50 017                                 

                                       1998                                  

                          105 th Congress  2d Session                       

                            HOUSE OF REPRESENTATIVES                        

                                      Report                                 

                                      105 736                                 

                                                                             

                                                                         




                     STROM THURMOND NATIONAL DEFENSE                     

                          AUTHORIZATION ACT FOR                          

                             FISCAL YEAR 1999                            



                                                                           


                            CONFERENCE REPORT                            


                               to accompany                              


                                H.R. 3616                                


[Graphic Image Not Available]

                September  22, 1998.--Ordered to be printed              


 STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999 


                                     50 017                                 

                                       1998                                  

                          105 th Congress  2d Session                       

                            HOUSE OF REPRESENTATIVES                        

                                      Report                                 

                                      105 736                                 

                                                                             

                                                                         




                     STROM THURMOND NATIONAL DEFENSE                     

                          AUTHORIZATION ACT FOR                          

                             FISCAL YEAR 1999                            



                                                                           


                            CONFERENCE REPORT                            


                               to accompany                              


                                H.R. 3616                                


[Graphic Image Not Available]

                September  22, 1998.--Ordered to be printed              


                            C O N T E N T S                             
         JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE       367
            Summary Statement of Conference Action                        367
            Summary Table of Authorizations                               367
            Congressional Defense Committees                              374
         DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS                 374
          Title I--Procurement                                            374

                             Procurement Overview                          

                                          374                                   

                                   Overview                                

                                          377                                   

                         Airborne reconnaissance low                       

                                          380                                   

                         C XX (medium range) aircraft                      

                                          380                                   

                               UH 60 Blackhawk                             

                                          380                                   

                             AH 64 modifications                           

                                          380                                   

                     CH 47 cargo helicopter modifications                  

                                          380                                   

                              C 12 modifications                           

                                          381                                   

                             OH 58D Kiowa Warrior                          

                                          381                                   

                       Aircraft Survivability Equipment                    

                                          381                                   

                   Army airborne command and control system                

                                          381                                   

                                   Overview                                

                                          381                                   

                     Enhanced fiber optic guided missile                   

                                          384                                   

                                Javelin system                             

                                          384                                   

                    Multiple launch rocket system rockets                  

                                          384                                   

                    Multiple launch rocket system launcher                 

                                          384                                   

                                   Overview                                

                                          385                                   

                           Bradley base sustainment                        

                                          388                                   

                               M240 machine gun                            

                                          388                                   

                            MK 19 grenade launcher                         

                                          388                                   

                                   Overview                                

                                          388                                   

                         M830A1 120mm Tank Ammunition                      

                                          392                                   

                                   Overview                                

                                          392                                   

                 High mobility multipurpose wheeled vehicles               

                                          401                                   

                      Family of medium tactical vehicles                   

                                          401                                   

                    Medium truck extended service program                  

                                          401                                   

     High mobility multipurpose wheeled vehicle extended service program   

                          Project management support                       

                                          401                                   

                           System fielding support                         

                                          402                                   

                        Army data distribution system                      

                                          402                                   

               Single channel ground and airborne radio system             

                                          402                                   

                Area common user system modernization program              

                                          402                                   

                          Ground based common sensor                       

                                          402                                   

    Joint surveillance and target attack radar system common ground system 

                                          403                                   

                           Joint tactical terminal                         

                                          403                                   

                    Shortstop electronic protection system                 

                                          403                                   

                                 Night vision                              

                                          403                                   

                     Automated data processing equipment                   

                                          403                                   

                                 Land warrior                              

                                          404                                   

                               Small pusher tug                            

                                          404                                   

                         Training devices, nonsystem                       

                                          404                                   

               Simulation network/close combat tactical trainer            

                                          404                                   

                          R2000 engine flush system                        

                                          404                                   

                                   Overview                                

                                          405                                   

                                    AV 8B                                  

                                          409                                   

                                  F/A 18E/F                                

                                          409                                   

                                     V 22                                  

                                          409                                   

                                    JPATS                                  

                                          409                                   

                          EA 6 series modifications                        

                                          409                                   

                                   14 Series                               

                                          409                                   

                          ES 3 Series Modifications                        

                                          410                                   

                            18 series modifications                        

                                          410                                   

                 P 3C antisurface warfare improvement program              

                                          410                                   

            Lightweight environmentally sealed parachute assembly          

                                          410                                   

                                6 modifications                            

                                          410                                   

                           Common ground equipment                         

                                          411                                   

                        Aircraft industrial facilities                     

                                          411                                   

                                   Overview                                

                                          411                                   

                              Tactical Tomahawk                            

                                          415                                   

                   Advanced medium range air-to-air missile                

                                          415                                   

                               Standard missile                            

                                          415                                   

                           Penguin missile program                         

                                          415                                   

                                Aerial Targets                             

                                          415                                   

                     Improved tactical air launched decoy                  

                                          416                                   

                        Weapons industrial facilities                      

                                          416                                   

           Mk 48 torpedo advanced capability torpedo modifications         

                                          416                                   

                 Close-in weapon system surface mode upgrade               

                                          416                                   

                    Surface ship gun mount rotatable pool                  

                                          416                                   

                                   Overview                                

                                          416                                   

                Shoulder launched multi-purpose assault weapon             

                                          420                                   

                          LHD 8 advance procurement                        

                                          423                                   

                              Strategic sealift                            

                                          423                                   

           Landing craft air cushion service life extension program        

                                          423                                   

                         Navy shipbuilding outfitting                      

                                          423                                   

                       Navy shipbuilding post delivery                     

                                          423                                   

                                   Overview                                

                                          424                                   

                               Other generators                            

                                          434                                   

   AN/WSN 7 inertial navigation system and WQN 2 doppler sonar velocity log

                                          434                                   

                         Pollution control equipment                       

                                          434                                   

             Hull, mechanical, and electrical under $2.0 million           

                                          435                                   


                       AN/BPS 15H surface search radar                     

                                          435                                   

         Submarine acoustic rapid commercial off-the-shelf insertion       

                                          435                                   

                      Cooperative engagement capability                    

                                          435                                   

         Integration and test facility command and control initiative      

                                          437                                   

                          Ship communications items                        

                                          437                                   

      AN/USC 42 mini-demand assigned multiple access ultra-high frequency  
   satellite communications terminals                                      
        437                                                                     

   Joint engineering data management and information control system        

        437                                                                     

   Weapons range support equipment                                         

        437                                                                     

   Aircraft launch and recovery equipment                                  

        438                                                                     

   Engagement systems support                                              

        438                                                                     

   Smart ship equipment                                                    

        438                                                                     

   Strategic missile systems equipment                                     

        438                                                                     

   NULKA assembly qualification                                            

        438                                                                     

   Beamhit laser marksmanship training system (LMTS)                       

        439                                                                     

   Overview                                                                

        439                                                                     

   Modification kits-tracked vehicles                                      

        443                                                                     

   155MM lightweight towed howitzer                                        

        443                                                                     

   Pedestal mounted stinger                                                

        443                                                                     

   Items less than $2.0 million (intelligence)                             

        443                                                                     

   Night vision equipment                                                  

        444                                                                     

   Communications and electronics infrastructure                           

        444                                                                     

   Medium tactical vehicle replacement                                     

        444                                                                     

   Light tactical vehicle replacement                                      

        444                                                                     

   Power equipment assorted                                                

        445                                                                     

   Shop equipment contact maintenance                                      

        445                                                                     

   Material handling equipment                                             

        445                                                                     

   Overview                                                                

        445                                                                     

    22 procurement                                                         

        450                                                                     

    16                                                                     

        450                                                                     

   C 130J                                                                  

        450                                                                     

   C 130H                                                                  

        450                                                                     

   Joint Primary Aircraft Training System                                  

        450                                                                     

    8C Joint Surveillance and Target Attack Radar System (JSTARS)          

        451                                                                     

   B 1B                                                                    

        451                                                                     

   B 52                                                                    

        451                                                                     

    15 modifications                                                       

        451                                                                     

    16 modifications                                                       

        452                                                                     

   C 12 modifications                                                      

        452                                                                     

   Defense Airborne Reconnaissance Program procurement                     

        452                                                                     

    8 modifications                                                        

        454                                                                     

   Passenger safety modifications                                          

        454                                                                     

   Pacer Coin                                                              

        455                                                                     

   Common support equipment                                                

        455                                                                     

   A 10 post production support                                            

        455                                                                     

   B 2A                                                                    

        455                                                                     

   Miscellaneous production charges                                        

        456                                                                     

   Overview                                                                

        456                                                                     

   Overview                                                                

        459                                                                     

   Advanced Medium Range Air-to-Air Missile                                

        462                                                                     

   Minuteman III guidance replacement program                              

        462                                                                     

   AGM 65H Maverick                                                        

        462                                                                     

   Defense Support Program                                                 

        462                                                                     

   Overview                                                                

        462                                                                     

   60K Loader                                                              

        468                                                                     

   Combat training ranges                                                  

        468                                                                     

   Automated telecommunications program                                    

        468                                                                     

   Air Force satellite control network                                     

        468                                                                     

   Communication electronics modifications                                 

        468                                                                     

   Overview                                                                

        468                                                                     

   Automated document conversion system                                    

        474                                                                     

   SOF intelligence systems                                                

        474                                                                     

   Contamination avoidance                                                 

        474                                                                     

   Overview                                                                

        474                                                                     

   National Guard and Reserve Equipment                                    

        477                                                                     

   Overview                                                                

        478                                                                     

          Legislative Provisions Adopted                                

        480                                                                     

   Subtitle A--Authorization of Appropriations                             

        480                                                                     

   Authorization of appropriations (secs. 101 109)                         

        480                                                                     

   Chemical demilitarization program (sec. 107)                            

        480                                                                     

   Subtitle B--Army Programs                                               

        481                                                                     

      Multiyear procurement authority for Longbow Hellfire missile program 
   (sec. 111)                                                              
        481                                                                     

      Condition for award of second-source procurement contract for the    
   family of medium tactical vehicles (sec. 112)                           
        481                                                                     

   Armored system modernization (sec. 113)                                 

        482                                                                     

   Reactive armor tiles (sec. 114)                                         

        482                                                                     

      Extension of authority to carry out Armament Retooling and           
   Manufacturing Support Initiative (sec. 115)                             
        483                                                                     

   Subtitle C--Navy Programs                                               

        483                                                                     

   CVN 77 nuclear aircraft carrier program (sec. 121)                      

        483                                                                     

      Increase in amount authorized to be excluded from cost limitation for
   Seawolf submarine program (sec. 122)                                    
        483                                                                     

      Multiyear procurement authority for the Department of the Navy (sec. 
   123)                                                                    
        483                                                                     

   Annual General Accounting Office review of F/A 18E/F program (sec. 124) 

        483                                                                     

   Subtitle D--Air Force Programs                                          

        484                                                                     

    22 aircraft program (sec. 131)                                         

        484                                                                     

   C 130J aircraft program (sec. 132)                                      

        484                                                                     

   Subtitle E--Other Matters                                               

        484                                                                     


   Chemical stockpile emergency preparedness program (sec. 141)            

        484                                                                     

      Alternative technologies for destruction of assembled chemical       
   weapons (sec. 142)                                                      
        485                                                                     

          Legislative Provisions not Adopted                            

        486                                                                     

   M1A2 system enhancement program step one                                

        486                                                                     

      Annual reporting of costs associated with travel of members of the   
   chemical demilitarization citizenship advisory commission               
        486                                                                     

   Joint surveillance target attack radar system                           

        486                                                                     

      Limitation on replacement of engines on military aircraft derived    
   from Boeing 707 aircraft                                                
        487                                                                     

    Title II--Research, Development, Test, and Evaluation                  

        487                                                                     

   Research, Development, Test, and Evaluation Overview                    

        487                                                                     

   Overview                                                                

        489                                                                     

   Additional decreases in technology base funding                         

        499                                                                     

   Materials Technology                                                    

        499                                                                     

   Missile technology                                                      

        499                                                                     

   Combat vehicle and automotive technology                                

        499                                                                     

   Human factors engineering technology                                    

        500                                                                     

   Environmental quality technology                                        

        500                                                                     

   Command, control, and communications technology                         

        501                                                                     

   Military engineering technology                                         

        501                                                                     

   Medical advanced technology                                             

        501                                                                     

   Aviation advanced technology                                            

        501                                                                     

   Weapons and munitions advanced technology                               

        501                                                                     

   Combat vehicle and automotive advanced technology                       

        502                                                                     

   Missile and rocket advanced technology                                  

        502                                                                     

   Joint service small arms program                                        

        502                                                                     

   Tactical High Energy Laser                                              

        502                                                                     

   Armament enhancement initiative                                         

        503                                                                     

   Comanche                                                                

        503                                                                     

   Electronic warfare development                                          

        503                                                                     

   Follow-on to TOW                                                        

        503                                                                     

   Combat feeding, clothing, and equipment                                 

        503                                                                     

   Aviation-engineering development                                        

        504                                                                     

   Weapons and munitions-engineering development                           

        504                                                                     

   Landmine warfare/barrier-engineering development                        

        504                                                                     

   Radar development                                                       

        504                                                                     

   Firefinder                                                              

        504                                                                     

   Artillery systems-engineering and manufacturing development             

        505                                                                     

   Decrease to Research, Development, Test and Evaluation support programs 

        505                                                                     

   Army technical test instrumentation and targets                         

        505                                                                     

   Survivability/lethality analysis                                        

        505                                                                     

   Department of Defense high energy laser test facilities                 

        506                                                                     

   Multiple launch rocket system product improvement program               

        506                                                                     

   Advanced field artillery tactical data system                           

        506                                                                     

   Combat vehicle improvement programs                                     

        506                                                                     

   Aircraft engine component improvement program                           

        506                                                                     

   Force XXI warfighting rapid acquisition program                         

        507                                                                     

   Missile/air defense product improvement program                         

        507                                                                     

   Defense information technology test bed                                 

        507                                                                     

   Information systems security program                                    

        507                                                                     

   Manufacturing technology                                                

        507                                                                     

   Overview                                                                

        508                                                                     

   Marine mammal research                                                  

        519                                                                     

   Pulse detonation engine technology                                      

        519                                                                     

   Stainless steel double hull research                                    

        519                                                                     

   Communications, command, control, and intelligence                      

        519                                                                     

   Materials, electronic and computer technology                           

        519                                                                     

   Autonomous underwater vehicle and sonar development                     

        520                                                                     

   Micro electronic systems technology                                     

        520                                                                     

   Air systems and weapons advanced technology                             

        520                                                                     

   Precision strike and air defense technology                             

        520                                                                     

   Advanced electric systems studies                                       

        520                                                                     

   Power electronic building blocks and power node control centers         

        521                                                                     

   Composite helicopter hangar                                             

        521                                                                     

   Marine Corps advanced technology demonstration                          

        521                                                                     

   Freeze dried blood                                                      

        522                                                                     

   Advanced lightweight influence sweep system                             

        522                                                                     

   Aviation survivability                                                  

        522                                                                     

   ASW systems development                                                 

        523                                                                     

   Studies and experiments for combat systems engineering                  

        523                                                                     

   Remote minehunting system                                               

        523                                                                     

   Future aircraft carrier transition technology                           

        523                                                                     

   Shipboard systems component development                                 

        524                                                                     

   SSGN study                                                              

        525                                                                     

   Intercooled recuperated gas turbine engine                              

        525                                                                     

   Environmentally safe energetic materials                                

        525                                                                     

   Marine Corps assault vehicles                                           

        526                                                                     

   Marine Corps ground combat/support system                               

        526                                                                     

   Aviation depot maintenance                                              

        526                                                                     

   Naval surface fire support system integration                           

        527                                                                     

   Vertical gun for advanced ships                                         

        527                                                                     


   Joint strike fighter                                                    

        527                                                                     

   Nonlethal weapons and technologies of mass  protection program          

        527                                                                     

      Commercial off-the-shelf insertion just prior to critical design     
   review for helicopter improvement                                       
        528                                                                     

   Parametric airborne dipping sonar                                       

        528                                                                     

   Common support aircraft                                                 

        528                                                                     

   Electronic warfare development                                          

        528                                                                     

   Laboratories and field activities monitoring  efforts                   

        529                                                                     

   DDG 51 composite director room                                          

        529                                                                     

   Multi-purpose processor                                                 

        529                                                                     

   Air control                                                             

        529                                                                     

   Submarine sonar domes                                                   

        530                                                                     

   NSSN advanced technology insertion                                      

        530                                                                     

   Non-propulsion electronics system                                       

        530                                                                     

   System level shock testing                                              

        530                                                                     

   DD 21 land attack destroyer                                             

        531                                                                     

   Smart propulsor product model                                           

        531                                                                     

   NULKA antiship missile decoy system electro-magnetic compatibility      

        531                                                                     

   Infrared search and track system                                        

        532                                                                     

   Voice instructional devices                                             

        532                                                                     

   Distributed surveillance system                                         

        532                                                                     

   Battle force tactical training                                          

        533                                                                     

   High Speed Anti-Radiation Missile Improvement                           

        533                                                                     

   Marine corps ground combat/supporting arms systems                      

        533                                                                     

   Airborne reconnaissance systems                                         

        533                                                                     

   Overview                                                                

        534                                                                     

   Friction welding                                                        

        544                                                                     

   Integrated high performance turbine engine program                      

        544                                                                     

   Variable displacement vane pump                                         

        544                                                                     

   High frequency active auroral research program                          

        544                                                                     

   Protein-based memory                                                    

        544                                                                     

   Advanced low observable coatings                                        

        545                                                                     

   Night vision technology                                                 

        545                                                                     

   Electronic combat technology                                            

        545                                                                     

   Ballistic Missile Technology                                            

        545                                                                     

   Micro-satellite technology development program                          

        545                                                                     

   Solar orbital transfer vehicle                                          

        546                                                                     

   Low cost launch technology development                                  

        546                                                                     

   Space maneuver vehicle                                                  

        546                                                                     

   Space control technology development                                    

        547                                                                     

   Variable stability in-flight simulator test  aircraft                   

        548                                                                     

   Electronic warfare development                                          

        548                                                                     

   Evolved expendable launch vehicle program                               

        548                                                                     

   Big Crow program office                                                 

        548                                                                     

   Flight test safety                                                      

        548                                                                     

    16 Squadrons                                                           

        549                                                                     

   Advanced medium range air-to-air missile                                

        549                                                                     

   Joint Air-To-Surface Standoff Missile                                   

        549                                                                     

   Theater Battle Management C4I                                           

        549                                                                     

   Joint Surveillance and Target Attack Radar System                       

        550                                                                     

   Seek Eagle                                                              

        550                                                                     

   Defense Airborne Reconnaissance Program research  and development       

        550                                                                     

   Overview                                                                

        552                                                                     

   University research initiative                                          

        562                                                                     

      Ballistic Missile Defense Organization funding and programmatic      
   guidance                                                                
        562                                                                     

   Medical free electron laser                                             

        566                                                                     

   Computing systems and communications technology                         

        566                                                                     

   Chemical-biological defense program                                     

        566                                                                     

   Tactical technology                                                     

        568                                                                     

   Integrated command and control technology                               

        568                                                                     

   Materials and electronic technologies                                   

        569                                                                     

   Weapons of mass destruction technologies                                

        569                                                                     

   Explosives demilitarization technology                                  

        570                                                                     

   Counterterror technical support program                                 

        570                                                                     

   Counterproliferation support program                                    

        571                                                                     

   Automatic target recognition                                            

        571                                                                     

   Generic logistics research and development  technology demonstrations   

        572                                                                     

   Strategic Environmental Research and Development  Program               

        572                                                                     

   Advanced electronics technologies                                       

        572                                                                     

   Maritime technology                                                     

        572                                                                     

   Advanced concept technology demonstrations                              

        573                                                                     

   High performance computing modernization program                        

        573                                                                     

   Command, control and communications systems                             

        573                                                                     

   Sensor and guidance technology                                          

        573                                                                     

   Land warfare technology                                                 

        573                                                                     

   Physical security                                                       

        574                                                                     

   Continuous acquisition and life-cycle support  activities initiative    

        574                                                                     

   North Atlantic Treaty Organization research and  development            

        574                                                                     

   Humanitarian demining                                                   

        575                                                                     

   Joint robotics program-engineering development                          

        575                                                                     

   Defense technology analysis                                             

        575                                                                     

   Defense technical information services                                  

        575                                                                     

   Special operations intelligence systems  development                    

        575                                                                     

   Live fire testing                                                       

        575                                                                     


          Items of Special  Interest                                    

        576                                                                     

   Advanced lightweight grenade launcher                                   

        576                                                                     

   Advanced tactical computer science and sensor technology                

        576                                                                     

   Commercial technologies for maintenance activities                      

        576                                                                     

   Cyber Security Program                                                  

        577                                                                     

   Defense information superiority, assurance, and interoperability        

        577                                                                     

   Joint simulation system                                                 

        577                                                                     

   Man overboard indicator technology                                      

        578                                                                     

   Materials research                                                      

        578                                                                     

   Military human immunodeficiency virus research                          

        579                                                                     

   Navy antisubmarine warfare program                                      

        579                                                                     

   Navy land attack missile program                                        

        580                                                                     

   Oceanographic research information                                      

        581                                                                     

   Optical correlation technology for automatic target recognition         

        582                                                                     

   Patriot anti-cruise missile defense                                     

        582                                                                     

   Project M                                                               

        582                                                                     

   Software security                                                       

        583                                                                     

          Legislative Provisions Adopted                                

   Subtitle A--Authorization of Appropriations                             

        583                                                                     

   Authorization of appropriations (secs 201 202)                          

        583                                                                     

   Subtitle B--Program Requirements, Restrictions, and Limitations         

        583                                                                     

      Management responsibility for Navy mine countermeasures programs     
   (sec. 211) 167                                                          
        583                                                                     

   Future aircraft carrier transition technologies (sec. 212)              

        583                                                                     

   Manufacturing technology program (sec. 213)                             

        583                                                                     

      Sense of Congress on the defense science and technology program (sec.
   214)                                                                    
        584                                                                     

   Next generation internet (sec. 215)                                     

        585                                                                     

   Crusader self-propelled artillery system program (sec. 216)             

        585                                                                     

   Airborne Laser Program (sec. 217)                                       

        585                                                                     

   Enhanced Global Positioning System program (sec. 218)                   

        586                                                                     

   Subtitle C--Ballistic Missile Defense                                   

        588                                                                     

   Sense of Congress on national missile defense coverage (sec. 231)       

        588                                                                     

      Limitation on funding for the Medium Extended Air Defense System     
   (sec. 232)                                                              
        588                                                                     

      Limitation on funding for cooperative ballistic missile defense      
   programs (sec. 233)                                                     
        588                                                                     

      Sense of Congress with respect to ballistic missile defense          
   cooperation with Russia (sec. 234)                                      
        588                                                                     

   Ballistic missile defense program elements (sec. 235)                   

        589                                                                     

      Restructuring of Theater High Altitude Area Defense System           
   Acquisition Strategy (sec. 236)                                         
        589                                                                     

   Subtitle D--Other Matters                                               

        590                                                                     

      Extension of authority to carry out certain prototype projects (sec. 
   241)                                                                    
        590                                                                     

      North Atlantic Treaty Organization alliance ground surveillance      
   concept definition (sec. 242)                                           
        590                                                                     

   NATO common funded civil budget (sec. 243)                              

        590                                                                     

      Executive agent for cooperative research program of the Department of
   Defense and the Department of Veterans Affairs (sec. 244)               
        591                                                                     

      Review of pharmacological interventions for reversing brain injury   
   (sec. 245)                                                              
        591                                                                     

      Pilot program for revitalizing the laboratories and test and         
   evaluation centers of the Department of Defense (sec. 246)              
        591                                                                     

   Chemical warfare defense (sec. 247)                                     

        591                                                                     

   Landmine alternatives (sec. 248)                                        

        592                                                                     

          Legislative Provisions not Adopted                            

        593                                                                     

   Limitation on funding for counterproliferation support                  

        593                                                                     

   Unmanned aerial vehicle programs                                        

        595                                                                     

   Persian gulf illnesses                                                  

        595                                                                     

   Low cost launch development program                                     

        595                                                                     

    Title III--Operation and Maintenance                                   

        595                                                                     

   Overview                                                                

        595                                                                     

   Arms control implementation                                             

        625                                                                     

   Navy Environmental Leadership Program                                   

        625                                                                     

   Defense Threat Reduction Agency (DTRA)                                  

        626                                                                     

   Joint Military Intelligence Program                                     

        627                                                                     

   Domestic emergency response program                                     

        628                                                                     

          Items of Special Interest                                     

        629                                                                     

   Fire support software engineering center                                

        629                                                                     

   Lead-based paint soil contamination at Department of Defense facilities 

        630                                                                     

   State certification of underground storage tanks                        

        630                                                                     

          Legislative Provisions Adopted                                

        631                                                                     

   Subtitle A--Authorization of Appropriations                             

        631                                                                     

   Authorization of appropriations (secs. 301 302)                         

        631                                                                     

   Armed Forces Retirement Home (sec. 303)                                 

        631                                                                     

   Transfer from the National Defense Stockpile Transaction Fund (sec. 304)

        631                                                                     

   Subtitle B--Program Requirements, Restrictions, and Limitations         

        631                                                                     


   Refurbishment of M1 A1 Tanks (sec. 311)                                 

        631                                                                     

      Operation of prepositioned fleet, National Training Center, Fort     
   Irwin, California (sec. 312)                                            
        631                                                                     

   Berthing space at Norfolk Naval Shipyard, Virginia (sec. 313)           

        632                                                                     

   NATO common-funded military budget (sec. 314)                           

        632                                                                     

   Subtitle C--Environmental Provisions                                    

        632                                                                     

      Settlement of claims of foreign governments for environmental cleanup
   of overseas sites formerly used by the Department of Defense (sec. 321) 
        632                                                                     

      Authority to pay negotiated settlement for environmental cleanup of  
   formerly used defense sites in Canada (sec. 322)                        
        632                                                                     

   Removal of underground storage tanks (sec. 323)                         

        633                                                                     

      Report regarding polychlorinated biphenyls under Department of       
   Defense control overseas (sec. 324)                                     
        633                                                                     

      Modification of deadline for submittal to Congress of annual reports 
   on environmental activities (sec. 325)                                  
        633                                                                     

   Submarine solid waste control (sec. 326)                                

        634                                                                     

   Arctic Military Environmental Cooperation program (sec. 327)            

        634                                                                     

      Sense of Congress regarding oil spill prevention training for        
   personnel on board Navy vessels (sec. 328)                              
        635                                                                     

   Subtitle D--Information Technology Issues                               

        635                                                                     

      Additional information technology responsibilities of chief          
   information officers (sec. 331)                                         
        635                                                                     

   Defense-wide electronic mall system for supply purchases (sec. 332)     

        636                                                                     

      Year 2000 Compliance of Department of Defense Information Technology 
   and National Security Systems                                           
        636                                                                     

   Subtitle E--Defense Infrastructure Support Improvement                  

        638                                                                     

      Clarification of definition of depot-level maintenance and repair    
   (sec. 341)                                                              
        638                                                                     

      Reporting and analysis requirements before change of commercial and  
   industrial type functions to private sector performance (sec. 342)      
        638                                                                     

      Notification of determinations of military items as being commercial 
   items for purposes of the exception to requirements regarding core      
   logistics capabilities (sec. 343)                                       
        639                                                                     

      Oversight of development and implementation of automated             
   identification technology (sec. 344)                                    
        639                                                                     

   Contractor-operated civil engineering supply stores program (sec. 345)  

        640                                                                     

      Conditions on expansion of functions performed under prime vendor    
   contracts for depot-level maintenance and repair (sec. 346)             
        640                                                                     

      Best commercial inventory practices for management of secondary      
   supply items (sec. 347)                                                 
        640                                                                     

   Personnel reductions in Army Materiel Command (sec. 348)                

        641                                                                     

   Inventory management of in-transit items (sec. 349)                     

        641                                                                     

   Review of Defense Automated Printing Service functions (sec. 350)       

        641                                                                     

      Development of plan for establishment of core logistic capabilities  
   for maintenance and repair of C 17 aircraft (sec. 351)                  
        641                                                                     

   Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities     

        642                                                                     

      Continuation of management and funding of Defense Commissary Agency  
   through the Office of the Secretary of Defense (sec. 361)               
        642                                                                     

      Expansion of current eligibility of reserves for commissary benefits 
   (sec. 362)                                                              
        642                                                                     

      Costs payable to the Department of Defense and other federal agencies
   for services provided to the Defense Commissary Agency (sec. 363)       
        642                                                                     

      Collection of dishonored checks presented at commissary stores (sec. 
   364)                                                                    
        642                                                                     

      Restrictions on patron access to, and purchases in, overseas         
   commissaries and exchange stores (sec. 365)                             
        642                                                                     

      Repeal of requirement for Air Force to sell tobacco products to      
   enlisted personnel (sec. 366)                                           
        643                                                                     

      Prohibition on consolidation or other organizational changes of      
   Department of Defense retail system (sec. 367)                          
        643                                                                     

   Defense Commissary Agency telecommunications (sec. 368)                 

        643                                                                     

      Survey of commissary store patrons regarding satisfaction with       
   commissary store merchandise (sec. 369)                                 
        643                                                                     

   Subtitle G--Other Matters                                               

        644                                                                     

      Eligibility requirements for attendance at Department of Defense     
   domestic dependent elementary and secondary schools (sec. 371)          
        644                                                                     


      Assistance to local educational agencies that benefit dependents of  
   members of the Armed Forces and Department of Defense civilian employees
   (sec. 372)                                                              
        644                                                                     

   Department of Defense readiness reporting system  (sec. 373)            

        644                                                                     

      Specific emphasis of program to investigate fraud, waste, and abuse  
   within Department of Defense (sec. 374)                                 
        645                                                                     

      Condition for providing financial assistance for support of          
   additional duties assigned to the Army National Guard (sec. 375)        
        645                                                                     

      Demonstration program to improve quality of personal property        
   shipments of members (sec. 376)                                         
        645                                                                     

      Pilot program for acceptance and use of landing fees charged for use 
   of domestic military airfields by civil aircraft (sec. 377)             
        646                                                                     

      Strategic plan for expansion of distance learning initiatives (sec.  
   378)                                                                    
        646                                                                     

      Public availability of operating agreements between military         
   installations and financial institutions (sec. 379)                     
        646                                                                     

          Legislative Provisions not Adopted                            

        646                                                                     

   Funding for information technology and national security programs       

        646                                                                     

      Requirement to maintain government owned and operated core logistics 
   capability                                                              
        647                                                                     

      Extension of demonstration project for uniform funding of morale,    
   welfare, and recreation activities                                      
        647                                                                     

      Authorized use of appropriated funds for relocation of Navy Exchange 
   Service Command                                                         
        647                                                                     

   Fees for providing historical information to the  public                

        647                                                                     

    Title IV--Military Personnel Authorizations                            

        647                                                                     

          Legislative Provisions Adopted                                

        647                                                                     

   Subtitle A--Active Forces                                               

        647                                                                     

   End strengths for active forces (sec. 401)                              

        647                                                                     

   Revision in permanent end strength levels (sec. 402)                    

        648                                                                     

   Date for submission of annual manpower  requirements report (sec. 403)  

        648                                                                     

      Additional exemption from percentage limitation on number of         
   lieutenant generals and vice admirals (sec. 404)                        
        648                                                                     

      Extension of authority for Chairman of the Joint Chiefs of Staff to  
   designate up to 12 general and flag officer positions to be excluded    
   from general and flag officer grade limitations (sec. 405)              
        649                                                                     

      Exception for Chief, National Guard Bureau, from limitation on number
   of officers above major general (sec. 406)                              
        649                                                                     

      Limitation on daily average of personnel on active duty in grades E 8
   and E 9 (sec. 407)                                                      
        649                                                                     

   Subtitle B--Reserve Forces                                              

        649                                                                     

   End strengths for selected reserve (sec. 411)                           

        649                                                                     

      End strengths for reserves on active duty in support of the reserves 
   (sec. 412)                                                              
        650                                                                     

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

        651                                                                     

      Increase in number of members in certain grades authorized to serve  
   on active duty in support of the reserves (sec. 414)                    
        652                                                                     

      Consolidation of strength authorizations for active status Naval     
   Reserve flag officers of the Navy Medical Department staff corps (sec.  
   415)                                                                    
        652                                                                     

   Subtitle C--Authorization of Appropriations                             

        653                                                                     

   Authorization of appropriations for military personnel (sec. 421)       

        653                                                                     

          Legislative Provisions not Adopted                            

        654                                                                     

      Exclusion of additional reserve component general and flag officers  
   from limitation on number of general and flag officers who may serve on 
   active duty                                                             
        654                                                                     

    Title V--Military Personnel Policy                                     

        655                                                                     

          Legislative Provisions Adopted                                

        655                                                                     

   Subtitle A--Officer Personnel Policy                                    

        655                                                                     

      Codification of eligibility of retired officers and former officers  
   for consideration by special selection boards (sec. 501)                
        655                                                                     

      Involuntary separation pay denied for officer discharged for failure 
   of selection for promotion requested by the officer (sec. 502)          
        655                                                                     

   Streamlined selective retention process for regular officers (sec. 503) 

        655                                                                     

      Permanent applicability of limitations on years of active naval      
   service of Navy limited duty officers in grades of commander and captain
   (sec. 504)                                                              
        655                                                                     

   Tenure of Chief of the Air Force Nurse Corps (sec. 505)                 

        656                                                                     

      Grade of Air Force Assistant Surgeon General for Dental Services     
   (sec. 506)                                                              
        656                                                                     

      Review regarding allocation of Naval Reserve Officers' Training Corps
   scholarships among participating colleges and universities (sec. 507)   
        656                                                                     


   Subtitle B--Reserve Component Matters                                   

        656                                                                     

      Use of reserves for emergencies involving weapons of mass destruction
   (sec. 511)                                                              
        656                                                                     

      Service required for retirement of National Guard officer in higher  
   grade (sec. 512)                                                        
        656                                                                     

      Reduced time-in-grade requirement for reserve general and flag       
   officers involuntarily transferred from active status (sec. 513)        
        657                                                                     

      Active status service requirement for promotion consideration for    
   Army and Air Force Reserve component brigadier generals (sec. 514)      
        657                                                                     

      Composition of selective early retirement boards for rear admirals of
   the Naval Reserve and major generals of the Marine Corps Reserve (sec.  
   515)                                                                    
        657                                                                     

      Authority for temporary waiver for certain Army Reserve officers of  
   baccalaureate degree requirement for promotion of reserve officers (sec.
   516)                                                                    
        658                                                                     

      Furnishing of burial flags for deceased members and former members of
   the Selected Reserve (sec. 517)                                         
        658                                                                     

   Subtitle C--Military Education and Training                             

        658                                                                     

      Separate housing for male and female recruits during recruit basic   
   training (sec. 521)                                                     
        658                                                                     

   After-hours privacy for recruits during basic training (sec. 522)       

        659                                                                     

      Sense of the House of Representatives relating to small unit         
   assignments by gender during recruit basic training (sec. 523)          
        659                                                                     

      Extension of reporting dates for Commission on Military Training and 
   Gender-Related Issues (sec. 524)                                        
        660                                                                     

   Improved oversight of innovative readiness training (sec. 525)          

        660                                                                     

   Subtitle D--Decorations, Awards, and Commendations                      

        660                                                                     

   Study of new decorations for injury or death in line of duty (sec. 531) 

        660                                                                     

      Waiver of time limitations for award of certain decorations to       
   certain persons (sec. 532)                                              
        661                                                                     

      Commendation and commemoration of the Navy and Marine Corps personnel
   who served in the United States Navy Asiatic Fleet from 1910 1942 (sec. 
   533)                                                                    
        661                                                                     

      Appreciation for service during World War I and World War II by      
   members of the Navy assigned on board merchant ships as the Naval Armed 
   Guard Service (sec. 534)                                                
        661                                                                     

      Sense of Congress regarding the heroism, sacrifice, and service of   
   the military forces of South Vietnam and other nations, and indigenous  
   groups in connection with the United States Armed Forces during the     
   Vietnam conflict (sec. 535)                                             
        662                                                                     

      Sense of Congress the regarding the heroism, sacrifice, and service  
   of former South Vietnamese commandos in connection with the United      
   States Armed Forces during the Vietnam conflict (sec. 536)              
        662                                                                     

      Prohibition on members of armed forces entering correctional         
   facilities to present decorations to persons who have committed serious 
   violent felonies (sec. 537)                                             
        662                                                                     

      Subtitle E--Administration of Agencies Responsible for Review and    
   Correction of Military Records                                          
        662                                                                     

   Personnel freeze (sec. 541)                                             

        662                                                                     

   Professional staff (sec. 542)                                           

        663                                                                     

   Ex parte communications (sec. 543)                                      

        663                                                                     

   Timeliness standards (sec. 544)                                         

        663                                                                     

   Scope of correction of military records (sec. 545)                      

        663                                                                     

   Subtitle F--Reports                                                     

        663                                                                     

   Report on personnel retention (sec. 551)                                

        663                                                                     

      Report on process for selection of members for service on            
   courts-martial (sec. 552)                                               
        663                                                                     

      Report on prisoners transferred from United States Disciplinary      
   Barracks, Fort Leavenworth, Kansas, to Federal Bureau of Prisons (sec.  
   553)                                                                    
        664                                                                     

      Review and report regarding the distribution of National Guard       
   full-time support among the states (sec. 554)                           
        664                                                                     

