.''.
            (54) Section 2533(a) is amended by striking out the first 
        closing parenthesis after ``41 U.S.C. 10a''.
            (55) Section 2534(b)(3) is amended by striking out 
        ``(a)(3)(A)(ii)'' and inserting in lieu thereof 
        ``(a)(3)(A)(iii)''.
            (56) Section 2554(c)(1) is amended by striking out ``the 
        date of the enactment of this Act'' and inserting in lieu 
        thereof ``September 23, 1996''.
            (57) Section 2645(a)(1)(B) is amended by striking out ``on 
        which'' after ``the date on which''.
            (58) Section 2684(b) is amended by striking out ``, United 
        States Code,''.
            (59) Section 2694(b)(1)(D) is amended by striking out 
        ``executive ageny'' and inserting in lieu thereof ``executive 
        agency''.
            (60) Section 2878(d)(4) is amended by striking out ``11401'' 
        and inserting in lieu thereof ``11411''.
            (61) Section 2885 is amended by striking out ``five years 
        after the date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 1996'' and inserting in lieu 
        thereof ``on February 10, 2001''.
            (62) Sections 4342(a)(10), 6954(a)(10), and 9342(a)(10) are 
        amended by striking out ``Marianas'' and inserting in lieu 
        thereof ``Mariana''.
            (63) Section 7606(e) is amended by striking out ``sections'' 
        and inserting in lieu thereof ``section''.
            (64) Section 7902(b)(8) is amended by inserting ``United 
        States'' before ``Geological Survey''.

[[Page 111 STAT. 1904]]

            (65) Section 8038(e) is amended by striking out ``(1)''.
            (66) The item relating to section 8069 in the table of 
        sections at the beginning of chapter 807 is amended by striking 
        out ``Nurse Corps'' and inserting in lieu thereof ``nurses''.
            (67) Section 12733(3) is amended--
                    (A) by inserting a comma after ``(B)''; and
                    (B) by striking out ``in which the date of the 
                enactment of the National Defense Authorization Act for 
                Fiscal Year 1997 occurs'' and inserting in lieu thereof 
                ``that includes September 23, 1996,''.
            (68) Section 14317(d) is amended by striking out ``section 
        14314'' in the first sentence and inserting in lieu thereof 
        ``section 14315''.

    (b) Title 37, United States Code.--Section 205(d) of title 37, 
United States Code, is amended by striking out the period after ``August 
1, 1979'' and inserting in lieu thereof a comma.
    (c) Public Law 104-201.--Effective <<NOTE: 10 USC 2502 
note. Effective date.>>  as of September 23, 1996, and as if included 
therein as enacted, the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201) is amended as follows:
            (1) Section 324(b)(2) <<NOTE: 10 USC 2706 note.>>  (110 
        Stat. 2480) is amended by 
        inserting after ``In this subsection'' the following: ``and 
        subsection (c)''.
            (2) Section 367 (110 Stat. 2496) is amended--
                    (A) in subsection (a), <<NOTE: 10 USC 2554.>>  by 
                striking out ``Subchapter II of chapter'' and inserting 
                in lieu thereof ``Chapter''; and
                    (B) in subsection (b), by striking out 
                ``subchapter'' and inserting in lieu thereof 
                ``chapter''.
            (3) Section 371(a) <<NOTE: 10 USC 4411 note.>>  (110 Stat. 
        2499) is amended by striking out ``Section 559(a)(1)'' and 
        inserting in lieu thereof ``Section 559''.
            (4) Section 531(a) <<NOTE: 10 USC 12733.>>  (110 Stat. 2517) 
        is amended by inserting ``of title 10, United States Code,'' 
        before ``is amended''.
            (5) Section <<NOTE: 10 USC 302c.>>  614(b)(2)(B) (110 Stat. 
        2544) is amended by striking out ``the period'' and inserting in 
        lieu thereof ``the semicolon''.
            (6) Section 802(1) <<NOTE: 10 USC 2302 note.>>  (110 Stat. 
        2604) is amended by striking out ``1995'' in the first quoted 
        matter therein and inserting in lieu thereof ``1996''.
            (7) Section 829(c) <<NOTE: 10 USC 2502.>>  (110 Stat. 2612) 
        is amended--
                    (A) in paragraph (2), by striking out ``Section 
                2502(b)'' and inserting in lieu thereof ``Section 
                2502(c)''; and
                    (B) by redesignating paragraph (3) as subparagraph 
                (C) of paragraph (2).
            (8) Section <<NOTE: 10 USC 441 note.>>  1116(b) (110 Stat. 
        2686) is amended by striking out ``section 1122'' and inserting 
        in lieu thereof ``section 1111''.
            (9) Section 1606 (110 Stat. 2737) is amended--
                    (A) in <<NOTE: 20 USC 901.>>  subsection (a)(1)--
                          (i) by striking out the comma before ``or 
                      are''; and
                          (ii) by inserting a semicolon after 
                      ``Secretary of Defense'';
                    (B) in <<NOTE: 20 USC 903.>>  subsection (b)(1)(A), 
                by striking out ``Secretary of each'' and inserting in 
                lieu thereof ``secretary of each''; and
                    (C) in subsection <<NOTE: 20 USC 903.>>  (b)(2)(B), 
                by inserting a semicolon after ``Defense''.

    (d) Other Annual Defense Authorization Acts.--

[[Page 111 STAT. 1905]]

            (1) Effective <<NOTE: Effective date. 10 USC 1076 note.>>  
        as of February 10, 1996, and as if included therein as enacted, 
        the National Defense Authorization Act for Fiscal Year 1996 
        (Public Law 104-106) is amended as follows:
                    (A) Section <<NOTE: 10 USC 2701 note.>>  
                321(a)(2)(A) (110 Stat. 251) is amended by striking out 
                ``2710(d)'' and inserting in lieu thereof ``2701(d)''.
                    (B) Section <<NOTE: 10 USC 2461 note.>>  356(d)(3) 
                (110 Stat. 271) is amended by striking out ``or'' after 
                ``to any provision'' and inserting in lieu thereof 
                ``of''.
                    (C) Section 533(b) <<NOTE: 10 USC 6975, 6975 
                note.>>  (110 Stat. 315) is amended by inserting before 
                the period at the end the following: ``and the 
                amendments made by subsection (b), effective as of 
                October 5, 1994''.
                    (D) Section 703(b) <<NOTE: 10 USC 1076.>>  (110 
                Stat. 372) is amended by striking out ``Such paragraph'' 
                and inserting in lieu thereof ``Such section''.
                    (E) Section 1501 (110 Stat. 500) is amended--
                          (i) in subsection <<NOTE: 10 USC 10154.>>  
                      (d)(1), by striking out ``337(b)'' and ``2717'' 
                      and inserting in lieu thereof ``377(b)'' and 
                      ``2737'', respectively; and
                          (ii) in subsection <<NOTE: 10 USC 10001 
                      note.>>  (f)(2), by inserting ``of the Reserve 
                      Officer Personnel Management Act'' before ``shall 
                      take''.
            (2) The National Defense Authorization Act for Fiscal Year 
        1993 (Public Law 102-484) is amended as follows:
                    (A) Section 812(c) (10 U.S.C. 1723 note) is amended 
                by inserting ``and Technology'' after ``for 
                Acquisition''.
                    (B) Section 1091(l)(3) (32 U.S.C. 501 note) is 
                amended by striking out ``the day preceding the date of 
                the enactment of this Act'' and inserting in lieu 
                thereof ``October 19, 1994''.
                    (C) Section 4471 (10 U.S.C. 2501 note) is amended by 
                realigning subsection (e) so as to be flush to the left 
                margin.
            (3) Section 807(b)(2)(A) of the National Defense 
        Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
        102-190; 10 U.S.C. 2320 note) is amended by inserting before the 
        period the following: ``and Technology''.
            (4) The National Defense Authorization Act for Fiscal Year 
        1991 (Public Law 101-510) is amended as follows:
                    (A) Section 1205 (10 U.S.C. 1746 note) is amended by 
                striking out ``Under Secretary of Defense for 
                Acquisition'' each place it appears and inserting in 
                lieu thereof ``Under Secretary of Defense for 
                Acquisition and Technology''.
                    (B) Section 2905 (10 U.S.C. 2687 note) is amended--
                          (i) in subsection (b)(7), by striking out 
                      ``4331'' in subparagraphs (K)(iii) and 
                      (L)(iv)(III) and inserting in lieu thereof 
                      ``4321''; and
                          (ii) in subsection (f)(3), by striking out 
                      ``section 2873(a)'' and inserting in lieu thereof 
                      ``section 2883(a)''.
                    (C) Section 2921 (10 U.S.C. 2687 note) is amended--
                          (i) in subsection (e)(3)(B), by striking out 
                      ``Defense Subcommittees'' and inserting in lieu 
                      thereof ``Subcommittee on Defense''; and
                          (ii) in subsection (f)(2), by striking out 
                      ``the Committees on Armed Services of the Senate 
                      and House of Representatives'' and inserting in 
                      lieu thereof

[[Page 111 STAT. 1906]]

                      ``the Committee on Armed Services of the Senate 
                      and the Committee on National Security of the 
                      House of Representatives''.
            (5) Section 1121(c) of the National Defense Authorization 
        Act for Fiscal Years 1988 and 1989 (Public Law 100-180; 10 
        U.S.C. 113 note) is amended by striking out ``under this 
        section--'' and all that follow through ``fiscal year 1990'' and 
        inserting in lieu thereof ``under this section may not exceed 
        5,000 during any fiscal year''.
            (6) Section 204(e)(3) of the Defense Authorization 
        Amendments and Base Closure and Realignment Act (Public Law 100-
        526; 10 U.S.C. 2687 note) is amended by striking out ``section 
        2873(a)'' and inserting in lieu thereof ``section 2883(a)''.

    (e) Title 5, United States Code.--Title 5, United States Code, is 
amended as follows:
            (1) Section 5315 is amended--
                    (A) in the item relating to the Chief Information 
                Officer of the Department of the Interior, by inserting 
                ``the'' before ``Interior''; and
                    (B) in the item relating to the Chief Information 
                Officer of the Department of the Treasury, by inserting 
                ``the'' before ``Treasury''.
            (2) Section 5316 is amended by striking out ``Atomic 
        Energy'' after ``Assistant to the Secretary of Defense for'' and 
        inserting in lieu thereof ``Nuclear and Chemical and Biological 
        Defense Programs''.

    (f) Act of August 10, 1956.--Section 3(a)(3) of the Act of August 
10, 1956 (33 U.S.C. 857a) is amended by striking out ``1374,''.
    (g) Acquisition Policy Statutes.--
            (1) Section 309 of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 259) is amended by striking out 
        ``and'' at the end of subsection (b)(2).
            (2) The Office of Federal Procurement Policy Act is amended 
        as follows:
                    (A) The item relating to section 27 in the table of 
                contents in section 1(b) is amended to read as follows:

``Sec. 27. Restrictions on disclosing and obtaining contractor bid or 
           proposal information or source selection information.''.

                    (B) Section 6(d) (41 U.S.C. 405(d)) is amended--
                          (i) by striking out the period at the end of 
                      paragraph (5)(J) and inserting in lieu thereof a 
                      semicolon;
                          (ii) by moving paragraph (6) two ems to the 
                      left; and
                          (iii) in paragraph (12), by striking out 
                      ``small business'' and inserting in lieu thereof 
                      ``small businesses''.
                    (C) Section 35(b)(2) (41 U.S.C. 431(b)(2)) is 
                amended by striking out ``commercial'' and inserting in 
                lieu thereof ``commercially available''.
            (3) Section 6 of the Contract Disputes Act of 1978 (41 
        U.S.C. 605) is amended in subsections (d) and (e) by striking 
        out ``(as in effect on September 30, 1995)'' each place it 
        appears.
            (4) Subsections (d)(1) and (e) of section 16 of the Small 
        Business Act (15 U.S.C. 645) are each amended by striking out 
        ``concerns'' and inserting in lieu thereof ``concern''.

    (h) Amendments To Conform Change in Short Title of Information 
Technology Management Reform Act of 1996.--

[[Page 111 STAT. 1907]]

            (1) Section 20 of the National Institute of Standards and 
        Technology Act (15 U.S.C. 278g-3) is amended in subsections 
        (a)(4) and (b)(2) by striking out ``Information Technology 
        Management Reform Act of 1996'' and inserting in lieu thereof 
        ``Clinger-Cohen Act of 1996 (40 U.S.C. 1441)''.
            (2) Section 612(f) of title 28, United States Code, is 
        amended by striking out ``the Information Technology Management 
        Reform Act of 1996'' and inserting in lieu thereof ``division E 
        of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.)''.
            (3) Section 310(b) of title 38, United States Code, is 
        amended by striking out ``the Information Technology Management 
        Reform Act of 1996'' and inserting in lieu thereof ``division E 
        of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.)''.
            (4) Section 6(b) of the Computer Security Act of 1987 (40 
        U.S.C. 1441 note) is amended by striking out ``Information 
        Technology Management Reform Act of 1996'' and inserting in lieu 
        thereof ``Clinger-Cohen Act of 1996 (40 U.S.C. 1441)''.
            (5) Chapter 35 of title 44, United States Code, is amended--
                    (A) in section 3502(9)--
                          (i) by striking out ``the Information 
                      Technology Management Reform Act of 1996'' and 
                      inserting in lieu thereof ``the Clinger-Cohen Act 
                      of 1996 (40 U.S.C. 1401)''; and
                          (ii) by inserting ``(40 U.S.C. 1452)'' after 
                      ``that Act'';
                    (B) in section 3504(h)(2), by striking out ``the 
                Information Technology Management Reform Act of 1996'' 
                and inserting in lieu thereof ``division E of the 
                Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.)''; 
                and
                    (C) in sections 3504(g)(2), 3504(g)(3), 
                3504(h)(1)(B), and 3518(d) by striking out ``Information 
                Technology Management Reform Act of 1996'' and inserting 
                in lieu thereof ``Clinger-Cohen Act of 1996 (40 U.S.C. 
                1441)''.