   Subtitle G--Other Matters                                               

        664                                                                     

      Two-year extension of certain force drawdown transition authorities  
   relating to personnel management and benefits (sec. 561)                
        664                                                                     

   Leave without pay for suspended academy cadets and midshipmen (sec. 562)

        665                                                                     

      Continued eligibility under Voluntary Separation Incentive program   
   for members who involuntarily lose membership in a reserve component    
   (sec. 563)                                                              
        665                                                                     

      Reinstatement of definition of financial institution in authorities  
   for reimbursement of defense personnel for Government errors in direct  
   deposit of pay (sec. 564)                                               
        665                                                                     

   Increase in maximum amount for College Fund program (sec. 565)          

        665                                                                     

   Central Identification Laboratory, Hawaii (sec. 566)                    

        666                                                                     


   Military funeral honors for veterans (sec. 567)                         

        666                                                                     

      Status in the Naval Reserve of cadets at the Merchant Marine Academy 
   (sec. 568)                                                              
        667                                                                     

      Repeal of restriction on civilian employment of enlisted members     
   (sec. 569)                                                              
        667                                                                     

      Transitional compensation for abused dependent children not residing 
   with the spouse or former spouse of a member convicted of dependent     
   abuse (sec. 570)                                                        
        668                                                                     

      Pilot program for treating GED and home school diploma recipients as 
   high school graduates for determinations of eligibility for enlistment  
   in the armed forces (sec. 571)                                          
        668                                                                     

      Sense of Congress concerning New Parent Support Program and military 
   families (sec. 572)                                                     
        668                                                                     

      Advancement of Benjamin O. Davis, Junior, to grade of General on the 
   retired list of the Air Force (sec. 573)                                
        669                                                                     

      Sense of the House of Representatives concerning adherence by        
   civilians in military chain of command to the standard of exemplary     
   conduct required of commanding officers and others in authority in the  
   Armed Forces (sec. 574)                                                 
        669                                                                     

          Legislative Provisions not Adopted                            

        669                                                                     

   Posthumous commissions and warrants                                     

        669                                                                     

      Study of revising the term of service of members of the United States
   Court of Appeals for the Armed Forces                                   
        670                                                                     

      Repeal of limitations on authority to set rates and waive requirement
   for reimbursement of expenses incurred for instruction at service       
   academies of persons from foreign countries                             
        670                                                                     

      Moratorium on changes of gender-related policies and practices       
   pending completion of the work of the Commission on Military Training   
   and Gender-Related Issues                                               
        670                                                                     

    Title VI--Compensation and Other Personnel  Benefits                   

        670                                                                     

          Legislative Provisions Adopted                                

        670                                                                     

   Subtitle A--Pay and Allowances                                          

        670                                                                     

   Increase in basic pay for fiscal year 1999 (sec. 601)                   

        670                                                                     

      Rate of pay for cadets and midshipmen at the service academies (sec. 
   602)                                                                    
        671                                                                     

   Basic allowance for housing outside the United  States (sec. 603)       

        671                                                                     

   Basic allowance for subsistence for reserves (sec. 604)                 

        671                                                                     

   Subtitle B--Bonuses and Special Incentive Pays                          

        671                                                                     

      Three-month extension of certain bonuses and special pay authorities 
   for reserve forces (sec. 611)                                           
        671                                                                     

      Three-month extension of certain bonuses and special pay authorities 
   for nurse officer candidates, registered nurses, and nurse anesthetists 
   (sec. 612)                                                              
        672                                                                     

      Three-month extension of authorities relating to payment of other    
   bonuses and special pays (sec. 613)                                     
        672                                                                     

      Increased hazardous duty pay for aerial flight crewmembers in certain
   pay grades (sec. 614)                                                   
        672                                                                     

      Aviation career incentive pay and aviation officer retention bonus   
   (sec. 615)                                                              
        673                                                                     

      Diving duty special pay for divers having diving duty as a nonprimary
   duty (sec. 616)                                                         
        673                                                                     

   Hardship duty pay (sec. 617)                                            

        673                                                                     

      Selective reenlistment bonus eligibility for Reserve members         
   performing active Guard and Reserve duty (sec. 618)                     
        673                                                                     

      Repeal of ten percent limitation on certain selective reenlistment   
   bonuses (sec. 619)                                                      
        673                                                                     

      Increase in maximum amount authorized for Army enlistment bonus (sec.
   620)                                                                    
        674                                                                     

      Equitable treatment of Reserves eligible for special pay for duty    
   subject to hostile fire or imminent danger (sec. 621)                   
        674                                                                     

      Retention incentives initiative for critically short military        
   occupational specialites (sec. 622)                                     
        674                                                                     

   Subtitle C--Travel and Transportation Allowances                        

        674                                                                     

      Payments for movements of household goods arranged by members (sec.  
   631)                                                                    
        674                                                                     

      Exception to maximum weight allowance for baggage and household      
   effects (sec. 632)                                                      
        675                                                                     

      Travel and transportation allowances for travel performed by members 
   in connection with rest and recuperative leave from overseas stations   
   (sec. 633)                                                              
        675                                                                     

   Storage of baggage of certain dependents (sec. 634)                     

        675                                                                     

      Commercial travel of Reserves at Federal supply schedule rates for   
   attendance at inactive-duty training assemblies (sec. 635)              
        676                                                                     

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

        676                                                                     


   Paid-up coverage under Survivor Benefit Plan (sec. 641)                 

        676                                                                     

   Survivor Benefit Plan open enrollment period (sec. 642)                 

        676                                                                     

      Effective date of court-required former spouse survivor benefit plan 
   coverage effectuated through elections and deemed elections (sec. 643)  
        676                                                                     

      Presentation of a United States flag to members of the Armed Forces  
   upon retirement (sec. 644)                                              
        676                                                                     

      Recovery, care, and disposition of remains of medically retired      
   member who dies during hospitalization that begins while on active duty 
   (sec. 645)                                                              
        677                                                                     

   Revision to computation of retired pay for certain members (sec. 646)   

        677                                                                     

   Elimination of backlog of unpaid retired pay (sec. 647)                 

        677                                                                     

   Subtitle E--Other Matters                                               

        677                                                                     

      Definition of possessions of the United States for pay and allowances
   purposes (sec. 651)                                                     
        677                                                                     

   Accounting of advance payments (sec. 652)                               

        678                                                                     

      Reimbursement of rental vehicle costs when motor vehicle transported 
   at government expense is late (sec. 653)                                
        678                                                                     

      Education loan repayment program for health professions officers     
   serving in Selected Reserve (sec. 654)                                  
        678                                                                     

      Federal employees' compensation coverage for students participating  
   in certain officer candidate programs (sec. 655)                        
        678                                                                     

      Relationship of enlistment bonuses to eligibility to receive Army    
   college fund supplement under Montgomery GI bill Educational Assistance 
   Program (sec. 656)                                                      
        679                                                                     

      Authority to provide financial assistance for education of certain   
   defense dependents overseas (sec. 657)                                  
        679                                                                     

      Clarifications concerning payments to certain persons captured or    
   interned by North Vietnam (sec. 658)                                    
        679                                                                     

          Legislative Provisions not Adopted                            

        679                                                                     

   Voting rights of military personnel                                     

        679                                                                     

    Title VII--Health Care Provisions                                      

        680                                                                     

          Legislative Provisions Adopted                                

        680                                                                     

   Subtitle A--Health Care Services                                        

        680                                                                     

   Dependents' dental program (sec. 701)                                   

        680                                                                     

      Expansion of dependent eligibility under retiree dental program (sec.
   702)                                                                    
        680                                                                     

   Plan for redesign of military pharmacy system (sec. 703)                

        680                                                                     

      Transitional authority to provide continued health care coverage for 
   certain persons unaware of loss of CHAMPUS eligibility (sec. 704)       
        681                                                                     

   Subtitle B--TRICARE Program                                             

      Payment of claims for provision of health care under the TRICARE     
   program for which a third party may be liable (sec. 711)                
        681                                                                     

      TRICARE prime automatic enrollments and retiree payment options (sec.
   712)                                                                    
        681                                                                     

      System for tracking data and measuring performance in meeting TRICARE
   access standards (sec. 713)                                             
        682                                                                     

   Establishment of appeals process for claimcheck denials (sec. 714)      

        682                                                                     

      Reviews relating to accessibility of health care under TRICARE (sec. 
   715)                                                                    
        682                                                                     

      Subtitle C--Health-Care Services for Medicare-Eligible Department of 
   Defense Beneficiaries (secs. 721 724)                                   
        683                                                                     

      Subtitle D--Other Changes to Existing Laws Regarding Health Care     
   Management                                                              
        684                                                                     

      Process for waiving informed consent requirement for administration  
   of certain drugs to members of Armed Forces for purposes of a particular
   military operation (sec. 731)                                           
        684                                                                     

      Health benefits for abused dependents of members of the armed forces 
   (sec. 732)                                                              
        684                                                                     

      Provision of health care at military entrance processing stations and
   elsewhere outside medical treatment facilities (sec. 733)               
        684                                                                     

      Professional qualifications of physicians providing military health  
   care (sec. 734)                                                         
        684                                                                     

   Subtitle E--Other Matters                                               

        686                                                                     

   Enhanced Department of Defense organ and tissue donor program (sec. 741)

        686                                                                     

   Authorization to establish a Level One Trauma Training Center (sec. 742)

        686                                                                     

      Authority to establish center for study of post-deployment health    
   concerns of members of the armed forces (sec. 743)                      
        686                                                                     

      Report on implementation of enrollment-based capitation for funding  
   for military medical treatment facilities (sec. 744)                    
        687                                                                     


      Joint Department of Defense and Department of Veterans Affairs       
   reports relating to interdepartmental cooperation in the delivery of    
   medical care (sec. 745)                                                 
        687                                                                     

      Report on research and surveillance activities regarding Lyme disease
   and other tick-borne diseases (sec. 746)                                
        687                                                                     

          Legislative Provisions not Adopted                            

        688                                                                     

      Plan for provision of health care for military retirees and their    
   dependents comparable to health care provided under TRICARE Prime       
        688                                                                     

       Title VIII--Acquisition Policy, Acquisition Management, and Related 
   Matters                                                                 
        688                                                                     

          Legislative Provisions Adopted                                

        688                                                                     

      Subtitle A--Amendments to General Contracting Authorities,           
   Procedures, and Limitations                                             
        688                                                                     

      Limitation on use of price preference upon achievement of contract   
   goal for small and disadvantaged businesses (sec. 801)                  
        688                                                                     

      Distribution of assistance under the procurement technical assistance
   cooperative agreement program (sec. 802)                                
        688                                                                     

   Defense commercial pricing management improvement  (sec. 803)           

        688                                                                     

      Modification of senior executives covered by limitation on           
   allowability of compensation for certain contractor personnel (sec. 804)
        689                                                                     

      Separate determinations of exceptional waivers of truth in           
   negotiation requirements for prime contracts and subcontracts (sec. 805)
        689                                                                     

   Procurement of conventional ammunition (sec. 806)                       

        690                                                                     

   Para-aramid fibers and yarns (sec. 807)                                 

        690                                                                     

      Clarification of responsibility for submission of information on     
   prices previously charged for property or services offered (sec. 808)   
        691                                                                     

      Amendments and study relating to procurement from firms in industrial
   base for production of small arms (sec. 809)                            
   Subtitle B--Other Matters                                               

        691                                                                     

      Eligibility of involuntarily downgraded employee for membership in an
   acquisition corps (sec. 811)                                            
        692                                                                     

      Time for submission of annual report relating to Buy American Act    
   (sec. 812)                                                              
        692                                                                     

      Procurement of travel services for official and unofficial travel    
   under one contract (sec. 813)                                           
        692                                                                     

   Department of Defense purchases through other  agencies (sec. 814)      

        692                                                                     

      Supervision of defense acquisition university structure by Under     
   Secretary of Defense for Acquisition and Technology (sec. 815)          
        692                                                                     

      Pilot programs for testing program manager performance of product    
   support oversight responsibilities for life cycle of acquisition        
   programs (sec. 816)                                                     
        693                                                                     

   Scope of protection of certain information from  disclosure (sec. 817)  

        693                                                                     

      Plan for rapid transition from completion of small business          
   innovative research into defense acquisition programs (sec. 818)        
        693                                                                     

      Five-year authority for the Secretary of the Navy to exchange certain
   items (sec. 819)                                                        
        693                                                                     

      Permanent authority for use of major test range and test facility    
   installations by commercial entities (sec. 820)                         
        694                                                                     

      Inventory exchange authorized for certain fuel delivery contract     
   (sec. 821)                                                              
        694                                                                     

          Legislative Provisions not Adopted                            

        694                                                                     

   Study on increase in micro-purchase threshold                           

        694                                                                     

      Repeal of requirement for Director of Acquisition Education,         
   Training, and Career Development to be within the Office of the Under   
   Secretary of Defense for Acquisition and Technology                     
        694                                                                     

    Title IX--Department of Defense Organization and Management            

        695                                                                     

          Legislative Provisions Adopted                                

        695                                                                     

   Subtitle A--Department of Defense Officers and  Organization            

        695                                                                     

      Reduction in number of Assistant Secretary of Defense positions (sec.
   901)                                                                    
        695                                                                     

      Repeal of statutory requirement for position of Assistant Secretary  
   of Defense for Command, Control, Communications and Intelligence (sec.  
   902)                                                                    
        695                                                                     

      Independent task force on transformation and Department of Defense   
   organization (sec. 903)                                                 
        696                                                                     

   Authority to expand the National Defense  University (sec. 904)         

        696                                                                     

   Center for Hemispheric Defense Studies (sec. 905)                       

        696                                                                     

   Restructuring of administration of Fisher Houses  (sec. 906)            

        696                                                                     

      Management reform for research, development, test and evaluation     
   activities (sec. 907)                                                   
        697                                                                     


   Subtitle B--Department of Defense Financial Management                  

        697                                                                     

   Improved accounting for defense contract services (sec. 911)            

        697                                                                     

      Report on Department of Defense financial management improvement plan
   (sec. 912)                                                              
        698                                                                     

      Study of feasibility of performance of Department of Defense finance 
   & accounting functions by private sector sources or other Federal       
   sources (sec. 913)                                                      
        698                                                                     

      Limitation on reorganization and consolidation of operating locations
   of the Defense Finance and Accounting Service (sec. 914)                
        698                                                                     

      Annual report on resources allocated to support and mission          
   activities (sec. 915)                                                   
        698                                                                     

   Subtitle C--Joint Warfighting Experimentation                           

        699                                                                     

   Findings concerning joint warfighting experimentation (sec. 921)        

        699                                                                     

      Sense of Congress concerning joint warfighting experimentation (sec. 
   922)                                                                    
        699                                                                     

   Reports on joint warfighting experimentation (sec. 923)                 

        699                                                                     

   Subtitle D--Other Matters                                               

        699                                                                     

      Further reductions in defense acquisition and support workforce (sec.
   931)                                                                    
        699                                                                     

      Limitation on operation and support funds for the Office of the      
   Secretary of Defense (sec. 932)                                         
        700                                                                     

      Clarification and simplification of responsibilities of inspectors   
   general regarding whistleblower protections (sec. 933)                  
        700                                                                     

      Repeal of requirement relating to assignment of tactical airlift     
   mission to reserve components (sec. 934)                                
        700                                                                     

      Consultation with Marine Corps on major decisions directly concerning
   Marine Corps aviation (sec. 935)                                        
        701                                                                     

          Legislative Provisions not Adopted                            

        701                                                                     

      Revision to defense directive relating to management headquarters and
   headquarters support activities                                         
        701                                                                     

      Report on individuals employed in private sector who provide services
   under contract for the Department of Defense                            
        701                                                                     

   Reduction in Department of Defense headquarters staff                   

        701                                                                     

   Permanent requirement for quadrennial defense review                    

        702                                                                     

      To redesignate the position of Director of Defense Research and      
   Engineering, abolish the position of Assistant to the Secretary of      
   Defense for Nuclear and Chemical and Biological Defense Programs, and   
   transfer the duties of the latter position to the former position       
        702                                                                     

   Military aviation accident investigations                               

        702                                                                     

    Title X--General Provisions                                            

        703                                                                     

          Legislative Provisions Adopted                                

        703                                                                     

   Subtitle A--Financial Matters                                           

        703                                                                     

   Transfer authority (sec. 1001)                                          

        703                                                                     

   Incorporation of classified annex (sec. 1002)                           

        703                                                                     

      Authorization of prior emergency supplemental appropriations for     
   fiscal year 1998 (sec. 1003)                                            
        703                                                                     

      Authorization of appropriations for Bosnia peacekeeping operations   
   for fiscal year 1999 (sec. 1004)                                        
        703                                                                     

   Partnership for Peace information system management (sec. 1005)         

        704                                                                     

      United States contribution to NATO common-funded budgets in fiscal   
   year 1999 (sec. 1006)                                                   
        705                                                                     

   Liquidity of working-capital funds (sec. 1007)                          

        705                                                                     

      Termination of authority to manage working-capital funds and certain 
   activities through the Defense Business Operating Fund (sec. 1008)      
        705                                                                     

      Clarification of authority to retain recovered costs of disposals in 
   working-capital funds (sec. 1009)                                       
        705                                                                     

      Crediting of amounts recovered from third parties for loss or damage 
   to personal property shipped or stored at government expense (sec. 1010)
        706                                                                     

   Subtitle B--Naval Vessels and Shipyards                                 

        706                                                                     

      Revision to requirement for continued listing of two Iowa-class      
   battleships on the Naval Vessel Register (sec. 1011)                    
        706                                                                     

   Transfer of U.S.S. New Jersey (sec. 1012)                               

        706                                                                     

   Homeporting of the U.S.S. Iowa in San Francisco, California (sec. 1013) 

        706                                                                     

   Sense of Congress concerning the naming of an LPD 17 vessel (sec. 1014) 

        706                                                                     

   Reports on naval surface fire-support capabilities (sec. 1015)          

        706                                                                     

      Long-term charter of three vessels in support of submarine rescue,   
   escort, and towing (sec. 1016)                                          
        707                                                                     

   Transfer of obsolete Army tugboat (sec. 1017)                           

        707                                                                     


      Subtitle C--Counter Drug Activities and Other Assistance for Civilian
   Law Enforcement                                                         
        707                                                                     

      Program authority for Department of Defense support to other agencies
   for counter-drug activities (sec. 1021)                                 
        711                                                                     

      Department of Defense support of National Guard drug interdiction and
   counter-drug activities (sec. 1022)                                     
        712                                                                     

      Patrol Coastal Craft for Drug Interdiction by Southern Command (sec. 
   1023)                                                                   
        712                                                                     

   Subtitle D--Miscellaneous Report Requirements and  Repeals              

        713                                                                     

   Repeal of unnecessary and obsolete reporting  provisions (sec. 1031)    

        713                                                                     

      Report regarding use of tagging system to identify hydrocarbon fuels 
   used by Department of Defense (sec. 1032)                               
        713                                                                     

   Subtitle E--Armed Forces Retirement Home                                

        713                                                                     

      Appointment of Director and Deputy Director of the Naval Home (sec.  
   1041)                                                                   
        713                                                                     

      Revision of inspection requirements relating to Armed Forces         
   Retirement Home (sec. 1042)                                             
        714                                                                     

      Clarification of land conveyance authority, Armed Forces Retirement  
   Home (sec. 1043)                                                        
        714                                                                     

   Subtitle F--Matters Relating to Defense Property                        

        714                                                                     

      Plan for improved demilitarization of excess and surplus defense     
   property (sec. 1051)                                                    
        714                                                                     

   Transfer of F 4 Phantom II aircraft to foundation  (sec. 1052)          

        715                                                                     

   Subtitle G--Other Department of Defense  Matters                        

        715                                                                     

      Pilot program on alternative notice of receipt of legal process for  
   garnishment of federal pay for child support and alimony (sec. 1061)    
        715                                                                     

      Training of special operations forces with friendly foreign forces   
   (sec. 1062)                                                             
        715                                                                     

   Research grants competitively awarded to service  academies (sec. 1063) 

        716                                                                     

   Department of Defense use of frequency spectrum  (sec. 1064)            

        716                                                                     

   Department of Defense aviation accident  investigations (sec. 1065)     

        716                                                                     

      Investigation of actions relating to 174th Fighter Wing of New York  
   Air National Guard (sec. 1066)                                          
        717                                                                     

   Program to commemorate 50th anniversary of the  Korean War   (sec. 1067)

        717                                                                     

   Designation of America's national maritime museum  (sec. 1068)          

        717                                                                     

   Technical and clerical amendments (sec. 1069)                           

        718                                                                     

   Subtitle H--Other Matters                                               

        718                                                                     

      Act constituting presidential approval of vessel war risk insurance  
   requested by the Secretary of Defense (sec. 1071)                       
        718                                                                     

      Extension and reauthorization of Defense Production Act of 1950 (sec.
   1072)                                                                   
        718                                                                     

      Requirement that burial flags furnished by the Secretary of Veterans 
   Affairs be wholly produced in the United States (sec. 1073)             
        718                                                                     

      Sense of Congress concerning tax treatment of principal residence of 
   members of armed forces while away from home on active duty (sec. 1074) 
        718                                                                     

      Clarification of State authority to tax compensation paid to certain 
   employees (sec. 1075)                                                   
        719                                                                     

          Legislative Provisions not Adopted                            

        719                                                                     

   Outlay limitations                                                      

        719                                                                     

      Long-term charter contracts for acquisition of auxiliary vessels for 
   the Department of Defense                                               
        719                                                                     

      Sense of the Congress regarding the establishment of a counter-drug  
   center in Panama                                                        
        719                                                                     

   Assignment of members of armed forces to assist  INS and Customs Service

        720                                                                     

   Facilitation of operations at Edwards Air Force  Base                   

        720                                                                     

      Operation, maintenance, and upgrade of Air Force space launch        
   facilities                                                              
        720                                                                     

   Southwest border fence                                                  

        720                                                                     

      Increase operations and maintenance for Army National Guard/reduce   
   amounts from revised economic assumptions                               
        721                                                                     

   Ship scrapping pilot program                                            

        721                                                                     

   Report on inventory and control of military  equipment                  

        721                                                                     

      Report on reduction of infrastructure costs at Brooks Air Force Base,
   Texas                                                                   
        721                                                                     

      Sense of the Senate regarding declassification of classified         
   information of the Department of Defense and the Department of Energy   
        722                                                                     

      Sense of the Senate regarding the August 1995 assassination attempt  
   against President Shevardnadze of Georgia                               
        722                                                                     

   Eliminating secret Senate holds                                         

        722                                                                     

      Cooperation between the Department of the Army and the Environmental 
   Protection Agency in meeting the Chemical Weapons Convention            
   requirements                                                            
        723                                                                     


    Title XI--Department of Defense Civilian Personnel                     

        724                                                                     

          Legislative Provisions Adopted                                

        724                                                                     

      Defense Advanced Research Projects Agency experimental personnel     
   management program for technical personnel (sec. 1101)                  
        724                                                                     

      Maximum pay rate comparability for faculty members of the United     
   States Air Force Institute of Technology (sec. 1102)                    
        725                                                                     

      Authority for release to Coast Guard of drug test results of civil   
   service mariners of the Military Sealift Command (sec. 1103)            
        725                                                                     

   Limitations on back pay awards (sec. 1104)                              

        725                                                                     

      Restoration of annual leave accumulated by civilian employees at     
   installations in the Republic of Panama to be closed pursuant to the    
   Panama Canal Treaty of 1977 (sec. 1105)                                 
        725                                                                     

      Repeal of program providing preference for employment of military    
   spouses in military child care facilities (sec. 1106)                   
        725                                                                     

      Observance of certain holidays at duty posts outside the United      
   States (sec. 1107)                                                      
        726                                                                     

   Random drug testing of Department of Defense employees (sec. 1108)      

        726                                                                     

      Department of Defense employee voluntary early retirement authority  
   (sec. 1109)                                                             
        726                                                                     

          Legislative Provisions not Adopted                            

        726                                                                     

      Elimination of retained pay as basis for determining locality-based  
   adjustments                                                             
        726                                                                     

   Four-year extension of voluntary separation incentive pay authority     

        726                                                                     

    Title XII--Matters Relating to Other Nations                           

        727                                                                     

          Legislative Provisions Adopted                                

        727                                                                     

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

        727                                                                     

   United States armed forces in Bosnia and Herzegovina (secs. 1201 1205)  

        727                                                                     

   Subtitle B--Matters Relating to Contingency Operations                  

        728                                                                     

      Report on involvement of Armed Forces in contingency and ongoing     
   operations (sec. 1211)                                                  
        728                                                                     

      Submission of report on objectives of a contingency operation with   
   requests for funding for the operation (sec. 1212)                      
        728                                                                     

   Subtitle C--Matters Relating to NATO and Europe                         

        729                                                                     

   Limitation on United States share of costs of NATO expansion (sec. 1221)

        729                                                                     

   Report on military capabilities of an expanded NATO alliance (sec. 1222)

        729                                                                     

      Reports on the development of the European security and defense      
   identity (sec. 1223)                                                    
        730                                                                     

      Limitation on the assignment of United States forces for certain     
   United Nations purposes (sec. 1231)                                     
        730                                                                     

      Kyoto Protocol to the United Nations Framework Convention on Climate 
   Change (sec. 1232)                                                      
        731                                                                     

   Defense burdensharing (sec. 1233)                                       

        731                                                                     

      Transfer of excess UH 1 Huey and AH 1 Cobra helicopters to foreign   
   countries (sec. 1234)                                                   
        732                                                                     

   Transfers of naval vessels to certain foreign countries (sec. 1235)     

        732                                                                     

   Repeal of the landmine moratorium (sec. 1236)                           

        732                                                                     

      Application of authorities under the International Emergency Economic
   Powers Act to communist Chinese military companies (sec. 1237)          
        732                                                                     

       Title XIII--Cooperative Threat Reduction With States of the Former  
   Soviet Union                                                            
        733                                                                     

          Legislative Provisions Adopted                                

        733                                                                     

   Cooperative Threat Reduction (CTR) program (secs. 1301 1309)            

        733                                                                     

       Title XIV--Domestic Preparedness for Defense Against Weapons of Mass
   Destruction                                                             
        734                                                                     

          Legislative Provisions Adopted                                

        734                                                                     

   Defense against weapons of mass destruction (secs. 1401 1405)           

        734                                                                     

       Title XV--Matters Relating to Arms Control, Export Controls, and    
   Counterproliferation                                                    
        737                                                                     

          Legislative Provisions Adopted                                

        737                                                                     

   Subtitle A--Arms Control Matters                                        

        737                                                                     

      One-year extension of limitation on retirement or dismantlement of   
   strategic nuclear delivery systems (sec. 1501)                          
        737                                                                     

      Transmission of executive branch reports providing Congress with     
   classified summaries of arms control developments (sec. 1502)           
        737                                                                     

      Report on adequacy of emergency communications capabilities between  
   the United States and Russia (sec. 1503)                                
        737                                                                     

   Russian nonstrategic nuclear weapons (sec. 1504)                        

        738                                                                     

   Subtitle B--Satellite Export Controls                                   

        738                                                                     

   Satellite export controls (secs. 1511 1516)                             

        738                                                                     


   Subtitle C--Other Export Control Matters                                

        740                                                                     

      Authority for export control activities of the Department of Defense 
   (sec. 1521)                                                             
        740                                                                     

      Release of export information by the Department of Commerce to other 
   agencies for the purpose of national security assessment (sec. 1522)    
        741                                                                     

   Nuclear export reporting requirement (sec. 1523)                        

        741                                                                     

      Execution of objection authority within the Department of Defense    
   (sec. 1524)                                                             
        742                                                                     

   Subtitle D--Counterproliferation Matters                                

        742                                                                     

   One-year                                                                

        742                                                                     

   Sense of Congress on Nuclear Tests in South Asia  (sec. 1532)           

        742                                                                     

      Report on requirements for response to increased missile threat in   
   Asia-Pacific region (sec. 1533)                                         
        743                                                                     

   DIVISION B--MILITARY  CONSTRUCTION AUTHORIZATIONS                       

        743                                                                     

   Overview                                                                

        743                                                                     

    Title XXI--Army                                                        

        764                                                                     

   Overview                                                                

        764                                                                     

           Items of Special Interest                                    

        765                                                                     

   Improvements of Military Family Housing, Army                           

        765                                                                     

          Legislative Provisions Adopted                                

        765                                                                     

   Authorized Army construction and land acquisition  projects (sec. 2101) 

        765                                                                     

   Family housing (sec. 2102)                                              

        765                                                                     

   Improvements to military family housing units  (sec. 2103)              

        765                                                                     

   Authorization of appropriations, Army (sec. 2104)                       

        765                                                                     

      Modification of authority to carry out fiscal year 1998 projects     
   (sec. 2105)                                                             
        766                                                                     

    Title XXII--Navy                                                       

        766                                                                     

   Overview                                                                

        766                                                                     

          Items of Special Interest                                     

        766                                                                     

   Improvements of military family housing, Navy                           

        766                                                                     

          Legislative Provisions Adopted                                

        766                                                                     

   Authorized Navy construction and land acquisition  projects (sec. 2201) 

        766                                                                     

   Family housing (sec. 2202)                                              

        767                                                                     

   Improvements to military family housing units  (sec. 2203)              

        767                                                                     

   Authorization of appropriations, Navy (sec. 2204)                       

        767                                                                     

      Authorization to accept road construction project, Marine Corps Base,
   Camp Lejeune, North Carolina (sec. 2205)                                
        767                                                                     

    Title XXIII--Air Force                                                 

        767                                                                     

   Overview                                                                

        767                                                                     

          Items of Special Interest                                     

        768                                                                     

   Improvements of military family housing, Air Force                      

        768                                                                     

          Legislative Provisions Adopted                                

        768                                                                     

      Authorized Air Force construction and land acquisition projects (sec.
   2301)                                                                   
        768                                                                     

   Family housing (sec. 2302)                                              

        768                                                                     

   Improvements to military family housing units  (sec. 2303)              

        768                                                                     

   Authorization of appropriations, Air Force (sec. 2304)                  

        768                                                                     

    Title XXIV--Defense Agencies                                           

        769                                                                     

   Overview                                                                

        769                                                                     

          Legislative Provisions Adopted                                

        769                                                                     

      Authorized Defense Agencies construction and land acquisition        
   projects (sec. 2401)                                                    
        769                                                                     

   Improvements to military family housing units  (sec. 2402)              

        770                                                                     

   Energy conservation projects (sec. 2403)                                

        770                                                                     

   Authorization of appropriations, Defense Agencies  (sec. 2404)          

        770                                                                     

      Repeal of fiscal year 1997 authorization of appropriations for       
   certain military housing improvement program (sec. 2405)                
        770                                                                     

      Modification of authority to carry out certain fiscal year 1995      
   projects (sec. 2406)                                                    
        770                                                                     

      Modification of authority to carry out fiscal year 1990 project (sec.
   2407)                                                                   
        771                                                                     

       Title XXV--North Atlantic Treaty Organization Security Investment   
   Program                                                                 
        771                                                                     

   Overview                                                                

        771                                                                     

          Legislative Provisions Adopted                                

        771                                                                     

      Authorized North Atlantic Treaty Organization (NATO) construction and
   land acquisition projects (sec. 2501)                                   
        771                                                                     

   Authorization of appropriations, NATO (sec. 2502)                       

        771                                                                     

    Title XXVI--Guard and Reserve Forces Facilities                        

        772                                                                     

   Overview                                                                

        772                                                                     

          Legislative Provisions Adopted                                

        772                                                                     

      Authorized Guard and Reserve construction and land acquisition       
   projects (sec. 2601)                                                    
        772                                                                     

      Modification of authority to carry out fiscal year 1998 project (sec.
   2602)                                                                   
        772                                                                     


          Legislative Provisions not Adopted                            

        773                                                                     

      National Guard Military Educational Facility, Fort Bragg, North      
   Carolina                                                                
        773                                                                     

    Title XXVII--Expiration and Extension of  Authorizations               

        773                                                                     

          Legislative Provisions Adopted                                

        773                                                                     

      Expiration of authorizations and amounts required to be specified by 
   law (sec. 2701)                                                         
        773                                                                     

      Extension of authorizations of certain fiscal year 1996 projects     
   (sec. 2702)                                                             
        773                                                                     

   Extension of authorization of fiscal year 1995  project (sec. 2703)     

        774                                                                     

   Effective date (sec. 2704)                                              

        774                                                                     

          Legislative Provisions not Adopted                            

        774                                                                     

      Authorization of additional military construction and military family
   housing projects                                                        
        774                                                                     

    Title XXVIII--General Provisions                                       

        774                                                                     

          Legislative Provisions Adopted                                

        774                                                                     

   Subtitle A--Military Construction and Military Family  Housing Changes  

        774                                                                     

      Architectural and engineering services and construction design (sec. 
   2801)                                                                   
        774                                                                     

   Expansion of Army overseas family housing lease  authority (sec. 2802)  

        775                                                                     

      Definition of ancillary supporting facilities under the alternative  
   authority for acquisition and improvement of military housing (sec.     
   2803)                                                                   
        775                                                                     

      Purchase of build-to-lease family housing at Eielson Air Force Base, 
   Alaska (sec. 2804)                                                      
        775                                                                     

      Report relating to improvement of housing for unaccompanied members  
   (sec. 2805)                                                             
        775                                                                     

   Subtitle B--Real Property and Facilities  Administration                

        776                                                                     

      Exceptions to real property transaction reporting requirements for   
   war and certain emergency and other operations (sec. 2811)              
        776                                                                     

      Restoration of Department of Defense lands used by another federal   
   agency (sec. 2812)                                                      
        776                                                                     

      Outdoor recreation development on military installations for disabled
   veterans, military dependents with disabilities, and other persons with 
   disabilities (sec. 2813)                                                
        777                                                                     

      Report on leasing and other alternative uses of non-excess military  
   property (sec. 2814)                                                    
        777                                                                     

      Report on implementation of utility system conveyance authority (sec.
   2815)                                                                   
        777                                                                     

   Subtitle C--Defense Base Closure and Realignment                        

        778                                                                     

      Applicability of property disposal laws to leases at installations to
   be closed or realigned under base closure laws (sec. 2821)              
        778                                                                     

      Elimination of waiver authority regarding prohibition against certain
   conveyances of property at Naval Station, Long Beach, California (sec.  
   2822)                                                                   
        778                                                                     

      Payment of stipulated penalties assessed under CERCLA in connection  
   with McClellan Air Force Base, California (sec. 2823)                   
        778                                                                     

   Subtitle D--Land Conveyances                                            

        779                                                                     

   Part I--Army Conveyances                                                

        779                                                                     

      Modification of land conveyance, Army Reserve Center, Youngstown,    
   Ohio (sec. 2831)                                                        
        779                                                                     

      Release of interests in real property, former Kennebec Arsenal,      
   Augusta, Maine (sec. 2832)                                              
        779                                                                     

      Release waiver, or conveyance of interests in real property, former  
   Redstone Army Arsenal property, Alabama (sec. 2833)                     
        779                                                                     

      Conveyance of utility systems, Lone Star Army Ammunition Plant, Texas
   (sec. 2834)                                                             
        780                                                                     

      Conveyance of water rights and related interests, Rocky Mountain     
   Arsenal, Colorado, for purposes of acquisition of perpetual contracts   
   for water (sec. 2835)                                                   
        780                                                                     

   Land conveyance, Army Reserve Center, Massena, New  York (sec. 2836)    

        780                                                                     

   Land conveyance, Army Reserve Center, Ogdensburg,  New York (sec. 2837) 

        780                                                                     

   Land conveyance, Army Reserve Center, Jamestown,  Ohio (sec. 2838)      

        781                                                                     

   Land conveyance, Army Reserve Center, Peoria,  Illinois   (sec. 2839)   

        781                                                                     

   Land conveyance, Army Reserve Center, Bridgton,  Maine (sec. 2840)      

        781                                                                     

   Land conveyance, Fort Sheridan, Illinois (sec.  2841)                   

        781                                                                     

   Land conveyance, Skaneateles, New York (sec. 2842)                      

        782                                                                     

      Land conveyance, Indiana Army Ammunition Plant, Charlestown, Indiana 
   (sec. 2843)                                                             
        782                                                                     

      Land conveyance, Volunteer Army Ammunition Plant, Chattanooga,       
   Tennessee (sec. 2844)                                                   
        783                                                                     

      Land conveyance, Stewart Army Sub-Post, New Windsor, New York (sec.  
   2845)                                                                   
        783                                                                     

   Part II--Navy Conveyances                                               

        783                                                                     

      Conveyance of easement, Marine Corps Base, Camp Pendleton, California
   (sec. 2851)                                                             
        783                                                                     

      Land exchange, Naval Reserve Readiness Center, Portland, Maine (sec. 
   2852)                                                                   
        784                                                                     


      Land conveyance, Naval and Marine Corps Reserve facility, Youngstown,
   Ohio (sec. 2853)                                                        
        784                                                                     

      Land conveyance, Naval Air Reserve Center, Minneapolis, Minnesota    
   (sec. 2854)                                                             
        784                                                                     

   Part III--Air Force Conveyances                                         

        785                                                                     

      Modification of land conveyance authority, Eglin Air Force Base,     
   Florida (sec. 2861)                                                     
        785                                                                     

      Modification of land conveyance, Finley Air Force Station, North     
   Dakota (sec. 2862)                                                      
        785                                                                     

   Land conveyance, Lake Charles Air Force Station, Louisiana (sec. 2863)  

        786                                                                     

      Land conveyance, Air Force Housing facility, La Junta, Colorado (sec.
   2864)                                                                   
        786                                                                     

   Subtitle E--Other Matters                                               

        786                                                                     

      Modification of authority relating to Department of Defense          
   laboratory revitalization demonstration program (sec. 2871)             
        786                                                                     

      Repeal of prohibition on joint use of Gray Army Airfield, Fort Hood, 
   Texas, with civil aviation (sec. 2872)                                  
        786                                                                     

      Modification of demonstration project for purchase of fire, security,
   police, public works, and utility services from local government        
   agencies (sec. 2873)                                                    
        787                                                                     

      Designation of building containing Navy and Marine Corps Reserve     
   Center, Augusta, Georgia (sec. 2874)                                    
        787                                                                     

          Legislative Provisions Not Adopted                            

        787                                                                     

   Expansion of Arlington National Cemetery                                

        787                                                                     

      Increase in thresholds for reporting requirements relating to real   
   property transactions                                                   
        788                                                                     

   Beach replenishment, San Diego, California                              

        788                                                                     

   Development of Ford Island, Hawaii                                      

        788                                                                     

   Repairs and stabilization measures at Walter Reed Army Medical Center   

        789                                                                     

      Modification of limitations on general authority relating to base    
   closures and realignments                                               
        789                                                                     

      Prohibition on closure of a base within four years after a           
   realignment of the base                                                 
        789                                                                     

   Sense of Congress on further rounds of base closures                    

        789                                                                     

    Title XXIX--Juniper Butte Range Withdrawal                             

        790                                                                     

          Legislative Provisions Adopted                                

        790                                                                     

   Juniper Butte Range withdrawal (secs. 2901 2919)                        

        790                                                                     

      DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
   OTHER AUTHORIZATIONS                                                    
        790                                                                     

    Title XXXI--Department of Energy National Security Programs            

        790                                                                     

   Overview                                                                

        790                                                                     

          Legislative Provisions Adopted                                

        802                                                                     

   Subtitle A--National Security Programs Authorizations                   

        802                                                                     

   Weapons activities (sec. 3101)                                          

        802                                                                     

   Defense environmental restoration and waste management (sec. 3102)      

        804                                                                     

   Other defense activities (sec. 3103)                                    

        806                                                                     

   Defense nuclear waste disposal (sec. 3104)                              

        808                                                                     

   Defense environmental management privatization (sec. 3105)              

        808                                                                     

   Subtitle B--Recurring General Provisions                                

        809                                                                     

   Reprogramming (sec. 3121)                                               

        809                                                                     

   Limits on general plant projects (sec. 3122)                            

        809                                                                     

   Limits on construction projects (sec. 3123)                             

        810                                                                     

   Fund transfer authority (sec. 3124)                                     

        810                                                                     

   Authority for conceptual and construction design (sec. 3125)            

        810                                                                     

      Authority for emergency planning, design, and construction activities
   (sec. 3126)                                                             
        810                                                                     

      Funds available for all national security programs of the Department 
   of Energy (sec. 3127)                                                   
        811                                                                     

   Availability of funds (sec. 3128)                                       

        811                                                                     

   Transfers of defense environmental management funds (sec. 3129)         

        811                                                                     

   Subtitle C--Program Authorizations, Restrictions, and Limitations       

        812                                                                     

      Permanent extension of funding prohibition relating to international 
   cooperative stockpile stewardship (sec. 3131)                           
        812                                                                     

      Support of ballistic missile defense activities of the Department of 
   Defense (sec. 3132)                                                     
        812                                                                     

   Nonproliferation activities (sec. 3133)                                 

        812                                                                     

      Licensing of certain mixed oxide fuel fabrication and irradiation    
   facilities (sec. 3134)                                                  
        813                                                                     

      Continuation of processing, treatment, and disposition of legacy     
   nuclear materials (sec. 3135)                                           
        813                                                                     

      Authority for Department of Energy federally funded research and     
   development centers to participate in merit-based technology research   
   and development programs (sec. 3136)                                    
        814                                                                     

   Activities of Department of Energy facilities (sec. 3137)               

        814                                                                     

   Hanford overhead and service center costs (sec. 3138)                   

        815                                                                     

   Hanford waste tank cleanup program reforms (sec. 3139)                  

        815                                                                     


   Hanford Health Information Network (sec. 3140)                          

        816                                                                     

      Hazardous Materials Management and Emergency Response training       
   program (sec. 3141)                                                     
        816                                                                     

      Support for public education in the vicinity of Los Alamos National  
   Laboratory, New Mexico (sec. 3142)                                      
        816                                                                     

      Relocation of National Atomic Museum, Albuquerque, New Mexico (sec.  
   3143)                                                                   
        817                                                                     

   Tritium production (sec. 3144)                                          

        817                                                                     

   Subtitle D--Other Matters                                               

        818                                                                     

      Study and plan relating to worker and community transition assistance
   (sec. 3151)                                                             
        818                                                                     

      Extension of authority for appointment of certain scientific,        
   engineering, and technical personnel (sec. 3152)                        
        819                                                                     

      Requirement for plan to modify employment system used by Department  
   of Energy in defense environmental management programs (sec. 3153)      
        819                                                                     

   Department of Energy nuclear materials couriers (sec. 3154)             

        819                                                                     

      Increase in maximum rate of pay for scientific, engineering, and     
   technical personnel responsible for safety at defense nuclear facilities
   (sec. 3155)                                                             
        820                                                                     

      Extension of authority of Department of Energy to pay voluntary      
   separation incentive payments (sec. 3156)                               
        820                                                                     

      Repeal of fiscal year 1998 statement of policy on stockpile          
   stewardship program (sec. 3157)                                         
        820                                                                     

   Report on stockpile stewardship criteria (sec. 3158)                    

        821                                                                     

      Panel to assess the reliability, safety, and security of the United  
   States nuclear stockpile (sec. 3159)                                    
        821                                                                     

   International cooperative information exchange (sec. 3160)              

        822                                                                     

      Protection against inadvertent release of restricted data and        
   formerly restricted data (sec. 3161)                                    
        822                                                                     

      Sense of Congress regarding treatment of Formerly Utilized Sites     
   Remedial Action Program under a non-defense discretionary budget        
   function (sec. 3162)                                                    
        823                                                                     

   Reports relating to tritium production (sec. 3163)                      

        823                                                                     

          Legislative Provisions not Adopted                            

        824                                                                     

      Sense of the Senate regarding memoranda of understanding with the    
   State of Oregon relating to Hanford                                     
        825                                                                     


      Sense of Congress on funding requirements for the nonproliferation   
   science and technology activities of the Department of Energy           
        825                                                                     

    Title XXXII--Defense Nuclear Facilities Safety Board                   

        826                                                                     

          Legislative Provisions Adopted                                

        826                                                                     

   Defense Nuclear Facilities Safety Board (sec. 3201)                     

        826                                                                     

    Title XXXIII--National Defense Stockpile                               

        826                                                                     

          Legislative Provisions Adopted                                

        826                                                                     

   Definitions (sec. 3301)                                                 

        826                                                                     

   Authorized uses of stockpile funds (sec. 3302)                          

        826                                                                     

      Authority to dispose of certain materials in the national defense    
   stockpile (sec. 3303)                                                   
        826                                                                     

      Use of stockpile funds for certain environmental remediation,        
   restoration, waste management, and compliance activities (sec. 3304)    
        827                                                                     

    Title XXXIV--Naval Petroleum Reserves                                  

        827                                                                     

          Legislative Provisions Adopted                                

        827                                                                     

   Definitions (sec. 3401)                                                 

        827                                                                     

   Authorization of appropriations (sec. 3402)                             

        827                                                                     

   Disposal of Naval Petroleum Reserve Numbered 2  (sec. 3403)             

        827                                                                     

   Disposal of Naval Petroleum Reserve Numbered 3  (sec. 3404)             

        828                                                                     

   Disposal of Oil Shale Reserve Numbered 2 (sec. 3405)                    

        828                                                                     

   Administration (sec. 3406)                                              

        828                                                                     

          Legislative Provisions not Adopted                            

        828                                                                     

   Price requirement on price of certain petroleum  during fiscal year 1999

        828                                                                     

      Treatment of State of California claim regarding Naval Petroleum     
   Reserve numbered 1                                                      
        828                                                                     

    Title XXXV--Panama Canal Commission                                    

        829                                                                     

          Legislative Provisions Adopted                                

   Short title; references to Panama Canal Act of   1979 (sec. 3501)       

        829                                                                     

   Authorization of expenditures (sec. 3502)                               

        829                                                                     

   Purchase of vehicles (sec. 3503)                                        

        829                                                                     

   Expenditures only in accordance with treaties  (sec. 3504)              

        829                                                                     

   Donations to the Commission (sec. 3505)                                 

        830                                                                     

      Agreements for United States to provide post-transfer administrative 
   services for certain employee benefits (sec. 3506)                      
        830                                                                     

      Sunset of United States overseas benefits just before transfer (sec. 
   3507)                                                                   
        830                                                                     

   Central Examining Office (sec. 3508)                                    

        830                                                                     

   Liability for vessel accidents (sec. 3509)                              

        830                                                                     

   Panama Canal Board of Contract Appeals (sec. 3510)                      

        831                                                                     

      Restatement of requirement that Secretary of Defense designee on     
   Panama Canal Commission supervisory board be a current officer of the   
   Department of Defense (sec. 3511)                                       
        831                                                                     

   Technical amendments (sec. 3512)                                        

        831                                                                     

          Legislative Provisions not Adopted                            

        832                                                                     

      Placement of United States citizens in positions with the United     
   States Government                                                       
        832                                                                     

    Title XXXVI--Maritime Administration                                   

        832                                                                     

          Legislative Provisions Adopted                                

        832                                                                     

   Authorization of appropriations for fiscal year   1999 (sec. 3601)      

        832                                                                     

   Authority to convey National Defense Reserve Fleet  vessel (sec. 3602)  

        832                                                                     

      Authority to convey certain National Defense Reserve Fleet vessels   
   (sec. 3603)                                                             
        832                                                                     

   Clearinghouse for maritime information (sec. 3604)                      

        832                                                                     

   Conveyance of NDRF vessel ex-USS Lorain County  (sec. 3605)             

        833                                                                     

    Title XXXVII--Increased Monitoring of Products Made  With Forced Labor 

        833                                                                     

          Legislative Provisions Adopted                                

        833                                                                     

      Increased monitoring of products made with forced labor (secs. 3701  
   3703)                                                                   
        833                                                                     

    Title XXXVIII--Fair Trade in Automotive Parts                          

        833                                                                     

          Legislative Provisions Adopted                                

        833                                                                     

   Fair trade in automotive parts (secs. 3801 3805)                        

        833                                                                     

    Title XXXIX--Radio Free Asia                                           

        834                                                                     

          Legislative Provisions Adopted                                

        834                                                                     

   Short title (sec. 3901)                                                 

        834                                                                     

      Authorization of appropriations for increased funding for Radio Free 
   Asia and Voice of America broadcasting to China (sec. 3902)             
        834                                                                     

   Reporting requirement (sec. 3903)                                       

        834                                                                     

          Legislative Provisions not Adopted                            

        835                                                                     

   Findings                                                                

        835                                                                     


105 th Congress                                                         

Report                                                                  

                                                                            

                                                                             

HOUSE OF REPRESENTATIVES                                                

2d Session                                                              

105 736                                                                 

                                                                        



       STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999  



                                                                         

 September  22, 1998.--Ordered to be printed                             

                                                                         

 Mr.  Spence , from the committee of conference, submitted the following 

 CONFERENCE REPORT                                                       

 [To accompany H.R. 3616]                                                


     The committee of conference on the disagreeing votes of the two      
  Houses on the amendment of the Senate to the bill (H.R. 3616) to        
  authorize appropriations for fiscal year 1999 for military activities of
  the Department of Defense, for military construction, and for defense   
  activities of the Department of Energy, to prescribe personnel strengths
  for such fiscal year for the Armed Forces, and for other purposes,      
  having met, after full and free conference, have agreed to recommend and
  do recommend to their respective Houses as follows:                     
     That the House recede from its disagreement to the amendment of the  
  Senate and agree to the same with an amendment as follows:              
     In lieu of the matter proposed to be inserted by the Senate          
  amendment, insert the following:                                        

          SECTION 1. SHORT TITLE; FINDINGS.                                       

     (a) Short Title.--This Act may be cited as the ``Strom Thurmond      
  National Defense Authorization Act for Fiscal Year 1999''.              
    (b)  Findings.--Congress makes the following findings:                

       (1) Senator Strom Thurmond of South Carolina first became a member  
   of the Committee on Armed Services of the United States Senate on       
   January 19, 1959. Senator Thurmond's continuous service on that         
   committee covers more than 75 percent of the period of the existence of 
   the committee, which was established immediately after World War II, and
   more than 20 percent of the period of the existence of military and     
   naval affairs committees of Congress, the original bodies of which were 
   formed in 1816.                                                         
       (2) Senator Thurmond came to Congress and the committee as a        
   distinguished veteran of service, including combat service, in the Armed
   Forces of the United States.                                            
       (3) Senator Thurmond was commissioned as a reserve second lieutenant
   of infantry in 1924. He served with great distinction with the First    
   Army in the European Theater of Operations during World War II, landing 
   in Normandy in a glider with the 82nd Airborne Division on D-Day. He was
   transferred to the Pacific Theater of Operations at the end of the war  
   in Europe and was serving in the Philippines when Japan surrendered.    
       (4) Having reverted to Reserve status at the end of World War II,   
   Senator Thurmond was promoted to brigadier general in the United States 
   Army Reserve in 1954. He served as President of the Reserve Officers    
   Association beginning that same year and ending in 1955. Senator        
   Thurmond was promoted to major general in the United States Army Reserve
   in 1959. He transferred to the Retired Reserve on January 1, 1965, after
   36 years of commissioned service.                                       
       (5) The distinguished character of Senator Thurmond's military      
   service has been recognized by awards of numerous decorations that      
   include the Legion of Merit, the Bronze Star medal with ``V'' device,   
   the Army Commendation Medal, the Belgian Cross of the Order of the      
   Crown, and the French Croix de Guerre.                                  
       (6) Senator Thurmond has served as chairman of the Committee on     
   Armed Services of the United States Senate since 1995 and served as the 
   ranking minority member of the committee from 1993 to 1995. Senator     
   Thurmond concludes his service as chairman at the end of the One Hundred
   Fifth Congress, but is to continue to serve the committee as a member in
   successive Congresses.                                                  
       (7) This Act is the fortieth annual authorization bill for the      
   Department of Defense for which Senator Thurmond has taken a major      
   responsibility as a member of the Committee on Armed Services of the    
   Senate.                                                                 
       (8) Senator Thurmond, as an Army officer and a legislator, has made 
   matchless contributions to the national security of the United States   
   that, in duration and in quality, are unique.                           
       (9) It is altogether fitting and proper that this Act, the last     
   annual authorization Act for the national defense that Senator Thurmond 
   manages in and for the United States Senate as chairman of the Committee
   on Armed Services, be named in his honor, as provided in subsection (a).

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

     (a) Divisions.--This Act is organized into three divisions as        
  follows:                                                                
     (1) Division A--Department of Defense Authorizations.                 

     (2) Division B--Military Construction Authorizations.                 

       (3) Division C--Department of Energy National Security              
   Authorizations and Other Authorizations.                                
     (b) Table of Contents.--The table of contents for this Act is as     
  follows:                                                                


      Sec. 1. Short title; findings.                                          


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

      Sec. 3. Congressional defense committees defined.                       


                      DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS            


                                    TITLE I--PROCUREMENT                          

                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 101. Army.                                                         

      Sec. 102. Navy and Marine Corps.                                        

      Sec. 103. Air Force.                                                    

      Sec. 104. Defense-wide activities.                                      

      Sec. 105. Reserve components.                                           

      Sec. 106. Defense Inspector General.                                    

      Sec. 107. Chemical demilitarization program.                            

      Sec. 108. Defense health programs.                                      

      Sec. 109. Defense Export Loan Guarantee program.                        

                                  SUBTITLE B--ARMY PROGRAMS                       

            Sec. 111. Multiyear procurement authority for Longbow Hellfire    
      Missile program.                                                        
            Sec. 112. Conditions for award of a second-source procurement     
      contract for the Family of Medium Tactical Vehicles.                    
      Sec. 113. Armored system modernization.                                 

      Sec. 114. Reactive armor tiles.                                         

            Sec. 115. Extension of authority to carry out Armament Retooling  
      and Manufacturing Support Initiative.                                   
                                  SUBTITLE C--NAVY PROGRAMS                       

      Sec. 121. CVN 77 nuclear aircraft carrier program.                      

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

                               SUBTITLE D--AIR FORCE PROGRAMS                     

      Sec. 131. F 22 aircraft program.                                        

      Sec. 132. C 130J aircraft program.                                      

                                  SUBTITLE E--OTHER MATTERS                       

      Sec. 141. Chemical stockpile emergency preparedness program.            

            Sec. 142. Alternative technologies for destruction of assembled   
      chemical weapons.                                                       
                    TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION         

                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 201. Authorization of appropriations.                              

      Sec. 202. Amount for basic and applied research.                        

               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

            Sec. 211. Management responsibility for Navy mine countermeasures 
      programs.                                                               
      Sec. 212. Future aircraft carrier transition technologies.              

      Sec. 213. Manufacturing technology program.                             

            Sec. 214. Sense of Congress on the Defense Science and Technology 
      Program.                                                                
      Sec. 215. Next Generation Internet Program.                             

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

      Sec. 217. Airborne Laser Program.                                       

      Sec. 218. Enhanced Global Positioning System program.                   

                            SUBTITLE C--BALLISTIC MISSILE DEFENSE                 

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

            Sec. 232. Limitation on funding for the Medium Extended Air       
      Defense System.                                                         
            Sec. 233. Limitation on funding for Cooperative Ballistic Missile 
      Defense programs.                                                       
            Sec. 234. Sense of Congress with respect to Ballistic Missile     
      Defense cooperation with Russia.                                        
      Sec. 235. Ballistic Missile Defense program elements.                   

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

            Sec. 241. Extension of authority to carry out certain prototype   
      projects.                                                               
      Sec. 242. NATO alliance ground surveillance concept definition.         

      Sec. 243. NATO common-funded Civil Budget.                              

            Sec. 244. Executive agent for cooperative research program of the 
      Department of Defense and the Department of Veterans Affairs.           
            Sec. 245. Review of pharmacological interventions for reversing   
      brain injury.                                                           
            Sec. 246. Pilot program for revitalizing the laboratories and test
      and evaluation centers of the Department of Defense.                    
      Sec. 247. Chemical warfare defense.                                     

      Sec. 248. Landmine alternatives.                                        

                            TITLE III--OPERATION AND MAINTENANCE                  

                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 301. Operation and maintenance funding.                            

      Sec. 302. Working capital funds.                                        

      Sec. 303. Armed Forces Retirement Home.                                 

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

               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

      Sec. 311. Refurbishment of M1 A1 tanks.                                 

            Sec. 312. Operation of prepositioned fleet, National Training     
      Center, Fort Irwin, California.                                         
      Sec. 313. Berthing space at Norfolk Naval Shipyard, Virginia.           

      Sec. 314. NATO common-funded military budget.                           

                            SUBTITLE C--ENVIRONMENTAL PROVISIONS                  

            Sec. 321. Settlement of claims of foreign governments for         
      environmental cleanup of overseas sites formerly used by the Department 
      of Defense.                                                             
            Sec. 322. Authority to pay negotiated settlement for environmental
      cleanup of formerly used defense sites in Canada.                       
      Sec. 323. Removal of underground storage tanks.                         

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

            Sec. 325. Modification of deadline for submittal to Congress of   
      annual reports on environmental activities.                             
      Sec. 326. Submarine solid waste control.                                

      Sec. 327. Arctic Military Environmental Cooperation Program.            

            Sec. 328. Sense of Congress regarding oil spill prevention        
      training for personnel on board Navy vessels.                           
                          SUBTITLE D--INFORMATION TECHNOLOGY ISSUES               

            Sec. 331. Additional information technology responsibilities of   
      Chief Information Officers.                                             
      Sec. 332. Defense-wide electronic mall system for supply purchases.     

            Sec. 333. Priority funding to ensure year 2000 compliance of      
      information technology and national security systems.                   
            Sec. 334. Evaluation of year 2000 compliance as part of training  
      exercises programs.                                                     
            Sec. 335. Continuity of essential operations at risk of failure   
      because of information technology and national security systems that are
      not year 2000 compliant.                                                
                   SUBTITLE E--DEFENSE INFRASTRUCTURE SUPPORT IMPROVEMENT         

            Sec. 341. Clarification of definition of depot-level maintenance  
      and repair.                                                             
            Sec. 342. Reporting and analysis requirements before change of    
      commercial and industrial type functions to private sector performance. 
            Sec. 343. Notifications of determinations of military items as    
      being commercial items for purposes of the exception to requirements    
      regarding core logistics capabilities.                                  
            Sec. 344. Oversight of development and implementation of automated
      identification technology.                                              
      Sec. 345. Contractor-operated civil engineering supply stores program.  

            Sec. 346. Conditions on expansion of functions performed under    
      prime vendor contracts for depot-level maintenance and repair.          
            Sec. 347. Best commercial inventory practices for management of   
      secondary supply items.                                                 
      Sec. 348. Personnel reductions in Army Materiel Command.                

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

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

            Sec. 351. Development of plan for establishment of core logistics 
      capabilities for maintenance and repair of C 17 aircraft.               
             SUBTITLE F--COMMISSARIES AND NONAPPROPRIATED FUND INSTRUMENTALITIES  

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

            Sec. 369. Survey of commissary store patrons regarding            
      satisfaction with commissary store merchandise.                         
                                  SUBTITLE G--OTHER MATTERS                       

            Sec. 371. Eligibility requirements for attendance at Department of
      Defense domestic dependent elementary and secondary schools.            
            Sec. 372. Assistance to local educational agencies that benefit   
      dependents of members of the Armed Forces and Department of Defense     
      civilian employees.                                                     
      Sec. 373. Department of Defense readiness reporting system.             

            Sec. 374. Specific emphasis of program to investigate fraud,      
      waste, and abuse within Department of Defense.                          
            Sec. 375. Condition for providing financial assistance for support
      of additional duties assigned to the Army National Guard.               
            Sec. 376. Demonstration program to improve quality of personal    
      property shipments of members.                                          
            Sec. 377. Pilot program for acceptance and use of landing fees    
      charged for use of domestic military airfields by civil aircraft.       
      Sec. 378. Strategic plan for expansion of distance learning initiatives.

            Sec. 379. Public availability of operating agreements between     
      military installations and financial institutions.                      
                         TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS              

                                  SUBTITLE A--ACTIVE FORCES                       

      Sec. 401. End strengths for active forces.                              

      Sec. 402. Revision in permanent end strength levels.                    

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

            Sec. 404. Additional exemption from percentage limitation on      
      number of lieutenant generals and vice admirals.                        
            Sec. 405. Extension of authority for Chairman of the Joint Chiefs 
      of Staff to designate up to 12 general and flag officer positions to be 
      excluded from general and flag officer grade limitations.               
            Sec. 406. Exception for Chief, National Guard Bureau, from        
      limitation on number of officers above major general.                   
            Sec. 407. Limitation on daily average of personnel on active duty 
      in grades E 8 and E 9.                                                  
                                 SUBTITLE B--RESERVE FORCES                       

      Sec. 411. End strengths for Selected Reserve.                           

            Sec. 412. End strengths for Reserves on active duty in support of 
      the reserves.                                                           
      Sec. 413. End strengths for military technicians (dual status).         

            Sec. 414. Increase in number of members in certain grades         
      authorized to serve on active duty in support of the reserves.          
            Sec. 415. Consolidation of strength authorizations for active     
      status Naval Reserve flag officers of the Navy Medical Department Staff 
      Corps.                                                                  
                         SUBTITLE C--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 421. Authorization of appropriations for military personnel.       

                             TITLE V--MILITARY PERSONNEL POLICY                   

                            SUBTITLE A--OFFICER PERSONNEL POLICY                  

            Sec. 501. Codification of eligibility of retired officers and     
      former officers for consideration by special selection boards.          
            Sec. 502. Involuntary separation pay denied for officer discharged
      for failure of selection for promotion requested by the officer.        

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

            Sec. 504. Permanent applicability of limitations on years of      
      active naval service of Navy limited duty officers in grades of         
      commander and captain.                                                  
      Sec. 505. Tenure of Chief of the Air Force Nurse Corps.                 

            Sec. 506. Grade of Air Force Assistant Surgeon General for Dental 
      Services.                                                               
            Sec. 507. Review regarding allocation of Naval Reserve Officers'  
      Training Corps scholarships among participating colleges and            
      universities.                                                           
                            SUBTITLE B--RESERVE COMPONENT MATTERS                 

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

            Sec. 521. Separate housing for male and female recruits during    
      recruit basic training.                                                 
      Sec. 522. After-hours privacy for recruits during basic training.       

            Sec. 523. Sense of the House of Representatives relating to small 
      unit assignments by gender during recruit basic training.               
            Sec. 524. Extension of reporting dates for Commission on Military 
      Training and Gender-Related Issues.                                     
      Sec. 525. Improved oversight of innovative readiness training.          

                     SUBTITLE D--DECORATIONS, AWARDS, AND COMMENDATIONS           

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

            Sec. 532. Waiver of time limitations for award of certain         
      decorations to certain persons.                                         
            Sec. 533. Commendation and commemoration of the Navy and Marine   
      Corps personnel who served in the United States Navy Asiatic Fleet from 
      1910 1942.                                                              
            Sec. 534. Appreciation for service during World War I and World   
      War II by members of the Navy assigned on board merchant ships as the   
      Naval Armed Guard Service.                                              
            Sec. 535. Sense of Congress regarding the heroism, sacrifice, and 
      service of the military forces of South Vietnam, other nations, and     
      indigenous groups in connection with the United States Armed Forces     
      during the Vietnam conflict.                                            
            Sec. 536. Sense of Congress regarding the heroism, sacrifice, and 
      service of former South Vietnamese commandos in connection with United  
      States Armed Forces during the Vietnam conflict.                        
            Sec. 537. Prohibition on members of Armed Forces entering         
      correctional facilities to present decorations to persons who have      
      committed serious violent felonies.                                     
             SUBTITLE E--ADMINISTRATION OF AGENCIES RESPONSIBLE FOR REVIEW AND    
                         CORRECTION OF MILITARY RECORDS                           
      Sec. 541. Personnel freeze.                                             

      Sec. 542. Professional staff.                                           

      Sec. 543. Ex parte communications.                                      

      Sec. 544. Timeliness standards.                                         

      Sec. 545. Scope of correction of military records.                      

                                     SUBTITLE F--REPORTS                          

      Sec. 551. Report on personnel retention.                                

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

            Sec. 561. Two-year extension of certain force drawdown transition 
      authorities relating to personnel management and benefits.              
      Sec. 562. Leave without pay for suspended academy cadets and midshipmen.

            Sec. 563. Continued eligibility under Voluntary Separation        
      Incentive program for members who involuntarily lose membership in a    
      reserve component.                                                      
            Sec. 564. Reinstatement of definition of financial institution in 
      authorities for reimbursement of defense personnel for Government errors
      in direct deposit of pay.                                               
      Sec. 565. Increase in maximum amount for College Fund program.          

      Sec. 566. Central Identification Laboratory, Hawaii.                    

      Sec. 567. Military funeral honors for veterans.                         

            Sec. 568. Status in the Naval Reserve of cadets at the Merchant   
      Marine Academy.                                                         
            Sec. 569. Repeal of restriction on civilian employment of enlisted
      members.                                                                
            Sec. 570. Transitional compensation for abused dependent children 
      not residing with the spouse or former spouse of a member convicted of  
      dependent abuse.                                                        
            Sec. 571. Pilot program for treating GED and home school diploma  
      recipients as high school graduates for determinations of eligibility   
      for enlistment in the Armed Forces.                                     
            Sec. 572. Sense of Congress concerning New Parent Support Program 
      and military families.                                                  
            Sec. 573. Advancement of Benjamin O. Davis, Junior, to grade of   
      general on the retired list of the Air Force.                           
            Sec. 574. Sense of the House of Representatives concerning        
      adherence by civilians in military chain of command to the standard of  
      exemplary conduct required of commanding officers and others in         
      authority in the Armed Forces.                                          

                     TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS          

                               SUBTITLE A--PAY AND ALLOWANCES                     

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

            Sec. 602. Rate of pay for cadets and midshipmen at the service    
      academies.                                                              
      Sec. 603. Basic allowance for housing outside the United States.        

      Sec. 604. Basic allowance for subsistence for reserves.                 

                     SUBTITLE B--BONUSES AND SPECIAL AND INCENTIVE PAYS           

            Sec. 611. Three-month extension of certain bonuses and special pay
      authorities for reserve forces.                                         
            Sec. 612. Three-month extension of certain bonuses and special pay
      authorities for nurse officer candidates, registered nurses, and nurse  
      anesthetists.                                                           
            Sec. 613. Three-month extension of authorities relating to payment
      of other bonuses and special pays.                                      
            Sec. 614. Increased hazardous duty pay for aerial flight          
      crewmembers in certain pay grades.                                      
            Sec. 615. Aviation career incentive pay and aviation officer      
      retention bonus.                                                        
            Sec. 616. Diving duty special pay for divers having diving duty as
      a nonprimary duty.                                                      
      Sec. 617. Hardship duty pay.                                            

            Sec. 618. Selective reenlistment bonus eligibility for Reserve    
      members performing active Guard and Reserve duty.                       
            Sec. 619. Repeal of ten percent limitation on certain selective   
      reenlistment bonuses.                                                   
            Sec. 620. Increase in maximum amount authorized for Army          
      enlistment bonus.                                                       
            Sec. 621. Equitable treatment of Reserves eligible for special pay
      for duty subject to hostile fire or imminent danger.                    
            Sec. 622. Retention incentives initiative for critically short    
      military occupational specialties.                                      
                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            

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

            Sec. 632. Exception to maximum weight allowance for baggage and   
      household effects.                                                      
            Sec. 633. Travel and transportation allowances for travel         
      performed by members in connection with rest and recuperative leave from
      overseas stations.                                                      
      Sec. 634. Storage of baggage of certain dependents.                     

            Sec. 635. Commercial travel of Reserves at Federal supply schedule
      rates for attendance at inactive-duty training assemblies.              
               SUBTITLE D--RETIRED PAY, SURVIVOR BENEFITS, AND RELATED MATTERS    

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

      Sec. 642. Survivor Benefit Plan open enrollment period.                 

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

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

                                  SUBTITLE E--OTHER MATTERS                       

            Sec. 651. Definition of possessions of the United States for pay  
      and allowances purposes.                                                
      Sec. 652. Accounting of advance payments.                               

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

                              SUBTITLE A--HEALTH CARE SERVICES                    

      Sec. 701. Dependents' dental program.                                   

            Sec. 702. Expansion of dependent eligibility under retiree dental 
      program.                                                                
      Sec. 703. Plan for redesign of military pharmacy system.                

            Sec. 704. Transitional authority to provide continued health care 
      coverage for certain persons unaware of loss of CHAMPUS eligibility.    
                                 SUBTITLE B--TRICARE PROGRAM                      

            Sec. 711. Payment of claims for provision of health care under the
      TRICARE program for which a third party may be liable.                  
            Sec. 712. TRICARE prime automatic enrollments and retiree payment 
      options.                                                                
            Sec. 713. System for tracking data and measuring performance in   
      meeting TRICARE access standards.                                       
      Sec. 714. Establishment of appeals process for claimcheck denials.      

            Sec. 715. Reviews relating to accessibility of health care under  
      TRICARE.                                                                
            SUBTITLE C--HEALTH CARE SERVICES FOR MEDICARE-ELIGIBLE DEPARTMENT OF  
                              DEFENSE BENEFICIARIES                               
            Sec. 721. Demonstration project to include certain covered        
      beneficiaries within Federal Employees Health Benefits Program.         
      Sec. 722. TRICARE as Supplement to Medicare demonstration.              

      Sec. 723. Implementation of redesign of pharmacy system.                

            Sec. 724. Comprehensive evaluation of implementation of           
      demonstration projects and TRICARE pharmacy redesign.                   
              SUBTITLE D--OTHER CHANGES TO EXISTING LAWS REGARDING HEALTH CARE    
                                   MANAGEMENT                                     
            Sec. 731. Process for waiving informed consent requirement for    
      administration of certain drugs to members of Armed Forces for purposes 
      of a particular military operation.                                     

            Sec. 732. Health benefits for abused dependents of members of the 
      Armed Forces.                                                           
            Sec. 733. Provision of health care at military entrance processing
      stations and elsewhere outside medical treatment facilities.            
            Sec. 734. Professional qualifications of physicians providing     
      military health care.                                                   
                                  SUBTITLE E--OTHER MATTERS                       

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

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

            Sec. 743. Authority to establish center for study of              
      post-deployment health concerns of members of the Armed Forces.         
            Sec. 744. Report on implementation of enrollment-based capitation 
      for funding for military medical treatment facilities.                  
            Sec. 745. Joint Department of Defense and Department of Veterans  
      Affairs reports relating to interdepartmental cooperation in the        
      delivery of medical care.                                               
            Sec. 746. Report on research and surveillance activities regarding
      Lyme disease and other tick-borne diseases.                             
            TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED   
                                     MATTERS                                      
           SUBTITLE A--AMENDMENTS TO GENERAL CONTRACTING AUTHORITIES, PROCEDURES, 
                                 AND LIMITATIONS                                  
            Sec. 801. Limitation on use of price preference upon achievement  
      of contract goal for small and disadvantaged businesses.                
            Sec. 802. Distribution of assistance under the Procurement        
      Technical Assistance Cooperative Agreement Program.                     
      Sec. 803. Defense commercial pricing management improvement.            

            Sec. 804. Modification of senior executives covered by limitation 
      on allowability of compensation for certain contractor personnel.       
            Sec. 805. Separate determinations of exceptional waivers of truth 
      in negotiation requirements for prime contracts and subcontracts.       
      Sec. 806. Procurement of conventional ammunition.                       

      Sec. 807. Para-aramid fibers and yarns.                                 

            Sec. 808. Clarification of responsibility for submission of       
      information on prices previously charged for property or services       
      offered.                                                                
            Sec. 809. Amendments and study relating to procurement from firms 
      in industrial base for production of small arms.                        
                                  SUBTITLE B--OTHER MATTERS                       

            Sec. 811. Eligibility of involuntarily downgraded employee for    
      membership in an acquisition corps.                                     
            Sec. 812. Time for submission of annual report relating to Buy    
      American Act.                                                           
            Sec. 813. Procurement of travel services for official and         
      unofficial travel under one contract.                                   
      Sec. 814. Department of Defense purchases through other agencies.       

            Sec. 815. Supervision of defense acquisition university structure 
      by Under Secretary of Defense for Acquisition and Technology.           
            Sec. 816. Pilot programs for testing program manager performance  
      of product support oversight responsibilities for life cycle of         
      acquisition programs.                                                   
      Sec. 817. Scope of protection of certain information from disclosure.   

            Sec. 818. Plan for rapid transition from completion of small      
      business innovation research into defense acquisition programs.         
            Sec. 819. Five-year authority for Secretary of the Navy to        
      exchange certain items.                                                 
            Sec. 820. Permanent authority for use of major range and test     
      facility installations by commercial entities.                          
            Sec. 821. Inventory exchange authorized for certain fuel delivery 
      contract.                                                               
                 TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT      

                 SUBTITLE A--DEPARTMENT OF DEFENSE OFFICERS AND ORGANIZATION      

            Sec. 901. Reduction in number of Assistant Secretary of Defense   
      positions.                                                              
            Sec. 902. Repeal of statutory requirement for position of         
      Assistant Secretary of Defense for Command, Control, Communications, and
      Intelligence.                                                           
            Sec. 903. Independent task force on transformation and Department 
      of Defense organization.                                                
      Sec. 904. Authority to expand the National Defense University.          

      Sec. 905. Center for Hemispheric Defense Studies.                       

      Sec. 906. Restructuring of administration of Fisher Houses.             

            Sec. 907. Management reform for research, development, test, and  
      evaluation activities.                                                  
                   SUBTITLE B--DEPARTMENT OF DEFENSE FINANCIAL MANAGEMENT         

      Sec. 911. Improved accounting for defense contract services.            

            Sec. 912. Report on Department of Defense financial management    
      improvement plan.                                                       
            Sec. 913. Study of feasibility of performance of Department of    
      Defense finance and accounting functions by private sector sources or   
      other Federal sources.                                                  
            Sec. 914. Limitation on reorganization and consolidation of       
      operating locations of the Defense Finance and Accounting Service.      
            Sec. 915. Annual report on resources allocated to support and     
      mission activities.                                                     
                        SUBTITLE C--JOINT WARFIGHTING EXPERIMENTATION             

      Sec. 921. Findings concerning joint warfighting experimentation.        

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

                                  SUBTITLE D--OTHER MATTERS                       

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

                                SUBTITLE A--FINANCIAL MATTERS                     

      Sec. 1001. Transfer authority.                                          

      Sec. 1002. Incorporation of classified annex.                           