    (i) Coordination With <<NOTE: 10 USC 101 note.>>  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.

SEC. 1074. SUSTAINMENT AND OPERATION OF THE GLOBAL POSITIONING SYSTEM.

    (a) Findings.--Congress <<NOTE: 10 USC 2281 note.>>  makes the 
following findings:
            (1) The Global Positioning System (consisting of a 
        constellation of satellites and associated facilities capable of 
        providing users on earth with a highly precise statement of 
        their location on earth) makes significant contributions to the 
        attainment of the national security and foreign policy goals of 
        the United States, the safety and efficiency of international 
        transportation, and the economic growth, trade, and productivity 
        of the United States.
            (2) The infrastructure for the Global Positioning System 
        (including both space and ground segments of the infrastructure) 
        is vital to the effectiveness of United States and allied 
        military forces and to the protection of the national security 
        interests of the United States.
            (3) In addition to having military uses, the Global 
        Positioning System has essential civil, commercial, and 
        scientific uses.
            (4) As a result of the increasing demand of civil, 
        commercial, and scientific users of the Global Positioning 
        System--

[[Page 111 STAT. 1908]]

                    (A) there has emerged in the United States a new 
                commercial industry to provide Global Positioning System 
                equipment and related services to the many and varied 
                users of the system; and
                    (B) there have been rapid technical advancements in 
                Global Positioning System equipment and services that 
                have contributed significantly to reductions in the cost 
                of the Global Positioning System and increases in the 
                technical capabilities and availability of the system 
                for military uses.
            (5) It is in the national interest of the United States for 
        the United States--
                    (A) to support continuation of the multiple-use 
                character of the Global Positioning System;
                    (B) to promote broader acceptance and use of the 
                Global Positioning System and the technological 
                standards that facilitate expanded use of the system for 
                civil purposes;
                    (C) to coordinate with other countries to ensure (i) 
                efficient management of the electromagnetic spectrum 
                used by the Global Positioning System, and (ii) 
                protection of that spectrum in order to prevent 
                disruption of signals from the system and interference 
                with that portion of the electromagnetic spectrum used 
                by the system; and
                    (D) to encourage open access in all international 
                markets to the Global Positioning System and supporting 
                equipment, services, and techniques.

    (b) International <<NOTE: 10 USC 2281 note.>>  Cooperation.--
Congress urges the President to promote the security of the United 
States and its allies, the public safety, and commercial interests by 
taking the following steps:
            (1) Undertaking a coordinated effort within the executive 
        branch to seek to establish the Global Positioning System, and 
        augmentations to the system, as a worldwide resource.
            (2) Seeking to enter into international agreements to 
        establish signal and service standards that protect the Global 
        Positioning System from disruption and interference.
            (3) Undertaking efforts to eliminate any barriers to, and 
        other restrictions of foreign governments on, peaceful uses of 
        the Global Positioning System.
            (4) Requiring that any proposed international agreement 
        involving nonmilitary use of the Global Positioning System or 
        any augmentation to the system not be agreed to by the United 
        States unless the proposed agreement has been reviewed by the 
        Secretary of State, the Secretary of Defense, the Secretary of 
        Transportation, and the Secretary of Commerce (acting as the 
        Interagency Global Positioning System Executive Board 
        established by Presidential Decision Directive NSTC-6, dated 
        March 28, 1996).

    (c) Fiscal Year 1998 Prohibition of Support of Foreign System.--None 
of the funds authorized to be appropriated under this Act may be used to 
support the operation and maintenance or enhancement of a satellite 
navigation system operated by a foreign country.
    (d) In General.--(1) Part IV of subtitle A of title 10, United 
States Code, is amended by inserting after chapter 134 the following new 
chapter:

[[Page 111 STAT. 1909]]

         ``CHAPTER 136--PROVISIONS RELATING TO SPECIFIC PROGRAMS

``Sec.
``2281. Global Positioning System.

``Sec. 2281. Global Positioning System

    ``(a) Sustainment and Operation for Military Purposes.--The 
Secretary of Defense shall provide for the sustainment of the 
capabilities of the Global Positioning System (hereinafter in this 
section referred to as the `GPS'), and the operation of basic GPS 
services, that are beneficial for the national security interests of the 
United States. In doing so, the Secretary shall--
            ``(1) develop appropriate measures for preventing hostile 
        use of the GPS so as to make it unnecessary for the Secretary to 
        use the selective availability feature of the system 
        continuously while not hindering the use of the GPS by the 
        United States and its allies for military purposes; and
            ``(2) ensure that United States armed forces have the 
        capability to use the GPS effectively despite hostile attempts 
        to prevent the use of the system by such forces.

    ``(b) Sustainment and Operation for Civilian Purposes.--The 
Secretary of Defense shall provide for the sustainment and operation of 
the GPS Standard Positioning Service for peaceful civil, commercial, and 
scientific uses on a continuous worldwide basis free of direct user 
fees. In doing so, the Secretary--
            ``(1) shall provide for the sustainment and operation of the 
        GPS Standard Positioning Service in order to meet the 
        performance requirements of the Federal Radionavigation Plan 
        prepared jointly by the Secretary of Defense and the Secretary 
        of Transportation pursuant to subsection (c);
            ``(2) shall coordinate with the Secretary of Transportation 
        regarding the development and implementation by the Government 
        of augmentations to the basic GPS that achieve or enhance uses 
        of the system in support of transportation;
            ``(3) shall coordinate with the Secretary of Commerce, the 
        United States Trade Representative, and other appropriate 
        officials to facilitate the development of new and expanded 
        civil and commercial uses for the GPS;
            ``(4) shall develop measures for preventing hostile use of 
        the GPS in a particular area without hindering peaceful civil 
        use of the system elsewhere; and
            ``(5) may not agree to any restriction on the Global 
        Positioning System proposed by the head of a department or 
        agency of the United States outside the Department of Defense in 
        the exercise of that official's regulatory authority that would 
        adversely affect the military potential of the Global 
        Positioning System.

    ``(c) Federal Radionavigation Plan.--The Secretary of Defense and 
the Secretary of Transportation shall jointly prepare the Federal 
Radionavigation Plan. The plan shall be revised and updated not less 
often than every two years. The plan shall be prepared in accordance 
with the requirements applicable to such plan as first prepared pursuant 
to section 507 of the International Maritime Satellite 
Telecommunications <<NOTE: Federal Register, publication.>>  Act (47 
U.S.C. 756). The plan, and any amendment to the plan, shall be published 
in the Federal Register.

[[Page 111 STAT. 1910]]

    ``(d) Biennial Report.--(1) Not later than 30 days after the end of 
each even-numbered fiscal year, the Secretary of Defense shall submit to 
the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a report on the Global 
Positioning System. The report shall include a discussion of the 
following matters:
            ``(A) The operational status of the system.
            ``(B) The capability of the system to satisfy effectively 
        (i) the military requirements for the system that are current as 
        of the date of the report, and (ii) the performance requirements 
        of the Federal Radionavigation Plan.
            ``(C) The most recent determination by the President 
        regarding continued use of the selective availability feature of 
        the system and the expected date of any change or elimination of 
        the use of that feature.
            ``(D) The status of cooperative activities undertaken by the 
        United States with the governments of other countries concerning 
        the capability of the system or any augmentation of the system 
        to satisfy civil, commercial, scientific, and military 
        requirements, including a discussion of the status and results 
        of activities undertaken under any regional international 
        agreement.
            ``(E) Any progress made toward establishing GPS as an 
        international standard for consistency of navigational service.
            ``(F) Any progress made toward protecting GPS from 
        disruption and interference.
            ``(G) The effects of use of the system on national security, 
        regional security, and the economic competitiveness of United 
        States industry, including the Global Positioning System 
        equipment and service industry and user industries.

    ``(2) In preparing the parts of each such report required under 
subparagraphs (D), (E), (F), and (G) of paragraph (1), the Secretary of 
Defense shall consult with the Secretary of State, the Secretary of 
Commerce, and the Secretary of Transportation.
    ``(e) Definitions.--In this section:
            ``(1) The term `basic GPS services' means the following 
        components of the Global Positioning System that are operated 
        and maintained by the Department of Defense:
                    ``(A) The constellation of satellites.
                    ``(B) The navigation payloads that produce the 
                Global Positioning System signals.
                    ``(C) The ground stations, data links, and 
                associated command and control facilities.
            ``(2) The term `GPS Standard Positioning Service' means the 
        civil and commercial service provided by the basic Global 
        Positioning System as defined in the 1996 Federal 
        Radionavigation Plan (published jointly by the Secretary of 
        Defense and the Secretary of Transportation in July 1997).''.

    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part IV of subtitle A, of such title are amended by 
inserting after the item relating to chapter 134 the following new item:

``136. Provisions Relating to Specific Programs..................2281''.

[[Page 111 STAT. 1911]]

SEC. 1075. PROTECTION OF SAFETY-RELATED INFORMATION VOLUNTARILY PROVIDED 
            BY AIR CARRIERS.

    (a) Authority To Protect Information.--Section 2640 of title 10, 
United States Code, is amended--
            (1) by redesignating subsections (h) and (i) as subsections 
        (i) and (j), respectively; and
            (2) by inserting after subsection (g) the following new 
        subsection (h):

    ``(h) Authority To Protect Safety-Related Information Voluntarily 
Provided by an Air Carrier.--(1) Subject to paragraph (2), the Secretary 
of Defense may (notwithstanding any other provision of law) withhold 
from public disclosure safety-related information that is provided to 
the Secretary voluntarily by an air carrier for the purposes of this 
section.
    ``(2) Information may be withheld under paragraph (1) from public 
disclosure only if the Secretary determines that--
            ``(A) the disclosure of the information would inhibit an air 
        carrier from voluntarily providing, in the future, safety-
        related information for the purposes of this section or for 
        other air safety purposes involving the Department of Defense or 
        another Federal agency; and
            ``(B) the receipt of such information generally enhances the 
        fulfillment of responsibilities under this section or other air 
        safety responsibilities involving the Department of Defense or 
        another Federal agency.

    ``(3) If the Secretary provides to the head of another agency 
safety-related information described in paragraph (1) with respect to 
which the Secretary has made a determination described in paragraph (2), 
the head of that agency shall (notwithstanding any other provision of 
law) withhold the information from public disclosure unless the 
disclosure is specifically authorized by the Secretary.''.
    (b) Applicability.--Subsection <<NOTE: 10 USC 2640 note.>>  (h) of 
section 2640 of title 10, United States Code, as added by subsection 
(a), shall apply with respect to requests for information made on or 
after the date of the enactment of this Act.

SEC. 1076. NATIONAL GUARD CHALLENGE PROGRAM TO CREATE OPPORTUNITIES FOR 
            CIVILIAN YOUTH.

    (a) Program Authority.--Chapter 5 of title 32, United States Code, 
is amended by adding at the end the following new section:

``Sec. 509. National Guard Challenge Program of opportunities for 
                        civilian youth

    ``(a) Program Authority and Purpose.--The Secretary of Defense, 
acting through the Chief of the National Guard Bureau, may conduct a 
National Guard civilian youth opportunities program (to be known as the 
`National Guard Challenge Program') to use the National Guard to provide 
military-based training, including supervised work experience in 
community service and conservation projects, to civilian youth who cease 
to attend secondary school before graduating so as to improve the life 
skills and employment potential of such youth.
    ``(b) Conduct of the Program.--The Secretary of Defense shall 
provide for the conduct of the National Guard Challenge Program in such 
States as the Secretary considers to be appropriate,

[[Page 111 STAT. 1912]]

except that Federal expenditures under the program may not exceed 
$50,000,000 for any fiscal year.
    ``(c) Program Agreements.--(1) To carry out the National Guard 
Challenge Program in a State, the Secretary of Defense shall enter into 
an agreement with the Governor of the State or, in the case of the 
District of Columbia, with the commanding general of the District of 
Columbia National Guard, under which the Governor or the commanding 
general will establish, organize, and administer the National Guard 
Challenge Program in the State.
    ``(2) The agreement may provide for the Secretary to provide funds 
to the State for civilian personnel costs attributable to the use of 
civilian employees of the National Guard in the conduct of the National 
Guard Challenge Program.
    ``(d) Matching Funds Required.--The amount of assistance provided 
under this section to a State program of the National Guard Challenge 
Program may not exceed--
            ``(1) for fiscal year 1998, 75 percent of the costs of 
        operating the State program during that year;
            ``(2) for fiscal year 1999, 70 percent of the costs of 
        operating the State program during that year;
            ``(3) for fiscal year 2000, 65 percent of the costs of 
        operating the State program during that year; and
            ``(4) for fiscal year 2001 and each subsequent fiscal year, 
        60 percent of the costs of operating the State program during 
        that year.

    ``(e) Persons Eligible To Participate in Program.--A school dropout 
from secondary school shall be eligible to participate in the National 
Guard Challenge Program. <<NOTE: Regulations.>>  The Secretary of 
Defense shall prescribe the standards and procedures for selecting 
participants from among school dropouts.