            Sec. 1003. Authorization of prior emergency supplemental          
      appropriations for fiscal year 1998.                                    
            Sec. 1004. Authorization of appropriations for Bosnia peacekeeping
      operations for fiscal year 1999.                                        
      Sec. 1005. Partnership for Peace Information Management System.         

            Sec. 1006. United States contribution to NATO common-funded       
      budgets in fiscal year 1999.                                            
      Sec. 1007. Liquidity of working-capital funds.                          

            Sec. 1008. Termination of authority to manage working-capital     
      funds and certain activities through the Defense Business Operations    
      Fund.                                                                   
            Sec. 1009. Clarification of authority to retain recovered costs of
      disposals in working-capital funds.                                     
            Sec. 1010. Crediting of amounts recovered from third parties for  
      loss or damage to personal property shipped or stored at Government     
      expense.                                                                
                           SUBTITLE B--NAVAL VESSELS AND SHIPYARDS                

            Sec. 1011. Revision to requirement for continued listing of two   
      Iowa-class battleships on the Naval Vessel Register.                    
      Sec. 1012. Transfer of U.S.S. NEW JERSEY.                               

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

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

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

            Sec. 1016. Long-term charter of three vessels in support of       
      submarine rescue, escort, and towing.                                   
      Sec. 1017. Transfer of obsolete Army tugboat.                           

           SUBTITLE C--COUNTER DRUG ACTIVITIES AND OTHER ASSISTANCE FOR CIVILIAN  
                                 LAW ENFORCEMENT                                  
            Sec. 1021. Department of Defense support to other agencies for    
      counter-drug activities.                                                
            Sec. 1022. Department of Defense support of National Guard drug   
      interdiction and counter-drug activities.                               
            Sec. 1023. Department of Defense counter-drug activities in       
      transit zone.                                                           
                  SUBTITLE D--MISCELLANEOUS REPORT REQUIREMENTS AND REPEALS       

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

            Sec. 1032. Report regarding use of tagging system to identify     
      hydrocarbon fuels used by Department of Defense.                        
                          SUBTITLE E--ARMED FORCES RETIREMENT HOME                

            Sec. 1041. Appointment of Director and Deputy Director of the     
      Naval Home.                                                             
            Sec. 1042. Revision of inspection requirements relating to Armed  
      Forces Retirement Home.                                                 
            Sec. 1043. Clarification of land conveyance authority, Armed      
      Forces Retirement Home.                                                 
                      SUBTITLE F--MATTERS RELATING TO DEFENSE PROPERTY            

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

                       SUBTITLE G--OTHER DEPARTMENT OF DEFENSE MATTERS            

            Sec. 1061. Pilot program on alternative notice of receipt of legal
      process for garnishment of Federal pay for child support and alimony.   
            Sec. 1062. Training of special operations forces with friendly    
      foreign forces.                                                         
      Sec. 1063. Research grants competitively awarded to service academies.  

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

      Sec. 1065. Department of Defense aviation accident investigations.      

            Sec. 1066. Investigation of actions relating to 174th Fighter Wing
      of New York Air National Guard.                                         
      Sec. 1067. Program to commemorate 50th anniversary of the Korean War.   

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

      Sec. 1069. Technical and clerical amendments.                           

                                  SUBTITLE H--OTHER MATTERS                       

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

            Sec. 1101. Defense Advanced Research Projects Agency experimental 
      personnel management program for technical personnel.                   
            Sec. 1102. Maximum pay rate comparability for faculty members of  
      the United States Air Force Institute of Technology.                    
            Sec. 1103. Authority for release to Coast Guard of drug test      
      results of civil service mariners of the Military Sealift Command.      
      Sec. 1104. Limitations on back pay awards.                              

            Sec. 1105. Restoration of annual leave accumulated by civilian    
      employees at installations in the Republic of Panama to be closed       
      pursuant to the Panama Canal Treaty of 1977.                            
            Sec. 1106. Repeal of program providing preference for employment  
      of military spouses in military child care facilities.                  
            Sec. 1107. Observance of certain holidays at duty posts outside   
      the United States.                                                      
            Sec. 1108. Continuation of random drug testing program for certain
      Department of Defense employees.                                        
            Sec. 1109. Department of Defense employee voluntary early         
      retirement authority.                                                   
                        TITLE XII--MATTERS RELATING TO OTHER NATIONS              

              SUBTITLE A--UNITED STATES ARMED FORCES IN BOSNIA AND HERZEGOVINA    

      Sec. 1201. Findings.                                                    

      Sec. 1202. Sense of Congress.                                           

      Sec. 1203. Presidential reports.                                        

            Sec. 1204. Secretary of Defense reports on operations in Bosnia   
      and Herzegovina.                                                        
      Sec. 1205. Definitions.                                                 


                   SUBTITLE B--MATTERS RELATING TO CONTINGENCY OPERATIONS         

            Sec. 1211. Report on involvement of Armed Forces in contingency   
      and ongoing operations.                                                 
            Sec. 1212. Submission of report on objectives of a contingency    
      operation with requests for funding for the operation.                  
                       SUBTITLE C--MATTERS RELATING TO NATO AND EUROPE            

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

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

            Sec. 1223. Reports on the development of the European security and
      defense identity.                                                       
                                  SUBTITLE D--OTHER MATTERS                       

            Sec. 1231. Limitation on assignment of United States forces for   
      certain United Nations purposes.                                        
            Sec. 1232. Prohibition on restriction of Armed Forces under Kyoto 
      Protocol to the United Nations Framework Convention on Climate Change.  
      Sec. 1233. Defense burdensharing.                                       

            Sec. 1234. Transfer of excess UH 1 Huey and AH 1 Cobra helicopters
      to foreign countries.                                                   
      Sec. 1235. Transfers of naval vessels to certain foreign countries.     

      Sec. 1236. Repeal of landmine moratorium.                               

            Sec. 1237. Application of authorities under the International     
      Emergency Economic Powers Act to Communist Chinese military companies.  
             TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER   
                                  SOVIET UNION                                    
            Sec. 1301. Specification of Cooperative Threat Reduction Programs 
      and funds.                                                              
      Sec. 1302. Funding allocations.                                         

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

            Sec. 1304. Limitation on use of funds for chemical weapons        
      destruction activities in Russia.                                       
            Sec. 1305. Limitation on use of funds for biological weapons      
      proliferation prevention activities in Russia.                          
      Sec. 1306. Cooperative counter proliferation program.                   

            Sec. 1307. Requirement to submit summary of amounts requested by  
      project category.                                                       
      Sec. 1308. Report on biological weapons programs in Russia.             

            Sec. 1309. Report on individuals with expertise in former Soviet  
      weapons of mass destruction programs.                                   
            TITLE XIV--DOMESTIC PREPAREDNESS FOR DEFENSE AGAINST WEAPONS OF MASS  
                                   DESTRUCTION                                    
      Sec. 1401. Short title.                                                 

            Sec. 1402. Domestic preparedness for response to threats of       
      terrorist use of weapons of mass destruction.                           
      Sec. 1403. Report on domestic emergency preparedness.                   

      Sec. 1404. Threat and risk assessments.                                 

            Sec. 1405. Advisory panel to assess domestic response capabilities
      for terrorism involving weapons of mass destruction.                    
              TITLE XV--MATTERS RELATING TO ARMS CONTROL, EXPORT CONTROLS, AND    
                              COUNTERPROLIFERATION                                
                              SUBTITLE A--ARMS CONTROL MATTERS                    

            Sec. 1501. One-year extension of limitation on retirement or      
      dismantlement of strategic nuclear delivery systems.                    
            Sec. 1502. Transmission of executive branch reports providing     
      Congress with classified summaries of arms control developments.        
            Sec. 1503. Report on adequacy of emergency communications         
      capabilities between United States and Russia.                          
      Sec. 1504. Russian nonstrategic nuclear weapons.                        

                            SUBTITLE B--SATELLITE EXPORT CONTROLS                 

      Sec. 1511. Sense of Congress.                                           

            Sec. 1512. Certification of exports of missile equipment or       
      technology to China.                                                    
      Sec. 1513. Satellite controls under the United States Munitions List.   

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

            Sec. 1515. Report on export of satellites for launch by People's  
      Republic of China.                                                      
      Sec. 1516. Related items defined.                                       

                          SUBTITLE C--OTHER EXPORT CONTROL MATTERS                

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

            Sec. 1524. Execution of objection authority within the Department 
      of Defense.                                                             
                          SUBTITLE D--COUNTERPROLIFERATION MATTERS                

            Sec. 1531. One-year extension of counterproliferation authorities 
      for support of United Nations Special Commission on Iraq.               
      Sec. 1532. Sense of Congress on nuclear tests in South Asia.            

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

                      DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS            


      Sec. 2001. Short title.                                                 

                                       TITLE XXI--ARMY                            

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

      Sec. 2102. Family housing.                                              

      Sec. 2103. Improvements to military family housing units.               

      Sec. 2104. Authorization of appropriations, Army.                       

            Sec. 2105. Modification of authority to carry out fiscal year 1998
      projects.                                                               
                                      TITLE XXII--NAVY                            

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

      Sec. 2202. Family housing.                                              

      Sec. 2203. Improvements to military family housing units.               

      Sec. 2204. Authorization of appropriations, Navy.                       


            Sec. 2205. Authorization to accept road construction project,     
      Marine Corps Base, Camp Lejeune, North Carolina.                        
                                   TITLE XXIII--AIR FORCE                         

            Sec. 2301. Authorized Air Force construction and land acquisition 
      projects.                                                               
      Sec. 2302. Family housing.                                              

      Sec. 2303. Improvements to military family housing units.               

      Sec. 2304. Authorization of appropriations, Air Force.                  

                                TITLE XXIV--DEFENSE AGENCIES                      

            Sec. 2401. Authorized Defense Agencies construction and land      
      acquisition projects.                                                   
      Sec. 2402. Improvements to military family housing units.               

      Sec. 2403. Energy conservation projects.                                

      Sec. 2404. Authorization of appropriations, Defense Agencies.           

            Sec. 2405. Repeal of fiscal year 1997 authorization of            
      appropriations for certain military housing improvement program.        
            Sec. 2406. Modification of authority to carry out certain fiscal  
      year 1995 projects.                                                     
            Sec. 2407. Modification of authority to carry out fiscal year 1990
      project.                                                                
             TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT    
                                     PROGRAM                                      
      Sec. 2501. Authorized NATO construction and land acquisition projects.  

      Sec. 2502. Authorization of appropriations, NATO.                       

                       TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES            

            Sec. 2601. Authorized Guard and Reserve construction and land     
      acquisition projects.                                                   
            Sec. 2602. Modification of authority to carry out fiscal year 1998
      project.                                                                
                   TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS        

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

      Sec. 2704. Effective date.                                              

                              TITLE XXVIII--GENERAL PROVISIONS                    

           SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING  
                                     CHANGES                                      
            Sec. 2801. Architectural and engineering services and construction
      design.                                                                 
      Sec. 2802. Expansion of Army overseas family housing lease authority.   

            Sec. 2803. Definition of ancillary supporting facilities under    
      alternative authority for acquisition and improvement of military       
      housing.                                                                
            Sec. 2804. Purchase of build-to-lease family housing at Eielson   
      Air Force Base, Alaska.                                                 
            Sec. 2805. Report relating to improvement of housing for          
      unaccompanied members.                                                  
                   SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION        

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

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

                                  PART I--ARMY CONVEYANCES                        

            Sec. 2831. Modification of land conveyance, Army Reserve Center,  
      Youngstown, Ohio.                                                       
            Sec. 2832. Release of interests in real property, former Kennebec 
      Arsenal, Augusta, Maine.                                                
            Sec. 2833. Release, waiver, or conveyance of interests in real    
      property, former Redstone Army Arsenal property, Alabama.               
            Sec. 2834. Conveyance of utility systems, Lone Star Army          
      Ammunition Plant, Texas.                                                
            Sec. 2835. Conveyance of water rights and related interests, Rocky
      Mountain Arsenal, Colorado, for purposes of acquisition of perpetual    
      contracts for water.                                                    
      Sec. 2836. Land conveyance, Army Reserve Center, Massena, New York.     

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

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

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

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

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

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

            Sec. 2843. Land conveyance, Indiana Army Ammunition Plant,        
      Charlestown, Indiana.                                                   
            Sec. 2844. Land conveyance, Volunteer Army Ammunition Plant,      
      Chattanooga, Tennessee.                                                 
            Sec. 2845. Land conveyance, Stewart Army Sub-Post, New Windsor,   
      New York.                                                               
                                 PART II--NAVY CONVEYANCES                        

            Sec. 2851. Conveyance of easement, Marine Corps Base, Camp        
      Pendleton, California.                                                  
            Sec. 2852. Land exchange, Naval Reserve Readiness Center,         
      Portland, Maine.                                                        
            Sec. 2853. Land conveyance, Naval and Marine Corps Reserve        
      facility, Youngstown, Ohio.                                             
            Sec. 2854. Land conveyance, Naval Air Reserve Center, Minneapolis,
      Minnesota.                                                              
                              PART III--AIR FORCE CONVEYANCES                     

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

            Sec. 2862. Modification of land conveyance, Finley Air Force      
      Station, North Dakota.                                                  
      Sec. 2863. Land conveyance, Lake Charles Air Force Station, Louisiana.  

            Sec. 2864. Land conveyance, Air Force Housing Facility, La Junta, 
      Colorado.                                                               
                                  SUBTITLE E--OTHER MATTERS                       

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

      Sec. 2901. Short title.                                                 

      Sec. 2902. Withdrawal and reservation.                                  

      Sec. 2903. Map and legal description.                                   

      Sec. 2904. Agency agreement.                                            

      Sec. 2905. Right-of-way grants.                                         

      Sec. 2906. Indian sacred sites.                                         

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

      Sec. 2908. Management of withdrawn and reserved lands.                  

      Sec. 2909. Integrated natural resource management plan.                 

      Sec. 2910. Memorandum of understanding.                                 

      Sec. 2911. Maintenance of roads.                                        

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

      Sec. 2913. Hunting, fishing, and trapping.                              

      Sec. 2914. Water rights.                                                

      Sec. 2915. Duration of withdrawal.                                      

            Sec. 2916. Environmental remediation of relinquished withdrawn    
      lands or upon termination of withdrawal.                                
      Sec. 2917. Delegation of authority.                                     

      Sec. 2918. Hold harmless.                                               

      Sec. 2919. Authorization of appropriations.                             


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

                 TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS      

                    SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS         

      Sec. 3101. Weapons activities.                                          

      Sec. 3102. Defense environmental restoration and waste management.      

      Sec. 3103. Other defense activities.                                    

      Sec. 3104. Defense nuclear waste disposal.                              

      Sec. 3105. Defense environmental management privatization.              

                          SUBTITLE B--RECURRING GENERAL PROVISIONS                

      Sec. 3121. Reprogramming.                                               

      Sec. 3122. Limits on general plant projects.                            

      Sec. 3123. Limits on construction projects.                             

      Sec. 3124. Fund transfer authority.                                     

      Sec. 3125. Authority for conceptual and construction design.            

            Sec. 3126. Authority for emergency planning, design, and          
      construction activities.                                                
            Sec. 3127. Funds available for all national security programs of  
      the Department of Energy.                                               
      Sec. 3128. Availability of funds.                                       

      Sec. 3129. Transfers of defense environmental management funds.         

              SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS   

            Sec. 3131. Permanent extension of funding prohibition relating to 
      international cooperative stockpile stewardship.                        
            Sec. 3132. Support of ballistic missile defense activities of the 
      Department of Defense.                                                  
      Sec. 3133. Nonproliferation activities.                                 

            Sec. 3134. Licensing of certain mixed oxide fuel fabrication and  
      irradiation facilities.                                                 
            Sec. 3135. Continuation of processing, treatment, and disposition 
      of legacy nuclear materials.                                            
            Sec. 3136. Authority for Department of Energy federally funded    
      research and development centers to participate in merit-based          
      technology research and development programs.                           
      Sec. 3137. Activities of Department of Energy facilities.               

      Sec. 3138. Hanford overhead and service center costs.                   

      Sec. 3139. Hanford waste tank cleanup program reforms.                  

      Sec. 3140. Hanford Health Information Network.                          

            Sec. 3141. Hazardous materials management and emergency response  
      training program.                                                       
            Sec. 3142. Support for public education in the vicinity of Los    
      Alamos National Laboratory, New Mexico.                                 
            Sec. 3143. Relocation of National Atomic Museum, Albuquerque, New 
      Mexico.                                                                 
      Sec. 3144. Tritium production.                                          

                                  SUBTITLE D--OTHER MATTERS                       

            Sec. 3151. Study and plan relating to worker and community        
      transition assistance.                                                  
            Sec. 3152. Extension of authority for appointment of certain      
      scientific, engineering, and technical personnel.                       
            Sec. 3153. Requirement for plan to modify employment system used  
      by Department of Energy in defense environmental management programs.   
      Sec. 3154. Department of Energy nuclear materials couriers.             

            Sec. 3155. Increase in maximum rate of pay for scientific,        
      engineering, and technical personnel responsible for safety at defense  
      nuclear facilities.                                                     
            Sec. 3156. Extension of authority of Department of Energy to pay  
      voluntary separation incentive payments.                                
            Sec. 3157. Repeal of fiscal year 1998 statement of policy on      
      stockpile stewardship program.                                          
      Sec. 3158. Report on stockpile stewardship criteria.                    


            Sec. 3159. Panel to assess the reliability, safety, and security  
      of the United States nuclear stockpile.                                 
      Sec. 3160. International cooperative information exchange.              

            Sec. 3161. Protection against inadvertent release of restricted   
      data and formerly restricted data.                                      
            Sec. 3162. Sense of Congress regarding treatment of Formerly      
      Utilized Sites Remedial Action Program under a nondefense discretionary 
      budget function.                                                        
      Sec. 3163. Reports relating to tritium production.                      

                    TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD          

      Sec. 3201. Authorization.                                               

                          TITLE XXXIII--NATIONAL DEFENSE STOCKPILE                

      Sec. 3301. Definitions.                                                 

      Sec. 3302. Authorized uses of stockpile funds.                          

            Sec. 3303. Authority to dispose of certain materials in National  
      Defense Stockpile.                                                      
            Sec. 3304. Use of stockpile funds for certain environmental       
      remediation, restoration, waste management, and compliance activities.  
                            TITLE XXXIV--NAVAL PETROLEUM RESERVES                 

      Sec. 3401. Definitions.                                                 

      Sec. 3402. Authorization of appropriations.                             

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

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

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

      Sec. 3406. Administration.                                              

                             TITLE XXXV--PANAMA CANAL COMMISSION                  

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

      Sec. 3502. Authorization of expenditures.                               

      Sec. 3503. Purchase of vehicles.                                        

      Sec. 3504. Expenditures only in accordance with treaties.               

      Sec. 3505. Donations to the Commission.                                 

            Sec. 3506. Agreements for United States to provide post-transfer  
      administrative services for certain employee benefits.                  
            Sec. 3507. Sunset of United States overseas benefits just before  
      transfer.                                                               
      Sec. 3508. Central examining office.                                    

      Sec. 3509. Liability for vessel accidents.                              

      Sec. 3510. Panama Canal Board of Contract Appeals.                      

            Sec. 3511. Restatement of requirement that Secretary of Defense   
      designee on Panama Canal Commission supervisory board be a current      
      officer of the Department of Defense.                                   
      Sec. 3512. Technical amendments.                                        

                            TITLE XXXVI--MARITIME ADMINISTRATION                  

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

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

            Sec. 3603. Authority to convey certain National Defense Reserve   
      Fleet vessels.                                                          
      Sec. 3604. Clearinghouse for maritime information.                      

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

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

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

                        TITLE XXXVIII--FAIR TRADE IN AUTOMOTIVE PARTS             

      Sec. 3801. Short title.                                                 

      Sec. 3802. Definitions.                                                 

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

                                TITLE XXXIX--RADIO FREE ASIA                      

      Sec. 3901. Short title.                                                 

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


          SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.                       

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

                      DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS            

                                    TITLE I--PROCUREMENT                          


                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 101. Army.                                                         

      Sec. 102. Navy and Marine Corps.                                        

      Sec. 103. Air Force.                                                    

      Sec. 104. Defense-wide activities.                                      

      Sec. 105. Reserve components.                                           

      Sec. 106. Defense Inspector General.                                    

      Sec. 107. Chemical demilitarization program.                            

      Sec. 108. Defense health programs.                                      

      Sec. 109. Defense Export Loan Guarantee program.                        

                                  SUBTITLE B--ARMY PROGRAMS                       

            Sec. 111. Multiyear procurement authority for Longbow Hellfire    
      Missile program.                                                        
            Sec. 112. Conditions for award of a second-source procurement     
      contract for the Family of Medium Tactical Vehicles.                    
      Sec. 113. Armored system modernization.                                 

      Sec. 114. Reactive armor tiles.                                         

            Sec. 115. Extension of authority to carry out Armament Retooling  
      and Manufacturing Support Initiative.                                   
                                  SUBTITLE C--NAVY PROGRAMS                       

      Sec. 121. CVN 77 nuclear aircraft carrier program.                      

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

                               SUBTITLE D--AIR FORCE PROGRAMS                     

      Sec. 131. F 22 aircraft program.                                        

      Sec. 132. C 130J aircraft program.                                      

                                  SUBTITLE E--OTHER MATTERS                       

      Sec. 141. Chemical stockpile emergency preparedness program.            

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

                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

          SEC. 101. ARMY.                                                         

     Funds are hereby authorized to be appropriated for fiscal year 1999  
  for procurement for the Army as follows:                                
     (1) For aircraft, $1,396,047,000.                                     

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

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

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

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

          SEC. 102. NAVY AND MARINE CORPS.                                        

     (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 
  year 1999 for procurement for the Navy as follows:                      
     (1) For aircraft, $7,642,200,000.                                     

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

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

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

     (b) Marine Corps.--Funds are hereby authorized to be appropriated for
  fiscal year 1999 for procurement for the Marine Corps in the amount of  
  $881,896,000.                                                           
     (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized to
  be appropriated for procurement of ammunition for the Navy and the      
  Marine Corps in the amount of $463,339,000.                             
          SEC. 103. AIR FORCE.                                                    

     Funds are hereby authorized to be appropriated for fiscal year 1999  
  for procurement for the Air Force as follows:                           
     (1) For aircraft, $8,350,617,000.                                     

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

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

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

          SEC. 104. DEFENSE-WIDE ACTIVITIES.                                      

     Funds are hereby authorized to be appropriated for fiscal year 1999  
  for Defense-wide procurement in the amount of $1,954,828,000.           
          SEC. 105. RESERVE COMPONENTS.                                           

     Funds are hereby authorized to be appropriated for fiscal year 1999  
  for procurement of aircraft, vehicles, communications equipment, and    
  other equipment for the reserve components of the Armed Forces as       
  follows:                                                                
     (1) For the Army National Guard, $10,000,000.                         

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

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


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

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

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

          SEC. 106. DEFENSE INSPECTOR GENERAL.                                    

     Funds are hereby authorized to be appropriated for fiscal year 1999  
  for procurement for the Inspector General of the Department of Defense  
  in the amount of $1,300,000.                                            
          SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.                            

     There is hereby authorized to be appropriated for fiscal year 1999   
  the amount of $803,000,000 for--                                        
       (1) the destruction of lethal chemical agents and munitions in      
   accordance with section 1412 of the Department of Defense Authorization 
   Act, 1986 (50 U.S.C. 1521); and                                         
       (2) the destruction of chemical warfare materiel of the United      
   States that is not covered by section 1412 of such Act.                 
          SEC. 108. DEFENSE HEALTH PROGRAMS.                                      

     Funds are hereby authorized to be appropriated for fiscal year 1999  
  for the Department of Defense for procurement for carrying out health   
  care programs, projects, and activities of the Department of Defense in 
  the total amount of $402,387,000.                                       
          SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.                        

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


                    SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR LONGBOW HELLFIRE
          MISSILE PROGRAM.                                                        
     Beginning with the fiscal year 1999 program year, the Secretary of   
  the Army may, in accordance with section 2306b of title 10, United      
  States Code, enter into a multiyear procurement contract for procurement
  of the AGM 114 Longbow Hellfire missile.                                

                    SEC. 112. CONDITIONS FOR AWARD OF A SECOND-SOURCE PROCUREMENT 
          CONTRACT FOR THE FAMILY OF MEDIUM TACTICAL VEHICLES.                    
     The Secretary of the Army may award a second-source procurement      
  contract for the production of the Family of Medium Tactical Vehicles   
  only after the Secretary certifies in writing to the congressional      
  defense committees--                                                    
       (1) that the total quantity of vehicles within the Family of Medium 
   Tactical Vehicles program that the Secretary will require to be         
   delivered (under all contracts) in any 12-month period will be          
   sufficient to enable the prime contractor to maintain a minimum economic
   production level;                                                       
       (2) that the total cost to the Army of the procurements under the   
   prime and second-source contracts over the period of those contracts    
   will be the same as or lower than the amount that would be the total    
   cost of the procurements if only one such contract were awarded; and    
       (3) that the vehicles to be produced under those contracts will be  
   produced with common components that will be interchangeable among      
   similarly configured models.                                            

          SEC. 113. ARMORED SYSTEM MODERNIZATION.                                 

     (a) Funding.--Of the funds appropriated pursuant to the authorization
  of appropriations in section 101(3) for M1 Abrams Tank Modifications--  
       (1) $14,300,000 shall be obligated for procurements associated with 
   the M1A1D Applique AE1 Integration Program, of which no more than       
   $11,400,000 may be obligated before the end of the 30-day period        
   beginning on the date on which the Secretary of the Army submits the    
   report required under subsection (b); and                               
       (2) $6,000,000 shall be obligated to develop a M1A2 risk reduction  
   program.                                                                
     (b) Report.--(1) Not later than January 31, 1999, the Secretary of   
  the Army shall submit to the congressional defense committees a report  
  on Army armored system modernization programs. The report shall         
  include--                                                               

       (A) an assessment of the current acquisition and fielding strategy  
   of the Army for the M1 Abrams Tank and M2A3 Bradley Fighting Vehicle;   
   and                                                                     
       (B) a description and assessment of alternatives to that strategy,  
   including an assessment of an alternative fielding strategy that        
   provides for placing all of the armored vehicles configured in the      
   latest variant into one heavy corps.                                    
     (2) The assessment of each alternative acquisition and fielding      
  strategy under paragraph (1)(B) shall include the following:            
       (A) The relative effects of that strategy on warfighting            
   capabilities in terms of operational effectiveness and training and     
   support efficiencies, taking into consideration the joint warfighting   
   context.                                                                
       (B) How that strategy would facilitate the transition to the Future 
   Scout and Cavalry System, the Future Combat System, or other armored    
   systems for the future force structure known as the Army After Next.    
       (C) How that strategy fits into the context of overall armored      
   system modernization through 2020.                                      
     (D) Budgetary implications.                                           

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

       (F) Innovative techniques and alternatives for maintaining M1A2     
   System Enhancement Program production.                                  
     (3) The Secretary shall include in the report a draft of any         
  legislation that may be required to execute a given alternative for M1A2
  System Enhancement Program production.                                  
     (c) GAO Evaluation.--The Comptroller General shall review the report 
  of the Secretary of the Army under subsection (b) and, not later than 30
  days after the date on which that report is submitted to the            
  congressional defense committees, shall submit to those committees a    
  report providing the Comptroller General's views on the conclusions of  
  the Secretary of the Army set forth in that report.                     

          SEC. 114. REACTIVE ARMOR TILES.                                         

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

       (A) A detailed assessment of the operational requirements of the    
   Army and the Marine Corps for reactive armor tiles for each of the      
   armored vehicles presently in use, including the requirements for each  
   vehicle in its existing configurations and in configurations proposed   
   for the vehicle.                                                        
       (B) For each armored vehicle, an analysis of the costs and benefits 
   of the procurement and installation of the tiles, including a comparison
   of those costs and benefits with the costs and benefits of any existing 
   upgrade program for the armored vehicle.                                
     (3) The entity carrying out the study shall request the views of the 
  Secretary of the Army and the Secretary of the Navy.                    
     (d) Submission to Congressional Committees.--Not later than April 1, 
  1999, the Secretary of Defense shall submit to the congressional defense
  committees--                                                            

       (1) the report on the study submitted to the Secretary by the entity
   carrying out the study;                                                 
       (2) the comments of the Secretary of the Army and the Secretary of  
   the Navy on the study; and                                              
       (3) for each vehicle for which there is a requirement for reactive  
   armor tiles, as indicated by the results of the study, the Secretary's  
   recommendations as to the number of vehicles to be equipped with such   
   tiles.                                                                  
                    SEC. 115. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT        
          RETOOLING AND MANUFACTURING SUPPORT INITIATIVE.                         
     Section 193(a) of the Armament Retooling and Manufacturing Support   
  Act of 1992 (subtitle H of title I of Public Law 102 484; 10 U.S.C. 2501
  note) is amended by striking out ``During fiscal years 1993 through     
  1998'' and inserting in lieu thereof ``During fiscal years 1993 through 
  1999''.                                                                 

                                  SUBTITLE C--NAVY PROGRAMS                       

          SEC. 121. CVN 77 NUCLEAR AIRCRAFT CARRIER PROGRAM.                      

     Of the amount authorized to be appropriated under section 102(a)(3)  
  for fiscal year 1999, $124,500,000 is available for the advance         
  procurement and advance construction of components (including nuclear   
  components) for the CVN 77 nuclear aircraft carrier program.            
                    SEC. 122. INCREASE IN AMOUNT AUTHORIZED TO BE EXCLUDED FROM   
          COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.                          
     Section 123(a) of the National Defense Authorization Act for Fiscal  
  Year 1998 (Public Law 105 85; 111 Stat. 1650) is amended by striking out
  ``$272,400,000'' and inserting in lieu thereof ``$557,600,000''.        
                    SEC. 123. MULTIYEAR PROCUREMENT AUTHORITY FOR THE DEPARTMENT  
          OF THE NAVY.                                                            
     (a) Authority for Specified Navy Aircraft Programs.--Beginning with  
  the fiscal year 1999 program year, the Secretary of the Navy may, in    
  accordance with section 2306b of title 10, United States Code, enter    
  into a multiyear procurement contract for procurement for the following 
  programs:                                                               
     (1) The AV 8B aircraft program.                                       

     (2) The T 45TS aircraft program.                                      

     (3) The E 2C aircraft program.                                        

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

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

     (a) Review and Report Required.--Not later than June 15 of each year,
  the Comptroller General shall review the F/A 18E/F aircraft program and 
  submit to Congress a report on the results of the review. The           
  Comptroller General shall submit to Congress with each such report a    
  certification as to whether the Comptroller General has had access to   
  sufficient information to make informed judgments on the matters covered
  by the report.                                                          
     (b) Content of Report.--The report submitted on the program each year
  shall include the following:                                            
       (1) The extent to which engineering and manufacturing development   
   and operational test and evaluation under the program are meeting the   
   goals established for engineering and manufacturing development and     
   operational test and evaluation under the program, including the        
   performance, cost, and schedule goals.                                  
       (2) The status of modifications expected to have a significant      
   effect on the cost or performance of the F/A 18E/F aircraft.            
     (c) Duration of Requirement.--No report is required under this       
  section after the full-rate production contract is awarded under the    
  program.                                                                
     (d) Requirement To Support Annual GAO Review.--The Secretary of      
  Defense and the prime contractors under the                             

                    F/A 18E/F program shall timely provide the Comptroller General
          with such information on the program, including information on program  
          performance, as the Comptroller General considers necessary to carry out
          this section.                                                           

                               SUBTITLE D--AIR FORCE PROGRAMS                     


          SEC. 131. F 22 AIRCRAFT PROGRAM.                                        

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

       (B) the date on which the Director of Operational Test and          
   Evaluation submits the certification required under subsection (c).     
     (b) Certification by Secretary of Defense.--(1) Upon the completion  
  of 433 hours of flight testing of F 22 flight test vehicles, the        
  Secretary of Defense shall submit to the congressional defense          
  committees a certification of the completion of that amount of flight   
  testing. A certification is not required under this paragraph if the    
  Secretary submits a report under paragraph (2).                         
     (2) If the Secretary determines that a number of hours of flight     
  testing of F 22 flight test vehicles less than 433 hours provides the   
  Defense Acquisition Board with a sufficient basis for deciding to       
  proceed into production of Lot II F 22 aircraft, the Secretary may      
  submit a report to the congressional defense committees upon the        
  completion of that lesser number of hours of flight testing. A report   
  under this paragraph shall contain the following:                       
       (A) A certification of the number of hours of flight testing        
   completed.                                                              
       (B) The reasons for the Secretary's determination that the lesser   
   number of hours is a sufficient basis for a decision by the board.      
       (C) A discussion of the extent to which the Secretary's             
   determination is consistent with each decision made by the Defense      
   Acquisition Board since January 1997 in the case of a major aircraft    
   acquisition program that the amount of flight testing completed for the 
   program was sufficient or not sufficient to justify a decision to       
   proceed into low-rate initial production.                               
       (D) A determination by the Secretary that it is more financially    
   advantageous for the Department to proceed into production of Lot II F  
   22 aircraft than to delay production until completion of 433 hours of   
   flight testing, together with the reasons for that determination.       
     (c) Certification by the Director of Operational Test and            
  Evaluation.--Upon the completion of 183 hours of the flight testing of F
  22 flight test vehicles provided for in the test and evaluation master  
  plan for the F 22 aircraft program, as in effect on October 1, 1997, the
  Director of Operational Test and Evaluation shall submit to the         
  congressional defense committees a certification of the completion of   
  that flight testing.                                                    
          SEC. 132. C 130J AIRCRAFT PROGRAM.                                      

     Not later than March 1, 1999, the Secretary of Defense shall review  
  the C 130J aircraft program and submit a report on the program to the   
  congressional defense committees. The report shall include at least the 
  following:                                                              
       (1) A discussion of the testing planned and the testing conducted   
   under the program, including--                                          
     (A) the testing schedule intended at the beginning of the program;    


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

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

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

       (A) whether the Department has exercised or plans to exercise       
   contract options for fiscal years 1996, 1997, 1998, and 1999;           
       (B) when the Department expects the aircraft to be delivered and how
   the delivery dates compare to the delivery dates specified in the       
   contract;                                                               
       (C) whether the Department expects to make any modification to the  
   negotiated contract price for these aircraft, and the amount and basis  
   for any such modification; and                                          
       (D) whether the Department expects the reported delays and overruns 
   in the development of the aircraft to have any other impact on the cost,
   schedule, or performance of the aircraft.                               

                                  SUBTITLE E--OTHER MATTERS                       


          SEC. 141. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM.            

     (a) Assistance to State and Local Governments.--Section 1412 of the  
  Department of Defense Authorization Act, 1986 (Public Law 99 145; 50    
  U.S.C. 1521), is amended by adding at the end of subsection (c) the     
  following:                                                              
     ``(4)(A) In coordination with the Secretary of the Army and in       
  accordance with agreements between the Secretary of the Army and the    
  Director of the Federal Emergency Management Agency, the Director shall 
  carry out a program to provide assistance to State and local governments
  in developing capabilities to respond to emergencies involving risks to 
  the public health or safety within their jurisdictions that are         
  identified by the Secretary as being risks resulting from--             
       ``(i) the storage of lethal chemical agents and munitions referred  
   to in subsection (a) at military installations in the continental United
   States; or                                                              
       ``(ii) the destruction of such agents and munitions at facilities   
   referred to in paragraph (1)(B).                                        
     ``(B) No assistance may be provided under this paragraph after the   
  completion of the destruction of the United States' stockpile of lethal 
  chemical agents and munitions.                                          
     ``(C) Not later than December 15 of each year, the Director shall    
  transmit a report to Congress on the activities carried out under this  
  paragraph during the fiscal year preceding the fiscal year in which the 
  report is submitted.''.                                                 
     (b) Program Funding.--Section 1412(f) of such Act (51 U.S.C. 1521(f))
  is amended--                                                            
       (1) by striking out `` Identification of Funds.--Funds'' and        
   inserting in lieu thereof `` Identification of Funds.--(1) Funds''; and 
     (2) by adding at the end the following new paragraph:                 

     ``(2) Amounts appropriated to the Secretary for the purpose of       
  carrying out subsection (c)(4) shall be promptly made available to the  
  Director of the Federal Emergency Management Agency.''.                 
     (c) Periodic Reports.--Section 1412(g) of such Act (50 U.S.C.        
  1521(g)) is amended--                                                   
     (1) in paragraph (2)(B)--                                             

     (A) by striking out ``and'' at the end of clause (v);                 

       (B) by striking out the period at the end of clause (vi) and        
   inserting in lieu thereof ``; and''; and                                
     (C) by adding at the end the following new clause:                    

       ``(vii) grants to State and local governments to assist those       
   governments in carrying out functions relating to emergency preparedness
   and response in accordance with subsection (c)(3).'';                   
       (2) by redesignating subparagraph (B) (as amended by paragraph (1)) 
   and subparagraph (C) of paragraph (2) as subparagraphs (C) and (D),     
   respectively; and                                                       
       (3) by inserting after paragraph (2)(A) the following new           
   subparagraph (B):                                                       
       ``(B) A site-by-site description of actions taken to assist State   
   and local governments (either directly or through                       

                    the Federal Emergency Management Agency) in carrying out      
          functions relating to emergency preparedness and response in accordance 
          with subsection (c)(3).''.                                              
                    SEC. 142. ALTERNATIVE TECHNOLOGIES FOR DESTRUCTION OF         
          ASSEMBLED CHEMICAL WEAPONS.                                             
     (a) Program Management.--The program manager for the Assembled       
  Chemical Weapons Assessment shall continue to manage the development and
  testing (including demonstration and pilot-scale testing) of            
  technologies for the destruction of lethal chemical munitions that are  
  potential or demonstrated alternatives to the baseline incineration     
  program. In performing such management, the program manager shall act   
  independently of the program manager for Chemical Demilitarization and  
  shall report to the Under Secretary of Defense for Acquisition and      
  Technology.                                                             
     (b) Post-Demonstration Activities.--(1) The program manager for the  
  Assembled Chemical Weapons Assessment may carry out those activities    
  necessary to ensure that an alternative technology for the destruction  
  of lethal chemical munitions can be implemented immediately after--     
     (A) the technology has been demonstrated to be successful; and        

       (B) the Under Secretary of Defense for Acquisition and Technology   
   has submitted a report on the demonstration to Congress that includes a 
   decision to proceed with the pilot-scale facility phase for an          
   alternative technology.                                                 
     (2) To prepare for the immediate implementation of any such          
  technology, the program manager may, during fiscal years 1998 and 1999, 
  take the following actions:                                             
     (A) Establish program requirements.                                   

     (B) Prepare procurement documentation.                                

     (C) Develop environmental documentation.                              

       (D) Identify and prepare to meet public outreach and public         
   participation requirements.                                             
       (E) Prepare to award a contract for the design, construction, and   
   operation of a pilot facility for the technology to the provider team   
   for the technology not later than December 30, 1999.                    
     (c) Independent Evaluation.--The Under Secretary of Defense for      
  Acquisition and Technology shall provide for an independent evaluation  
  of the cost and schedule of the Assembled Chemical Weapons Assessment,  
  which shall be performed and submitted to the Under Secretary not later 
  than September 30, 1999. The evaluation shall be performed by a         
  nongovernmental organization qualified to make such an evaluation.      
     (d) Pilot Facilities Contracts.--(1) The Under Secretary of Defense  
  for Acquisition and Technology shall determine whether to proceed with  
  pilot-scale testing of a technology referred to in paragraph (2) in time
  to award a contract for the design, construction, and operation of a    
  pilot facility for the technology to the provider team for the          
  technology not later than December 30, 1999. If the Under Secretary     
  determines to proceed with such testing, the Under Secretary shall      
  (exercising the acquisition authority of the Secretary of Defense) so   
  award a contract not later than such date.                              
     (2) Paragraph (1) applies to an alternative technology for the       
  destruction of lethal chemical munitions, other than incineration, that 
  the Under Secretary--                                                   
     (A) certifies in writing to Congress is--                             

       (i) as safe and cost effective for disposing of assembled chemical  
   munitions as is incineration of such munitions; and                     
       (ii) is capable of completing the destruction of such munitions on  
   or before the later of the date by which the destruction of the         
   munitions would be completed if incineration were used or the deadline  
   date for completing the destruction of the munitions under the Chemical 
   Weapons Convention; and                                                 
       (B) determines as satisfying the Federal and State environmental and
   safety laws that are applicable to the use of the technology and to the 
   design, construction, and operation of a pilot facility for use of the  
   technology.                                                             

     (3) The Under Secretary shall consult with the National Research     
  Council in making determinations and certifications for the purpose of  
  paragraph (2).                                                          
     (4) In this subsection, the term ``Chemical Weapons Convention''     
  means the Convention on the Prohibition of Development, Production,     
  Stockpiling and Use of Chemical Weapons and on their Destruction, opened
  for signature on January 13, 1993, together with related annexes and    
  associated documents.                                                   
     (e) Plan for Pilot Program.--If the Secretary of Defense proceeds    
  with a pilot program under section 152(f) of the National Defense       
  Authorization Act for Fiscal Year 1996 (Public Law 104 106; 110 Stat.   
  214; 50 U.S.C. 1521(f)), the Secretary shall prepare a plan for the     
  pilot program and shall submit to Congress a report on such plan        
  (including information on the cost of, and schedule for, implementing   
  the pilot program).                                                     
     (f) Funding.--(1) Of the amount authorized to be appropriated under  
  section 107, funds shall be available for the program manager for the   
  Assembled Chemical Weapons Assessment for the following:                
       (A) Demonstrations of alternative technologies under the Assembled  
   Chemical Weapons Assessment.                                            
       (B) Planning and preparation to proceed from demonstration of an    
   alternative technology immediately into the development of a pilot-scale
   facility for the technology, including planning and preparation for--   
       (i) continued development of the technology leading to deployment of
   the technology for use;                                                 
     (ii) satisfaction of requirements for environmental permits;          

     (iii) demonstration, testing, and evaluation;                         

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

       (v) provision of support at the field office or depot level for     
   deployment of the technology for use; and                               
       (vi) educational outreach to the public to engender support for the 
   deployment.                                                             
       (C) The independent evaluation of cost and schedule required under  
   subsection (c).                                                         
     (2) Funds authorized to be appropriated under section 107(1) are     
  authorized to be used for awarding contracts in accordance with         
  subsection (d) and for taking any other action authorized in this       
  section.                                                                
     (f) Assembled Chemical Weapons Assessment Defined.--In this section, 
  the term ``Assembled Chemical Weapons Assessment'' means the pilot      
  program carried out under section 8065 of the Department of Defense     
  Appropriations Act, 1997 (section 101(b) of Public Law 104 208; 110     
  Stat. 3009 101; 50 U.S.C. 1521 note).                                   

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


                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 201. Authorization of appropriations.                              

      Sec. 202. Amount for basic and applied research.                        

               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

            Sec. 211. Management responsibility for Navy mine countermeasures 
      programs.                                                               
      Sec. 212. Future aircraft carrier transition technologies.              

      Sec. 213. Manufacturing technology program.                             

            Sec. 214. Sense of Congress on the Defense Science and Technology 
      Program.                                                                
      Sec. 215. Next Generation Internet Program.                             

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

      Sec. 217. Airborne Laser Program.                                       

      Sec. 218. Enhanced Global Positioning System program.                   

                            SUBTITLE C--BALLISTIC MISSILE DEFENSE                 

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

            Sec. 232. Limitation on funding for the Medium Extended Air       
      Defense System.                                                         
            Sec. 233. Limitation on funding for Cooperative Ballistic Missile 
      Defense programs.                                                       
            Sec. 234. Sense of Congress with respect to Ballistic Missile     
      Defense cooperation with Russia.                                        
      Sec. 235. Ballistic Missile Defense program elements.                   

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

            Sec. 241. Extension of authority to carry out certain prototype   
      projects.                                                               
      Sec. 242. NATO alliance ground surveillance concept definition.         

      Sec. 243. NATO common-funded Civil Budget.                              

            Sec. 244. Executive agent for cooperative research program of the 
      Department of Defense and the Department of Veterans Affairs.           
            Sec. 245. Review of pharmacological interventions for reversing   
      brain injury.                                                           
            Sec. 246. Pilot program for revitalizing the laboratories and test
      and evaluation centers of the Department of Defense.                    
      Sec. 247. Chemical warfare defense.                                     

      Sec. 248. Landmine alternatives.                                        


                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

          SEC. 201. AUTHORIZATION OF APPROPRIATIONS.                              

     Funds are hereby authorized to be appropriated for fiscal year 1999  
  for the use of the Department of Defense for research, development,     
  test, and evaluation as follows:                                        
     (1) For the Army, $4,657,012,000.                                     

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

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

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

       (A) $249,106,000 is authorized for the activities of the Director,  
   Test and Evaluation; and                                                
       (B) $29,245,000 is authorized for the Director of Operational Test  
   and Evaluation.                                                         
          SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.                        

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


                    SEC. 211. MANAGEMENT RESPONSIBILITY FOR NAVY MINE             
          COUNTERMEASURES PROGRAMS.                                               
     Section 216(a) of the National Defense Authorization Act for Fiscal  
  Years 1992 and 1993 (Public Law 102 190; 105 Stat. 1317, as amended) is 
  amended by striking out ``through 1999'' and inserting in lieu thereof  
  ``through 2003''.                                                       

          SEC. 212. FUTURE AIRCRAFT CARRIER TRANSITION TECHNOLOGIES.              

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

          SEC. 213. MANUFACTURING TECHNOLOGY PROGRAM.                             

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

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

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

     ``(B) For any grant awarded or contract, cooperative agreement, or   
  other transaction entered into on a basis other than a cost-sharing     
  basis because of a determination made under subparagraph (A), the       
  transaction file for the project concerned must document the rationale  
  for the determination.                                                  
     ``(C) The Secretary of Defense may delegate the authority to make    
  determinations under subparagraph (A) only to the Under Secretary of    
  Defense for Acquisition and Technology or a service acquisition         
  executive, as appropriate.''.                                           
    (c)  Cost Share Goal.--Subsection (d) of such section is amended--    

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

     (2) in paragraph (3)--                                                

       (A) by striking out ``At least'' and inserting in lieu thereof ``As 
   a goal, at least'';                                                     
       (B) by striking out ``shall'' and inserting in lieu thereof         
   ``should''; and                                                         
       (C) by adding at the end the following: ``The Secretary of Defense, 
   in coordination with the Secretaries of the military departments and    
   upon recommendation of the Under Secretary of Defense for Acquisition   
   and Technology, shall establish annual objectives to meet such goal.''. 
     (d) Additional Information To Be Included in Five-Year               
  Plan.--Subsection (e)(2) of such section is amended to read as follows: 
    ``(2) The plan shall include the following:                           

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

       ``(B) An assessment of the extent to which the costs of projects are
   being shared by the following:                                          
     ``(i) Commercial enterprises in the private sector.                   

       ``(ii) Department of Defense program offices, including weapon      
   system program offices.                                                 
       ``(iii) Departments and agencies of the Federal Government outside  
   the Department of Defense.                                              
     ``(iv) Institutions of higher education.                              

     ``(v) Other institutions not operated for profit.                     

     ``(vi) Other sources.''.                                              


                    SEC. 214. SENSE OF CONGRESS ON THE DEFENSE SCIENCE AND        
          TECHNOLOGY PROGRAM.                                                     
     (a) Funding Requirements for the Defense Science and Technology      
  Program Budget.--It is the sense of Congress that, for each of the      
  fiscal years 2000 through 2008, it should be an objective of the        
  Secretary of Defense to increase the budget for the Defense Science and 
  Technology Program for the fiscal year over the budget for that program 
  for the preceding fiscal year by a percent that is at least two percent 
  above the rate of inflation as determined by the Office of Management   
  and Budget.                                                             

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

       (1) Relationship of defense science and technology program to       
   university research.--It is the sense of Congress that the following    
   should be key objectives of the Defense Science and Technology Program: 
       (A) The sustainment of research capabilities in scientific and      
   engineering disciplines critical to the Department of Defense.          
       (B) The education and training of the next generation of scientists 
   and engineers in disciplines that are relevant to future defense        
   systems, particularly through the conduct of basic research.            
       (C) The continued support of the Defense Experimental Program to    
   Stimulate Competitive Research and research programs at historically    
   black colleges and universities and minority institutions.              
       (2) Relationship of the defense science and technology program to   
   commercial research and technology.--(A) It is the sense of Congress    
   that, in supporting projects within the Defense Science and Technology  
   Program, the Secretary of Defense should attempt to leverage commercial 
   research, technology, products, and processes for the benefit of the    
   Department of Defense.                                                  
       (B) It is the sense of Congress that funds made available for       
   projects and programs of the Defense Science and Technology Program     
   should be used only for the benefit of the Department of Defense, which 
   includes--                                                              
     (i) the development of technology that has only military applications;

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


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

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

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

          SEC. 215. NEXT GENERATION INTERNET PROGRAM.                             

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

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

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

       (5) An analysis of the costs and benefits of delaying procurement of
   the Crusader system to avoid affordability issues associated with the   
   current schedule and to allow for maturation of weight and propellant   
   technologies.                                                           
     (c) Submission of Report.--The Secretary of the Army shall submit the
  report not later than March 1, 1999.                                    

          SEC. 217. AIRBORNE LASER PROGRAM.                                       

     (a) Assessment of Technical and Operational Aspects.--The Secretary  
  of Defense shall conduct an assessment of the technical and operational 
  aspects of the Airborne Laser Program. In conducting the assessment, the
  Secretary shall establish an independent team of persons from outside   
  the Department of Defense who are experts in relevant fields to review  
  the technical and operational aspects of the Airborne Laser Program. The
  team shall assess the following:                                        
       (1) Whether additional ground testing or other forms of data        
   collection should be completed before initial modification of a         
   commercial aircraft to an Airborne Laser configuration.                 
       (2) The adequacy of exit criteria for the program definition and    
   risk reduction phase of the Airborne Laser Program.                     
     (3) The adequacy of current Airborne Laser operational concepts.      

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

          SEC. 218. ENHANCED GLOBAL POSITIONING SYSTEM PROGRAM.                   

     (a) Policy on Priority for Development of Enhanced GPS System.--The  
  development of an enhanced Global Positioning System is an urgent       
  national security priority.                                             
     (b) Development Required.--To fulfill the requirements described in  
  section 279(b) of the National Defense Authorization Act for Fiscal Year
  1996 (Public Law 104 106; 110 Stat. 243) and section 2281 of title 10,  
  United States Code, the Secretary of Defense shall develop an enhanced  
  Global Positioning System in accordance with the priority declared in   
  subsection (a). The enhanced Global Positioning System shall include the
  following elements:                                                     
       (1) An evolved satellite system that includes increased signal power
   and other improvements such as regional-level directional signal        
   enhancements.                                                           
       (2) Enhanced receivers and user equipment that are capable of       
   providing military users with direct access to encrypted Global         
   Positioning System signals.                                             
       (3) To the extent funded by the Secretary of Transportation,        
   additional civil frequencies and other enhancements for civil users.    
     (c) Sense of Congress Regarding Funding.--It is the sense of Congress
  that--                                                                  
       (1) the Secretary of Defense should ensure that the future-years    
   defense program provides for sufficient funding to develop and deploy an
   enhanced Global Positioning System in accordance with the priority      
   declared in subsection (a); and                                         
       (2) the Secretary of Transportation should provide sufficient       
   funding to support additional civil frequencies for the Global          
   Positioning System and other enhancements of the system for civil users.
     (d) Plan for Development of Enhanced Global Positioning System.--Not 
  later than April 15, 1999, the                                          

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


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

    It is the sense of the Congress that--                                

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

                    SEC. 232. LIMITATION ON FUNDING FOR THE MEDIUM EXTENDED AIR   
          DEFENSE SYSTEM.                                                         
     None of the funds appropriated for fiscal year 1999 for the Ballistic
  Missile Defense Organization may be obligated for the Medium Extended   
  Air Defense System (MEADS) until the Secretary of Defense certifies to  
  Congress that the future-years defense program includes sufficient      
  programmed funding for that system to complete the design and           
  development phase. If the Secretary does not submit such a certification
  by January 1, 1999, then (effective as of that date) the funds          
  appropriated for fiscal year 1999 for the Ballistic Missile Defense     
  Organization that are allocated for the MEADS program shall be available
  to support alternative programmatic and technical approaches to meeting 
  the requirement for mobile theater missile defense that was to be met by
  the MEADS system.                                                       

                    SEC. 233. LIMITATION ON FUNDING FOR COOPERATIVE BALLISTIC     
          MISSILE DEFENSE PROGRAMS.                                               
     Of the funds appropriated for fiscal year 1999 for the               
  Russian-American Observational Satellite (RAMOS) program, $5,000,000 may
  not be obligated until the Secretary of Defense certifies to Congress   
  that the Department of Defense has received detailed information        
  concerning the nature, extent, and military implications of the transfer
  of ballistic missile technology from Russian sources to Iran.           

                    SEC. 234. SENSE OF CONGRESS WITH RESPECT TO BALLISTIC MISSILE 
          DEFENSE COOPERATION WITH RUSSIA.                                        
     It is the sense of Congress that, as the United States proceeds with 
  efforts to develop defenses against ballistic missile attack, the United
  States should seek to foster a climate of cooperation with Russia on    
  matters related to ballistic missile defense and that, in particular,   
  the United States and its NATO allies should seek to cooperate with     
  Russia in such areas as early warning of ballistic missile launches.    

          SEC. 235. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.                   

     (a) BMD Program Elements.--(1) Chapter 9 of title 10, United States  
  Code, is amended by inserting after section 222 the following new       
  section:                                                                
          ``223. Ballistic missile defense programs: program elements             

     ``(a) Program Elements Specified.--In the budget justification       
  materials submitted to Congress in support of the Department of Defense 
  budget for any fiscal year (as submitted with the budget of the         
  President under section 1105(a) of title 31), the amount requested for  
  activities of the Ballistic Missile Defense Organization shall be set   
  forth in accordance with the following program elements:                
     ``(1) The Patriot system.                                             

     ``(2) The Navy Area system.                                           

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

     ``(4) The Navy Theater Wide system.                                   

     ``(5) The Medium Extended Air Defense System.                         


     ``(6) Joint Theater Missile Defense.                                  

     ``(7) National Missile Defense.                                       

     ``(8) Support Technologies.                                           

     ``(9) Family of Systems Engineering and Integration.                  

     ``(10) Ballistic Missile Defense Technical Operations.                

     ``(11) Threat and Countermeasures.                                    

     ``(12) International Cooperative Programs.                            

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


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



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

                    SEC. 236. RESTRUCTURING OF ACQUISITION STRATEGY FOR THEATER   
          HIGH-ALTITUDE AREA DEFENSE (THAAD) SYSTEM.                              
     (a) Establishment of Competitive Contractor.--(1) The Secretary of   
  Defense shall take appropriate steps to implement technical and price   
  competition for the development and production of the interceptor       
  missile for the Theater High-Altitude Area Defense (THAAD) system.      
     (2) The Secretary shall take such steps as necessary to ensure that  
  the prime contractor (as of the date of the enactment of this Act) for  
  the THAAD system provides the cooperation needed to establish the       
  technical and price competition required in subsection (a).             
     (3) The Secretary shall use the authority provided in section        
  2304(c)(2) of title 10, United States Code, to expedite the             
  implementation of paragraphs (1) and (2).                               
     (4) Of the amount made available under section 201(4) for the THAAD  
  System, $29,600,000 shall be available to establish the technical and   
  price competition required in paragraph (1).                            
     (b) Cost Sharing Arrangement.--(1) The Secretary of Defense shall    
  contractually establish with the THAAD interceptor prime contractor an  
  appropriate arrangement for sharing between the United States and that  
  contractor the costs for flight test failures of the interceptor missile
  for the THAAD system beginning with the flight test numbered 9.         
     (2) For purposes of paragraph (1), the term ``THAAD interceptor prime
  contractor'' means the firm that as of May 14, 1998, is the prime       
  contractor for the interceptor missile for the Theater High-Altitude    
  Area Defense system.                                                    
     (c) Engineering and Manufacturing Development Phase for Other        
  Elements of the THAAD System.--The Secretary of Defense may proceed with
  the milestone approval process for the Engineering and Manufacturing    
  Development phase for the Battle Management and Command, Control, and   
  Communications (BM/C 3) element of the THAAD system and for the Ground  
  Based Radar (GBR) element for that system without regard to the stage of
  development of the interceptor missile for that system.                 
     (d) Plan for Contingency Capability.--(1) The Secretary of Defense   
  shall prepare a plan that would allow for deployment of THAAD missiles  
  and the other elements of the THAAD system referred to in subsection (c)
  in response to theater ballistic missile threats that evolve before     
  United States military forces are equipped with the objective           
  configuration of those missiles and elements.                           
     (2) The Secretary shall submit a report on the plan to the           
  congressional defense committees by December 15, 1998.                  

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


                    SEC. 241. EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN         
          PROTOTYPE PROJECTS.                                                     
     Section 845(c) of the National Defense Authorization Act for Fiscal  
  Year 1994 (Public Law 103 160; 10 U.S.C. 2371 note) is amended by       
  striking out ``September 30, 1999'' and inserting in lieu thereof       
  ``September 30, 2001''.                                                 

          SEC. 242. NATO ALLIANCE GROUND SURVEILLANCE CONCEPT DEFINITION.         

     Amounts authorized to be appropriated under section 201 are available
  for a NATO alliance ground surveillance concept definition that is based
  on the Joint Surveillance Target Attack Radar System (Joint STARS) Radar
  Technology Insertion Program (RTIP) sensor of the United States, as     
  follows:                                                                
       (1) Of the amount authorized to be appropriated under section       
   201(1), $6,400,000.                                                     
       (2) Of the amount authorized to be appropriated under section       
   201(3), $3,500,000.                                                     

          SEC. 243. NATO COMMON-FUNDED CIVIL BUDGET.                              

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

                    SEC. 244. EXECUTIVE AGENT FOR COOPERATIVE RESEARCH PROGRAM OF 
          THE DEPARTMENT OF DEFENSE AND THE DEPARTMENT OF VETERANS AFFAIRS.       
     The Secretary of Defense, acting through the Army Medical Research   
  and Materiel Command and the Naval Operational Medicine Institute, shall
  be the executive agent for the use of funds available from the amount   
  authorized to be appropriated by section 201(4) for the Cooperative     
  Research Program of the Department of Defense and the Department of     
  Veterans Affairs.                                                       

                    SEC. 245. REVIEW OF PHARMACOLOGICAL INTERVENTIONS FOR         
          REVERSING BRAIN INJURY.                                                 
     (a) Review and Report Required.--The Assistant Secretary of Defense  
  for Health Affairs shall review research on pharmacological             
  interventions for reversing brain injury and, not later than March 31,  
  1999, submit a report on the results of the review to Congress.         
    (b)  Content of Report.--The report shall include the following:      

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

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

                    SEC. 246. PILOT PROGRAM FOR REVITALIZING THE LABORATORIES AND 
          TEST AND EVALUATION CENTERS OF THE DEPARTMENT OF DEFENSE.               
     (a) Pilot Program.--(1) The Secretary of Defense may carry out a     
  pilot program to demonstrate improved cooperative relationships with    
  universities and other private sector entities for the performance of   
  research and development functions.                                     
     (2) Under the pilot program, the Secretary of Defense shall provide  
  the director of one science and technology laboratory, and the director 
  of one test and evaluation center, of each military department with     
  authority for the following:                                            
       (A) To explore innovative methods for quickly, efficiently, and     
   fairly entering into cooperative relationships with universities and    
   other private sector entities with respect                              

          to the performance of research and development functions.               

       (B) To waive any restrictions on the demonstration and              
   implementation of such methods that are not required by law.            
       (C) To develop or expand innovative methods of operation that       
   provide more defense research for each dollar of cost, including to     
   carry out such initiatives as focusing on the performance of core       
   functions and adopting more business-like practices.                    
     (3) In selecting the laboratories and centers for participation in   
  the pilot program, the Secretary shall consider laboratories and centers
  where innovative management techniques have been demonstrated,          
  particularly as documented under sections 1115 through 1119 of title 31,
  United States Code, relating to Government agency performance and       
  results.                                                                
     (4) The Secretary may carry out the pilot program at each selected   
  laboratory and center for a period of three years beginning not later   
  than March 1, 1999.                                                     
     (b) Reports.--(1) Not later than March 1, 1999, the Secretary of     
  Defense shall submit a report on the implementation of the pilot program
  to Congress. The report shall include the following:                    
     (A) Each laboratory and center selected for the pilot program.        

       (B) To the extent possible, a description of the innovative concepts
   that are to be tested at each laboratory or center.                     
       (C) The criteria to be used for measuring the success of each       
   concept to be tested.                                                   
     (2) Promptly after the expiration of the period for participation of 
  a laboratory or center in the pilot program, the Secretary of Defense   
  shall submit to Congress a final report on the participation of the     
  laboratory or center in the pilot program. The report shall contain the 
  following:                                                              
     (A) A description of the concepts tested.                             

     (B) The results of the testing.                                       

     (C) The lessons learned.                                              

       (D) Any proposal for legislation that the Secretary recommends on   
   the basis of the experience at the laboratory or center under the pilot 
   program.                                                                
     (c) Commendation.--Congress commends the Secretary of Defense for the
  progress made by the science and technology laboratories and test and   
  evaluation centers of the Department of Defense and encourages the      
  Secretary to take the actions necessary to ensure continued progress for
  the laboratories and test and evaluation centers in developing          
  cooperative relationships with universities and other private sector    
  entities for the performance of research and development functions.     
          SEC. 247. CHEMICAL WARFARE DEFENSE.                                     

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

       (B) exposure to the agent concurrently with other dangerous         
   exposures, such as exposures to--                                       
       (i) other potentially toxic substances in the environment, including
   pesticides, other insect and vermin control agents, and environmental   
   pollutants;                                                             
       (ii) low-grade nuclear and electromagnetic radiation present in the 
   environment;                                                            

       (iii) preventive medications (that are dangerous when taken         
   concurrently with other dangerous exposures referred to in this         
   paragraph);                                                             
     (iv) diesel fuel, jet fuel, and other hydro-carbon based fuels; and   

     (v) occupational hazards, including battlefield hazards; and          

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

       (A) the prevention of and protection against, and the detection     
   (including confirmation) of, exposures to a chemical warfare agent      
   (whether intentional or inadvertent) at levels that, even if not        
   sufficient to endanger health immediately, are greater than the level   
   that is recognized under Department of Defense policies as being the    
   maximum safe level of exposure to that agent for the general population;
   and                                                                     
       (B) the recording, reporting, coordinating, and retaining of        
   information on possible exposures described in subparagraph (A),        
   including the monitoring of the health effects of exposures on humans   
   and animals, environmental effects, and ecological effects, and the     
   documenting and reporting of those effects specifically by location.    
       (3) To provide solutions for the concerns and mission requirements  
   that are specifically applicable for one or more of the Armed Forces in 
   a protracted conflict when exposures to chemical agents could be        
   complex, dynamic, and occurring over an extended period.                
     (c) Research Program.--The Secretary of Defense shall develop and    
  carry out a plan to establish a research program for determining the    
  effects of exposures to chemical warfare agents of the type described in
  subsection (b). The research shall be designed to yield results that can
  guide the Secretary in the evolution of policy and doctrine on exposures
  to chemical warfare agents and to develop new risk assessment methods   
  and instruments with respect to such exposures. The plan shall state the
  objectives and scope of the program and include a 5-year funding plan.  
     (d) Report.--Not later than May 1, 1999, the Secretary of Defense    
  shall submit to the Committee on Armed Services of the Senate and the   
  Committee on National Security of the House of Representatives a report 
  on the results of the review under subsection (a) and on the research   
  program developed under subsection (c). The report shall include the    
  following:                                                              
       (1) Each modification of chemical warfare defense policy and        
   doctrine resulting from the review.                                     
     (2) Any recommended legislation regarding chemical warfare defense.   

     (3) The plan for the research program.                                


          SEC. 248. LANDMINE ALTERNATIVES.                                        

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

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

       (B) not more than $2,000,000 shall be made available for activities 
   referred to in subparagraphs (B) or (C) of that paragraph that relate to
   anti-personnel submunitions used in mixed mine systems or an alternative
   for mixed munitions.                                                    
     (b) Funding for Research Into Alternatives to Anti-Personnel         
  Submunitions Used in Mixed Mine Systems or an Alternative for Mixed     
  Munitions.--The Secretary shall include with the materials submitted to 
  Congress with the budget for fiscal year 2000 under section 1105 of     
  title 31, United States Code, an explanation of any funds requested to  
  support a search for existing and new technologies and concepts that    
  could provide a combat capability equivalent to the combat capability   
  provided by anti-personnel submunitions used in mixed mine systems or an
  alternative to mixed munitions.                                         
     (c) Studies.--The Secretary of Defense shall enter into two          
  contracts, each with an appropriate scientific organization--           
       (1) to carry out a study on existing and new technologies and       
   concepts referred to in subsection (a); and                             
       (2) to submit to the Secretary a report on the study, including any 
   recommendations considered appropriate by the scientific organization.  
     (d) Report.--Not later than April 1 of 2000 and 2001, the Secretary  
  shall submit to the congressional defense committees a report describing
  the progress made in identifying technologies and concepts referred to  
  in subsection (a). At the same time the report is submitted, the        
  Secretary shall transmit to such committees copies of the reports (and  
  recommendations, if any) received by the Secretary from the scientific  
  organizations that carried out the studies referred to in subsection    
  (c).                                                                    

                            TITLE III--OPERATION AND MAINTENANCE                  


                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 301. Operation and maintenance funding.                            

      Sec. 302. Working capital funds.                                        

      Sec. 303. Armed Forces Retirement Home.                                 

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

               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

      Sec. 311. Refurbishment of M1 A1 tanks.                                 

            Sec. 312. Operation of prepositioned fleet, National Training     
      Center, Fort Irwin, California.                                         
      Sec. 313. Berthing space at Norfolk Naval Shipyard, Virginia.           

      Sec. 314. NATO common-funded military budget.                           

                            SUBTITLE C--ENVIRONMENTAL PROVISIONS                  

            Sec. 321. Settlement of claims of foreign governments for         
      environmental cleanup of overseas sites formerly used by the Department 
      of Defense.                                                             
            Sec. 322. Authority to pay negotiated settlement for environmental
      cleanup of formerly used defense sites in Canada.                       
      Sec. 323. Removal of underground storage tanks.                         

            Sec. 324. Report regarding polychlorinated biphenyl waste under   
      Department of Defense control overseas.                                 
            Sec. 325. Modification of deadline for submittal to Congress of   
      annual reports on environmental activities.                             
      Sec. 326. Submarine solid waste control.                                

      Sec. 327. Arctic Military Environmental Cooperation Program.            

            Sec. 328. Sense of Congress regarding oil spill prevention        
      training for personnel on board Navy vessels.                           
                          SUBTITLE D--INFORMATION TECHNOLOGY ISSUES               

            Sec. 331. Additional information technology responsibilities of   
      Chief Information Officers.                                             
      Sec. 332. Defense-wide electronic mall system for supply purchases.     

            Sec. 333. Priority funding to ensure year 2000 compliance of      
      information technology and national security systems.                   
            Sec. 334. Evaluation of year 2000 compliance as part of training  
      exercises programs.                                                     
            Sec. 335. Continuity of essential operations at risk of failure   
      because of information technology and national security systems that are
      not year 2000 compliant.                                                
                   SUBTITLE E--DEFENSE INFRASTRUCTURE SUPPORT IMPROVEMENT         

            Sec. 341. Clarification of definition of depot-level maintenance  
      and repair.                                                             
            Sec. 342. Reporting and analysis requirements before change of    
      commercial and industrial type functions to private sector performance. 
            Sec. 343. Notifications of determinations of military items as    
      being commercial items for purposes of the exception to requirements    
      regarding core logistics capabilities.                                  
            Sec. 344. Oversight of development and implementation of automated
      identification technology.                                              
      Sec. 345. Contractor-operated civil engineering supply stores program.  


            Sec. 346. Conditions on expansion of functions performed under    
      prime vendor contracts for depot-level maintenance and repair.          
            Sec. 347. Best commercial inventory practices for management of   
      secondary supply items.                                                 
      Sec. 348. Personnel reductions in Army Materiel Command.                

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

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

            Sec. 351. Development of plan for establishment of core logistics 
      capabilities for maintenance and repair of C 17 aircraft.               
             SUBTITLE F--COMMISSARIES AND NONAPPROPRIATED FUND INSTRUMENTALITIES  

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

            Sec. 369. Survey of commissary store patrons regarding            
      satisfaction with commissary store merchandise.                         
                                  SUBTITLE G--OTHER MATTERS                       

            Sec. 371. Eligibility requirements for attendance at Department of
      Defense domestic dependent elementary and secondary schools.            
            Sec. 372. Assistance to local educational agencies that benefit   
      dependents of members of the Armed Forces and Department of Defense     
      civilian employees.                                                     
      Sec. 373. Department of Defense readiness reporting system.             

            Sec. 374. Specific emphasis of program to investigate fraud,      
      waste, and abuse within Department of Defense.                          
            Sec. 375. Condition for providing financial assistance for support
      of additional duties assigned to the Army National Guard.               
            Sec. 376. Demonstration program to improve quality of personal    
      property shipments of members.                                          
            Sec. 377. Pilot program for acceptance and use of landing fees    
      charged for use of domestic military airfields by civil aircraft.       
      Sec. 378. Strategic plan for expansion of distance learning initiatives.

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

                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

          SEC. 301. OPERATION AND MAINTENANCE FUNDING.                            

       Funds are hereby authorized to be appropriated for fiscal year 1999 
   for the use of the Armed Forces and other activities and agencies of the
   Department of Defense for expenses, not otherwise provided for, for     
   operation and maintenance, in amounts as follows:                       
     (1) For the Army, $17,002,563,000.                                    

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

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

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

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

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

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

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

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

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

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

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

       (13) For the United States Court of Appeals for the Armed Forces,   
   $7,324,000.                                                             
     (14) For Environmental Restoration, Army, $370,640,000.               

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

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

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

       (18) For Environmental Restoration, Formerly Used Defense Sites,    
   $195,000,000.                                                           
       (19) For Overseas Humanitarian, Disaster, and Civic Aid programs,   
   $50,000,000.                                                            
       (20) For Drug Interdiction and Counter-drug Activities,             
   Defense-wide, $725,582,000.                                             
       (21) For the Kaho'olawe Island Conveyance, Remediation, and         
   Environmental Restoration Trust Fund, $15,000,000.                      
     (22) For Defense Health Program, $9,617,435,000.                      


     (23) For Cooperative Threat Reduction programs, $440,400,000.         

     (24) For Overseas Contingency Operations Transfer Fund, $746,900,000. 

          SEC. 302. WORKING CAPITAL FUNDS.                                        

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

     (2) For the National Defense Sealift Fund, $669,566,000.              


          SEC. 303. ARMED FORCES RETIREMENT HOME.                                 

     There is hereby authorized to be appropriated for fiscal year 1999   
  from the Armed Forces Retirement Home Trust Fund the sum of $70,745,000 
  for the operation of the Armed Forces Retirement Home, including the    
  United States Soldiers' and Airmen's Home and the Naval Home.           
          SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.    

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

     (2) For the Navy, $50,000,000.                                        

     (3) For the Air Force, $50,000,000.                                   

    (b)  Treatment of Transfers.--Amounts transferred under this section--

       (1) shall be merged with, and be available for the same purposes and
   the same period as, the amounts in the accounts to which transferred;   
   and                                                                     
       (2) may not be expended for an item that has been denied            
   authorization of appropriations by Congress.                            
     (c) Relationship to Other Transfer Authority.--The transfer authority
  provided in this section is in addition to the transfer authority       
  provided in section 1001.                                               
               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

          SEC. 311. REFURBISHMENT OF M1 A1 TANKS.                                 

     Of the amount authorized to be appropriated pursuant to section      
  301(1) for operation and maintenance for the Army, $31,000,000 shall be 
  available only for the refurbishment of up to 70 M1 A1 tanks under the  
  AIM-XXI program.                                                        
                    SEC. 312. OPERATION OF PREPOSITIONED FLEET, NATIONAL TRAINING 
          CENTER, FORT IRWIN, CALIFORNIA.                                         
     Of the amount authorized to be appropriated pursuant to section      
  301(1) for operation and maintenance for the Army, $60,200,000 shall be 
  available only to pay costs associated with the operation of the        
  prepositioned fleet of equipment during training rotations at the       
  National Training Center, Fort Irwin, California.                       
          SEC. 313. BERTHING SPACE AT NORFOLK NAVAL SHIPYARD, VIRGINIA.           

     Of the amount authorized to be appropriated pursuant to section      
  301(2) for operation and maintenance for the Navy, $6,000,000 may be    
  available for the purpose of relocating the U.S.S. WISCONSIN, which is  
  currently in a reserve status at the Norfolk Naval Shipyard, Virginia,  
  to a suitable location in order to increase available berthing space at 
  the shipyard.                                                           
          SEC. 314. NATO COMMON-FUNDED MILITARY BUDGET.                           