    ``(f) Authorized Benefits for Participants.--(1) To the extent 
provided in an agreement entered into in accordance with subsection (c) 
and subject to the approval of the Secretary of Defense, a person 
selected for training in the National Guard Challenge Program may 
receive the following benefits in connection with that training:
            ``(A) Allowances for travel expenses, personal expenses, and 
        other expenses.
            ``(B) Quarters.
            ``(C) Subsistence.
            ``(D) Transportation.
            ``(E) Equipment.
            ``(F) Clothing.
            ``(G) Recreational services and supplies.
            ``(H) Other services.
            ``(I) Subject to paragraph (2), a temporary stipend upon the 
        successful completion of the training, as characterized in 
        accordance with procedures provided in the agreement.

    ``(2) In the case of a person selected for training in the National 
Guard Challenge Program who afterwards becomes a member of the Civilian 
Community Corps under subtitle E of title I of the National and 
Community Service Act of 1990 (42 U.S.C. 12611 et seq.), the person may 
not receive a temporary stipend under paragraph (1)(I) while the person 
is a member of that Corps. The person may receive the temporary stipend 
after completing service in the Corps unless the person elects to 
receive benefits provided

[[Page 111 STAT. 1913]]

under subsection (f) or (g) of section 158 of such Act (42 U.S.C. 
12618).
    ``(g) Program Personnel.--(1) Personnel of the National Guard of a 
State in which the National Guard Challenge Program is conducted may 
serve on full-time National Guard duty for the purpose of providing 
command, administrative, training, or supporting services for the 
program. For the performance of those services, any such personnel may 
be ordered to duty under section 502(f) of this title for not longer 
than the period of the program.
    ``(2) A Governor participating in the National Guard Challenge 
Program and the commanding general of the District of Columbia National 
Guard (if the District of Columbia National Guard is participating in 
the program) may procure by contract the temporary full time services of 
such civilian personnel as may be necessary to augment National Guard 
personnel in carrying out the National Guard Challenge Program in that 
State.
    ``(3) Civilian employees of the National Guard performing services 
for the National Guard Challenge Program and contractor personnel 
performing such services may be required, when appropriate to achieve 
the purposes of the program, to be members of the National Guard and to 
wear the military uniform.
    ``(h) Equipment and Facilities.--(1) Equipment and facilities of the 
National Guard, including military property of the United States issued 
to the National Guard, may be used in carrying out the National Guard 
Challenge Program.
    ``(2) Activities under the National Guard Challenge Program shall be 
considered noncombat activities of the National Guard for purposes of 
section 710 of this title.
    ``(i) Status of Participants.--(1) A person receiving training under 
the National Guard Challenge Program shall be considered an employee of 
the United States for the purposes of the following provisions of law:
            ``(A) Subchapter I of chapter 81 of title 5 (relating to 
        compensation of Federal employees for work injuries).
            ``(B) Section 1346(b) and chapter 171 of title 28 and any 
        other provision of law relating to the liability of the United 
        States for tortious conduct of employees of the United States.

    ``(2) In the application of the provisions of law referred to in 
paragraph (1)(A) to a person referred to in paragraph (1)--
            ``(A) the person shall not be considered to be in the 
        performance of duty while the person is not at the assigned 
        location of training or other activity or duty authorized in 
        accordance with a program agreement referred to in subsection 
        (c), except when the person is traveling to or from that 
        location or is on pass from that training or other activity or 
        duty;
            ``(B) the person's monthly rate of pay shall be deemed to be 
        the minimum rate of pay provided for grade GS-2 of the General 
        Schedule under section 5332 of title 5; and
            ``(C) the entitlement of a person to receive compensation 
        for a disability shall begin on the day following the date on 
        which the person's participation in the National Guard Challenge 
        Program is terminated.

    ``(3) A person referred to in paragraph (1) may not be considered an 
employee of the United States for any purpose other than a purpose set 
forth in that paragraph.
    ``(j) Supplemental Resources.--To carry out the National Guard 
Challenge Program in a State, the Governor of the State

[[Page 111 STAT. 1914]]

or, in the case of the District of Columbia, the commanding general of 
the District of Columbia National Guard may supplement funds made 
available under the program out of other resources (including gifts) 
available to the Governor or the commanding general. The Governor or the 
commanding general may accept, use, and dispose of gifts or donations of 
money, other property, or services for the National Guard Challenge 
Program.
    ``(k) Report.--Within 90 days after the end of each fiscal year, the 
Secretary of Defense shall submit to Congress a report on the design, 
conduct, and effectiveness of the National Guard Challenge Program 
during the preceding fiscal year. In preparing the report, the Secretary 
shall coordinate with the Governor of each State in which the National 
Guard Challenge Program is carried out and, if the program is carried 
out in the District of Columbia, with the commanding general of the 
District of Columbia National Guard.
    ``(l) Definitions.--In this section:
            ``(1) The term `State' includes the Commonwealth of Puerto 
        Rico, the territories, and the District of Columbia.
            ``(2) The term `school dropout' means an individual who is 
        no longer attending any school and who has not received a 
        secondary school diploma or a certificate from a program of 
        equivalency for such a diploma.''.

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

``509. National Guard Challenge Program of opportunities for civilian 
           youth.''.

SEC. 1077. DISQUALIFICATION FROM CERTAIN BURIAL-RELATED BENEFITS FOR 
            PERSONS CONVICTED OF CAPITAL CRIMES.

    (a) In General.--(1) Chapter 49 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 985. Persons convicted of capital crimes: denial of certain 
                        burial-related benefits

    ``(a) Prohibition of Performance of Military Honors.--The Secretary 
of a military department and the Secretary of Transportation, with 
respect to the Coast Guard when it is not operating as a service in the 
Navy, may not provide military honors at the funeral or burial of a 
person who has been convicted of a capital offense under Federal or 
State law for which the person was sentenced to death or life 
imprisonment without parole.
    ``(b) Disqualification From Burial in Military Cemeteries.--A person 
convicted of a capital offense under Federal law is not entitled to or 
eligible for, and may not be provided, burial in--
            ``(1) Arlington National Cemetery;
            ``(2) the Soldiers' and Airmen's National Cemetery; or
            ``(3) any other cemetery administered by the Secretary of a 
        military department or the Secretary of Defense.

    ``(c) Definitions.--In this section:
            ``(1) The term `capital offense' means an offense for which 
        the death penalty may be imposed.
            ``(2) The term `burial' includes inurnment.
            ``(3) The term `State' includes the District of Columbia and 
        any commonwealth or territory of the United States.''.

[[Page 111 STAT. 1915]]

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

``985. Persons convicted of capital crimes: denial of certain burial-
           related benefits.''.

    (b) Applicability.--Section <<NOTE: 10 USC 985 note.>>  985 of title 
10, United States Code, as added by subsection (a), applies with respect 
to persons dying after January 1, 1997.

SEC. 1078. RESTRICTIONS <<NOTE: 50 USC 1520a.>>  ON THE USE OF HUMAN 
            SUBJECTS FOR TESTING OF CHEMICAL OR BIOLOGICAL AGENTS.

    (a) Prohibited Activities.--The Secretary of Defense may not conduct 
(directly or by contract)--
            (1) any test or experiment involving the use of a chemical 
        agent or biological agent on a civilian population; or
            (2) any other testing of a chemical agent or biological 
        agent on human subjects.

    (b) Exceptions.--Subject to subsections (c), (d), and (e), the 
prohibition in subsection (a) does not apply to a test or experiment 
carried out for any of the following purposes:
            (1) Any peaceful purpose that is related to a medical, 
        therapeutic, pharmaceutical, agricultural, industrial, or 
        research activity.
            (2) Any purpose that is directly related to protection 
        against toxic chemicals or biological weapons and agents.
            (3) Any law enforcement purpose, including any purpose 
        related to riot control.

    (c) Informed Consent Required.--The Secretary of Defense may conduct 
a test or experiment described in subsection (b) only if informed 
consent to the testing was obtained from each human subject in advance 
of the testing on that subject.
    (d) Prior Notice to <<NOTE: Reports.>>  Congress.--Not later than 30 
days after the date of final approval within the Department of Defense 
of plans for any experiment or study to be conducted by the Department 
of Defense (whether directly or under contract) involving the use of 
human subjects for the testing of a chemical agent or a biological 
agent, 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 a full accounting of 
those plans, and the experiment or study may then be conducted only 
after the end of the 30-day period beginning on the date such report is 
received by those committees.

    (e) Biological Agent Defined.--In this section, the term 
``biological agent'' means any micro-organism (including bacteria, 
viruses, fungi, rickettsiac, or protozoa), pathogen, or infectious 
substance, and any naturally occurring, bioengineered, or synthesized 
component of any such micro-organism, pathogen, or infectious substance, 
whatever its origin or method of production, that is capable of 
causing--
            (1) death, disease, or other biological malfunction in a 
        human, an animal, a plant, or another living organism;
            (2) deterioration of food, water, equipment, supplies, or 
        materials of any kind; or
            (3) deleterious alteration of the environment.

    (f) Report and Certification.--Section 1703(b) of the National 
Defense Authorization Act for Fiscal Year 1994 (50 U.S.C. 1523(b)) is 
amended by adding at the end the following new paragraph:

[[Page 111 STAT. 1916]]

            ``(9) A description of any program involving the testing of 
        biological or chemical agents on human subjects that was carried 
        out by the Department of Defense during the period covered by 
        the report, together with--
                    ``(A) a detailed justification for the testing;
                    ``(B) a detailed explanation of the purposes of the 
                testing;
                    ``(C) a description of each chemical or biological 
                agent tested; and
                    ``(D) the Secretary's certification that informed 
                consent to the testing was obtained from each human 
                subject in advance of the testing on that subject.''.

    (g) Repeal of Superseded Provision of Law.--Section 808 of the 
Department of Defense Appropriation Authorization Act, 1978 (50 U.S.C. 
1520), is repealed.

SEC. 1079. TREATMENT <<NOTE: 49 USC 303 note.>>  OF MILITARY FLIGHT 
            OPERATIONS.

    No military flight operation (including a military training flight), 
or designation of airspace for such an operation, may be treated as a 
transportation program or project for purposes of section 303(c) of 
title 49, United States Code.

SEC. 1080. NATURALIZATION OF CERTAIN FOREIGN NATIONALS WHO SERVE 
            HONORABLY IN THE ARMED FORCES DURING A PERIOD OF CONFLICT.

    (a) In General.--Section 329(a)(1) of the Immigration and 
Nationality Act (8 U.S.C. 1440(a)(1)) is amended--
            (1) by inserting ``, reenlistment, extension of 
        enlistment,'' after ``at the time of enlistment''; and
            (2) by inserting ``or on board a public vessel owned or 
        operated by the United States for noncommercial service,'' after 
        ``United States, the Canal Zone, American Samoa, or Swains 
        Island,''.

    (b) Effective Date.--The <<NOTE: Applicability. 8 USC 1440 note.>>  
amendments made by subsection (a) shall apply with respect to 
enlistments, reenlistments, extensions of enlistment, and inductions of 
persons occurring on or after the date of the enactment of this Act.

SEC. 1081. APPLICABILITY <<NOTE: 10 USC 111 note.>>  OF CERTAIN PAY 
            AUTHORITIES TO 
            MEMBERS OF SPECIFIED INDEPENDENT STUDY ORGANIZATIONS.

    (a) Applicability of Certain Pay Authorities.--(1) An individual who 
is a member of a commission or panel specified in subsection (b) and is 
an annuitant otherwise covered by section 8344 or 8468 of title 5, 
United States Code, by reason of membership on the commission or panel 
is not subject to the provisions of that section with respect to such 
membership.
    (2) An individual who is a member of a commission or panel specified 
in subsection (b) and is a member or former member of a uniformed 
service is not subject to the provisions of subsections (b) and (c) of 
section 5532 of such title with respect to membership on the commission 
or panel.
    (b) Specified Entities.--Subsection (a) applies--
            (1) effective as <<NOTE: Effective date.>>  of September 23, 
        1996, to members of the National Defense Panel established by 
        section 924 of the National Defense Authorization Act for Fiscal 
        Year 1997 (Public Law 104-201; 110 Stat. 2626); and

[[Page 111 STAT. 1917]]

            (2) effective as of <<NOTE: Effective date.>>  October 9, 
        1996, to members of the Commission on Servicemembers and 
        Veterans Transition Assistance established by section 701 of the 
        Veterans' Benefits Improvements Act of 1996 (Public Law 104-275; 
        110 Stat. 3346; 38 U.S.C. 545 note).

SEC. 1082. <<NOTE: 36 USC 189a.>>  DISPLAY OF POW/MIA FLAG.

    (a) Required Display.--The POW/MIA flag shall be displayed at the 
locations specified in subsection (c) on POW/MIA flag display days. Such 
display shall serve (1) as the symbol of the Nation's concern and 
commitment to achieving the fullest possible accounting of Americans 
who, having been prisoners of war or missing in action, still remain 
unaccounted for, and (2) as the symbol of the Nation's commitment to 
achieving the fullest possible accounting for Americans who in the 
future may become prisoners of war, missing in action, or otherwise 
unaccounted for as a result of hostile action.
    (b) Days for Flag Display.--(1) For purposes of this section, POW/
MIA flag display days are the following:
            (A) Armed Forces Day, the third Saturday in May.
            (B) Memorial Day, the last Monday in May.
            (C) Flag Day, June 14.
            (D) Independence Day, July 4.
            (E) National POW/MIA Recognition Day.
            (F) Veterans Day, November 11.

    (2) In addition to the days specified in paragraph (1), POW/MIA flag 
display days include--
            (A) in the case of display at medical centers of the 
        Department of Veterans Affairs (required by subsection (c)(7)), 
        any day on which the flag of the United States is displayed; and
            (B) in the case of display at United States Postal Service 
        post offices (required by subsection (c)(8)), the last business 
        day before a day specified in paragraph (1) that in any year is 
        not itself a business day.

    (c) Locations for Flag Display.--The locations for the display of 
the POW/MIA flag under subsection (a) are the following:
            (1) The Capitol.
            (2) The White House.
            (3) The Korean War Veterans Memorial and the Vietnam 
        Veterans Memorial.
            (4) Each national cemetery.
            (5) The buildings containing the official office of--
                    (A) the Secretary of State;
                    (B) the Secretary of Defense;
                    (C) the Secretary of Veterans Affairs; and
                    (D) the Director of the Selective Service System.
            (6) Each major military installation, as designated by the 
        Secretary of Defense.
            (7) Each medical center of the Department of Veterans 
        Affairs.
            (8) Each United States Postal Service post office.

    (d) Coordination With Other Display Requirement.--Display of the 
POW/MIA flag at the Capitol pursuant to paragraph (1) of subsection (c) 
is in addition to the display of that flag in the Rotunda of the Capitol 
pursuant to Senate Concurrent Resolution 5 of the 101st Congress, agreed 
to on February 22, 1989 (103 Stat. 2533).

[[Page 111 STAT. 1918]]

    (e) Display To Be in a Manner Visible to the Public.--Display of the 
POW/MIA flag pursuant to this section shall be in a manner designed to 
ensure visibility to the public.
    (f) Limitation.--This section may not be construed or applied so as 
to require any employee to report to work solely for the purpose of 
providing for the display of the POW/MIA flag.
    (g) POW/MIA Flag Defined.--As used in this section, the term ``POW/
MIA flag'' means the National League of Families POW/MIA flag recognized 
officially and designated by section 2 of Public Law 101-355 (36 U.S.C. 
189).
    (h) Regulations for Implementation.--Not later than 180 days after 
the date of the enactment of this Act, the head of each department, 
agency, or other establishment responsible for a location specified in 
subsection (c) (other than the Capitol) shall prescribe such regulations 
as necessary to carry out this section.
    (i) Procurement and Distribution of Flags.--Not later than 30 days 
after the date of the enactment of this Act, the Administrator of 
General Services shall procure POW/MIA flags and distribute them as 
necessary to carry out this section.
    (j) Repeal of Superseded Law.--Section 1084 of Public Law 102-190 
(36 U.S.C. 189 note) is repealed.

SEC. 1083. <<NOTE: 10 USC 113 note.>>  PROGRAM TO COMMEMORATE 50TH 
            ANNIVERSARY OF THE KOREAN CONFLICT.

    (a) Commemorative Program.--The Secretary of Defense may conduct a 
program to commemorate the 50th anniversary of the Korean conflict. In 
conducting the commemorative program, the Secretary may coordinate, 
support, and facilitate other programs and activities of the Federal 
Government, State and local governments, and other persons in 
commemoration of the Korean conflict.
    (b) Commemorative Activities.--The commemorative program may include 
activities and ceremonies--
            (1) to provide the people of the United States with a clear 
        understanding and appreciation of the lessons and history of the 
        Korean conflict;
            (2) to thank and honor veterans of the Korean conflict and 
        their families;
            (3) to pay tribute to the sacrifices and contributions made 
        on the home front by the people of the United States during the 
        Korean conflict;
            (4) to highlight advances in technology, science, and 
        medicine related to military research conducted during the 
        Korean conflict;
            (5) to recognize the contributions and sacrifices made by 
        the allies of the United States in the Korean conflict; and
            (6) to highlight the role of the Armed Forces of the United 
        States, then and now, in maintaining world peace through 
        strength.

    (c) Names and Symbols.--The Secretary of Defense shall have the sole 
and exclusive right to use the names ``The Department of Defense Korean 
Conflict Commemoration'', and such seal, emblems, and badges 
incorporating such name as the Secretary may lawfully adopt. Nothing in 
this section may be construed to supersede rights that are established 
or vested before the date of the enactment of this Act.
    (d) Commemorative Account.--(1) There is established in the Treasury 
an account to be known as the ``Department of Defense

[[Page 111 STAT. 1919]]

Korean Conflict Commemoration Account'', which shall be administered by 
the Secretary of Defense. There shall be deposited into the account all 
proceeds derived from the Secretary's use of the exclusive rights 
described in subsection (c). The Secretary may use funds in the account 
only for the purpose of conducting the commemorative program.
    (2) Not later than <<NOTE: Reports.>>  60 days after completion of 
all activities and ceremonies conducted as part of the commemorative 
program, the Secretary shall submit to Congress a report containing an 
accounting of all of the funds deposited into and expended from the 
account or otherwise expended under this section, and of any funds 
remaining in the account. Unobligated funds remaining in the account on 
that date shall be held in the account until transferred by law.

    (e) Acceptance of Voluntary Services.--(1) Notwithstanding section 
1342 of title 31, United States Code, the Secretary of Defense may 
accept from any person voluntary services to be provided in furtherance 
of the commemorative program.
    (2) A person providing voluntary services under this subsection 
shall be considered to be a Federal employee for purposes of chapter 81 
of title 5, United States Code, relating to compensation for work-
related injuries. The person shall also be considered a special 
governmental employee for purposes of standards of conduct and sections 
202, 203, 205, 207, 208, and 209 of title 18, United States Code. A 
person who is not otherwise employed by the Federal Government shall not 
be considered to be a Federal employee for any other purpose by reason 
of the provision of voluntary services under this subsection.
    (3) The Secretary may provide for reimbursement of incidental 
expenses incurred by a person providing voluntary services under this 
subsection. The Secretary shall determine which expenses are eligible 
for reimbursement under this paragraph.
    (f) Limitation on Expenditures.--Total expenditures to carry out the 
commemorative program may not exceed $100,000.

SEC. 1084. COMMENDATION <<NOTE: 10 USC note prec. 1121.>>  OF MEMBERS OF 
            THE ARMED FORCES AND GOVERNMENT CIVILIAN PERSONNEL WHO 
            SERVED DURING THE COLD WAR; CERTIFICATE OF RECOGNITION.

    (a) Findings.--The Congress finds the following:
            (1) During the period of the Cold War, from the end of World 
        War II until the collapse of the Soviet Union in 1991, the 
        United States and the Soviet Union engaged in a global military 
        rivalry.
            (2) This rivalry, potentially the most dangerous military 
        confrontation in the history of mankind, has come to a close 
        without a direct superpower military conflict.
            (3) Military and civilian personnel of the Department of 
        Defense, personnel in the intelligence community, members of the 
        foreign service, and other officers and employees of the United 
        States faithfully performed their duties during the Cold War.
            (4) Many such personnel performed their duties while 
        isolated from family and friends and served overseas under 
        frequently arduous conditions in order to protect the United 
        States and achieve a lasting peace.
            (5) The discipline and dedication of those personnel were 
        fundamental to the prevention of a superpower military conflict.

[[Page 111 STAT. 1920]]

    (b) Congressional Commendation.--The Congress hereby commends the 
members of the Armed Forces and civilian personnel of the Government who 
contributed to the historic victory in the Cold War and expresses its 
gratitude and appreciation for their service and sacrifices.
    (c) Certificates of Recognition.--The Secretary of Defense shall 
prepare a certificate recognizing the Cold War service of qualifying 
members of the Armed Forces and civilian personnel of the Department of 
Defense and other Government agencies contributing to national security, 
as determined by the Secretary, and shall provide the certificate to 
such members and civilian personnel upon request.

SEC. 1085. SENSE OF CONGRESS ON GRANTING OF STATUTORY FEDERAL CHARTERS.

    (a) Findings.--Congress finds that the practice of providing by 
statute Federal charters to certain nonprofit organizations--
            (1) may be perceived as implying a Government imprimatur of 
        approval of those organizations; and
            (2) may mistakenly lead to public perception that the United 
        States ensures the integrity and worthiness of those 
        organizations.

    (b) Sense of Congress.--It is the sense of Congress--
            (1) that because of the perceived implicit Government 
        imprimatur of approval conveyed by enactment of a Federal 
        charter for an organization, such a charter should be granted 
        only in the rarest and most extraordinary cases; and
            (2) that no statutory Federal charter should be enacted 
        after the enactment of this Act unless the charter is approved 
        by Congress upon favorable report by the committees of 
        jurisdiction of the respective Houses.

SEC. 1086. SENSE OF CONGRESS REGARDING MILITARY VOTING RIGHTS.

    (a) Findings.--Congress finds that--
            (1) members of the Armed Forces have a fundamental right to 
        vote in Federal, State, and local elections; and
            (2) an extended absence of a member of the Armed Forces from 
        the place of the member's residency or domicile due to military 
        or naval orders is not of itself grounds to consider the 
        member's residency or domicile as lost or changed.

    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of Defense, in consultation with the Attorney General, should 
review how best to protect the right of members of the Armed Forces to 
vote in Federal, State, and local elections while taking into account 
the right of States to prescribe requirements for voter registration. 
Such a review should include an assessment of challenges to military 
voting rights and consideration of possible legislative remedies to 
ensure that, for purposes of voting in Federal, State, and local 
elections, a member of the Armed Forces who is absent from a State in 
compliance with military or naval orders is not, solely by reason of 
that absence, considered to have lost or changed residency or domicile.

SEC. 1087. DESIGNATION OF BOB HOPE AS AN HONORARY VETERAN OF THE ARMED 
            FORCES OF THE UNITED STATES.

    (a) Findings.--Congress makes the following findings:

[[Page 111 STAT. 1921]]

            (1) In its more than 200 years of existence as a nation, the 
        United States has never conferred on any person the status of 
        being an honorary veteran of the Armed Forces of the United 
        States.
            (2) Status as an honorary veteran of the Armed Forces of the 
        United States is and should remain an extraordinary honor not 
        lightly conferred nor frequently granted.
            (3) The lifetime of accomplishments and service of Leslie 
        Townes (Bob) Hope on behalf of members of the Armed Forces of 
        the United States fully justifies the conferring of that status.
            (4) Bob Hope attempted to enlist in the Armed Forces to 
        serve his country during World War II but was informed that the 
        greatest service he could provide his country was as a civilian 
        entertainer for the troops.
            (5) During World War II, the Korean Conflict, the Vietnam 
        War, the Persian Gulf War, and the Cold War, Bob Hope travelled 
        to visit and entertain millions of members of the Armed Forces 
        in numerous countries, on ships at sea, and in combat zones 
        ashore.
            (6) Bob Hope has been awarded the Congressional Gold Medal, 
        the Presidential Medal of Freedom, the Distinguished Service 
        Medal of each of the branches of the Armed Forces and more than 
        100 other citations and awards from national veterans service 
        organizations and civic and humanitarian organizations.
            (7) Bob Hope has given unselfishly of himself for over half 
        a century to be with American service members on foreign shores, 
        working tirelessly to bring a spirit of humor and cheer to 
        millions of service members during their loneliest moments, and 
        has, thereby, extended to them for the American people a touch 
        of home away from home.

    (b) Designation of Bob Hope as Honorary Veteran.--
Congress--
            (1) extends its gratitude, on behalf of the American people, 
        to Leslie Townes (Bob) Hope, of the State of California, for his 
        lifetime of accomplishments and service on behalf of members of 
        the Armed Forces of the United States; and
            (2) hereby confers upon him the status of being an honorary 
        veteran of the Armed Forces of the United States.

SEC. 1088. FIVE-YEAR EXTENSION OF AVIATION INSURANCE PROGRAM.

    (a) Extension.--Section 44310 of title 49, United States Code, is 
amended by striking out ``September 30, 1997'' and inserting in lieu 
thereof ``September 30, 2002''.
    (b) Effective <<NOTE: 49 USC 44310 note.>>  Date.--This section 
shall take effect as of September 30, 1997.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Use of prohibited constraints to manage Department of Defense 

           personnel.
Sec. 1102. Veterans' preference status for certain veterans who served 
           on active duty during the Persian Gulf War.
Sec. 1103. Repeal of deadline for placement consideration of 
           involuntarily 
           separated military reserve technicians.
Sec. 1104. Rate of pay of Department of Defense overseas teachers upon 
           transfer to General Schedule position.

[[Page 111 STAT. 1922]]

Sec. 1105. Garnishment and involuntary allotment.
Sec. 1106. Extension and revision of voluntary separation incentive pay 
           authority.
Sec. 1107. Use of approved fire-safe accommodations by Government 
           employees on official business.
Sec. 1108. Navy higher education pilot program regarding administration 
           of 
           business relationships between Government and private sector.
Sec. 1109. Authority for Marine Corps University to employ civilian 
           faculty 
           members.

SEC. 1101. <<NOTE: Reports.>>  USE OF PROHIBITED CONSTRAINTS TO MANAGE 
            DEPARTMENT OF DEFENSE PERSONNEL.

    Section 129 of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(f)(1) Not later than February 1 of each year, the Secretary of 
each military department and the head of each Defense Agency 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 management of the civilian workforce under the jurisdiction of 
that official.
    ``(2) Each report of an official under paragraph (1) shall contain 
the following:
            ``(A) The official's certification (i) that the civilian 
        workforce under the jurisdiction of the official is not subject 
        to any constraint or limitation in terms of man years, end 
        strength, full-time equivalent positions, or maximum number of 
        employees, and (ii) that, during the 12 months preceding the 
        date on which the report is due, such workforce has not been 
        subject to any such constraint or limitation.
            ``(B) A description of how the civilian workforce is 
        managed.
            ``(C) A detailed description of the analytical tools used to 
        determine civilian workforce requirements during the 12-month 
        period referred to in subparagraph (A).''.