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

                            SUBTITLE C--ENVIRONMENTAL PROVISIONS                  


                    SEC. 321. SETTLEMENT OF CLAIMS OF FOREIGN GOVERNMENTS FOR     
          ENVIRONMENTAL CLEANUP OF OVERSEAS SITES FORMERLY USED BY THE DEPARTMENT 
          OF DEFENSE.                                                             
     (a) Notice of Negotiations.--The President shall notify Congress     
  before entering into any negotiations for the ex-gratia settlement of   
  the claims of a government of another country against the United States 
  for environmental cleanup of sites in that country that were formerly   
  used by the Department of Defense.                                      

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

                    SEC. 322. AUTHORITY TO PAY NEGOTIATED SETTLEMENT FOR          
          ENVIRONMENTAL CLEANUP OF FORMERLY USED DEFENSE SITES IN CANADA.         
     (a) Findings.--Congress makes the following findings with respect to 
  the authorization of payment of settlement with Canada in subsection (b)
  regarding environmental cleanup at formerly used defense sites in       
  Canada:                                                                 
       (1) A unique and longstanding national security alliance exists     
   between the United States and Canada.                                   
       (2) The sites covered by the settlement were formerly used by the   
   United States and Canada for their mutual defense.                      
       (3) There is no formal treaty or international agreement between the
   United States and Canada regarding the environmental cleanup of the     
   sites.                                                                  
       (4) Environmental contamination at some of the sites could pose a   
   substantial risk to the health and safety of the United States citizens 
   residing in States near the border between the United States and Canada.
       (5) The United States and Canada reached a negotiated agreement for 
   an ex-gratia reimbursement of Canada in full satisfaction of claims of  
   Canada relating to environmental contamination which agreement was      
   embodied in an exchange of Notes between the Government of the United   
   States and the Government of Canada.                                    
       (6) There is a unique factual basis for authorizing a reimbursement 
   of Canada for environmental cleanup at sites in Canada after the United 
   States departure from such sites.                                       
       (7) The basis for and authorization of such reimbursement does not  
   extend to similar claims by other nations.                              
       (8) The Government of Canada is committed to spending the entire    
   $100,000,000 of the reimbursement authorized in subsection (b) in the   
   United States, which will benefit United States industry and United     
   States workers.                                                         
     (b) Authority To Make Payments.--(1) Subject to subsection (c), the  
  Secretary of Defense may, using funds specified under subsection (d),   
  make a payment described in paragraph (2) for each fiscal year through  
  fiscal year 2008 for purposes of the ex-gratia reimbursement of Canada  
  in full satisfaction of any and all claims asserted against the United  
  States by Canada for environmental cleanup of sites in Canada that were 
  formerly used for the mutual defense of the United States and Canada.   
     (2) A payment referred to in paragraph (1) is a payment of           
  $10,000,000, in constant fiscal year 1996 dollars, into the Foreign     
  Military Sales Trust Account for purposes of Canada.                    
     (c) Condition on Authority for Subsequent Fiscal Years.--A payment   
  may be made under subsection (b) for a fiscal year after fiscal year    
  1999 only if the Secretary of Defense submits to Congress with the      
  budget for such fiscal year under section 1105 of title 31, United      
  States Code, evidence that the cumulative amount expended by the        
  Government of Canada for environmental cleanup activities in Canada     
  during any fiscal years before such fiscal year in which a payment under
  that subsection was authorized was an amount equal to                   

                    or greater than the aggregate amount of the payments under    
          that subsection during such fiscal years.                               
     (d) Source of Funds.--(1) The payment under subsection (b) for fiscal
  year 1998 shall be made from amounts appropriated pursuant to section   
  301(5) of the National Defense Authorization Act for Fiscal Year 1998   
  (Public Law 105 85; 111 Stat. 1669).                                    
     (2) The payment under subsection (b) for fiscal year 1999 shall be   
  made from amounts appropriated pursuant to section 301(5).              
     (3) For a fiscal year after fiscal year 1999, a payment may be made  
  under subsection (b) from amounts appropriated pursuant to the          
  authorization of appropriations for the Department of Defense for such  
  fiscal year for Operation and Maintenance, Defense-Wide.                

          SEC. 323. REMOVAL OF UNDERGROUND STORAGE TANKS.                         

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

                    SEC. 324. REPORT REGARDING POLYCHLORINATED BIPHENYL WASTE     
          UNDER DEPARTMENT OF DEFENSE CONTROL OVERSEAS.                           
     (a) Report Required.--(1) Not later than March 1, 1999, the Secretary
  of Defense shall submit to the committees specified in paragraph (2) a  
  report on the status of foreign-manufactured polychlorinated biphenyl   
  waste. The Secretary shall prepare the report in consultation with the  
  Administrator of the Environmental Protection Agency and the Secretary  
  of State.                                                               
    (2) The committees referred to in paragraph (1) are the following:    

       (A) The Committee on Armed Services and the Committee on Environment
   and Public Works of the Senate.                                         
       (B) The Committee on National Security, the Committee on Commerce,  
   and the Committee on Transportation and Infrastructure of the House of  
   Representatives.                                                        
     (b) Elements of Report.--The report under subsection (a) shall       
  include the following:                                                  
       (1) The identity of each foreign country from which the Secretary of
   Defense anticipates that the Department of Defense will need to         
   transport foreign-manufactured polychlorinated biphenyl waste into the  
   customs territory of the United States.                                 
       (2) For each foreign country identified under paragraph (1), an     
   inventory of the type, concentrations, and estimated quantity of        
   foreign-manufactured polychlorinated biphenyl waste involved, the       
   reasons why disposal of the polychlorinated biphenyl waste in the       
   foreign country is not available, the identity of other locations or    
   facilities where disposal of the polychlorinated biphenyl waste in an   
   environmentally sound manner is available, and the availability of      
   alternative technologies and mobile units for polychlorinated biphenyl  
   waste treatment or disposal.                                            
       (3) An accounting of all foreign-manufactured polychlorinated       
   biphenyl waste that exists as of the date of the enactment of this Act  
   and as of the date of the report.                                       
       (4) An estimate of the volume of foreign-manufactured               
   polychlorinated biphenyl waste that is likely to be generated annually  
   in each of the next five calendar years, and the basis for each such    
   estimate.                                                               
       (5) A description of any hazards to human health or the environment 
   posed by foreign-manufactured polychlorinated biphenyl waste.           
       (6) A description of any international or domestic legal impediments
   that the Department has experienced in disposing of foreign-manufactured
   polychlorinated biphenyl waste in an environmentally sound manner.      
       (7) A description of any efforts undertaken by the Department to    
   seek relief from legal impediments to the disposal of                   
   foreign-manufactured polychlorinated biphenyl                           

                    waste, including the relief available pursuant to section 6(e)
          or 22 of the Toxic Substances Control Act (15 U.S.C. 2605(e), 2621).    
       (8) The identity of the possible disposal or treatment facilities in
   the United States that would be used if foreign-manufactured            
   polychlorinated biphenyl waste were transported into the customs        
   territory of the United States, and the method of disposal or treatment 
   at each such facility.                                                  
       (9) A description of Department policy and practice concerning      
   procurement or purchase of foreign-manufactured polychlorinated         
   biphenyls or materials containing foreign-manufactured polychlorinated  
   biphenyls.                                                              
     (c) Recommendations.--The report shall also include such             
  recommendations as the Secretary of Defense, with the concurrence of the
  Administrator of the Environmental Protection Agency and the Secretary  
  of State, considers necessary regarding changes to United States law to 
  allow for the disposal, in an environmentally sound manner, of          
  foreign-manufactured polychlorinated biphenyl waste, together with a    
  statement of whether and how such changes would be consistent with      
  international law, including the Basel Convention on the Control of     
  Transboundary Movements of Hazardous Wastes and Their Disposal and the  
  Protocol to the Convention on Long-Range Transboundary Air Pollution on 
  Persistent Organic Pollutants.                                          
    (d)  Definitions.--In this section:                                   

     (1) The term ``polychlorinated biphenyl waste'' means--               

     (A) polychlorinated biphenyls; and                                    

     (B) materials containing polychlorinated biphenyls;                   

   that are ready for disposal.                                            

       (2) The term ``foreign-manufactured polychlorinated biphenyl waste''
   means polychlorinated biphenyl waste that is owned by the Department of 
   Defense and situated outside of the United States and that consists of--
     (A) polychlorinated biphenyls; or                                     

     (B) materials containing polychlorinated biphenyls;                   

   that were manufactured outside of the United States.                    


                    SEC. 325. MODIFICATION OF DEADLINE FOR SUBMITTAL TO CONGRESS  
          OF ANNUAL REPORTS ON ENVIRONMENTAL ACTIVITIES.                          
     Section 2706 of title 10, United States Code, is amended by striking 
  out ``not later than 30 days'' each place it appears in subsections (a),
  (b), (c), and (d) and inserting in lieu thereof ``not later than 45     
  days''.                                                                 

          SEC. 326. SUBMARINE SOLID WASTE CONTROL.                                

     (a) Solid Waste Discharge Requirements.--Subsection (c)(2) of section
  3 of the Act to Prevent Pollution from Ships (33 U.S.C. 1902) is        
  amended--                                                               
     (1) in subparagraph (A), by adding at the end the following:          

       ``(iii) With regard to a submersible, non-plastic garbage that has  
   been compacted and weighted to ensure negative buoyancy.''; and         
       (2) in subparagraph (B)(ii), by striking out ``subparagraph         
   (A)(ii)'' and inserting in lieu thereof ``clauses (ii) and (iii) of     
   subparagraph (A)''.                                                     
     (b) Conforming Amendment.--Subsection (e)(3)(A) of that section is   
  amended by striking out ``garbage that contains more than the minimum   
  amount practicable of''.                                                

          SEC. 327. ARCTIC MILITARY ENVIRONMENTAL COOPERATION PROGRAM.            

     (a) Activities Under Program.--(1) Subject to paragraph (2),         
  activities under the Arctic Military Environmental Cooperation Program  
  of the Department of Defense shall include cooperative activities on    
  environmental matters in the Arctic region with the military departments
  and agencies of other countries, including the Russian Federation.      
     (2) Activities under the Arctic Military Environmental Cooperation   
  Program may not include any activities for purposes for which funds for 
  Cooperative Threat Reduction programs have been denied or are           
  prohibited, including the purposes for which funds are prohibited by    
  section 1503 of the National Defense Authorization Act for Fiscal Year  
  1997 (Public Law 104 201; 110 Stat. 2732).                              

     (b) Prior Notice to Congress of Obligation of Funds.--The Secretary  
  of Defense shall submit to the congressional defense committees a report
  at least 15 days before the obligation of any funds for the Arctic      
  Military Environmental Cooperation Program. Each such report shall      
  specify--                                                               
     (1) the amount of the proposed obligation;                            

       (2) the activities for which the Secretary plans to obligate such   
   funds; and                                                              
       (3) the terms of the implementing agreement between the United      
   States and the foreign government concerning the activity to be         
   undertaken, including the financial and other responsibilities of each  
   government.                                                             
     (c) Availability of Fiscal Year 1999 Funds.--(1) Of the amount       
  authorized to be appropriated by section 301(5), $4,000,000 shall be    
  available for carrying out the Arctic Military Environmental Cooperation
  Program.                                                                
     (2) Amounts available for the Arctic Military Environmental          
  Cooperation Program under paragraph (1) may not be obligated or expended
  for that Program until 45 days after the date on which the Secretary of 
  Defense submits to the congressional defense committees a plan for the  
  Program under paragraph (3).                                            
     (3) The plan for the Arctic Military Environmental Cooperation       
  Program under this paragraph shall include the following:               
     (A) A statement of the overall goals and objectives of the Program.   

       (B) A statement of the proposed activities under the Program and the
   relationship of such activities to the national security interests of   
   the United States.                                                      
       (C) An assessment of the compatibility of the activities set forth  
   under subparagraph (B) with the purposes of the Cooperative Threat      
   Reduction programs of the Department of Defense (including with any     
   prohibitions and limitations applicable to such programs).              
       (D) An estimate of the funding to be required and requested in      
   future fiscal years for the activities set forth under subparagraph (B).
     (E) A proposed termination date for the Program.                      


                    SEC. 328. SENSE OF CONGRESS REGARDING OIL SPILL PREVENTION    
          TRAINING FOR PERSONNEL ON BOARD NAVY VESSELS.                           
    (a)  Findings.--Congress makes the following findings:                

       (1) There have been six significant oil spills in Puget Sound,      
   Washington, in 1998, five at Puget Sound Naval Shipyard (including three
   from the U.S.S. Kitty Hawk, one from the U.S.S. Carl Vinson, and one    
   from the U.S.S. Sacramento) and one at Naval Station Everett from the   
   U.S.S. Paul F. Foster.                                                  
       (2) Navy personnel on board vessels, and not shipyard employees,    
   were primarily responsible for a majority of these oil spills at Puget  
   Sound Naval Shipyard.                                                   
       (3) Oil spills have the potential to damage the local environment,  
   killing microscopic organisms, contributing to air pollution, harming   
   plants and marine animals, and increasing overall pollution levels in   
   Puget Sound.                                                            
     (b) Sense of Congress.--It is the sense of Congress that the         
  Secretary of the Navy should take immediate action to significantly     
  reduce the risk of vessel oil spills, including the minimization of fuel
  oil transfers, the assurance of proper training and qualifications of   
  all Naval personnel in occupations that may contribute to or minimize   
  the risk of shipboard oil spills, and the improvement of liaison with   
  local authorities concerning oil spill prevention and response          
  activities.                                                             

                          SUBTITLE D--INFORMATION TECHNOLOGY ISSUES               


                    SEC. 331. ADDITIONAL INFORMATION TECHNOLOGY RESPONSIBILITIES  
          OF CHIEF INFORMATION OFFICERS.                                          
     (a) In General.--(1) Chapter 131 of title 10, United States Code, is 
  amended by adding at the end the following new section:                 

                    ``2223. Information technology: additional responsibilities of
          Chief Information Officers                                              
     ``(a) Additional Responsibilities of Chief Information Officer of    
  Department of Defense.--In addition to the responsibilities provided for
  in chapter 35 of title 44 and in section 5125 of the Clinger-Cohen Act  
  of 1996 (40 U.S.C. 1425), the Chief Information Officer of the          
  Department of Defense shall--                                           
       ``(1) review and provide recommendations to the Secretary of Defense
   on Department of Defense budget requests for information technology and 
   national security systems;                                              
       ``(2) ensure the interoperability of information technology and     
   national security systems throughout the Department of Defense;         
       ``(3) ensure that information technology and national security      
   systems standards that will apply throughout the Department of Defense  
   are prescribed; and                                                     
       ``(4) provide for the elimination of duplicate information          
   technology and national security systems within and between the military
   departments and Defense Agencies.                                       
     ``(b) Additional Responsibilities of Chief Information Officer of    
  Military Departments.--In addition to the responsibilities provided for 
  in chapter 35 of title 44 and in section 5125 of the Clinger-Cohen Act  
  of 1996 (40 U.S.C. 1425), the Chief Information Officer of a military   
  department, with respect to the military department concerned, shall--  
       ``(1) review budget requests for all information technology and     
   national security systems;                                              
       ``(2) ensure that information technology and national security      
   systems are in compliance with standards of the Government and the      
   Department of Defense;                                                  
       ``(3) ensure that information technology and national security      
   systems are interoperable with other relevant information technology and
   national security systems of the Government and the Department of       
   Defense; and                                                            
       ``(4) coordinate with the Joint Staff with respect to information   
   technology and national security systems.                               
    ``(c)  Definitions.--In this section:                                 

       ``(1) The term `Chief Information Officer' means the senior official
   designated by the Secretary of Defense or a Secretary of a military     
   department pursuant to section 3506 of title 44.                        
       ``(2) The term `information technology' has the meaning given that  
   term by section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401). 
       ``(3) The term `national security system' has the meaning given that
   term by section 5142 of the Clinger-Cohen Act of 1996 (40 U.S.C.        
   1452).''.                                                               
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


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


     (b) Effective Date.--Section 2223 of title 10, United States Code, as
  added by subsection (a), shall take effect on October 1, 1998.          
          SEC. 332. DEFENSE-WIDE ELECTRONIC MALL SYSTEM FOR SUPPLY PURCHASES.     

     (a) Electronic Mall System Defined.--In this section, the term       
  ``electronic mall system'' means an electronic system for displaying,   
  ordering, and purchasing supplies and materiel available from sources   
  within the Department of Defense and from the private sector.           
     (b) Development and Management.--(1) Using systems and technology    
  available in the Department of Defense as of the date of the enactment  
  of this Act, the Joint Electronic Commerce Program Office of the        
  Department of Defense shall develop a single, defense-wide electronic   
  mall system, which shall provide a single, defense-wide electronic point
  of entry and a single view, access, and ordering capability for all     
  Department of Defense electronic catalogs. The Secretary of each        
  military department and the head of each Defense Agency shall provide to
  the Joint Electronic Commerce Program Office the                        

          necessary and requested data to ensure compliance with this paragraph.  

     (2) The Defense Logistics Agency, under the direction of the Joint   
  Electronic Commerce Program Office, shall be responsible for maintaining
  the defense-wide electronic mall system developed under paragraph (1).  
     (c) Role of Chief Information Officer.--The Chief Information Officer
  of the Department of Defense shall be responsible for--                 
       (1) overseeing the elimination of duplication and overlap among     
   Department of Defense electronic catalogs; and                          
       (2) ensuring that such catalogs utilize technologies and formats    
   compliant with the requirements of subsection (b).                      
     (d) Implementation.--Within 180 days after the date of the enactment 
  of this Act, the Chief Information Officer shall develop and provide to 
  the congressional defense committees--                                  
       (1) an inventory of all existing and planned electronic mall systems
   in the Department of Defense; and                                       
       (2) a schedule for ensuring that each such system is compliant with 
   the requirements of subsection (b).                                     

                    SEC. 333. PRIORITY FUNDING TO ENSURE YEAR 2000 COMPLIANCE OF  
          INFORMATION TECHNOLOGY AND NATIONAL SECURITY SYSTEMS.                   
     (a) Funds for Completion of Year 2000 Conversion.--None of the funds 
  authorized to be appropriated pursuant to this Act may (except as       
  provided in subsection (b)) be obligated or expended on the development 
  or modernization of any information technology or national security     
  system of the Department of Defense in use by the Department of Defense 
  (whether or not the system is a mission critical system) if the         
  date-related data processing capability of that system does not meet    
  certification level 1a, 1b, or 2 (as prescribed in the April 1997       
  publication of the Department of Defense entitled ``Year 2000 Management
  Plan'').                                                                
     (b) Exception for Certain Information Technology and National        
  Security Systems.--The limitation in subsection (a) does not apply to an
  obligation or expenditure for an information technology or national     
  security system that is reported to the Office of the Secretary of      
  Defense by October 1, 1998, in accordance with the preparation          
  instructions for the May 1998 Department of Defense quarterly report on 
  the status of year 2000 compliance, if--                                
       (1) the obligation or expenditure is directly related to ensuring   
   that the reported system achieves year 2000 compliance;                 
       (2) the system is being developed and fielded to replace, before    
   January 1, 2000, a noncompliant system or a system to be terminated in  
   accordance with the May 1998 Department of Defense quarterly report on  
   the status of year 2000 compliance; or                                  
       (3) the obligation or expenditure is required for a particular      
   change that is specifically required by law or that is specifically     
   directed by the Secretary of Defense.                                   
     (c) Unallocated Reductions of Funds Not To Apply to Mission Critical 
  Systems.--Funds authorized to be appropriated pursuant to this Act for  
  mission critical systems are not subject to any unallocated reduction of
  funds made by or otherwise applicable to funds authorized to be         
  appropriated pursuant to this Act.                                      
     (d) Current Services Operations Not Affected.--Subsection (a) does   
  not prohibit the obligation or expenditure of funds for current services
  operations of information technology and national security systems.     
     (e) Waiver Authority.--The Secretary of Defense may waive subsection 
  (a) on a case-by-case basis with respect to an information technology or
  national security system if the Secretary provides the congressional    
  defense committees with written notice of the waiver, including the     
  reasons for the waiver and a timeline for the testing and certification 
  of the system as year 2000 compliant.                                   

     (f) Required Report.--(1) Not later than December 1, 1998, the       
  Secretary of Defense shall submit to the congressional defense          
  committees a report describing--                                        
       (A) an executable strategy to be used throughout the Department of  
   Defense to test information technology and national security systems for
   year 2000 compliance (to include functional capability tests and        
   military exercises);                                                    
       (B) the plans of the Department of Defense for ensuring that        
   adequate resources (such as testing facilities, tools, and personnel)   
   are available to ensure that all mission critical systems achieve year  
   2000 compliance; and                                                    
       (C) the criteria and process to be used to certify a system as year 
   2000 compliant.                                                         
    (2) The report shall also include--                                   

     (A) an updated list of all mission critical systems; and              

       (B) guidelines for developing contingency plans for the functioning 
   of each information technology or national security system in the event 
   of a year 2000 problem in any such system.                              
     (g) Capability Contingency Plans.--Not later than December 30, 1998, 
  the Secretary of Defense shall have in place contingency plans to ensure
  continuity of operations for every critical mission or function of the  
  Department of Defense that is dependent on an information technology or 
  national security system.                                               
     (h) Inspector General Evaluation.--The Inspector General of the      
  Department of Defense shall selectively audit information technology and
  national security systems certified as year 2000 compliant to evaluate  
  the ability of systems to successfully operate during the actual year   
  2000, including the ability of the systems to access and transmit       
  information from point of origin to point of termination.               
    (i)  Definitions.--For purposes of this section:                      

       (1) The term ``information technology'' has the meaning given that  
   term in section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401). 
       (2) The term ``national security system'' has the meaning given that
   term in section 5142 of such Act (40 U.S.C. 1452).                      
       (3) The term ``development or modernization'' has the meaning given 
   that term in paragraph E of section 180203 of the Department of Defense 
   Financial Management Regulation (DOD 7000.14 R), but does not include   
   any matter covered by subparagraph 3 of that paragraph.                 
       (4) The term ``current services'' has the meaning given that term in
   paragraph C of section 180203 of the Department of Defense Financial    
   Management Regulation (DOD 7000.14 R).                                  
       (5) The term ``mission critical system'' means an information       
   technology or national security system that is designated as mission    
   critical in the May 1998 Department of Defense quarterly report on the  
   status of year 2000 compliance.                                         
                    SEC. 334. EVALUATION OF YEAR 2000 COMPLIANCE AS PART OF       
          TRAINING EXERCISES PROGRAMS.                                            
     (a) Report on Evaluation Plan.--Not later than December 15, 1998, the
  Secretary of Defense shall submit to Congress a plan for the execution  
  of a simulated year 2000 as part of military exercises described in     
  subsection (c) in order to evaluate, in an operational environment, the 
  extent to which information technology and national security systems    
  involved in those exercises will successfully operate during the actual 
  year 2000, including the ability of those systems to access and transmit
  information from point of origin to point of termination.               
     (b) Evaluation of Compliance in Selected Exercises.--In conducting   
  the military exercises described in subsection (c), the Secretary of    
  Defense shall ensure that--                                             
       (1) at least 25 of those exercises (referred to in this section as  
   ``year 2000 simulation exercises'') are conducted so as to include a    
   simulated year 2000 in accordance with the plan submitted under         
   subsection (a);                                                         

       (2) at least two of those exercises are conducted by the commander  
   of each unified or specified combatant command; and                     
       (3) all mission critical systems that are expected to be used if the
   Armed Forces are involved in a conflict in a major theater of war are   
   tested in at least two exercises.                                       
     (c) Covered Military Exercises.--A military exercise referred to in  
  this section is a military exercise conducted by the Department of      
  Defense, during the period beginning on January 1, 1999, and ending on  
  September 30, 1999--                                                    
       (1) under the training exercises program known as the ``CJCS        
   Exercise Program'';                                                     
       (2) at the Naval Strike and Air Warfare Center, the Army National   
   Training Center, or the Air Force Air Warfare Center; or                
       (3) as part of Naval Carrier Group fleet training or Marine Corps   
   Expeditionary Unit training.                                            
     (d) Alternative Testing Method.--In the case of an information       
  technology or national security system for which a simulated year 2000  
  test as part of a military exercise described in subsection (c) is not  
  feasible or presents undue risk, the Secretary of Defense shall test the
  system using a functional end-to-end test or through a Defense Major    
  Range and Test Facility Base. The Secretary shall include the plans for 
  these tests in the plan required by subsection (a). Tests under this    
  subsection are in addition to the 25 tests required by subsection (b).  
     (e) Authority for Exclusion of Systems Not Capable of Performing     
  Reliably in Year 2000 Simulation.--(1) In carrying out a year 2000      
  simulation exercise, the Secretary of Defense may exclude a particular  
  information technology or national security system from the year 2000   
  simulation phase of the exercise if the Secretary determines that the   
  system would be incapable of performing reliably during the year 2000   
  simulation phase of the exercise. In such a case, the system excluded   
  shall be replaced in accordance with the year 2000 contingency plan for 
  the system.                                                             
     (2) If the Secretary of Defense excludes an information technology or
  national security system from the year 2000 simulation phase of an      
  exercise as provided in paragraph (1), the Secretary shall notify       
  Congress of that exclusion not later than two weeks before commencing   
  that exercise. The notice shall include a list of each information      
  technology or national security system excluded from the exercise, a    
  description of how the exercise will use the year 2000 contingency plan 
  for each such system, and a description of the effect that continued    
  year 2000 noncompliance of each such system would have on military      
  readiness.                                                              
     (3) An information technology or national security system with       
  cryptological applications that is not capable of having its internal   
  clock adjusted forward to a simulated later time is exempt from the year
  2000 simulation phase of an exercise under this section.                
     (f) Comptroller General Review.--Not later than January 30, 1999, the
  Comptroller General shall review the report and plan submitted under    
  subsection (a) and submit to Congress a briefing evaluating the         
  methodology to be used under the plan to simulate the year 2000 and     
  describing the potential information that will be collected as a result 
  of implementation of the plan, the adequacy of the planned tests, and   
  the impact that the plan will have on military readiness.               
    (g)  Definitions.--For the purposes of this section:                  

       (1) The term ``information technology'' has the meaning given that  
   term in section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401). 
       (2) The term ``national security system'' has the meaning given that
   term in section 5142 of such Act (40 U.S.C. 1452).                      
       (3) The term ``mission critical system'' means an information       
   technology or national security system that is designated as mission    
   critical in the May 1998 Department of Defense quarterly report on the  
   status of year 2000 compliance.                                         

                    SEC. 335. CONTINUITY OF ESSENTIAL OPERATIONS AT RISK OF       
          FAILURE BECAUSE OF INFORMATION TECHNOLOGY AND NATIONAL SECURITY SYSTEMS 
          THAT ARE NOT YEAR 2000 COMPLIANT.                                       
     (a) Report Required.--Not later than March 31, 1999, the Secretary of
  Defense and the Director of Central Intelligence shall jointly submit to
  the Committee on Armed Services of the Senate and the Committee on      
  National Security of the House of Representatives a report on the plans 
  of the Department of Defense and the intelligence community for ensuring
  the continuity of performance of essential operations that are at risk  
  of failure because of information technology and national security      
  systems that are not year 2000 compliant.                               
    (b)  Content.--The report shall contain, at a minimum, the following: 

       (1) A prioritization of mission critical systems to ensure that the 
   most critical systems have the highest priority for efforts to reprogram
   information technology and national security systems to be year 2000    
   compliant.                                                              
       (2) A discussion of the private and other public information and    
   support systems relied on by the national security community, including 
   the intelligence community, and the efforts under way to ensure that    
   those systems are year 2000 compliant.                                  
       (3) The efforts under way to repair the underlying operating systems
   and infrastructure.                                                     
       (4) The plans for comprehensive testing of Department of Defense    
   systems, including simulated operational tests in mission areas.        
       (5) A comprehensive contingency plan, for the entire national       
   security community, which provides for resolving emergencies resulting  
   from a system that is not year 2000 compliant and includes provision for
   the creation of crisis action teams for use in resolving such           
   emergencies.                                                            
       (6) A discussion of the efforts undertaken to ensure the continued  
   reliability of service on the systems used by the President and other   
   leaders of the United States for communicating with the leaders of other
   nations.                                                                
       (7) A discussion of the vulnerability of allied armed forces to the 
   failure of systems that are not, or have critical components that are   
   not, year 2000 compliant, together with an assessment of the potential  
   problems for interoperability among the Armed Forces of the United      
   States and allied armed forces because of the potential for failure of  
   such systems.                                                           
       (8) An estimate of the total cost of making information technology  
   and national security systems of the Department of Defense and the      
   intelligence community year 2000 compliant.                             
       (9) The countries that have critical computer-based systems any     
   disruption of which, due to not being year 2000 compliant, would cause a
   significant potential national security risk to the United States.      
       (10) A discussion of the cooperative arrangements between the United
   States and other nations to assist those nations in identifying and     
   correcting (to the extent necessary to meet national security interests 
   of the United States) any problems in their communications and strategic
   systems, or other systems identified by the Secretary of Defense, that  
   make the systems not year 2000 compliant.                               
       (11) A discussion of the threat posed to the national security      
   interests of the United States from any potential failure of strategic  
   systems of foreign countries that are not year 2000 compliant.          
     (c) International Cooperative Arrangements.--The Secretary of        
  Defense, with the concurrence of the Secretary of State, may enter into 
  a cooperative arrangement with a representative of any foreign          
  government to provide for the United States to assist the foreign       
  government in identifying and correcting (to the extent necessary to    
  meet national security interests of the United States) any problems in  
  communications, strategic, or other systems of that foreign government  
  that render the systems not year 2000 compliant.                        

    (d)  Definitions.--In this section:                                   

       (1) The term ``year 2000 compliant'', with respect to an information
   technology or national security system of the United States or a        
   computer-based system of a foreign government, means that the system    
   correctly recognizes dates in years after 1999 as being dates after 1999
   for the purposes of system functions for which the correct date is      
   relevant to the performance of the functions, consistent with           
   certification level 1a, 1b, or 2 (as prescribed in the April 1997       
   publication of the Department of Defense entitled ``Year 2000 Management
   Plan'').                                                                
       (2) The term ``information technology'' has the meaning given that  
   term by section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401). 
       (3) The term ``national security system'' has the meaning given that
   term by section 5142 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1452). 

                   SUBTITLE E--DEFENSE INFRASTRUCTURE SUPPORT IMPROVEMENT         

                    SEC. 341. CLARIFICATION OF DEFINITION OF DEPOT-LEVEL          
          MAINTENANCE AND REPAIR.                                                 
     Section 2460(a) of title 10, United States Code, is amended by       
  inserting before the period at the end of the first sentence the        
  following: ``or the location at which the maintenance or repair is      
  performed''.                                                            

                    SEC. 342. REPORTING AND ANALYSIS REQUIREMENTS BEFORE CHANGE OF
          COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO PRIVATE SECTOR PERFORMANCE. 
     (a) In General.--Section 2461 of title 10, United States Code, is    
  amended--                                                               
       (1) by redesignating subsections (c) and (g) as subsections (g) and 
   (h), respectively, and transferring subsection (g), as so redesignated, 
   to appear after subsection (f); and                                     
       (2) by striking out subsections (a) and (b) and inserting in lieu   
   thereof the following new subsections:                                  
     ``(a) Reporting and Analysis Requirements as Precondition to Change  
  in Performance.--A commercial or industrial type function of the        
  Department of Defense that, as of October 1, 1980, was being performed  
  by Department of Defense civilian employees may not be changed to       
  performance by the private sector until the Secretary of Defense fully  
  complies with the reporting and analysis requirements specified in      
  subsections (b) and (c).                                                
     ``(b) Notification and Elements of Analysis.--(1) Before commencing  
  to analyze a commercial or industrial type function described in        
  subsection (a) for possible change to performance by the private sector,
  the Secretary of Defense shall submit to Congress a report containing   
  the following:                                                          
     ``(A) The function to be analyzed for possible change.                

       ``(B) The location at which the function is performed by Department 
   of Defense civilian employees.                                          
     ``(C) The number of civilian employee positions potentially affected. 

     ``(D) The anticipated length and cost of the analysis.                

       ``(E) A certification that a proposed performance of the commercial 
   or industrial type function by persons who are not civilian employees of
   the Department of Defense is not a result of a decision by an official  
   of a military department or Defense Agency to impose predetermined      
   constraints or limitations on such employees in terms of man years, end 
   strengths, full-time equivalent positions, or maximum number of         
   employees.                                                              
     ``(2) The duty to prepare a report under paragraph (1) may be        
  delegated. A report prepared below the major command or claimant level  
  of a military department, or below the equivalent level in a Defense    
  Agency, pursuant to any such delegation shall be reviewed at the major  
  command, claimant level, or equivalent level, as the case may be, before
  submission to Congress.                                                 
     ``(3) An analysis of a commercial or industrial type function for    
  possible change to performance by the private sector shall include the  
  following:                                                              

       ``(A) An examination of the cost of performance of the function by  
   Department of Defense civilian employees and by one or more private     
   contractors to demonstrate whether change to performance by the private 
   sector will result in savings to the Government over the life of the    
   contract, including in the examination the following:                   
       ``(i) The cost to the Government, estimated by the Secretary of     
   Defense (based on offers received), for performance of the function by  
   the private sector.                                                     
       ``(ii) The estimated cost to the Government of Department of Defense
   civilian employees performing the function.                             
       ``(iii) In addition to the costs referred to in clause (i), an      
   estimate of all other costs and expenditures that the Government would  
   incur because of the award of such a contract.                          
       ``(B) An examination of the potential economic effect of performance
   of the function by the private sector on the following:                 
       ``(i) Employees of the Department of Defense who would be affected  
   by such a change in performance.                                        
       ``(ii) The local community and the Government, if more than 75      
   employees of the Department of Defense perform the function.            
       ``(C) An examination of the effect of performance of the function by
   the private sector on the military mission associated with the          
   performance of the function.                                            
     ``(4)(A) A representative individual or entity at a facility where a 
  commercial or industrial type function is analyzed for possible change  
  in performance may submit to the Secretary of Defense an objection to   
  the analysis on the grounds that the report required by paragraph (1)   
  has not been submitted or that the certification required by paragraph  
  (1)(E) is not included in the report submitted as a condition for the   
  analysis. The objection shall be in writing and shall be submitted      
  within 90 days after the following date:                                
       ``(i) In the case of a failure to submit the report when required,  
   the date on which the representative individual or an official of the   
   representative entity authorized to pose the objection first knew or    
   should have known of that failure.                                      
       ``(ii) In the case of a failure to include the certification in a   
   submitted report, the date on which the report was submitted to         
   Congress.                                                               
     ``(B) If the Secretary determines that the report required by        
  paragraph (1) was not submitted or that the required certification was  
  not included in the submitted report, the commercial or industrial type 
  function covered by the analysis to which objected may not be the       
  subject of a solicitation of offers for, or award of, a contract until, 
  respectively, the report is submitted or a report containing the        
  certification in full compliance with the certification requirement is  
  submitted.                                                              
     ``(c) Notification of Decision.--(1) If, as a result of the          
  completion of the examinations under subsection (b)(3), a decision is   
  made to change the commercial or industrial type function that was the  
  subject of the analysis to performance by the private sector, the       
  Secretary of Defense shall submit to Congress a report describing that  
  decision. The report shall contain the following:                       
       ``(A) An indication that the examinations required under subsection 
   (b)(3) have been completed.                                             
       ``(B) The Secretary's certification that the Government calculation 
   of the cost of performance of the function by Department of Defense     
   civilian employees is based on an estimate of the most cost effective   
   manner for performance of the function by Department of Defense civilian
   employees.                                                              
       ``(C) The Secretary's certification that the examination required by
   subsection (b)(3)(A) as part of the analysis demonstrates that the      
   performance of the function by the private sector will result in savings
   to the Government over the life of the contract.                        

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

                    SEC. 343. NOTIFICATIONS OF DETERMINATIONS OF MILITARY ITEMS AS
          BEING COMMERCIAL ITEMS FOR PURPOSES OF THE EXCEPTION TO REQUIREMENTS    
          REGARDING CORE LOGISTICS CAPABILITIES.                                  
     (a) Requirement.--Section 2464 of title 10, United States Code, is   
  amended by adding at the end the following:                             
     ``(c) Notification of Determinations Regarding Certain Commercial    
  Items.--The first time that a weapon system or other item of military   
  equipment described in subsection (a)(3) is determined to be a          
  commercial item for the purposes of the exception contained in that     
  subsection, the Secretary of Defense shall submit to Congress a         
  notification of the determination, together with the justification for  
  the determination. The justification for the determination shall        
  include, at a minimum, the following:                                   
       ``(1) The estimated percentage of commonality of parts of the       
   version of the item that is sold or leased in the commercial marketplace
   and the Government's version of the item.                               
       ``(2) The value of any unique support and test equipment and tools  
   that are necessary to support the military requirements if the item were
   maintained by the Government.                                           
       ``(3) A comparison of the estimated life cycle logistics support    
   costs that would be incurred by the Government if the item were         
   maintained by the private sector with the estimated life cycle logistics
   support costs that would be incurred by the Government if the item were 
   maintained by the Government.''.                                        
     (b) Applicability.--Subsection (c) of section 2464 of title 10,      
  United States Code (as added by subsection (a)), shall apply with       
  respect to determinations made after the date of the enactment of this  
  Act.                                                                    

                    SEC. 344. OVERSIGHT OF DEVELOPMENT AND IMPLEMENTATION OF      
          AUTOMATED IDENTIFICATION TECHNOLOGY.                                    
    (a)  Definitions.--In this section:                                   

       (1) The term ``automated identification technology program'' means a
   program in the Department of Defense, including any pilot program,      
   employing one or more of the following technologies:                    
     (A) Magnetic stripe.                                                  

       (B) Bar codes, both linear and two-dimensional (including matrix    
   symbologies).                                                           
     (C) Smart Card.                                                       


     (D) Optical memory.                                                   

     (E) Personal computer memory card international association carriers. 