SEC. 1102. VETERANS' PREFERENCE STATUS FOR CERTAIN VETERANS WHO SERVED 
            ON ACTIVE DUTY DURING THE PERSIAN GULF WAR.

    (a) Definition of Veteran for Purposes of Preference Eligible 
Status.--Section 2108 of title 5, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``or'' at the end of subparagraph 
                (A);
                    (B) by inserting ``or'' at the end of subparagraph 
                (B); and
                    (C) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) served on active duty as defined by section 
                101(21) of title 38 in the armed forces during the 
                period beginning on August 2, 1990, and ending on 
                January 2, 1992;''; and
            (2) in paragraph (3)(B), by inserting ``or (C)'' after 
        ``paragraph (1)(B)''.

    (b) Additional Points.--Section 3309(2) of such title is amended by 
striking ``2108(3)(A)'' and inserting ``2108(3)(A)-(B)''.
    (c) Technical Amendments.--Section 2108(1)(B) of such title is 
further amended--
            (1) by striking ``the date of enactment of the Veterans' 
        Education and Employment Assistance Act of 1976,'' and inserting 
        ``October 15, 1976,''; and
            (2) by striking ``511(d) of title 10'' and inserting 
        ``12103(d) of title 10''.

[[Page 111 STAT. 1923]]

SEC. 1103. REPEAL OF DEADLINE FOR PLACEMENT CONSIDERATION OF 
            INVOLUNTARILY SEPARATED MILITARY RESERVE TECHNICIANS.

    (a) Repeal of Deadline.--Section 3329(b) of title 5, United States 
Code, is amended by striking out ``not later than 6 months after the 
date of the application''.
    (b) Technical Correction.--Such section is further amended by 
striking out ``a position described in subsection (c)'' the second place 
it appears.

SEC. 1104. RATE OF PAY OF DEPARTMENT OF DEFENSE OVERSEAS TEACHERS UPON 
            TRANSFER TO GENERAL SCHEDULE POSITION.

    (a) Prevention <<NOTE: Regulations.>>  of Excessive Increases.--
Section 5334(d) of title 5, United States Code, is amended by striking 
out ``20 percent'' and all that follows and inserting in lieu thereof 
``an amount determined under regulations which the Secretary of Defense 
shall prescribe for the determination of the yearly rate of pay of the 
position. The amount by which a rate of pay is increased under the 
regulations may not exceed the amount equal to 20 percent of that rate 
of pay.''.

    (b) Effective <<NOTE: 5 USC 5334 note.>>  Date and Savings 
Provision.--(1) The amendment made by subsection (a) shall take effect 
180 days after the date of the enactment of this Act.

    (2) In the case of a person who is employed in a teaching position 
referred to in section 5334(d) of title 5, United States Code, on the 
day before the effective date under paragraph (1), the rate of pay of 
that person determined under that section (as in effect on that day) may 
not be reduced by reason of the amendment made by subsection (a) for so 
long as the person continues to serve in that position or another such 
position without a break in service of more than three days on or after 
that day.

SEC. 1105. GARNISHMENT AND INVOLUNTARY ALLOTMENT.

    Section 5520a of title 5, United States Code, is amended--
            (1) in subsection (j), by striking out paragraph (2) and 
        inserting in lieu thereof the following new paragraph:

    ``(2) Such regulations shall provide that an agency's administrative 
costs in executing a garnishment action may be added to the garnishment, 
and that the agency may retain costs recovered as offsetting 
collections.'';
            (2) in subsection (k)--
                    (A) by striking out paragraph (3); and
                    (B) by redesignating paragraph (4) as paragraph (3); 
                and
            (3) by striking out subsection (l).

SEC. 1106. EXTENSION AND REVISION OF VOLUNTARY SEPARATION INCENTIVE PAY 
            AUTHORITY.

    (a) Remittance to CSRS Fund.--Section 5597 of title 5, United States 
Code, is amended by adding at the end the following new subsection:
    ``(h)(1)(A) In addition to any other payment that it is required to 
make under subchapter III of chapter 83 or chapter 84, the Department of 
Defense shall remit to the Office of Personnel Management an amount 
equal to 15 percent of the final basic pay of each covered employee.

[[Page 111 STAT. 1924]]

    ``(B) If the employee is one with respect to whom a remittance would 
otherwise be required under section 4(a) of the Federal Workforce 
Restructuring Act of 1994 based on the separation involved, the 
remittance under this subsection shall be instead of the remittance 
otherwise required under such section 4(a).
    ``(2) Amounts remitted under paragraph (1) shall be deposited in the 
Treasury of the United States to the credit of the Civil Service 
Retirement and Disability Fund.
    ``(3) For the purposes of this subsection--
            ``(A) the term `covered employee' means an employee who is 
        subject to subchapter III of chapter 83 or chapter 84 and to 
        whom a voluntary separation incentive has been paid under this 
        section on the basis of a separation occurring on or after 
        October 1, 1997; and
            ``(B) the term `final basic pay' has the meaning given such 
        term in section 4(a)(2) of the Federal Workforce Restructuring 
        Act of 1994.''.

    (b) Extension of Authority.--(1) Subsection (e) of section 5597 of 
title 5, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``September 30, 2001''.
    (2) Section 4436(d)(2) of the Defense Conversion, Reinvestment, and 
Transition Assistance Act of 1992 (5 U.S.C. 8348 note) is amended by 
striking out ``January 1, 2000'' and inserting in lieu thereof ``January 
1, 2002''.

SEC. 1107. USE OF APPROVED FIRE-SAFE ACCOMMODATIONS BY GOVERNMENT 
            EMPLOYEES ON OFFICIAL BUSINESS.

    (a) Percentage Use Requirement.--Section 5707a of title 5, United 
States Code, is amended--
            (1) by redesignating subsections (a) through (d) as 
        subsections (b) through (e), respectively; and
            (2) by inserting after the section heading the following new 
        subsection:

    ``(a)(1) For the purpose of making payments under this chapter for 
lodging expenses incurred in a State, each agency shall ensure that not 
less than 90 percent of the commercial-lodging room nights for employees 
of that agency for a fiscal year are booked in approved places of public 
accommodation.
    ``(2) Each agency <<NOTE: Regulations.>>  shall establish explicit 
procedures to satisfy the percentage requirement of paragraph (1).

    ``(3) An agency shall be considered to be in compliance with the 
percentage requirement of paragraph (1) until September 30, 2002, and 
after that date if travel arrangements of the agency, whether made for 
civilian employees, members of the uniformed services, or foreign 
service personnel, are made through travel management processes designed 
to book commercial lodging in approved places of public accommodation, 
whenever available.''.
    (b) Definitions.--Such section is further amended by adding at the 
end the following new subsection:
    ``(f) For purposes of this section:
            ``(1) The term `agency' does not include the government of 
        the District of Columbia.
            ``(2) The term `approved places of public accommodation' 
        means hotels, motels, and other places of public accommodation 
        that are listed by the Director of the Federal Emergency 
        Management Agency as meeting the requirements of the fire

[[Page 111 STAT. 1925]]

        prevention and control guidelines described in section 29 of the 
        Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 
        2225).
            ``(3) The term `State' means any State, the District of 
        Columbia, the Commonwealth of Puerto Rico, the Commonwealth of 
        the Northern Mariana Islands, the Trust Territory of the Pacific 
        Islands, the Virgin Islands, Guam, American Samoa, or any other 
        territory or possession of the United States.''.

    (c) Conforming Amendments.--Such section is further 
amended--
            (1) in subsection (b), as redesignated by subsection 
        (a)(1)--
                    (A) by striking out ``places of public accommodation 
                that meet the requirements of the fire prevention and 
                control guidelines described in section 29 of the 
                Federal Fire Prevention and Control Act of 1974'' and 
                inserting in lieu thereof ``approved places of public 
                accommodation''; and
                    (B) by striking out ``as defined in section 4 of the 
                Federal Fire Prevention and Control Act of 1974'';
            (2) in subsection (c), as redesignated by subsection (a)(1), 
        by striking out ``does not meet the requirements of the fire 
        prevention and control guidelines described in section 29 of the 
        Federal Fire Prevention and Control Act of 1974'' and inserting 
        in lieu thereof ``is not an approved place of public 
        accommodation''; and
            (3) in subsection (e), as redesignated by subsection 
        (a)(1)--
                    (A) by striking out ``encourage'' and inserting in 
                lieu thereof ``facilitate the ability of ''; and
                    (B) by striking out ``places of public accommodation 
                that meet the requirements of the fire prevention and 
                control guidelines described in section 29 of the 
                Federal Fire Prevention and Control Act of 1974'' and 
                inserting in lieu thereof ``approved places of public 
                accommodation''.

    (d) Report by Federal Emergency Management Agency.--Not later than 
six months after the date of the enactment of this Act, the Director of 
the Federal Emergency Management Agency shall submit to Congress a 
report describing the procedures to be used to ensure that all approved 
places of public accommodation (within the meaning of section 
5707a(f)(2) of title 5, United States Code, as added by subsection (b)) 
appear on the national master list maintained by the Director under 
section 28(b) of the Federal Fire Prevention and Control Act of 1974 (15 
U.S.C. 2224(b)) of all of the places of public accommodation affecting 
commerce located in each State that meet the requirements of the fire 
prevention and control guidelines described in section 29 of such Act 
(15 U.S.C. 2225).
    (e) Report on Implementation.--Not later than one year after the 
date of the enactment of this Act, the Administrator of General Services 
shall submit to Congress a report describing the measures that have been 
taken and will be taken by Federal agencies to comply with the 
requirement that not less than 90 percent of the commercial-lodging room 
nights for employees of each Federal agency for a fiscal year are booked 
in approved places of public accommodation, as specified in section 
5707a(a) of title 5, United States Code, as added by subsection (a). 
Measures to satisfy such

[[Page 111 STAT. 1926]]

requirement may include the use of contract travel agents, automated 
booking systems, and data developed from travel payment systems. The 
Administrator shall prepare the report in consultation with the heads of 
the Federal agencies subject to such requirement.

SEC. 1108. <<NOTE: 10 USC 5013 note.>>  NAVY HIGHER EDUCATION PILOT 
            PROGRAM REGARDING ADMINISTRATION OF BUSINESS RELATIONSHIPS 
            BETWEEN GOVERNMENT AND PRIVATE SECTOR.

    (a) Pilot Project Authorized.--During fiscal years 1998 through 
2002, the Secretary of the Navy may establish and conduct a pilot 
program of graduate-level higher education regarding the administration 
of business relationships between the Government and the private sector.
    (b) Purpose.--The purpose of the pilot program is to make available 
to employees of the Naval Undersea Warfare Center, employees of the 
Naval Sea Systems Command, and employees of the Acquisition Center for 
Excellence of the Navy (upon establishment of such Acquisition Center), 
a curriculum of graduate-level higher education leading to the award of 
a graduate degree designed to prepare participants effectively to meet 
the challenges of administering Government contracting and other 
business relationships between the United States and private sector 
businesses in the context of constantly changing or newly emerging 
industries, technologies, governmental organizations, policies, and 
procedures (including governmental organizations, policies, and 
procedures recommended in the National Performance Review).
    (c) Partnership With Institution of Higher Education.--(1) The 
Secretary of the Navy may enter into an agreement with an institution of 
higher education to assist the Naval Undersea Warfare Center with the 
development of the curriculum for the pilot program, to offer courses 
and provide instruction and materials to participants to the extent 
provided for in the agreement, to provide such other assistance in 
support of the program as may be provided for in the agreement, and to 
award a graduate degree under the program.
    (2) To be eligible to enter into an agreement under paragraph (1), 
an institution of higher education must have an established program of 
graduate-level education that is relevant to the purpose of the pilot 
program.
    (d) Curriculum.--The curriculum offered under the pilot 
program shall--
            (1) be designed specifically to achieve the purpose of the 
        pilot program; and
            (2) include courses that are--
                    (A) typically offered under curricula leading to 
                award of the degree of Master of Business Administration 
                by institutions of higher education; and
                    (B) necessary for meeting educational qualification 
                requirements for certification as an acquisition program 
                manager.

    (e) Distance Learning Option.--The Secretary of the Navy may include 
as part of the pilot program policies and procedures for offering 
distance learning instruction by means of telecommunications, 
correspondence, or other methods for off-site receipt of instruction.

[[Page 111 STAT. 1927]]

    (f) Report.--Not later than 90 days after the termination of the 
pilot program, the Secretary of the Navy shall submit to Congress a 
report containing--
            (1) an assessment by the Secretary of the value of the 
        program for meeting the purpose of the program and the 
        desirability of permanently establishing a similar program for 
        other employees of the Department of Defense; and
            (2) such other information and recommendations regarding the 
        program as the Secretary considers appropriate.

    (g) Limitation on Funding Source.--Any funds required for the pilot 
program for a fiscal year shall be derived only from the appropriation 
``Operation and Maintenance, Navy'' for that fiscal year.

SEC. 1109. AUTHORITY FOR MARINE CORPS UNIVERSITY TO EMPLOY CIVILIAN 
            FACULTY MEMBERS.

    (a) Expanded Authority.--Subsections (a) and (c) of section 7478 of 
title 10, United States Code, are amended by striking out ``at the 
Marine Corps Command and Staff College'' and inserting in lieu thereof 
``of the Marine Corps University''.
    (b) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

``Sec. 7478. Naval War College and Marine Corps University: civilian 
                        faculty members''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 643 of such title is amended to read as 
follows:

``7478. Naval War College and Marine Corps University: civilian faculty 
           members.''.

              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. Withdrawal of United States ground forces from Republic of 
           Bosnia and Herzegovina.
Sec. 1204. Secretary of Defense reports on tasks carried out by United 
           States forces.
Sec. 1205. Presidential report on situation in Republic of Bosnia and 
           Herzegovina.
Sec. 1206. Definitions.

        Subtitle B--Export Controls on High Performance Computers

Sec. 1211. Export approvals for high performance computers.
Sec. 1212. Report on exports of high performance computers.
Sec. 1213. Post-shipment verification of export of high performance 
           computers.
Sec. 1214. GAO study on certain computers; end user information 
           assistance.
Sec. 1215. Congressional committees.

                        Subtitle C--Other Matters

Sec. 1221. Defense burdensharing.
Sec. 1222. Temporary use of general purpose vehicles and nonlethal 
           military equipment under acquisition and cross servicing 
           agreements.
Sec. 1223. Sense of Congress and reports regarding financial costs of 
           enlargement of the North Atlantic Treaty Organization.
Sec. 1224. Sense of Congress regarding enlargement of the North Atlantic 
           Treaty Organization.
Sec. 1225. Sense of the Congress relating to level of United States 
           military personnel in the East Asia and Pacific region.
Sec. 1226. Report on future military capabilities and strategy of the 
           People's 
           Republic of China.

[[Page 111 STAT. 1928]]

Sec. 1227. Sense of Congress on need for Russian openness on the 
           Yamantau Mountain project.
Sec. 1228. Assessment of the Cuban threat to United States national 
           security.
Sec. 1229. Report on Helsinki Joint Statement.
Sec. 1230. Commendation of Mexico on free and fair elections.
Sec. 1231. Sense of Congress regarding Cambodia.
Sec. 1232. Congratulating Governor Christopher Patten of Hong Kong.

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

SEC. 1201. FINDINGS.

    The Congress finds the following:
            (1) United States Armed Forces were deployed to the Republic 
        of Bosnia and Herzegovina as part of the North Atlantic Treaty 
        Organization (NATO) Implementation Force (IFOR) to implement the 
        military aspects of the Dayton Peace Agreement.
            (2) The military aspects of the Dayton Peace Agreement have 
        been successfully implemented to date with the military forces 
        of the warring factions successfully separated and a cessation 
        in the hostilities that resulted in the deaths of hundreds of 
        thousands of Bosnians.
            (3) Implementation of the civil aspects of the Dayton Peace 
        Agreement has lagged far behind the schedule for such 
        implementation envisioned in the Agreement with the result that 
        United States Armed Forces have undertaken a prolonged 
        engagement in the Republic of Bosnia and Herzegovina.
            (4) On December 13, 1995, the President stated in a letter 
        to Congress, ``NATO and U.S. military commanders believe, and I 
        expect, that the military mission can be accomplished in about a 
        year. Twelve months will allow IFOR time to complete the 
        military tasks assigned in the Dayton agreement and to establish 
        a secure environment, in which political and economic 
        reconstruction efforts by the parties and international civilian 
        agencies can take hold. Within one year, we expect that the 
        military provisions of the Dayton agreement will have been 
        carried out, implementation of the civilian aspects and economic 
        reconstruction will have been firmly launched, free elections 
        will have been held under international supervision and a stable 
        military balance will have been established.''
            (5) Notwithstanding a number of assurances relating to the 
        accomplishment of the military mission in the Republic of Bosnia 
        and Herzegovina by December 1996, the President, on November 15, 
        1996, announced his decision to extend the presence of United 
        States forces in the Republic of Bosnia and Herzegovina to 
        participate in the NATO Stabilization Force (SFOR) until June 
        1998.
            (6) Despite initial projections by the Department of Defense 
        that the costs of United States operations in the Republic of 
        Bosnia and Herzegovina would total $1,500,000,000, the projected 
        cost of United States operations in the Republic of Bosnia and 
        Herzegovina through June 1998 is estimated to exceed 
        $7,000,000,000.
            (7) The fiscal year 1998 estimate of the Department of 
        Defense for operations in the Republic of Bosnia and

[[Page 111 STAT. 1929]]

        Herzegovina assumes that the level of military forces 
        participating in SFOR will be reduced soon after the start of 
        the fiscal year.
            (8) The President and the Secretary of Defense have stated 
        that United States forces are to be withdrawn from the Republic 
        of Bosnia and Herzegovina by the end of June 1998.

SEC. 1202. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) United States ground combat forces should not 
        participate in a follow-on force in the Republic of Bosnia and 
        Herzegovina after June 1998;
            (2) the European Security and Defense Identity, which, as 
        facilitated by the Combined Joint Task Forces concept, enables 
        the Western European Union, with the consent of the North 
        Atlantic Alliance, to assume political control and strategic 
        direction of NATO assets made available for the Alliance, may be 
        an ideal instrument for a follow-on force for the Republic of 
        Bosnia and Herzegovina;
            (3) a NATO-led force without the participation of United 
        States ground combat forces in the Republic of Bosnia and 
        Herzegovina may be suitable for a follow-on force for the 
        Republic of Bosnia and Herzegovina if the European Security and 
        Defense Identity is not sufficiently developed or is otherwise 
        considered inappropriate for such a mission;
            (4) the United States may decide to provide appropriate 
        support to a Western European Union-led or NATO-led follow-on 
        force, including command and control, intelligence, logistics, 
        and, if necessary, a ready reserve force in the region;
            (5) the President should inform our European NATO allies of 
        this expression of the sense of Congress and should urge them 
        strongly to undertake preparations for a Western European Union-
        led or NATO-led force as a follow-on force to the NATO-led SFOR 
        if needed to maintain peace and stability in the Republic of 
        Bosnia and Herzegovina; and
            (6) the President should consult with the Congress with 
        respect to any support to be provided to a Western European 
        Union-led or NATO-led follow-on force in the Republic of Bosnia 
        and Herzegovina after June 30, 1998.

SEC. 1203. <<NOTE: 10 USC 114 note.>>  WITHDRAWAL OF UNITED STATES 
            GROUND FORCES FROM REPUBLIC OF BOSNIA AND HERZEGOVINA .

    (a) Limitation.--No funds appropriated or otherwise made available 
for the Department of Defense for fiscal year 1998 or any subsequent 
fiscal year may be used for the deployment of any United States ground 
combat forces in the Republic of Bosnia and Herzegovina after June 30, 
1998, unless the President, not later than May 15, 1998, and after 
consultation with the bipartisan leadership of the two Houses of 
Congress, transmits to Congress a certification--
            (1) that the continued presence of United States ground 
        combat forces, after June 30, 1998, in the Republic of Bosnia 
        and Herzegovina is required in order to meet the national 
        security interests of the United States; and
            (2) that after June 30, 1998, it will remain United States 
        policy that United States ground forces will not serve as, or be 
        used as, civil police in the Republic of Bosnia and Herzegovina.

[[Page 111 STAT. 1930]]

    (b) Report.--The <<NOTE: President.>>  President shall submit with 
the certification under subsection (a) a report that includes the 
following:
            (1) The reasons why that presence is in the national 
        security interest of the United States.
            (2) The number of United States military personnel to be 
        deployed in and around the Republic of Bosnia and Herzegovina 
        and other areas of the former Yugoslavia after that date.
            (3) The expected duration of any such deployment.
            (4) The mission and objectives of the United States Armed 
        Forces to be deployed in and around the Republic of Bosnia and 
        Herzegovina and other areas of the former Yugoslavia after June 
        30, 1998.
            (5) The exit strategy of such forces.
            (6) The incremental costs associated with any such 
        deployment.
            (7) The effect of such deployment on the morale, retention, 
        and effectiveness of United States armed forces.
            (8) A description of the forces from other nations involved 
        in a follow-on mission, shown on a nation-by-nation basis.
            (9) A description of the command and control arrangement 
        established for United States forces involved in a follow-on 
        mission.
            (10) An assessment of the expected threats to United States 
        forces involved in a follow-on mission.
            (11) The plan for rotating units and personnel to and from 
        the Republic of Bosnia and Herzegovina during a follow-on 
        mission, including the level of participation by reserve 
        component units and personnel.
            (12) The mission statement and operational goals of the 
        United States forces involved in a follow-on mission.

    (c) Request for Supplemental Appropriations.--The President shall 
transmit to Congress with a certification under subsection (a) a 
supplemental appropriations request for the Department of Defense for 
such amounts as are necessary for the costs of any continued deployment 
beyond June 30, 1998.
    (d) Construction With President's Constitutional Authority.--Nothing 
in this section shall be deemed to restrict the authority of the 
President under the Constitution to protect the lives of United States 
citizens.
    (e) Construction With Appropriations Provision.--The provisions of 
this section are enacted, and shall be applied, as supplemental to (and 
not in lieu of) the provisions of section 8132 of the Department of 
Defense Appropriations Act, 1998 (Public Law 105-56).

SEC. 1204. SECRETARY OF DEFENSE REPORTS ON TASKS CARRIED OUT BY UNITED 
            STATES FORCES.

    (a) Requirement for Two Reports.--The Secretary of Defense shall 
submit to the congressional defense committees--
            (1) not later than December 15, 1997, a report identifying 
        each activity being carried out, as of December 1, 1997, by 
        covered United States forces in the Republic of Bosnia and 
        Herzegovina; and
            (2) not later than April 15, 1998, a report identifying each 
        activity being carried out, as of April 1, 1998, by covered 
        United States forces in the Republic of Bosnia and Herzegovina.

[[Page 111 STAT. 1931]]

    (b) Covered United States Forces.--For purposes of this section, 
covered United States forces in the Republic of Bosnia and Herzegovina 
are United States ground forces in the Republic of Bosnia and 
Herzegovina that are assigned to the multinational peacekeeping force 
known as the Stabilization Force (SFOR) or any other multinational 
peacekeeping force that is the successor to the SFOR.
    (c) Matters To Be Included.--The Secretary shall include in each 
report under subsection (a), for each activity identified under that 
subsection, the following:
            (1) The number of United States military personnel involved 
        in the performance of that activity.
            (2) Whether forces assigned to the SFOR (or successor 
        multinational peacekeeping force) from other nations also 
        participated in that activity.
            (3) The justification for using military forces rather than 
        civilian organizations to perform that activity.
            (4) In the case of activities that (as determined by the 
        Secretary) are considered to be supporting tasks, as that term 
        is used in paragraph 3 of Article VI of Annex 1-A to the General 
        Framework Agreement for Peace in Bosnia and Herzegovina, the 
        justification for using military forces.
            (5) The likelihood that each such activity will have to be 
        carried out by United States military forces after June 30, 
        1998.

SEC. 1205. PRESIDENTIAL REPORT ON SITUATION IN REPUBLIC OF BOSNIA AND 
            HERZEGOVINA.

    (a) Requirement.--Not later than February 1, 1998, the President 
shall submit to Congress a report on the political and military 
conditions in the Republic of Bosnia and Herzegovina. The report shall 
be submitted in both classified and unclassified form.
    (b) Matters To Be Included.--The report under subsection (a) shall 
include a discussion of the following:
            (1) An assessment of the progress made in implementing the 
        civil, economic, and political aspects of the Dayton Peace 
        Agreement.
            (2) An identification of the specific steps taken to 
        transfer the United States portion of the peacekeeping mission 
        in the Republic of Bosnia and Herzegovina to forces of the 
        member-states of the Western European Union or to a NATO-led 
        force without the participation of United States ground combat 
        forces in the Republic of Bosnia and Herzegovina.
            (3) A detailed discussion of the proposed role and 
        involvement of the United States in supporting peacekeeping 
        activities in the Republic of Bosnia and Herzegovina following 
        the withdrawal of United States ground combat forces from the 
        Republic of Bosnia and Herzegovina.
            (4) A detailed explanation and timetable for carrying out 
        the commitment to withdraw all United States ground forces from 
        the Republic of Bosnia and Herzegovina by June 30, 1998, 
        including the planned date of commencement and completion of the 
        withdrawal.
            (5) The military and political considerations that will 
        affect the decision to carry out such a transition.
            (6) Any plan to maintain or expand other Bosnia-related 
        operations (such as the operations designated as Operation

[[Page 111 STAT. 1932]]

        Deliberate Guard) if tensions in the Republic of Bosnia and 
        Herzegovina remain sufficient to delay reductions of United 
        States military forces participating in the Stabilization Force 
        and the estimated cost associated with each such operation.

SEC. 1206. DEFINITIONS. <<NOTE: 10 USC 114 note.>> 

    As used in this subtitle:
            (1) Dayton peace agreement.--The term ``Dayton Peace 
        Agreement'' 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) Implementation force.--The term ``Implementation Force'' 
        means the NATO-led multinational military force in the Republic 
        of Bosnia and Herzegovina (commonly referred to as ``IFOR''), 
        authorized under the Dayton Peace Agreement.
            (3) Stabilization force.--The term ``Stabilization Force'' 
        means the NATO-led follow-on force to the Implementation Force 
        in the Republic of Bosnia and Herzegovina and other countries in 
        the region (commonly referred to as ``SFOR''), authorized under 
        United Nations Security Council Resolution 1088 (December 12, 
        1996).
            (4) Follow-on mission.--The term ``follow-on mission'' means 
        a mission involving the deployment of ground elements of the 
        United States Armed Forces in the Republic of Bosnia and 
        Herzegovina after June 30, 1998 (other than as described in 
        section 1203(b)).
            (5) NATO.--The term ``NATO'' means the North Atlantic Treaty 
        Organization.