       (F) Any other established or emerging automated identification      
   technology, including biometrics and radio frequency identification.    
       (2) The term ``Smart Card'' means a credit card size device that    
   contains one or more integrated-circuits.                               
     (b) Establishment of Automated Identification Technology Office.--(1)
  The Secretary of Defense shall establish an Automated Identification    
  Technology Office within the Department of Defense that shall be        
  responsible for--                                                       
       (A) overseeing the development and implementation of all automated  
   identification technology programs in the Department; and               
       (B) coordinating automated identification technology programs with  
   the Joint Staff, the Secretaries of the military departments, and the   
   directors of the Defense Agencies.                                      
     (2) After the date of the enactment of this Act, funds appropriated  
  for the Department of Defense may not be obligated for an automated     
  identification technology program unless the program has been reviewed  
  and approved by the Automated Identification Technology Office. Pending 
  the establishment of the Automated Identification Technology Office, the
  review and approval of a program by the Smartcard Technology Office of  
  the Defense Human Resources Field Activity of the Department of Defense 
  shall be sufficient to satisfy the requirements of this paragraph even  
  if the approval was given before the date of the enactment of this Act. 
     (3) As part of its oversight responsibilities, the Automated         
  Identification Technology Office shall establish standards designed--   
       (A) to ensure the compatibility and interoperability of automated   
   identification technology programs in the Department of Defense; and    
       (B) to identify and terminate redundant, infeasible, or uneconomical
   automated identification technology programs.                           
     (c) Funding for Increased Use of Smart Cards.--(1) Of the funds      
  available for the Navy for fiscal year 1999 for operation and           
  maintenance, the Secretary of the Navy shall allocate sufficient        
  amounts, up to $25,000,000, for the purpose of making significant       
  progress toward ensuring that Smart Cards with a multi-application,     
  multi-technology automated reading capability are issued and used       
  throughout the Navy and the Marine Corps for purposes for which Smart   
  Cards are suitable.                                                     
     (2) Not later than June 30, 1999, the Secretary of the Navy shall    
  equip with Smart Card technology at least one carrier battle group, one 
  carrier air wing, and one amphibious readiness group (including the     
  Marine Corps units embarked on the vessels of such battle and readiness 
  groups) in each of the United States Atlantic Command and the United    
  States Pacific Command.                                                 
     (3) None of the funds appropriated pursuant to any authorization of  
  appropriations in this Act may be expended after June 30, 1999, for the 
  procurement of the Joint Uniformed Services Identification card for     
  members of the Navy or the Marine Corps or for the issuance of such card
  to such members, until the Secretary of the Navy certifies in writing to
  the Committee on Armed Services of the Senate and the Committee on      
  National Security of the House of Representatives that the Secretary has
  completed the issuance of Smart Cards in accordance with paragraph (2). 
     (d) Defense-Wide Plan.--Not later than March 31, 1999, the Secretary 
  of Defense shall submit to the congressional defense committees a plan  
  for the use of Smart Card technology by each military department. The   
  Secretary shall include in the plan an estimate of the costs of the     
  plan, the savings to be derived from carrying out the plan, and a       
  description of the ways in which the Department of Defense will review  

                    and revise business practices to take advantage of Smart Card 
          technology.                                                             
          SEC. 345. CONTRACTOR-OPERATED CIVIL ENGINEERING SUPPLY STORES PROGRAM.  

    (a)  Definitions.--In this section:                                   

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

       (2) The term ``civil engineering supplies'' means parts and supplies
   needed for the repair and maintenance of military installations.        
    (b)  Findings.--Congress finds the following:                         

       (1) In 1970, the Strategic Air Command of the Air Force began to use
   contractor-operated civil engineering supply stores to improve the      
   efficiency and effectiveness of materials management and relieve the Air
   Force from having to maintain large inventories of civil engineering    
   supplies.                                                               
       (2) Contractor-operated civil engineering supply stores are designed
   to support the civil engineering and public works efforts of the Armed  
   Forces through the provision of quality civil engineering supplies at   
   competitive prices and within a reasonable period of time.              
       (3) Through the use of a contractor-operated civil engineering      
   supply store, a guaranteed inventory level of civil engineering supplies
   is maintained at a military installation, which ensures that urgently   
   needed civil engineering supplies are available on site.                
       (4) The contractor operating the contractor-operated civil          
   engineering supply store is an independent business organization whose  
   customer is a military department and the Armed Forces and who is       
   subject to all the rules of private business and the regulations of the 
   Government.                                                             
       (5) The use of contractor-operated civil engineering supply stores  
   ensures the best price and best buy for the Government.                 
       (6) Ninety-five percent of the cost savings realized through the use
   of contractor-operated civil engineering supply stores is due to savings
   in the cost of actually procuring supplies.                             
       (7) In the past 30 years, private contractors have never lost a cost
   comparison conducted pursuant to the criteria set forth in Office of    
   Management and Budget Circular A 76 for the provision of civil          
   engineering supplies to the Government.                                 
     (c) Conditions on Multi-Function Contracts.--A civil engineering     
  supplies function that is performed, as of the date of the enactment of 
  this Act, by a contractor-operated civil engineering supply store may   
  not be combined with another supply function or any service function,   
  including any base operating support function, for purposes of          
  competition or contracting, until 60 days after the date on which the   
  Secretary of Defense submits to Congress a report--                     
       (1) notifying Congress of the proposed combined competition or      
   contract; and                                                           
       (2) explaining why a combined competition or contract is the best   
   method by which to achieve cost savings and efficiencies to the         
   Government.                                                             
     (d) GAO Reviews.--Not later than 50 days after the date on which the 
  Secretary of Defense submits a report to Congress under subsection (c), 
  the Comptroller General shall review the report and submit to Congress a
  briefing regarding whether the cost savings and efficiencies identified 
  in the report are achievable.                                           
     (e) Relationship to Other Laws.--If a civil engineering supplies     
  function covered by subsection (c) is proposed for combination with a   
  supply or service function that is subject to                           

                    the study and reporting requirements of section 2461 of title 
          10, United States Code, the Secretary of Defense may include the report 
          required under subsection (c) as part of the report under such section. 

                    SEC. 346. CONDITIONS ON EXPANSION OF FUNCTIONS PERFORMED UNDER
          PRIME VENDOR CONTRACTS FOR DEPOT-LEVEL MAINTENANCE AND REPAIR.          
     (a) Conditions on Expanded Use.--The Secretary of Defense or the     
  Secretary of a military department, as the case may be, may not enter   
  into a prime vendor contract for depot-level maintenance and repair of a
  weapon system or other military equipment described in section          
  2464(a)(3) of title 10, United States Code, before the end of the 30-day
  period beginning on the date on which the Secretary submits to Congress 
  a report, specific to the proposed contract, that--                     
       (1) describes the competitive procedures to be used to award the    
   prime vendor contract; and                                              
       (2) contains an analysis of costs and benefits that demonstrates    
   that use of the prime vendor contract will result in savings to the     
   Government over the life of the contract.                               
    (b)  Definitions.--In this section:                                   

       (1) The term ``prime vendor contract'' means an innovative contract 
   that gives a defense contractor the responsibility to manage, store, and
   distribute inventory, manage and provide services, or manage and perform
   research, on behalf of the Department of Defense on a frequent, regular 
   basis, for users within the Department on request. The term includes    
   contracts commonly referred to as prime vendor support contracts,       
   flexible sustainment contracts, and direct vendor delivery contracts.   
       (2) The term ``depot-level maintenance and repair'' has the meaning 
   given such term in section 2460 of title 10, United States Code.        
     (c) Relationship to Other Laws.--Nothing in this section shall be    
  construed to exempt a prime vendor contract from the requirements of    
  section 2461 of title 10, United States Code, or any other provision of 
  chapter 146 of such title.                                              

                    SEC. 347. BEST COMMERCIAL INVENTORY PRACTICES FOR MANAGEMENT  
          OF SECONDARY SUPPLY ITEMS.                                              
     (a) Development and Submission of Schedule.--Not later than 180 days 
  after the date of the enactment of this Act, the Secretary of each      
  military department shall submit to Congress a schedule for implementing
  within the military department, for secondary supply items managed by   
  that military department, inventory practices identified by the         
  Secretary as being the best commercial inventory practices for the      
  acquisition and distribution of such supply items consistent with       
  military requirements. The schedule shall provide for the implementation
  of such practices to be completed not later than five years after the   
  date of the enactment of this Act.                                      
     (b) Definition.--For purposes of this section, the term ``best       
  commercial inventory practice'' includes cellular repair processes, use 
  of third-party logistics providers, and any other practice that the     
  Secretary of the military department determines will enable the military
  department to reduce inventory levels while improving the responsiveness
  of the supply system to user needs.                                     
     (c) GAO Reports on Military Department and Defense Logistics Agency  
  Schedules.--(1) Not later than 240 days after the date of the enactment 
  of this Act, the Comptroller General shall submit to Congress a report  
  evaluating the extent to which the Secretary of each military department
  has complied with the requirements of this section.                     
     (2) Not later than 18 months after the date on which the Director of 
  the Defense Logistics Agency submits to Congress a schedule for         
  implementing best commercial inventory practices under section 395 of   
  the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
  105 85; 111 Stat. 1718; 10 U.S.C. 2458 note), the Comptroller General   
  shall submit to Congress an evaluation of the extent to which best      
  commercial                                                              

                    inventory practices are being implemented in the Defense      
          Logistics Agency in accordance with that schedule.                      
          SEC. 348. PERSONNEL REDUCTIONS IN ARMY MATERIEL COMMAND.                

     Not later than March 31, 1999, the Comptroller General shall submit  
  to the congressional defense committees a report concerning--           
       (1) the effect that the quadrennial defense review's proposed       
   personnel reductions in the Army Materiel Command will have on workload 
   and readiness if implemented; and                                       
       (2) the projected cost savings from such reductions and the manner  
   in which such savings are expected to be achieved.                      

          SEC. 349. INVENTORY MANAGEMENT OF IN-TRANSIT ITEMS.                     

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

     (2) Statements of objectives.                                         

     (3) Performance measures and schedules.                               

       (4) An identification of any resources necessary for implementing   
   the required actions, together with an estimate of the annual costs.    
     (e) GAO Reviews.--(1) Not later than 60 days after the date on which 
  the Secretary of Defense submits the plan to Congress, the Comptroller  
  General shall review the plan and submit to Congress any comments that  
  the Comptroller General considers appropriate regarding the plan.       
     (2) The Comptroller General shall monitor any implementation of the  
  plan and, not later than one year after the date referred to in         
  paragraph (1), submit to Congress an assessment of the extent to which  
  the plan has been implemented.                                          

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

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

                    in the private sector functions similar to the functions      
          performed by the Defense Automated Printing Service. If such a person   
          obtains any privileged information (as defined by the Secretary of      
          Defense) as a result of participating in the review, the person may not 
          receive a contract, either through the Department of Defense or the     
          Government Printing Office, to provide services for the Department of   
          Defense similar to the functions performed by the Defense Automated     
          Printing Service for a one-year period beginning on the date the report 
          is submitted to the Secretary of Defense under subsection (e).          
     (d) Elements of Review.--In performing the review under this section,
  the entity selected under subsection (b) shall specifically address the 
  following:                                                              
     (1) The functions performed by the Defense Automated Printing Service.

       (2) The functions of the Defense Automated Printing Service that are
   inherently national security functions and, as such, need to be         
   performed within the Department of Defense.                             
       (3) The functions of the Defense Automated Printing Service that are
   appropriate for transfer to another appropriate entity to perform,      
   including a private sector entity.                                      
       (4) The appropriate management structure of the Defense Automated   
   Printing Service, the effectiveness of the current structure of the     
   Defense Automated Printing Service in supporting current and future     
   customer requirements, and any plans to address any deficiencies in     
   supporting such requirements.                                           
       (5) The current and future requirements of customers of the Defense 
   Automated Printing Service.                                             
       (6) The best business practices that are used by the Defense        
   Automated Printing Service and other best business practices that could 
   be used by the Defense Automated Printing Service.                      
       (7) Options for maximizing the Defense Automated Printing Service   
   structure and services to provide the most cost effective service to its
   customers.                                                              
     (e) Report on Results of Review.--The entity performing the review   
  under this section shall submit to the Secretary of Defense a report    
  that sets forth the results of the review. In addition to specifically  
  addressing the matters specified in subsection (d), the report shall    
  also include the following:                                             
       (1) A list of all sites where functions of the Defense Automated    
   Printing Service are performed by the Defense Automated Printing        
   Service.                                                                
       (2) The total number of the personnel employed by the Defense       
   Automated Printing Service and the locations where the personnel perform
   the duties as employees.                                                
       (3) For each site identified under paragraph (1), an assessment of  
   each type of equipment at the site.                                     
       (4) The types and explanation of the networking and technology      
   integration linking all of the sites referred to in paragraph (1).      
       (5) For each function of the Defense Automated Printing Service     
   determined to be an inherently national security function under         
   subsection (d)(2), a detailed justification for the determination.      
       (6) For each function of the Defense Automated Printing Service     
   determined to be appropriate for transfer under subsection (d)(3), a    
   detailed assessment of the costs or savings associated with the         
   transfer.                                                               
     (f) Review and Comments of Secretary of Defense.--(1) After reviewing
  the report submitted under subsection (e), the Secretary of Defense     
  shall submit the report to Congress. The Secretary shall include with   
  the report the following:                                               
     (1) The Secretary's comments and recommendations regarding the report.

       (2) A plan to transfer to another appropriate entity, or contract   
   with another appropriate entity for, the performance of the functions of
   the Defense Automated Printing Service that--                           
       (A) are not identified in the review as being inherently national   
   security functions; and                                                 

       (B) the Secretary believes should be transferred or contracted for  
   performance outside the Department of Defense in accordance with law.   
       (3) Any recommended legislation and any administrative action that  
   is necessary for transferring or contracting for the performance of the 
   functions.                                                              
     (g) Extension of Requirement for Competitive Procurement of          
  Services.--Section 351(a) of the National Defense Authorization Act for 
  Fiscal Year 1996 (Public Law 104 106; 110 Stat. 266), as amended by     
  section 351(a) of the National Defense Authorization Act for Fiscal Year
  1997 (Public Law 104 201; 110 Stat. 2490) and section 387(a)(1) of the  
  National Defense Authorization Act for Fiscal Year 1998 (Public Law 105 
  85; 111 Stat. 1713), is further amended by striking out ``1998'' and    
  inserting in lieu thereof ``1999''.                                     
                    SEC. 351. DEVELOPMENT OF PLAN FOR ESTABLISHMENT OF CORE       
          LOGISTICS CAPABILITIES FOR MAINTENANCE AND REPAIR OF C 17 AIRCRAFT.     
     (a) Plan Required.--Not later than March 1, 1999, the Secretary of   
  the Air Force shall submit to Congress a plan for the establishment of  
  the core logistics capabilities for the C 17 aircraft consistent with   
  the requirements of section 2464 of title 10, United States Code.       
     (b) Effect on Existing Contract.--After March 1, 1999, the Secretary 
  of the Air Force may not extend the Interim Contract for the C 17       
  Flexible Sustainment Program before the end of the 60-day period        
  beginning on the date on which the plan required by subsection (a) is   
  received by Congress.                                                   
     (c) Comptroller General Review.--During the period specified in      
  subsection (b), the Comptroller General shall review the plan required  
  under subsection (a) and submit to Congress a report evaluating the     
  merits of the plan.                                                     

             SUBTITLE F--COMMISSARIES AND NONAPPROPRIATED FUND INSTRUMENTALITIES  

                    SEC. 361. CONTINUATION OF MANAGEMENT AND FUNDING OF DEFENSE   
          COMMISSARY AGENCY THROUGH THE OFFICE OF THE SECRETARY OF DEFENSE.       
     (a) Management and Funding Responsibilities.--Section 192 of title   
  10, United States Code, is amended by adding at the end the following   
  new subsection:                                                         
     ``(d) Special Rule for Defense Commissary Agency.--Notwithstanding   
  the results of any periodic review under subsection (c) with regard to  
  the Defense Commissary Agency, the Secretary of Defense may not transfer
  to the Secretary of a military department the responsibility to manage  
  and fund the provision of services and supplies provided by the Defense 
  Commissary Agency unless the transfer of the management and funding     
  responsibility is specifically authorized by a law enacted after the    
  date of the enactment of this subsection.''.                            
     (b) Governing Board.--Section 2482 of such title is amended by adding
  at the end the following new subsection:                                
     ``(c) Governing Board.--(1) Notwithstanding section 192(d) of this   
  title, the Secretary of Defense shall establish a governing board for   
  the commissary system to provide advice to the Secretary regarding the  
  prudent operation of the commissary system and to assist in the overall 
  supervision of the Defense Commissary Agency. The Secretary may         
  authorize the board to have such supervisory authority as the Secretary 
  considers appropriate to permit the board to carry out its              
  responsibilities.                                                       
     ``(2) The Secretary of Defense shall determine the membership of the 
  governing board, which shall include, at a minimum, appropriate         
  representatives from each military department.                          
     ``(3) The governing board shall be accountable only to the Secretary 
  of Defense and to the civilian officer of the Department of Defense who 
  is assigned the responsibility for the overall                          

                    supervision of the Defense Commissary Agency pursuant to      
          section 192(a) of this title. The Director of the Defense Commissary    
          Agency shall be accountable to and report to the board.''.              
                    SEC. 362. EXPANSION OF CURRENT ELIGIBILITY OF RESERVES FOR    
          COMMISSARY BENEFITS.                                                    
     (a) Days of Eligibility for Ready Reserve Members With 50 Creditable 
  Points.--Section 1063 of title 10, United States Code, is amended--     
     (1) by striking out subsection (b); and                               

     (2) in subsection (a)--                                               

     (A) by striking out ``(1)'';                                          

       (B) by striking out ``12 days of eligibility'' and inserting in lieu
   thereof ``24 days of eligibility''; and                                 
       (C) by striking out ``(2) Paragraph (1)'' and inserting in lieu     
   thereof ``(b) Effect of Compensation or Type of Duty.--Subsection (a)''.
     (b) Days of Eligibility for Reserve Retirees Under Age 60.--Section  
  1064 of such title is amended by striking out ``for 12 days each        
  calendar year'' and inserting in lieu thereof ``for 24 days each        
  calendar year''.                                                        
     (c) Eligibility of Members of National Guard Serving in Federally    
  Declared Disaster.--Chapter 54 of such title is amended by inserting    
  after section 1063 the following new section:                           
                    ``1063a. Use of commissary stores and MWR retail facilities:  
          members of National Guard serving in federally declared disaster        
     ``(a) Eligibility of Members.--A member of the National Guard who,   
  although not in Federal service, is called or ordered to duty in        
  response to a federally declared disaster shall be permitted to use     
  commissary stores and MWR retail facilities during the period of such   
  duty on the same basis as members of the armed forces on active duty.   
     ``(b) Eligibility of Dependents.--A dependent of a member of the     
  National Guard who is permitted under subsection (a) to use commissary  
  stores and MWR retail facilities shall be permitted to use such stores  
  and facilities, during the same period as the member, on the same basis 
  as dependents of members of the armed forces on active duty.            
    ``(c)  Definitions.--In this section:                                 

       ``(1) Federally declared disaster.--The term `federally declared    
   disaster' means a disaster or other situation for which a Presidential  
   declaration of major disaster is issued under section 401 of the Robert 
   T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.     
   5170).                                                                  
       ``(2) MWR retail facilities.--The term `MWR retail facilities' has  
   the meaning given that term in section 1065(e) of this title.''.        
     (d) Section Headings.--(1) The heading of section 1063 of such title 
  is amended to read as follows:                                          
                    ``1063. Use of commissary stores: members of Ready Reserve    
          with at least 50 creditable points''.                                   
     (2) The heading of section 1064 of such title is amended to read as  
  follows:                                                                
                    ``1064. Use of commissary stores: persons qualified for       
          retired pay under chapter 1223 but under age 60''.                      
     (e) Clerical Amendment.--The table of sections at the beginning of   
  chapter 54 of such title is amended by striking out the items relating  
  to sections 1063 and 1064 and inserting in lieu thereof the following   
  items:                                                                  


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

                    SEC. 363. COSTS PAYABLE TO THE DEPARTMENT OF DEFENSE AND OTHER
          FEDERAL AGENCIES FOR SERVICES PROVIDED TO THE DEFENSE COMMISSARY AGENCY.
     (a) Limitation.--Section 2482(b)(1) of title 10, United States Code, 
  is amended by adding at the end the following:                          

                     ``However, the Defense Commissary Agency may not pay for any 
          such service provided by the United States Transportation Command any   
          amount that exceeds the price at which the service could be procured    
          through full and open competition, as such term is defined in section   
          4(6) of the Office of Federal Procurement Policy Act (41 U.S.C.         
          403(6)).''.                                                             
     (b) Effective Date.--The amendment made by subsection (a) shall apply
  with respect to services provided or obtained on or after the date of   
  the enactment of this Act.                                              

                    SEC. 364. COLLECTION OF DISHONORED CHECKS PRESENTED AT        
          COMMISSARY STORES.                                                      
     Section 2486 of title 10, United States Code, is amended by adding at
  the end the following new subsection:                                   
     ``(g) Collection of Dishonored Checks.--(1) The Secretary of Defense 
  may impose a charge for the collection of a check accepted at a         
  commissary store that is not honored by the financial institution on    
  which the check is drawn. The imposition and amounts of charges shall be
  consistent with practices of commercial grocery stores regarding        
  dishonored checks.                                                      
     ``(2)(A) The following persons are liable to the United States for   
  the amount of a check referred to in paragraph (1) that is returned     
  unpaid to the United States, together with any charge imposed under that
  paragraph:                                                              
     ``(i) The person who presented the check.                             

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

                    SEC. 365. RESTRICTIONS ON PATRON ACCESS TO, AND PURCHASES IN, 
          OVERSEAS COMMISSARIES AND EXCHANGE STORES.                              
     (a) Authority to Impose Restrictions; Limitations on                 
  Authority.--Chapter 147 of title 10, United States Code, is amended by  
  adding at the end the following new section:                            
                    ``2492. Overseas commissary and exchange stores: access and   
          purchase restrictions                                                   
     ``(a) General Authority.--(1) The Secretary of Defense may establish 
  restrictions on the ability of eligible patrons of commissary and       
  exchange stores located outside of the United States to purchase certain
  merchandise items (or the quantity of certain merchandise items)        
  otherwise included within an authorized merchandise category if the     
  Secretary determines that such restrictions are necessary to prevent the
  resale of such merchandise in violation of treaty obligations of the    
  United States or host nation laws (to the extent such laws are not      
  inconsistent with United States laws).                                  
    ``(2) In establishing a quantity or other restriction, the Secretary--

       ``(A) may not discriminate among the various categories of eligible 
   patrons of the commissary and exchange system; and                      
       ``(B) shall ensure that the restriction is consistent with the      
   purpose of the overseas commissary and exchange system to provide       
   reasonable access for eligible patrons to purchase merchandise items    
   made in the United States.                                              
     ``(b) Controlled Item Lists.--For each location outside the United   
  States that is served by the commissary system or the exchange system,  
  the Secretary of Defense may maintain                                   

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


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

                    SEC. 366. REPEAL OF REQUIREMENT FOR AIR FORCE TO SELL TOBACCO 
          PRODUCTS TO ENLISTED PERSONNEL.                                         
     (a) Repeal.--Section 9623 of title 10, United States Code, is        
  repealed.                                                               
     (b) Clerical Amendment.--The table of sections at the beginning of   
  chapter 939 of such title is amended by striking out the item relating  
  to section 9623.                                                        
                    SEC. 367. PROHIBITION ON CONSOLIDATION OR OTHER ORGANIZATIONAL
          CHANGES OF DEPARTMENT OF DEFENSE RETAIL SYSTEMS.                        
     (a) Defense Retail Systems Defined.--For purposes of this section,   
  the term ``defense retail systems'' means the defense commissary system 
  and exchange stores and other revenue-generating facilities operated by 
  nonappropriated fund activities of the Department of Defense for the    
  morale, welfare, and recreation of members of the Armed Forces.         
     (b) Prohibition.--The operation and administration of the defense    
  retail systems may not be consolidated or otherwise merged unless the   
  consolidation or merger is specifically authorized by a law enacted     
  after the date of the enactment of this Act.                            
     (c) Effect on Existing Study.--Nothing in this section shall be      
  construed to prohibit the study of defense retail systems, known as the 
  ``Joint Exchange Due Diligence Study'', which is underway on the date of
  the enactment of this Act pursuant to a contract awarded by the         
  Department of the Navy on April 21, 1998, except that any recommendation
  contained in the completed study regarding the operation or             
  administration of the defense retail systems may not be implemented     
  unless implementation of the recommendation is specifically authorized  
  by a law enacted after the date of the enactment of this Act.           
          SEC. 368. DEFENSE COMMISSARY AGENCY TELECOMMUNICATIONS.                 

     (a) Use of FTS2000/2001.--The Secretary of Defense shall prescribe in
  regulations authority for the Defense Commissary Agency to meet its     
  telecommunication requirements by obtaining telecommunication services  
  and related items under the FTS2000/2001 contract.                      
     (b) Report.--Upon the initiation of telecommunication service for the
  Defense Commissary Agency under the FTS2000/2001 contract, the Secretary
  of Defense shall submit to Congress a notification that the service has 
  been initiated.                                                         
     (c) Definition.--In this section, the term ``FTS2000/2001 contract'' 
  means the contract for the provision of telecommunication services for  
  the Federal Government that was entered into by the Defense Information 
  Technology Contract Organization.                                       

                    SEC. 369. SURVEY OF COMMISSARY STORE PATRONS REGARDING        
          SATISFACTION WITH COMMISSARY STORE MERCHANDISE.                         
     (a) Patron Survey.--The Secretary of Defense shall enter into a      
  contract with a commercial survey firm to conduct a survey of eligible  
  patrons of the commissary store system to determine patron satisfaction 
  with the merchandise sold in                                            

                    commissary stores, including patron views on product quality, 
          prices, assortment, and such other matters as the Secretary considers   
          appropriate.                                                            
     (b) Survey Location.--The survey shall be conducted at not less than 
  three military installations in the United States of each of the Armed  
  Forces (other than the Coast Guard).                                    
     (c) Report on Results.--The survey shall be completed, and the       
  results submitted to the Secretary of Defense, the Committee on Armed   
  Services of the Senate, and the Committee on National Security of the   
  House of Representatives, not later than February 28, 1999.             

                                  SUBTITLE G--OTHER MATTERS                       

                    SEC. 371. ELIGIBILITY REQUIREMENTS FOR ATTENDANCE AT          
          DEPARTMENT OF DEFENSE DOMESTIC DEPENDENT ELEMENTARY AND SECONDARY       
          SCHOOLS.                                                                
     (a) Dependents of Members Residing in Certain Areas.--Subsection (a) 
  of section 2164 of title 10, United States Code, is amended--           
     (1) by designating the first sentence as paragraph (1);               

     (2) by designating the second sentence as paragraph (2); and          

       (3) by adding at the end of paragraph (2) (as so designated) the    
   following new sentence: ``If a member of the armed forces is assigned to
   a remote location or is assigned to an unaccompanied tour of duty, a    
   dependent of the member who resides, on or off a military installation, 
   in a territory, commonwealth, or possession of the United States, as    
   authorized by the member's orders, may be enrolled in an educational    
   program provided by the Secretary under this subsection.''.             
     (b) Waiver of Five-Year Attendance Limitation.--Subsection (c)(2) of 
  such section is amended by striking out subparagraph (B) and inserting  
  in lieu thereof the following new subparagraph:                         
     ``(B) At the discretion of the Secretary, a dependent referred to in 
  subparagraph (A) may be enrolled in the program for more than five      
  consecutive school years if the dependent is otherwise qualified for    
  enrollment, space is available in the program, and the Secretary will be
  reimbursed for the educational services provided. Any such extension    
  shall cover only one school year at a time.''.                          
     (c) Customs Service Employee Dependents in Puerto Rico.--(1)         
  Subsection (c)(1) of such section is amended--                          
     (A) by inserting ``(A)'' after ``(1)''; and                           

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

     ``(B) A dependent of a United States Customs Service employee who    
  resides in Puerto Rico, but not on a military installation, may enroll  
  in an educational program provided by the Secretary pursuant to         
  subsection (a) in Puerto Rico in accordance with the same rules as apply
  to a dependent of a Federal employee residing in permanent living       
  quarters on a military installation.''.                                 
     (2) Subsection (c)(2) of such section is further amended by adding at
  the end the following new subparagraph:                                 
     ``(D) Subparagraph (A) shall not apply to a dependent covered by     
  paragraph (1)(B). No requirement under this paragraph for reimbursement 
  for educational services provided for the dependent shall apply with    
  respect to the dependent, except that the Secretary may require the     
  United States Customs Service to reimburse the Secretary for the cost of
  the educational services provided for the dependent.''.                 
     (3) The amendments made by this subsection shall apply with respect  
  to academic years beginning on or after the date of the enactment of    
  this Act.                                                               
                    SEC. 372. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT       
          BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF     
          DEFENSE CIVILIAN EMPLOYEES.                                             
     (a) Continuation of Department of Defense Program for Fiscal Year    
  1999.--Of the amount authorized to be appropriated pursuant to section  
  301(5) for operation and maintenance for Defense-wide activities--      

       (1) $30,000,000 shall be available only for the purpose of providing
   educational agencies assistance (as defined in subsection (d)(1)) to    
   local educational agencies; and                                         
       (2) $5,000,000 shall be available only for the purpose of making    
   educational agencies payments (as defined in subsection (d)(2)) to local
   educational agencies.                                                   
     (b) Notification.--Not later than June 30, 1999, the Secretary of    
  Defense shall--                                                         
       (1) notify each local educational agency that is eligible for       
   educational agencies assistance for fiscal year 1999 of that agency's   
   eligibility for such assistance and the amount of such assistance for   
   which that agency is eligible; and                                      
       (2) notify each local educational agency that is eligible for an    
   educational agencies payment for fiscal year 1999 of that agency's      
   eligibility for such payment and the amount of the payment for which    
   that agency is eligible.                                                
     (c) Disbursement of Funds.--The Secretary of Defense shall disburse  
  funds made available under paragraphs (1) and (2) of subsection (a) not 
  later than 30 days after the date on which notification to the eligible 
  local educational agencies is provided pursuant to subsection (b).      
    (d)  Definitions.--In this section:                                   

       (1) The term ``educational agencies assistance'' means assistance   
   authorized under section 386(b) of the National Defense Authorization   
   Act for Fiscal Year 1993 (Public Law 102 484; 20 U.S.C. 7703 note).     
       (2) The term ``educational agencies payments'' means payments       
   authorized under section 386(d) of the National Defense Authorization   
   Act for Fiscal Year 1993 (Public Law 102 484; 20 U.S.C. 7703 note).     
       (3) The term ``local educational agency'' has the meaning given that
   term in section 8013(9) of the Elementary and Secondary Education Act of
   1965 (20 U.S.C. 7713(9)).                                               

          SEC. 373. DEPARTMENT OF DEFENSE READINESS REPORTING SYSTEM.             

     (a) Establishment of System.--(1) Chapter 2 of title 10, United      
  States Code, is amended by inserting after section 116 the following new
  section:                                                                
                    ``117. Readiness reporting system: establishment; reporting to
          congressional committees                                                
     ``(a) Required Readiness Reporting System.--The Secretary of Defense 
  shall establish a comprehensive readiness reporting system for the      
  Department of Defense. The readiness reporting system shall measure in  
  an objective, accurate, and timely manner the capability of the armed   
  forces to carry out--                                                   
       ``(1) the National Security Strategy prescribed by the President in 
   the most recent annual national security strategy report under section  
   108 of the National Security Act of 1947 (50 U.S.C. 404a);              
       ``(2) the defense planning guidance provided by the Secretary of    
   Defense pursuant to section 113(g) of this title; and                   
       ``(3) the National Military Strategy prescribed by the Chairman of  
   the Joint Chiefs of Staff.                                              
     ``(b) Readiness Reporting System Characteristics.--In establishing   
  the readiness reporting system, the Secretary shall ensure--            
       ``(1) that the readiness reporting system is applied uniformly      
   throughout the Department of Defense;                                   
       ``(2) that information in the readiness reporting system is         
   continually updated, with any change in the overall readiness status of 
   a unit, an element of the training establishment, or an element of      
   defense infrastructure, that is required to be reported as part of the  
   readiness reporting system, being reported within 24 hours of the event 
   necessitating the change in readiness status; and                       
       ``(3) that sufficient resources are provided to establish and       
   maintain the system so as to allow reporting of changes in readiness    
   status as required by this section.                                     

     ``(c) Capabilities.--The readiness reporting system shall measure    
  such factors relating to readiness as the Secretary prescribes, except  
  that the system shall include the capability to do each of the          
  following:                                                              
       ``(1) Measure, on a monthly basis, the capability of units (both as 
   elements of their respective armed force and as elements of joint       
   forces) to conduct their assigned wartime missions.                     
       ``(2) Measure, on a quarterly basis, the capability of training     
   establishments to provide trained and ready forces for wartime missions.
       ``(3) Measure, on a quarterly basis, the capability of defense      
   installations and facilities and other elements of Department of Defense
   infrastructure, both in the United States and abroad, to provide        
   appropriate support to forces in the conduct of their wartime missions. 
       ``(4) Measure, on a monthly basis, critical warfighting deficiencies
   in unit capability.                                                     
       ``(5) Measure, on a quarterly basis, critical warfighting           
   deficiencies in training establishments and defense infrastructure.     
       ``(6) Measure, on a monthly basis, the level of current risk based  
   upon the readiness reporting system relative to the capability of forces
   to carry out their wartime missions.                                    
     ``(d) Quarterly and Monthly Joint Readiness Reviews.--(1) The        
  Chairman of the Joint Chiefs of Staff shall--                           
     ``(A) on a quarterly basis, conduct a joint readiness review; and     

       ``(B) on a monthly basis, review any changes that have been reported
   in readiness since the previous joint readiness review.                 
     ``(2) The Chairman shall incorporate into both the joint readiness   
  review required under paragraph (1)(A) and the monthly review required  
  under paragraph (1)(B) the current information derived from the         
  readiness reporting system and shall assess the capability of the armed 
  forces to execute their wartime missions based upon their posture at the
  time the review is conducted. The Chairman shall submit to the Secretary
  of Defense the results of each review under paragraph (1), including the
  deficiencies in readiness identified during that review.                
     ``(e) Submission to Congressional Committees.--The Secretary shall   
  each month submit to the Committee on Armed Services and the Committee  
  on Appropriations of the Senate and the Committee on National Security  
  and the Committee on Appropriations of the House of Representatives a   
  report in writing containing the results of the most recent joint       
  readiness review or monthly review conducted under subsection (d),      
  including the current information derived from the readiness reporting  
  system. Each such report shall be submitted in unclassified form and    
  may, as the Secretary determines necessary, also be submitted in        
  classified form.                                                        
     ``(f) Regulations.--The Secretary shall prescribe regulations to     
  carry out this section. In those regulations, the Secretary shall       
  prescribe the units that are subject to reporting in the readiness      
  reporting system, what type of equipment is subject to such reporting,  
  and the elements of the training establishment and of defense           
  infrastructure that are subject to such reporting.''.                   
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 116 the following new   
  item:                                                                   


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


     (b) Implementation.--The Secretary of Defense shall establish and    
  implement the readiness reporting system required by section 117 of     
  title 10, United States Code, as added by subsection (a), so as to      
  ensure that the capabilities required by subsection (c) of that section 
  are attained not later than January 15, 2000.                           
     (c) Implementation Plan.--Not later than March 1, 1999, the Secretary
  of Defense shall submit to Congress a report setting forth the          
  Secretary's plan for implementation of                                  

          section 117 of title 10, United States Code, as added by subsection (a).