 Subtitle B--Export <<NOTE: 50 USC app. 2404 note.>>  Controls on High 
Performance Computers

SEC. 1211. EXPORT APPROVALS FOR HIGH PERFORMANCE 
            COMPUTERS.

    (a) Prior <<NOTE: President.>>  Approval of Exports and Reexports.--
The President shall require that no digital computer with a composite 
theoretical performance level of more than 2,000 millions of theoretical 
operations per second (MTOPS) or with such other composite theoretical 
performance level as may be established subsequently by the President 
under subsection (d), may be exported or reexported without a license to 
a country specified in subsection (b) if the Secretary of Commerce, the 
Secretary of Defense, the Secretary of Energy, the Secretary of State, 
or the Director of the Arms Control and Disarmament Agency objects, in 
writing, to such export or reexport. Any person proposing to export or 
reexport such a digital computer shall so notify the Secretary of 
Commerce, who, within 24 hours after receiving the notification, shall 
transmit the notification to the Secretary of Defense, the Secretary of 
Energy, the Secretary of State, and the Director of the Arms Control and 
Disarmament Agency.

    (b) Covered Countries.--For purposes of subsection (a), the 
countries specified in this subsection are the countries listed as 
``Computer Tier 3'' eligible countries in section 740.7(d) of title 15 
of the Code of Federal Regulations, as in effect on June 10,

[[Page 111 STAT. 1933]]

1997, subject to modification by the President under subsection (e).
    (c) Time Limit.--Written objections under subsection (a) to an 
export or reexport shall be raised within 10 days after the notification 
is received under subsection (a). If such a written objection to the 
export or reexport of a computer is raised, the computer may be exported 
or reexported only pursuant to a license issued by the Secretary of 
Commerce under the Export Administration Regulations of the Department 
of Commerce, without regard to the licensing exceptions otherwise 
authorized under section 740.7 of title 15 of the Code of Federal 
Regulations, as in effect on June 10, 1997. If no objection is raised 
within the 10-day period, the export or reexport is authorized.
    (d) Adjustment of Composite Theoretical Performance.--The 
President, <<NOTE: President.>>  in consultation with the Secretary of 
Commerce, the Secretary of Defense, the Secretary of Energy, the 
Secretary of State, and the Director of the Arms Control and Disarmament 
Agency, may establish a new composite theoretical performance level for 
purposes of subsection (a). Such new level shall not take effect until 
180 days after the President submits to the congressional committees 
designated in section 1215 a report setting forth the new composite 
theoretical performance level and the justification for such new level. 
Each report shall, at a minimum--
            (1) address the extent to which high performance computers 
        of a composite theoretical level between the level established 
        in subsection (a) or such level as has been previously adjusted 
        pursuant to this section and the new level, are available from 
        other countries;
            (2) address all potential uses of military significance to 
        which high performance computers at the new level could be 
        applied; and
            (3) assess the impact of such uses on the national security 
        interests of the United States.

    (e) Adjustment of Covered Countries.--
            (1) In general.--The President, <<NOTE: President.>>  in 
        consultation with the Secretary of Commerce, the Secretary of 
        Defense, the Secretary of Energy, the Secretary of State, and 
        the Director of the Arms Control and Disarmament Agency, may add 
        a country to or remove a country from the list of covered 
        countries in subsection (b), except that a country may be 
        removed from the list only in accordance with paragraph (2).
            (2) Deletions from list of covered countries.--The removal 
        of a country from the list of covered countries under subsection 
        (b) shall not take effect until 120 days after the President 
        submits to the congressional committees designated in section 
        1215 a report setting forth the justification for the deletion.
            (3) Excluded countries.--A country may not be removed from 
        the list of covered countries under subsection (b) if--
                    (A) the country is a ``nuclear-weapon state'' (as 
                defined by Article IX of the Treaty on the Non-
                Proliferation of Nuclear Weapons) and the country is not 
                a member of the North Atlantic Treaty Organization; or
                    (B) the country is not a signatory of the Treaty on 
                the Non-Proliferation of Nuclear Weapons and the country 
                is listed on Annex 2 to the Comprehensive Nuclear Test-
                Ban Treaty.

[[Page 111 STAT. 1934]]

    (f) Classification.--Each report under subsections (d) and (e) shall 
be submitted in an unclassified form and may, if necessary, have a 
classified supplement.

SEC. 1212. REPORT ON EXPORTS OF HIGH PERFORMANCE COMPUTERS.

    (a) Report.--Not later than 60 days after the date of the enactment 
of this Act, the President shall provide to the congressional committees 
specified in section 1215 a report identifying all exports of digital 
computers with a composite theoretical performance of more than 2,000 
millions of theoretical operations per second (MTOPS) to all countries 
since January 25, 1996. For each export, the report shall identify--
            (1) whether an export license was applied for and whether 
        one was granted;
            (2) the date of the transfer of the computer;
            (3) the United States manufacturer and exporter of the 
        computer;
            (4) the MTOPS level of the computer; and
            (5) the recipient country and end user.

    (b) Additional Information on Exports to Certain Countries.--In the 
case of exports to countries specified in subsection (c), the report 
under subsection (a) shall identify the intended end use for the 
exported computer and the assessment by the executive branch of whether 
the end user is a military end user or an end user involved in 
activities relating to nuclear, chemical, or biological weapons or 
missile technology. Information provided under this subsection may be 
submitted in classified form if necessary.
    (c) Covered Countries.--For purposes of subsection (b), the 
countries specified in this subsection are--
            (1) the countries listed as ``Computer Tier 3'' eligible 
        countries in section 740.7(d) of title 15 of the Code of Federal 
        Regulations, as in effect on June 10, 1997; and
            (2) the countries listed in section 740.7(e) of title 15 of 
        the Code of Federal Regulations, as in effect on June 10, 1997.

SEC. 1213. POST-SHIPMENT VERIFICATION OF EXPORT OF HIGH PERFORMANCE 
            COMPUTERS.

    (a) Required Post-Shipment Verification.--The Secretary of Commerce 
shall conduct post-shipment verification of each digital computer with a 
composite theoretical performance of more than 2,000 millions of 
theoretical operations per second (MTOPS) that is exported from the 
United States, on or after the date of the enactment of this Act, to a 
country specified in subsection (b).
    (b) Covered Countries.--For purposes of subsection (a), the 
countries specified in this subsection are the countries listed as 
``Computer Tier 3'' eligible countries in section 740.7 of title 15 of 
the Code of Federal Regulations, as in effect on June 10, 1997, subject 
to modification by the President under section 1211(e).
    (c) Annual Report.--The Secretary of Commerce shall submit to the 
congressional committees specified in section 1215 an annual report on 
the results of post-shipment verifications conducted under this section 
during the preceding year. Each such report shall include a list of all 
such items exported from the United States to such countries during the 
previous year and, with respect to each such export, the following:
            (1) The destination country.

[[Page 111 STAT. 1935]]

            (2) The date of export.
            (3) The intended end use and intended end user.
            (4) The results of the post-shipment verification.

    (d) Explanation When Verification Not Conducted.--If a post-shipment 
verification has not been conducted in accordance with subsection (a) 
with respect to any such export during the period covered by a report, 
the Secretary shall include in the report for that period a detailed 
explanation of the reasons why such a post-shipment verification was not 
conducted.

SEC. 1214. GAO STUDY ON CERTAIN COMPUTERS; END USER INFORMATION 
            ASSISTANCE.

    (a) In General.--The Comptroller General of the United States shall 
submit to the congressional committees specified in section 1215 a study 
of the national security risks relating to the sale of computers with a 
composite theoretical performance of between 2,000 and 7,000 millions of 
theoretical operations per second (MTOPS) to end users in countries 
specified in subsection (c). The study shall also analyze any foreign 
availability of computers described in the preceding sentence and the 
impact of such sales on United States exporters.
    (b) End User Information Assistance to Exporters.--The Secretary of 
Commerce shall establish a procedure by which exporters may seek 
information on questionable end users in countries specified in 
subsection (c) who are seeking to obtain computers described in 
subsection (a).
    (c) Covered Countries.--For purposes of subsections (a) and (b), the 
countries specified in this subsection are the countries listed as 
``Computer Tier 3'' eligible countries in section 740.7(d) of title 15 
of the Code of Federal Regulations, as in effect on June 10, 1997.

SEC. 1215. CONGRESSIONAL COMMITTEES.

    For purposes of sections 1211(d), 1212(a), 1213(c), and 1214(a) the 
congressional committees specified in those sections are the following:
            (1) The Committee on Banking, Housing, and Urban Affairs and 
        the Committee on Armed Services of the Senate.
            (2) The Committee on International Relations and the 
        Committee on National Security of the House of Representatives.

                        Subtitle C--Other Matters

SEC. 1221. DEFENSE <<NOTE: 22 USC 1928 note.>>  BURDENSHARING.

    (a) Efforts To Increase Allied Burdensharing.--The President shall 
seek to have each nation that has cooperative military relations with 
the United States (including security agreements, basing arrangements, 
or mutual participation in multinational military organizations or 
operations) take one or more of the following actions:
            (1) For any nation in which United States military personnel 
        are assigned to permanent duty ashore, increase its financial 
        contributions to the payment of the nonpersonnel costs incurred 
        by the United States Government for stationing United States 
        military personnel in that nation, with a goal of achieving by 
        September 30, 2000, 75 percent of such costs. An increase

[[Page 111 STAT. 1936]]

        in financial contributions by any nation under this paragraph 
        may include the elimination of taxes, fees, or other charges 
        levied on United States military personnel, equipment, or 
        facilities stationed in that nation.
            (2) Increase its annual budgetary outlays for national 
        defense as a percentage of its gross domestic product by 10 
        percent or at least to a level commensurate to that of the 
        United States by September 30, 1998.
            (3) Increase its annual budgetary outlays for foreign 
        assistance (to promote democratization, economic stabilization, 
        transparency arrangements, defense economic conversion, respect 
        for the rule of law, and internationally recognized human 
        rights) by 10 percent or at least to a level commensurate to 
        that of the United States by September 30, 1998.
            (4) Increase the amount of military assets (including 
        personnel, equipment, logistics, support and other resources) 
        that it contributes, or would be prepared to contribute, to 
        multinational military activities worldwide.

    (b) Authorities To Encourage Actions by United States Allies.--In 
seeking the actions described in subsection (a) with respect to any 
nation, or in response to a failure by any nation to undertake one or 
more of such actions, the President may take any of the following 
measures to the extent otherwise authorized by law:
            (1) Reduce the end strength level of members of the Armed 
        Forces assigned to permanent duty ashore in that nation.
            (2) Impose on that nation fees or other charges similar to 
        those that such nation imposes on United States forces stationed 
        in that nation.
            (3) Reduce (through rescission, impoundment, or other 
        appropriate procedures as authorized by law) the amount the 
        United States contributes to the NATO Civil Budget, Military 
        Budget, or Security Investment Program.
            (4) Suspend, modify, or terminate any bilateral security 
        agreement the United States has with that nation, consistent 
        with the terms of such agreement.
            (5) Reduce (through rescission, impoundment or other 
        appropriate procedures as authorized by law) any United States 
        bilateral assistance appropriated for that nation.
            (6) Take any other action the President determines to be 
        appropriate as authorized by law.

    (c) Report on Progress in Increasing Allied Burdensharing.--Not 
later than March 1, 1998, the Secretary of Defense shall submit to 
Congress a report on--
            (1) steps taken by other nations to complete the actions 
        described in subsection (a);
            (2) all measures taken by the President, including those 
        authorized in subsection (b), to achieve the actions described 
        in subsection (a);
            (3) the difference between the amount allocated by other 
        nations for each of the actions described in subsection (a) 
        during the period beginning on March 1, 1996, and ending on 
        February 28, 1997, and during the period beginning on March 1, 
        1997, and ending on February 28, 1998; and
            (4) the budgetary savings to the United States that are 
        expected to accrue as a result of the steps described under 
        paragraph (1).

[[Page 111 STAT. 1937]]

    (d) Report on National Security Bases for Forward Deployment and 
Burdensharing Relationships.--(1) In order to ensure the best allocation 
of budgetary resources, the President shall undertake a review of the 
status of elements of the 
United States Armed Forces that are permanently stationed outside the 
United States. The review shall include an assessment of the following:
            (A) The alliance requirements that are to be found in 
        agreements between the United States and other countries.
            (B) The national security interests that support permanently 
        stationing elements of the United States Armed Forces outside 
        the United States.
            (C) The stationing costs associated with the forward 
        deployment of elements of the United States Armed Forces.
            (D) The alternatives available to forward deployment (such 
        as material prepositioning, enhanced airlift and sealift, or 
        joint training operations) to meet such alliance requirements or 
        national security interests, with such alternatives identified 
        and described in detail.
            (E) The costs and force structure configurations associated 
        with such alternatives to forward deployment.
            (F) The financial contributions that allies of the United 
        States make to common defense efforts (to promote 
        democratization, economic stabilization, transparency 
        arrangements, defense economic conversion, respect for the rule 
        of law, and internationally recognized human rights).
            (G) The contributions that allies of the United States make 
        to meeting the stationing costs associated with the forward 
        deployment of elements of the United States Armed Forces.
            (H) The annual expenditures of the United States and its 
        allies on national defense, and the relative percentages of each 
        nation's gross domestic product constituted by those 
        expenditures.

    (2) The <<NOTE: President.>>  President shall submit to Congress a 
report on the review under paragraph (1). The report shall be submitted 
not later than March 1, 1998, in classified and unclassified form.

SEC. 1222. TEMPORARY USE OF GENERAL PURPOSE VEHICLES AND NONLETHAL 
            MILITARY EQUIPMENT UNDER ACQUISITION AND CROSS SERVICING 
            AGREEMENTS.

    Section 2350(1) of title 10, United States Code, is amended by 
striking out ``other items'' in the second sentence and all that follows 
through ``United States Munitions List'' and inserting in lieu thereof 
``other nonlethal items of military equipment which are not designated 
as significant military equipment on the United States Munitions List 
promulgated''.

SEC. 1223. SENSE OF CONGRESS AND REPORTS REGARDING FINANCIAL COSTS OF 
            ENLARGEMENT OF THE NORTH ATLANTIC TREATY ORGANIZATION.

    (a) Findings.--Congress finds the following:
            (1) In a report to Congress in February 1997 on the 
        rationale, benefits, costs, and implications of North Atlantic 
        Treaty Organization enlargement the Secretary of Defense 
        estimated that the financial cost to the United States of such 
        enlargement will be modest, totaling between $2,000,000,000 and 
        $2,600,000,000 for the period from 1997 through 2009.

[[Page 111 STAT. 1938]]

            (2) A study by the RAND Corporation published in 1996 
        calculated that the total financial cost to the United States of 
        such enlargement will be between $5,000,000,000 and 
        $6,000,000,000 over the same period.
            (3) A March 1996 report by the Congressional Budget Office 
        on the financial costs of enlarging the North Atlantic Treaty 
        Organization alliance estimated the United States share of 
        alliance enlargement costs to be between $4,800,000,000 and 
        $18,900,000,000 through 2010, depending upon political 
        developments in Europe.
            (4) An August 1997 report by the General Accounting Office 
        reviewing the financial cost estimates of the Secretary of 
        Defense concluded that North Atlantic Treaty Organization 
        enlargement could entail additional costs beyond those included 
        in the Secretary's estimate and questioned the validity of the 
        Secretary's estimate due to the lack of supporting cost 
        documentation and the inclusion of cost elements not related to 
        NATO enlargement.
            (5) The North Atlantic Alliance is scheduled to complete its 
        analysis of the military requirements for the integration of 
        Poland, the Czech Republic, and Hungary into the Alliance in 
        December 1997.
            (6) The North Atlantic Alliance is also scheduled to 
        complete in December 1997 its financial cost estimate of the 
        military requirements related to the integration of those 
        nations.

    (b) Sense of Congress.--It is the sense of Congress that the 
analysis of the North Atlantic Alliance of the military requirements 
relating to NATO enlargement and of the financial costs to the Alliance 
of NATO enlargement will be one of the major factors in the 
consideration by the Senate of the ratification of instruments to 
approve the admission of new member nations to the Alliance and by 
Congress for the authorization and appropriation of the funding for the 
costs associated with such enlargement.
    (c) Report Assessing NATO Cost Analysis.--Not later than March 31, 
1998, the Secretary of Defense shall submit to Congress a report 
providing--
            (1) an assessment of the analysis by the North Atlantic 
        Alliance of the military requirements related to NATO 
        enlargement and of the estimate of the financial costs to the 
        NATO Alliance for the integration of Poland, the Czech Republic, 
        and Hungary into the Alliance;
            (2) a description of the analytical means used to determine 
        such requirements and costs; and
            (3) a general assessment of the additional military 
        requirements and costs that would result from a significantly 
        increased threat.

    (d) Report on Department of Defense Costs.--(1) The Secretary of 
Defense shall submit to Congress, in conjunction with the submission of 
the President's budget for fiscal year 1999, a report on Department of 
Defense costs for NATO enlargement. The report shall include a detailed 
estimate of such costs for fiscal year 1998 that identifies all 
appropriations, by budget activity, for the military departments and 
other elements of the Department of Defense to support NATO enlargement.
    (2) The Secretary of Defense shall include in the budget 
justification materials submitted to Congress by the Secretary in 
support of the budget of Department of Defense for fiscal year 1999

[[Page 111 STAT. 1939]]

complete and detailed descriptions and estimates of the amounts provided 
in that budget for the costs of NATO enlargement.

SEC. 1224. SENSE OF CONGRESS REGARDING ENLARGEMENT OF THE NORTH ATLANTIC 
            TREATY ORGANIZATION.

    (a) Findings.--Congress makes the following findings:
            (1) The North Atlantic Treaty Organization (NATO) met on 
        July 8 and 9, 1997, in Madrid, Spain, and issued invitations to 
        the Czech Republic, Hungary, and Poland to begin accession talks 
        to join NATO.
            (2) Congress has expressed its support for the process of 
        NATO enlargement by approving the NATO Enlargement Facilitation 
        Act of 1996 (title VI of the matter enacted in section 101(c) of 
        division A of Public Law 104-208; 22 U.S.C. 1928 note).
            (3) The United States has supported the position that the 
        process of enlarging NATO will continue after the first round of 
        invitations in July 1997.
            (4) Romania and Slovenia are to be commended for their 
        progress toward political and economic reform and appear to be 
        striving to meet the guidelines for prospective membership in 
        NATO.
            (5) In furthering the purpose and objective of NATO in 
        promoting stability and well-being in the North Atlantic area, 
        NATO should invite Romania and Slovenia to accession 
        negotiations to become NATO members as expeditiously as possible 
        upon the satisfaction of all relevant membership criteria and 
        consistent with NATO security objectives.

    (b) Sense of Congress.--It is the sense of Congress that North 
Atlantic Treaty Organization should be commended--
            (1) for having committed to review the process of enlarging 
        the Organization in 1999; and
            (2) for singling out the positive developments toward 
        democracy and rule of law in Romania and Slovenia.

SEC. 1225. SENSE OF CONGRESS RELATING TO LEVEL OF UNITED STATES MILITARY 
            PERSONNEL IN THE EAST ASIA AND PACIFIC REGION.

    (a) Findings.--Congress finds the following:
            (1) The stability of the Asia-Pacific region is a matter of 
        vital national interest affecting the well-being of all 
        Americans.
            (2) The nations of the Pacific Rim collectively represent 
        the United States largest trading partner and are expected to 
        account for almost one-third of the world's economic activity by 
        the start of the next century.
            (3) The increased reliance by the United States on trade and 
        Middle East oil sources has reinforced United States security 
        interests in the Southeast Asia shipping lanes through the South 
        China Sea and the key straits of Malacca, Sunda, Lombok, and 
        Makassar.
            (4) The South China Sea is an important area for United 
        States Navy ships passing from the Pacific to the Indian Ocean 
        and the Persian Gulf.
            (5) Maintaining freedom of navigation in the South China Sea 
        is an important interest of the United States.
            (6) The threats of proliferation of weapons of mass 
        destruction, the emerging nationalism amidst long-standing 
        ethnic

[[Page 111 STAT. 1940]]

        and national rivalries, and the unresolved territorial disputes 
        combine to create a political landscape of potential instability 
        and conflict in this region that could jeopardize the interests 
        of the United States and the safety of United States nationals.
            (7) A critical component of the East Asia strategy of the 
        United States is maintaining forward deployed forces in Asia to 
        ensure broad regional stability, to help to deter aggression, to 
        lessen the pressure for arms races, and to contribute to the 
        political and economic advances of the region from which the 
        United States benefits.
            (8) The forward presence of the United States in Northeast 
        Asia enables the United States to respond to regional 
        contingencies, to protect sea lines of communication, to sustain 
        influence, and to support operations as distant as operations in 
        the Persian Gulf.
            (9) The military forces of the United States serve to 
        prevent the political or economic control of the Asia-Pacific 
        region by a rival, hostile power or coalition of such powers, 
        thus preventing any such group from obtaining control over the 
        vast resources, enormous wealth, and advanced technology of the 
        region.
            (10) Allies of the United States in the region can base 
        their defense planning on a reliable American security 
        commitment, a reduction of which could stimulate an arms buildup 
        in the region.
            (11) The Joint Announcement of the United States-Japan 
        Security Consultative Committee of December 1996, acknowledged 
        that ``the forward presence of U.S. forces continues to be an 
        essential element for pursuing our common security objectives''.
            (12) The United States and Japan signed the United States-
        Japan Security Declaration in April 1996, in which the United 
        States reaffirmed its commitment to maintain this level of 
        100,000 United States military personnel in the region.
            (13) The United States military presence is recognized by 
        the nations of the region as serving stability and enabling 
        United States engagement.
            (14) The nations of East Asia and the Pacific consider the 
        commitment of the forces of the United States to be so vital to 
        their future that they scrutinize actions of the United States 
        for any sign of weakened commitment to the security of the 
        region.
            (15) The reduction of forward-based military forces could 
        negatively affect the ability of the United States to contribute 
        to the maintenance of peace and stability of the Asia and 
        Pacific region.
            (16) Recognizing that while the United States must consider 
        the overall capabilities of its forces in its decisions to 
        deploy troops, nevertheless any reduction in the number of 
        forward-based troops may reduce the perception of American 
        capability and commitment in the region that cannot be 
        completely offset by modernization of the remaining forces.
            (17) During time of crisis, deployment of forces to East 
        Asia, even though such forces were previously removed from the 
        area, might be deemed to be an act of provocation that

[[Page 111 STAT. 1941]]

        could be used as a pretext by a hostile power for armed 
        aggression within the region, and the existence of that 
        possibility might hinder such a deployment.
            (18) Proposals to reduce the forward presence of the United 
        States in the East Asia region or subordinate security interests 
        to United States domestic budgetary concerns can erode the 
        perception of the commitment of the United States to its 
        alliances and interests in the region.

    (b) Sense of Congress.--It is the sense of Congress that the United 
States should maintain at least approximately 100,000 United States 
military personnel in the East Asia and Pacific region until such time 
as there is a peaceful and permanent resolution to the major security 
and political conflicts in the region.

SEC. 1226. REPORT ON FUTURE MILITARY CAPABILITIES AND 
            STRATEGY OF THE PEOPLE'S REPUBLIC OF CHINA.

    (a) Report.--The Secretary of Defense shall prepare a report, in 
both classified and unclassified form, on the pattern of military 
modernization of the People's Republic of China. The report shall 
address the probable course of military-technological development in the 
People's Liberation Army and the development of Chinese security 
strategy and military strategy, and of military organizations and 
operational concepts, through 2015.
    (b) Matters To Be Included.--The report shall include analyses and 
forecasts of the following:
            (1) The goals of Chinese security strategy and military 
        strategy.
            (2) Trends in Chinese strategy regarding the political goals 
        of the People's Republic of China in the Asia-Pacific region and 
        its political and military presence in other regions of the 
        world, including Central Asia, Southwest Asia, Europe, and Latin 
        America.
            (3) Developments in Chinese military doctrine, focusing on 
        (but not limited to) efforts to exploit an emerging Revolution 
        in Military Affairs or to conduct preemptive strikes.
            (4) Efforts by the People's Republic of China to enhance its 
        capabilities in the area of nuclear weapons development.
            (5) Efforts by the People's Republic of China to develop 
        long-range air-to-air or air defense missiles that would provide 
        the capability to target special support aircraft such as 
        Airborne Warning and Control System (AWACS) aircraft, Joint 
        Surveillance and Target Attack Radar System (JSTARS) aircraft, 
        or other command and control, intelligence, airborne early 
        warning, or electronic warfare aircraft.
            (6) Efforts by the People's Republic of China to develop a 
        capability to conduct ``information warfare'' at the strategic, 
        operational, and tactical levels of war.
            (7) Development by the People's Republic of China of 
        capabilities in the area of electronic warfare.
            (8) Efforts by the People's Republic of China to develop a 
        capability to establish control of space or to deny access and 
        use of military and commercial space systems in times of crisis 
        or war, including programs to place weapons in space or to 
        develop earth-based weapons capable of attacking space-based 
        systems.
            (9) Trends that would lead the People's Republic of China 
        toward the development of advanced intelligence, surveillance,

[[Page 111 STAT. 1942]]

        and reconnaissance capabilities, including gaining access to 
        commercial or third-party systems with military significance.
            (10) Efforts by the People's Republic of China to develop 
        highly accurate and stealthy ballistic and cruise missiles, 
        including sea-launched cruise missiles, particularly in numbers 
        sufficient to conduct attacks capable of overwhelming projected 
        defense capabilities in the Asia-Pacific region.
            (11) Development by the People's Republic of China of 
        command and control networks, particularly those capable of 
        battle management of long-range precision strikes.
            (12) Efforts by the People's Republic of China in the area 
        of telecommunications, including common channel signaling and 
        synchronous digital hierarchy technologies.
            (13) Development by People's Republic of China of advanced 
        aerospace technologies with military applications (including gas 
        turbine ``hot section'' technologies).
            (14) Programs of the People's Republic of China involving 
        unmanned aerial vehicles, particularly those with extended 
        ranges or loitering times or potential strike capabilities.
            (15) Exploitation by the People's Republic of China for 
        military purposes of the Global Positioning System or other 
        similar systems (including commercial land surveillance 
        satellites), with such analysis and forecasts focusing 
        particularly on indications of an attempt to increase the 
        accuracy of weapons or situational awareness of operating 
        forces.
            (16) Development by the People's Republic of China of 
        capabilities for denial of sea control, including such systems 
        as advanced sea mines, improved