     (d) Repeal of Quarterly Readiness Report Requirement.--(1) Effective 
  January 15, 2000, or the date on which the first report of the Secretary
  of Defense is submitted under section 117(e) of title 10, United States 
  Code, as added by subsection (a), whichever is later, the Secretary of  
  Defense shall cease to submit reports under section 482 of title 10,    
  United States Code.                                                     
    (2) Effective June 1, 2001--                                          

     (A) section 482 of title 10, United States Code, is repealed; and     

       (B) the table of sections at the beginning of chapter 23 of such    
   title is amended by striking out the item relating to that section.     
                    SEC. 374. SPECIFIC EMPHASIS OF PROGRAM TO INVESTIGATE FRAUD,  
          WASTE, AND ABUSE WITHIN DEPARTMENT OF DEFENSE.                          
     Section 392 of the National Defense Authorization Act for Fiscal Year
  1998 (Public Law 105 85; 10 U.S.C. 113 note) is amended by inserting    
  before the period the following: ``and any fraud, waste, and abuse      
  occurring in connection with overpayments made to vendors by the        
  Department of Defense, including overpayments identified under section  
  354 of the National Defense Authorization Act for Fiscal Year 1996      
  (Public Law 104 106; 10 U.S.C. 2461 note)''.                            
                    SEC. 375. CONDITION FOR PROVIDING FINANCIAL ASSISTANCE FOR    
          SUPPORT OF ADDITIONAL DUTIES ASSIGNED TO THE ARMY NATIONAL GUARD.       
     (a) Competitive Source Selection.--Section 113(b) of title 32, United
  States Code, is amended to read as follows:                             
     ``(b) Covered Activities.--(1) Except as provided in paragraph (2),  
  financial assistance may be provided for the performance of an activity 
  by the Army National Guard under subsection (a) only if--               
       ``(A) the activity is carried out in the performance of a           
   responsibility of the Secretary of the Army under paragraph (6), (10),  
   or (11) of section 3013(b) of title 10; and                             
       ``(B) the Army National Guard was selected to perform the activity  
   under competitive procedures that permit all qualified public-sector and
   private-sector sources to submit offers and be considered for selection 
   to perform the activity on the basis of the offers.                     
     ``(2) Paragraph (1)(B) does not apply to an activity that, on the    
  date of the enactment of this subsection, was performed for the Federal 
  Government by employees of the Federal Government or employees of a     
  State.''.                                                               
     (b) Prospective Applicability.--Subsection (b)(1)(B) of section 113  
  of title 32, United States Code (as added by subsection (a) of this     
  section), does not apply to--                                           
       (1) financial assistance provided under that section before October 
   1, 1998; or                                                             
       (2) financial assistance for an activity that, before May 9, 1998,  
   the Secretary of the Army identified in writing as being under          
   consideration for supporting with financial assistance under that       
   section.                                                                

                    SEC. 376. DEMONSTRATION PROGRAM TO IMPROVE QUALITY OF PERSONAL
          PROPERTY SHIPMENTS OF MEMBERS.                                          
     (a) Definition.--In this section, the term ``current demonstration   
  program'' means the pilot program to improve the movement of household  
  goods of members of the Armed Forces that is identified in the          
  re-engineering pilot solicitation of the Military Traffic Management    
  Command designated as DAMTO1 97 R 3001.                                 
     (b) Completion of Current Demonstration Program.--The Secretary of   
  Defense shall complete the current demonstration program to improve the 
  quality of personal property shipments within the Department of Defense 
  not later than October 1, 1999.                                         
     (c) Evaluations of Current and Alternative Demonstrations.--(1) Not  
  later than August 31, 1999, the Secretary                               

          of Defense shall submit to Congress a report evaluating the following:  

       (A) Whether the current demonstration program, as implemented, meets
   the goals for the current demonstration program previously agreed upon  
   between the Department of Defense and representatives of private sector 
   entities involved in the transportation of household goods for members  
   of the Armed Forces, as such goals are contained in the report of the   
   Comptroller General designated as report ``NSIAD 97 49''.               
       (B) Whether the demonstration program contained in the proposal     
   prepared for the Secretary of Defense by private sector entities        
   involved in the transportation of household goods for members of the    
   Armed Forces as an alternative to the current demonstration program     
   would, if implemented, be likely to meet the goals for the current      
   demonstration program.                                                  
     (2) The Secretary shall also submit to Congress interim reports      
  regarding the progress of the current demonstration program not later   
  than January 15, 1999, and April 15, 1999.                              
     (d) Prohibition.--The Secretary of Defense may not exercise any      
  option with respect to the current demonstration program that would have
  the effect of extending the current demonstration program after October 
  1, 1999, or otherwise continue the current demonstration program after  
  that date, until the end of the 30-day period beginning on the date on  
  which the Secretary submits the report required under subsection (c)(1).
                    SEC. 377. PILOT PROGRAM FOR ACCEPTANCE AND USE OF LANDING FEES
          CHARGED FOR USE OF DOMESTIC MILITARY AIRFIELDS BY CIVIL AIRCRAFT.       
     (a) Pilot Program Authorized.--The Secretary of each military        
  department may carry out a pilot program during fiscal years 1999 and   
  2000 to demonstrate the use of landing fees as a source of funding for  
  the operation and maintenance of airfields of that department. No fee   
  may be charged under the pilot program for a landing after September 30,
  2000.                                                                   
     (b) Uniform Landing Fees.--The Secretary of Defense shall prescribe  
  the landing fees, which shall be uniform for the military departments,  
  that may be imposed under a pilot program carried out under this        
  section.                                                                
     (c) Use of Proceeds.--Amounts received for a fiscal year in payment  
  of landing fees imposed under the pilot program for use of a military   
  airfield shall be credited to the appropriation that is available for   
  that fiscal year for the operation and maintenance of the military      
  airfield, shall be merged with amounts in the appropriation to which    
  credited, and shall be available for that military airfield for the same
  period and purposes as the appropriation is available.                  
     (d) Report.--Not later than March 31, 2000, the Secretary of Defense 
  shall submit to Congress a report on the pilot programs carried out     
  under this section by the Secretaries of the military departments. The  
  report shall specify the amounts of fees received and retained by each  
  military department under its pilot program as of December 31, 1999.    
          SEC. 378. STRATEGIC PLAN FOR EXPANSION OF DISTANCE LEARNING INITIATIVES.

     (a) Plan Required.--The Secretary of Defense shall develop a         
  strategic plan for guiding and expanding distance learning initiatives  
  within the Department of Defense. The plan shall provide for an         
  expansion of such initiatives over five consecutive fiscal years        
  beginning with fiscal year 2000.                                        
     (b) Content of Plan.--The strategic plan shall contain, at a minimum,
  the following:                                                          
       (1) A statement of measurable goals and objectives and              
   outcome-related performance indicators (consistent with section 1115 of 
   title 31, United States Code, relating to agency performance plans) for 
   the development and execution of distance learning initiatives          
   throughout the Department of Defense.                                   

       (2) A detailed description of how distance learning initiatives are 
   to be developed and managed within the Department of Defense.           
       (3) An assessment of the estimated costs and the benefits associated
   with developing and maintaining an appropriate infrastructure for       
   distance learning.                                                      
       (4) A statement of planned expenditures for the investments         
   necessary to build and maintain that infrastructure.                    
       (5) A description of the mechanisms that are to be used to supervise
   the development and coordination of the distance learning initiatives of
   the Department of Defense.                                              
     (c) Relationship to Existing Initiative.--In developing the strategic
  plan, the Secretary may take into account the ongoing collaborative     
  effort among the Department of Defense, other Federal agencies, and     
  private industry that is known as the Advanced Distribution Learning    
  initiative. However, the Secretary shall ensure that the strategic plan 
  is specifically focused on the training and education goals and         
  objectives of the Department of Defense.                                
     (d) Submission to Congress.--The Secretary of Defense shall submit   
  the strategic plan to Congress not later than March 1, 1999.            
                    SEC. 379. PUBLIC AVAILABILITY OF OPERATING AGREEMENTS BETWEEN 
          MILITARY INSTALLATIONS AND FINANCIAL INSTITUTIONS.                      
     With respect to an agreement between the commander of a military     
  installation in the United States (or the designee of such an           
  installation commander) and a financial institution that permits,       
  allows, or otherwise authorizes the provision of financial services by  
  the financial institution on the military installation, nothing in the  
  terms or nature of such an agreement shall be construed to exempt the   
  agreement from the provisions of sections 552 and 552a of title 5,      
  United States Code.                                                     

                         TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS              


                                  SUBTITLE A--ACTIVE FORCES                       

      Sec. 401. End strengths for active forces.                              

      Sec. 402. Revision in permanent end strength levels.                    

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

            Sec. 404. Additional exemption from percentage limitation on      
      number of lieutenant generals and vice admirals.                        
            Sec. 405. Extension of authority for Chairman of the Joint Chiefs 
      of Staff to designate up to 12 general and flag officer positions to be 
      excluded from general and flag officer grade limitations.               
            Sec. 406. Exception for Chief, National Guard Bureau, from        
      limitation on number of officers above major general.                   
            Sec. 407. Limitation on daily average of personnel on active duty 
      in grades E 8 and E 9.                                                  
                                 SUBTITLE B--RESERVE FORCES                       

      Sec. 411. End strengths for Selected Reserve.                           

            Sec. 412. End strengths for Reserves on active duty in support of 
      the reserves.                                                           
      Sec. 413. End strengths for military technicians (dual status).         

            Sec. 414. Increase in number of members in certain grades         
      authorized to serve on active duty in support of the reserves.          
            Sec. 415. Consolidation of strength authorizations for active     
      status Naval Reserve flag officers of the Navy Medical Department Staff 
      Corps.                                                                  
                         SUBTITLE C--AUTHORIZATION OF APPROPRIATIONS              

      Sec. 421. Authorization of appropriations for military personnel.       


                                  SUBTITLE A--ACTIVE FORCES                       

          SEC. 401. END STRENGTHS FOR ACTIVE FORCES.                              

     The Armed Forces are authorized strengths for active duty personnel  
  as of September 30, 1999, as follows:                                   
     (1) The Army, 480,000.                                                

     (2) The Navy, 372,696.                                                

     (3) The Marine Corps, 172,200.                                        

     (4) The Air Force, 370,882.                                           

          SEC. 402. REVISION IN PERMANENT END STRENGTH LEVELS.                    

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

       (3) in paragraph (3), by striking out ``174,000'' and inserting in  
   lieu thereof ``172,200''; and                                           
       (4) in paragraph (4), by striking out ``371,577'' and inserting in  
   lieu thereof ``370,802''.                                               
     (b) Revision to Flexibility Authority for the Army.--Subsection (e)  
  of such section is amended by striking out ``1 percent or, in the case  
  of the Army, by not more than 1.5 percent,'' and inserting in lieu      
  thereof ``0.5 percent.''                                                
     (c) Effective Date.--The amendments made by this section shall take  
  effect on October 1, 1998.                                              
          SEC. 403. DATE FOR SUBMISSION OF ANNUAL MANPOWER REQUIREMENTS REPORT.   

    Section 115a(a) of title 10, United States Code, is amended--         

       (1) by striking out ``, not later than February 15 of each fiscal   
   year,'' in the first sentence; and                                      
       (2) by striking out ``The report shall be in writing and'' in the   
   second sentence and inserting in lieu thereof ``The report, which shall 
   be in writing, shall be submitted each year not later than 45 days after
   the date on which the President submits to Congress the budget for the  
   next fiscal year under section 1105 of title 31. The report''.          
                    SEC. 404. ADDITIONAL EXEMPTION FROM PERCENTAGE LIMITATION ON  
          NUMBER OF LIEUTENANT GENERALS AND VICE ADMIRALS.                        
     Section 525(b)(4)(B) of title 10, United States Code, is amended by  
  striking out ``six'' and inserting in lieu thereof ``seven''.           
                    SEC. 405. EXTENSION OF AUTHORITY FOR CHAIRMAN OF THE JOINT    
          CHIEFS OF STAFF TO DESIGNATE UP TO 12 GENERAL AND FLAG OFFICER POSITIONS
          TO BE EXCLUDED FROM GENERAL AND FLAG OFFICER GRADE LIMITATIONS.         
     Section 526(b)(2) of title 10, United States Code, is amended by     
  striking out ``October 1, 1998'' and inserting in lieu thereof ``October
  1, 2002''.                                                              

                    SEC. 406. EXCEPTION FOR CHIEF, NATIONAL GUARD BUREAU, FROM    
          LIMITATION ON NUMBER OF OFFICERS ABOVE MAJOR GENERAL.                   
     Section 525(b) of title 10, United States Code, is amended by adding 
  at the end the following new paragraph:                                 
     ``(6) An officer while serving as Chief of the National Guard Bureau 
  is in addition to the number that would otherwise be permitted for that 
  officer's armed force for officers serving on active duty in grades     
  above major general under paragraph (1).''.                             

                    SEC. 407. LIMITATION ON DAILY AVERAGE OF PERSONNEL ON ACTIVE  
          DUTY IN GRADES E 8 AND E 9.                                             
     (a) Fiscal Year Basis for Application of Limitation.--The first      
  sentence of section 517(a) of title 10, United States Code, is amended--
       (1) by striking out ``a calendar year'' and inserting in lieu       
   thereof ``a fiscal year''; and                                          
       (2) by striking out ``January 1 of that year'' and inserting in lieu
   thereof ``the first day of that fiscal year''.                          
     (b) Effective Date.--The amendments made by subsection (a) shall take
  effect on October 1, 1999.                                              
                                 SUBTITLE B--RESERVE FORCES                       

          SEC. 411. END STRENGTHS FOR SELECTED RESERVE.                           

     (a) In General.--The Armed Forces are authorized strengths for       
  Selected Reserve personnel of the reserve components as of September 30,
  1999, as follows:                                                       
     (1) The Army National Guard of the United States, 357,223.            

     (2) The Army Reserve, 208,003.                                        

     (3) The Naval Reserve, 90,843.                                        

     (4) The Marine Corps Reserve, 40,018.                                 

     (5) The Air National Guard of the United States, 106,992.             

     (6) The Air Force Reserve, 74,243.                                    

     (7) The Coast Guard Reserve, 8,000.                                   


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

    Whenever such units or such individual members are released from      
  active duty during any fiscal year, the end strength prescribed for such
  fiscal year for the Selected Reserve of such reserve component shall be 
  proportionately increased by the total authorized strengths of such     
  units and by the total number of such individual members.               
                    SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT
          OF THE RESERVES.                                                        
     Within the end strengths prescribed in section 411(a), the reserve   
  components of the Armed Forces are authorized, as of September 30, 1999,
  the following number of Reserves to be serving on full-time active duty 
  or full-time duty, in the case of members of the National Guard, for the
  purpose of organizing, administering, recruiting, instructing, or       
  training the reserve components:                                        
     (1) The Army National Guard of the United States, 21,986.             

     (2) The Army Reserve, 12,807.                                         

     (3) The Naval Reserve, 15,590.                                        

     (4) The Marine Corps Reserve, 2,362.                                  

     (5) The Air National Guard of the United States, 10,931.              

     (6) The Air Force Reserve, 992.                                       

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

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

     (2) For the Army National Guard of the United States, 23,125.         

     (3) For the Air Force Reserve, 9,761.                                 

     (4) For the Air National Guard of the United States, 22,408.          


                    SEC. 414. INCREASE IN NUMBER OF MEMBERS IN CERTAIN GRADES     
          AUTHORIZED TO SERVE ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.          
     (a) Officers.--The table in section 12011(a) of title 10, United     
  States Code, is amended to read as follows:                             
                                                                                 


                                                                               

``Grade                                Army    Navy    Air Force    Marine Corps  

Major or Lieutenant Commander         3,219    ,071                           23  
Lieutenant Colonel or Commander       1,524     520                         9023  
Colonel or Navy Captain                 438     188                          ''.  

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


                                                                               

``Grade      Army    Navy    Air Force    Marine Corps  

 9            623                                   17  
 8           ,585                                  ''.  


     (c) Effective Date.--The amendments made by this section shall take  
  efffect on October 1, 1998.                                             

                    SEC. 415. CONSOLIDATION OF STRENGTH AUTHORIZATIONS FOR ACTIVE 
          STATUS NAVAL RESERVE FLAG OFFICERS OF THE NAVY MEDICAL DEPARTMENT STAFF 
          CORPS.                                                                  
    Section 12004(c) of title 10, United States Code, is amended--        

     (1) in the table in paragraph (1)--                                   


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


    ``Medical Department staff corps                                      

 9'';                                                                    



   and                                                                     

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

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

     ``(ii) The Dental Corps.                                              

     ``(iii) The Nurse Corps.                                              

     ``(iv) The Medical Service Corps.                                     

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

          SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.       

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

                             TITLE V--MILITARY PERSONNEL POLICY                   


                            SUBTITLE A--OFFICER PERSONNEL POLICY                  

            Sec. 501. Codification of eligibility of retired officers and     
      former officers for consideration by special selection boards.          
            Sec. 502. Involuntary separation pay denied for officer discharged
      for failure of selection for promotion requested by the officer.        
      Sec. 503. Streamlined selective retention process for regular officers. 

            Sec. 504. Permanent applicability of limitations on years of      
      active naval service of Navy limited duty officers in grades of         
      commander and captain.                                                  
      Sec. 505. Tenure of Chief of the Air Force Nurse Corps.                 

            Sec. 506. Grade of Air Force Assistant Surgeon General for Dental 
      Services.                                                               
            Sec. 507. Review regarding allocation of Naval Reserve Officers'  
      Training Corps scholarships among participating colleges and            
      universities.                                                           
                            SUBTITLE B--RESERVE COMPONENT MATTERS                 

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

            Sec. 521. Separate housing for male and female recruits during    
      recruit basic training.                                                 
      Sec. 522. After-hours privacy for recruits during basic training.       

            Sec. 523. Sense of the House of Representatives relating to small 
      unit assignments by gender during recruit basic training.               
            Sec. 524. Extension of reporting dates for Commission on Military 
      Training and Gender-Related Issues.                                     
      Sec. 525. Improved oversight of innovative readiness training.          

                     SUBTITLE D--DECORATIONS, AWARDS, AND COMMENDATIONS           

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

            Sec. 532. Waiver of time limitations for award of certain         
      decorations to certain persons.                                         
            Sec. 533. Commendation and commemoration of the Navy and Marine   
      Corps personnel who served in the United States Navy Asiatic Fleet from 
      1910 1942.                                                              

            Sec. 534. Appreciation for service during World War I and World   
      War II by members of the Navy assigned on board merchant ships as the   
      Naval Armed Guard Service.                                              
            Sec. 535. Sense of Congress regarding the heroism, sacrifice, and 
      service of the military forces of South Vietnam, other nations, and     
      indigenous groups in connection with the United States Armed Forces     
      during the Vietnam conflict.                                            
            Sec. 536. Sense of Congress regarding the heroism, sacrifice, and 
      service of former South Vietnamese commandos in connection with United  
      States Armed Forces during the Vietnam conflict.                        
            Sec. 537. Prohibition on members of Armed Forces entering         
      correctional facilities to present decorations to persons who have      
      committed serious violent felonies.                                     
             SUBTITLE E--ADMINISTRATION OF AGENCIES RESPONSIBLE FOR REVIEW AND    
                         CORRECTION OF MILITARY RECORDS                           
      Sec. 541. Personnel freeze.                                             

      Sec. 542. Professional staff.                                           

      Sec. 543. Ex parte communications.                                      

      Sec. 544. Timeliness standards.                                         

      Sec. 545. Scope of correction of military records.                      

                                     SUBTITLE F--REPORTS                          

      Sec. 551. Report on personnel retention.                                

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

            Sec. 561. Two-year extension of certain force drawdown transition 
      authorities relating to personnel management and benefits.              
      Sec. 562. Leave without pay for suspended academy cadets and midshipmen.

            Sec. 563. Continued eligibility under Voluntary Separation        
      Incentive program for members who involuntarily lose membership in a    
      reserve component.                                                      
            Sec. 564. Reinstatement of definition of financial institution in 
      authorities for reimbursement of defense personnel for Government errors
      in direct deposit of pay.                                               
      Sec. 565. Increase in maximum amount for College Fund program.          

      Sec. 566. Central Identification Laboratory, Hawaii.                    

      Sec. 567. Military funeral honors for veterans.                         

            Sec. 568. Status in the Naval Reserve of cadets at the Merchant   
      Marine Academy.                                                         
            Sec. 569. Repeal of restriction on civilian employment of enlisted
      members.                                                                
            Sec. 570. Transitional compensation for abused dependent children 
      not residing with the spouse or former spouse of a member convicted of  
      dependent abuse.                                                        
            Sec. 571. Pilot program for treating GED and home school diploma  
      recipients as high school graduates for determinations of eligibility   
      for enlistment in the Armed Forces.                                     
            Sec. 572. Sense of Congress concerning New Parent Support Program 
      and military families.                                                  
            Sec. 573. Advancement of Benjamin O. Davis, Junior, to grade of   
      general on the retired list of the Air Force.                           
            Sec. 574. Sense of the House of Representatives concerning        
      adherence by civilians in military chain of command to the standard of  
      exemplary conduct required of commanding officers and others in         
      authority in the Armed Forces.                                          

                            SUBTITLE A--OFFICER PERSONNEL POLICY                  

                    SEC. 501. CODIFICATION OF ELIGIBILITY OF RETIRED OFFICERS AND 
          FORMER OFFICERS FOR CONSIDERATION BY SPECIAL SELECTION BOARDS.          
     (a) Persons Not Considered by Promotion Boards Due to Administrative 
  Error.--Subsection (a) of section 628 of title 10, United States Code,  
  is amended--                                                            
       (1) by striking out paragraph (1) (and the subsection designation at
   the beginning of that paragraph) and inserting in lieu thereof the      
   following:                                                              
     ``(a) Persons Not Considered by Promotion Boards Due to              
  Administrative Error.--(1) If the Secretary of the military department  
  concerned determines that because of administrative error a person who  
  should have been considered for selection for promotion by a promotion  
  board was not so considered, the Secretary shall convene a special      
  selection board under this subsection to determine whether that person  
  (whether or not then on active duty) should be recommended for          
  promotion.'';                                                           
       (2) in paragraph (2), by striking out ``the officer as his record'' 
   in the first sentence and inserting in lieu thereof ``the person whose  
   name was referred to it for consideration as that record''; and         
       (3) in paragraph (3), by striking out ``an officer in a grade'' and 
   all that follows through ``the officer'' and inserting in lieu thereof  
   ``a person whose name was referred to it for consideration for selection
   for appointment to a grade other than a general officer or flag officer 
   grade, the person''.                                                    

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

       (A) by striking out ``an officer'' and inserting in lieu thereof ``a
   person''; and                                                           
       (B) by striking out ``the officer'' and inserting in lieu thereof   
   ``the person''.                                                         
     (c) Conforming Amendments.--(1) Subsection (c) of such section is    
  amended--                                                               
     (A) by inserting `` Reports of Boards.--'' after ``(c)'';             

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

       (A) by inserting `` Appointment of Persons Selected by Boards.--''  
   after ``(d)'';                                                          
       (B) by striking out ``an officer'' and inserting in lieu thereof ``a
   person'';                                                               
       (C) by striking out ``such officer'' and inserting in lieu thereof  
   ``that person'';                                                        
       (D) by striking out ``the next higher grade'' the second place it   
   appears and inserting in lieu thereof ``that grade''; and               
       (E) by adding at the end the following: ``However, in the case of a 
   board convened under this section to consider a warrant officer or      
   former warrant officer, if the report of that board, as approved by the 
   Secretary concerned, recommends that warrant officer or former warrant  
   officer for promotion to the next higher grade, that person shall, as   
   soon as practicable, be appointed to the next higher grade in accordance
   with provisions of section 578(c) of this title (rather than subsections
   (b), (c), and (d) of section 624 of this title).''.                     
    (3) Subsection (d)(2) of such section is amended--                    

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

                    of that person for consideration for promotion by any         
          subsequent special selection board under this section.''.               
     (d) Applicability to Deceased Persons.--Subsection (e) of such       
  section is amended to read as follows:                                  
     ``(e) Deceased Persons.--If a person whose name is being considered  
  for referral to a special selection board under this section dies before
  the completion of proceedings under this section with respect to that   
  person, this section shall be applied to that person posthumously.''.   
     (e) Recodification of Administrative Matters.--Such section is       
  further amended by adding at the end the following::                    
    ``(f)  Convening of Boards.--A board convened under this section--    

       ``(1) shall be convened under regulations prescribed by the         
   Secretary of Defense;                                                   
       ``(2) shall be composed in accordance with section 612 of this title
   or, in the case of board to consider a warrant officer or former warrant
   officer, in accordance with section 573 of this title and regulations   
   prescribed by the Secretary of the military department concerned; and   
     ``(3) shall be subject to the provisions of section 613 of this title.

     ``(g) Promotion Board Defined.--In this section, the term `promotion 
  board' means a selection board convened by the Secretary of a military  
  department under section 573(a) or 611(a) of this title.''.             
     (f) Ratification of Codified Practice.--The consideration by a       
  special selection board convened under section 628 of title 10, United  
  States Code, before the date of the enactment of this Act of a person   
  who, at the time of consideration, was a retired officer or former      
  officer of the Armed Forces (including a deceased retired or former     
  officer) is hereby ratified.                                            

                    SEC. 502. INVOLUNTARY SEPARATION PAY DENIED FOR OFFICER       
          DISCHARGED FOR FAILURE OF SELECTION FOR PROMOTION REQUESTED BY THE      
          OFFICER.                                                                
     (a) Ineligibility for Separation Pay.--Section 1174(a) of title 10,  
  United States Code, is amended by adding at the end the following:      
     ``(3) Notwithstanding paragraphs (1) and (2), an officer discharged  
  under any provision of chapter 36 of this title for twice failing of    
  selection for promotion to the next higher grade is not entitled to     
  separation pay under this section if either (or both) of those failures 
  of selection for promotion was by the action of a selection board to    
  which the officer submitted a request in writing not to be selected for 
  promotion or who otherwise directly caused his nonselection through     
  written communication to the Board under section 614(b) of this         
  title.''.                                                               
     (b) Report of Selection Board To Name Officers Requesting            
  Nonselection.--Section 617 of such title is amended by adding at the end
  the following:                                                          
     ``(c) A selection board convened under section 611(a) of this title  
  shall include in its report to the Secretary concerned the name of any  
  regular officer considered and not recommended for promotion by the     
  board who submitted to the board a request not to be selected for       
  promotion or who otherwise directly caused his nonselection through     
  written communication to the Board under section 614(b) of this         
  title.''.                                                               
     (c) Effective Date.--The amendments made by this section shall apply 
  with respect to selection boards convened under section 611(a) of title 
  10, United States Code, on or after the date of the enactment of this   
  Act.                                                                    

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

     (a) Repeal of Requirement for Duplicative Board.--Section 1183 of    
  title 10, United States Code, is repealed.                              
     (b) Conforming Amendments.--(1) Section 1182(c) of such title is     
  amended by striking out ``send the record of proceedings to a board of  
  review convened under section 1183 of                                   

                    this title'' and inserting in lieu thereof ``recommend to the 
          Secretary concerned that the officer not be retained on active duty''.  
     (2) Section 1184 of such title is amended by striking out ``board of 
  review convened under section 1183 of this title'' and inserting in lieu
  thereof ``board of inquiry convened under section 1182 of this title''. 
     (c) Clerical Amendments.--(1) The heading for section 1184 of such   
  title is amended by striking out `` review'' and inserting in lieu      
  thereof `` inquiry''.                                                   
     (2) The table of sections at the beginning of chapter 60 of such     
  title is amended by striking out the items relating to sections 1183 and
  1184 and inserting in lieu thereof the following:                       


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

                    SEC. 504. PERMANENT APPLICABILITY OF LIMITATIONS ON YEARS OF  
          ACTIVE NAVAL SERVICE OF NAVY LIMITED DUTY OFFICERS IN GRADES OF         
          COMMANDER AND CAPTAIN.                                                  
     (a) Commanders.--Section 633 of title 10, United States Code, is     
  amended--                                                               
       (1) by striking out ``Except an officer'' and all that follows      
   through ``or section 6383 of this title applies'' and inserting in lieu 
   thereof ``Except an officer of the Navy or Marine Corps who is an       
   officer designated for limited duty to whom section 5596(e) or 6383 of  
   this title applies''; and                                               
     (2) by striking out the second sentence.                              

    (b)  Captains.--Section 634 of such title is amended--                

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

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

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

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

                    SEC. 506. GRADE OF AIR FORCE ASSISTANT SURGEON GENERAL FOR    
          DENTAL SERVICES.                                                        
    Section 8081 of title 10, United States Code, is amended--            

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

                    SEC. 507. REVIEW REGARDING ALLOCATION OF NAVAL RESERVE        
          OFFICERS' TRAINING CORPS SCHOLARSHIPS AMONG PARTICIPATING COLLEGES AND  
          UNIVERSITIES.                                                           
     (a) Review.--The Secretary of the Navy should review the process and 
  criteria used to determine the number of Naval Reserve Officer Training 
  Corps (NROTC) scholarship recipients who attend each college and        
  university participating in the NROTC program and how those scholarships
  are allocated to those schools.                                         
    (b)  Purpose of Review.--The review should seek to determine--        

       (1) whether the method used by the Navy to allocate NROTC           
   scholarships could be changed so as to increase the likelihood that     
   scholarship awardees attend the school of their choice while maintaining
   the Navy's capability to attain the objectives of the Naval ROTC program
   to meet the annual requirement for newly commissioned Navy ensigns      

                    and Marine Corps second lieutenants, as well as the overall   
          needs of the officer corps of the Department of the Navy; and           
       (2) within the determination under paragraph (1), whether the       
   likelihood of a scholarship awardee who wants to attend a school of     
   choice in the student's State of residence can be increased.            
     (c) Matters Reviewed.--The matters reviewed should include the       
  following:                                                              
       (1) The factors and criteria considered in the process of           
   determining the allocation of NROTC scholarships to host colleges and   
   universities.                                                           
       (2) Historical data indicating the extent to which NROTC scholarship
   recipients attend colleges and universities they have indicated a       
   preference to attend, as opposed to attending solely or mainly in order 
   to receive an NROTC scholarship.                                        
       (3) The extent to which the process used by the Navy to allocate    
   NROTC scholarships to participating colleges and universities           
   contributes to optimizing resources available for the operation of the  
   NROTC program and improving the professional education of NROTC         
   midshipmen.                                                             
       (4) The effects that eliminating the controlled allocation of       
   scholarships to host colleges and universities, entirely or by State,   
   would have on the NROTC program.                                        
     (d) Consultation Requirement.--In carrying out a review under        
  subsection (a), the Secretary should consult with officials of          
  interested associations and of colleges and universities which host ROTC
  units and such other officials as the Secretary considers appropriate.  

                            SUBTITLE B--RESERVE COMPONENT MATTERS                 


                    SEC. 511. USE OF RESERVES FOR EMERGENCIES INVOLVING WEAPONS OF
          MASS DESTRUCTION.                                                       
     (a) Order to Active Duty.--(1) Section 12304 of title 10, United     
  States Code, is amended--                                               
       (A) in subsection (a), by inserting ``or that it is necessary to    
   provide assistance referred to in subsection (b)'' after ``to augment   
   the active forces for any operational mission'';                        
     (B) in subsection (b)--                                               

       (i) by striking out ``(b)'' and inserting in lieu thereof ``(c)     
   Limitations.--(1)''; and                                                
       (ii) by striking out ``, or to provide'' and inserting in lieu      
   thereof ``or, except as provided in subsection (b), to provide'';       
     (C) by redesignating subsection (c) as paragraph (2); and             

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

    ``(i)  Definitions.--In this section:                                 

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

     (A) in subsection (a), by inserting `` Authority.--'' after ``(a)'';  

       (B) in subsection (d), by inserting `` Exclusion From Strength      
   Limitations.--'' after ``(d)'';                                         
       (C) in subsection (e), by inserting `` Policies and Procedures.--'' 
   after ``(e)'';                                                          

       (D) in subsection (f), by inserting `` Notification of Congress.--''
   after ``(f)'';                                                          
       (E) in subsection (g), by inserting `` Termination of Duty.--''     
   after ``(g)''; and                                                      
       (F) in subsection (h), by inserting `` Relationship to War Powers   
   Resolution.--'' after ``(h)''.                                          
     (b) Use of Active Guard and Reserve Personnel.--(1) Section 12310 of 
  title 10, United States Code, is amended by adding at the end the       
  following new subsection:                                               
     ``(c)(1) A Reserve on active duty as described in subsection (a), or 
  a Reserve who is a member of the National Guard serving on full-time    
  National Guard duty under section 502(f) of title 32 in connection with 
  functions referred to in subsection (a), may, subject to paragraph (3), 
  perform duties in support of emergency preparedness programs to prepare 
  for or to respond to any emergency involving the use of a weapon of mass
  destruction (as defined in section 1403 of the Defense Against Weapons  
  of Mass Destruction Act of 1996 (50 U.S.C. 2302(1))).                   
     ``(2) The costs of the pay, allowances, clothing, subsistence,       
  gratuities, travel, and related expenses for a Reserve performing duties
  under the authority of paragraph (1) shall be paid from the             
  appropriation that is available to pay such costs for other members of  
  the reserve component of that Reserve who are performing duties as      
  described in subsection (a).                                            
    ``(3) A Reserve may perform duties described in paragraph (1) only--  

       ``(A) while assigned to the Department of Defense Consequence       
   Management Program Integration Office; or                               
       ``(B) while assigned to a reserve component rapid assessment element
   team and performing those duties within the geographical limits of the  
   United States, its territories and possessions, the District of         
   Columbia, and the Commonwealth of Puerto Rico.                          
     ``(4) The number of Reserves on active duty who are performing duties
  described in paragraph (1) at the same time may not exceed 228. Reserves
  on active duty who are performing duties described in paragraph (1)     
  shall be counted against the annual end strength authorizations required
  by section 115(a)(1)(B) and 115(a)(2) of this title. The justification  
  material for the defense budget request for a fiscal year shall identify
  the number and component of the Reserves programmed to be performing    
  duties described in paragraph (1) during that fiscal year.              
     ``(5) A reserve component rapid assessment element team, and any     
  Reserve assigned to such a team, may not be used to respond to an       
  emergency described in paragraph (1) unless the Secretary of Defense has
  certified to the Committee on Armed Services of the Senate and the      
  Committee on National Security of the House of Representatives that that
  team, or that Reserve, possesses the requisite skills, training, and    
  equipment to be proficient in all mission requirements.                 
     ``(6) If the Secretary of Defense submits to Congress any request for
  the enactment of legislation to modify the requirements of paragraph (3)
  or to increase the number of personnel authorized by paragraph (4), the 
  Secretary shall provide with the request--                              
       ``(A) justification for each such requested modification or for the 
   requested additional personnel and explain the need for the increase in 
   the context of existing or projected similar capabilities at the local, 
   State, and Federal levels; and                                          
       ``(B) the Secretary's plan for sustaining the qualifications of the 
   personnel and teams described in paragraph (3)(B).''.                   
     (2) The Secretary of Defense may not submit to Congress earlier than 
  90 days after the date of the receipt by Congress of the report required
  by section 1411 of this Act a request for the enactment of legislation  
  to modify the requirements of paragraph (3), or to increase the number  
  of personnel authorized by paragraph (4), of section 12310(c) of title  
  10, United States Code, as added by paragraph (1).                      

                    SEC. 512. SERVICE REQUIRED FOR RETIREMENT OF NATIONAL GUARD   
          OFFICER IN HIGHER GRADE.                                                
     (a) Revision of Requirement.--Subparagraph (E) of section 1370(d)(3) 
  of title 10, United States Code, is amended to read as follows:         
     ``(E) To the extent authorized by the Secretary of the military      
  department concerned, a person who, after having been found qualified   
  for Federal recognition in a higher grade by a board under section 307  
  of title 32, serves in a position for which that grade is the minimum   
  authorized grade and is appointed as a reserve officer in that grade may
  be credited for the purposes of subparagraph (A) as having served in    
  that grade. The period of the service for which credit is afforded under
  the preceding sentence may only be the period for which the person      
  served in the position after the Senate provides advice and consent for 
  the appointment.''.                                                     
     (b) Effective Date.--The amendment made by subsection (a) shall take 
  effect on the date of the enactment of this Act and shall apply with    
  respect to appointments to higher grades that take effect after that    
  date.                                                                   
                    SEC. 513. REDUCED TIME-IN-GRADE REQUIREMENT FOR RESERVE       
          GENERAL AND FLAG OFFICERS INVOLUNTARILY TRANSFERRED FROM ACTIVE STATUS. 
     (a) Minimum Service in Active Status.--Section 1370(d)(3) of title   
  10, United States Code, as amended by section 511, is further amended by
  adding at the end the following new subparagraph:                       
     ``(F) A person covered by subparagraph (A) who has completed at least
  six months of satisfactory service in a grade above colonel or (in the  
  case of the Navy) captain and, while serving in an active status in such
  grade, is involuntarily transferred (other than for cause) from active  
  status may be credited with satisfactory service in the grade in which  
  serving at the time of such transfer, notwithstanding failure of the    
  person to complete three years of service in that grade.''.             
     (b) Effective Date.--Subparagraph (F) of such section, as added by   
  subsection (a), shall take effect on the date of the enactment of this  
  Act and shall apply with respect to transfers referred to in such       
  subparagraph that are made on or after that date.                       

                    SEC. 514. ACTIVE STATUS SERVICE REQUIREMENT FOR PROMOTION     
          CONSIDERATION FOR ARMY AND AIR FORCE RESERVE COMPONENT BRIGADIER        
          GENERALS.                                                               
     Section 14301 of title 10, United States Code, is amended by adding  
  at the end the following new subsection:                                
     ``(g) A reserve component brigadier general of the Army or the Air   
  Force who is in an inactive status is eligible (notwithstanding         
  subsection (a)) for consideration for promotion to major general by a   
  promotion board convened under section 14101(a) of this title if the    
  officer--                                                               
       ``(1) has been in an inactive status for less than one year as of   
   the date of the convening of the promotion board; and                   
       ``(2) had continuously served for at least one year on the reserve  
   active status list or the active duty list (or a combination of both)   
   immediately before the officer's most recent transfer to an inactive    
   status.''.                                                              

                    SEC. 515. COMPOSITION OF SELECTIVE EARLY RETIREMENT BOARDS FOR
          REAR ADMIRALS OF THE NAVAL RESERVE AND MAJOR GENERALS OF THE MARINE     
          CORPS RESERVE.                                                          
     (a) In General.--Section 14705(b) of title 10, United States Code, is
  amended--                                                               
     (1) by inserting ``(1)'' after ``(b)  Boards.--''; and                

     (2) by adding at the end the following:                               

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

       ``(B) at least one member of the board is a reserve officer who     
   holds the grade of rear admiral or major general.''.                    
     (b) Technical Amendments.--Paragraph (1) of such section, as         
  designated by subsection (a)(1), is amended--                           
     (1) by inserting ``of officers'' after ``consideration''; and         

     (2) by inserting ``continuation'' after ``shall convene a''.          


                    SEC. 516. AUTHORITY FOR TEMPORARY WAIVER FOR CERTAIN ARMY     
          RESERVE OFFICERS OF BACCALAUREATE DEGREE REQUIREMENT FOR PROMOTION OF   
          RESERVE OFFICERS.                                                       
     (a) Waiver Authority for Army OCS Graduates.--The Secretary of the   
  Army may waive the applicability of section 12205(a) of title 10, United
  States Code, to any officer who before the date of the enactment of this
  Act was commissioned through the Army Officer Candidate School. Any such
  waiver shall be made on a case-by-case basis, considering the individual
  circumstances of the officer involved, and may continue in effect for no
  more than two years after the waiver is granted. The Secretary may      
  provide for such a waiver to be effective before the date of the waiver,
  as appropriate in an individual case.                                   
     (b) Expiration of Authority.--A waiver under this section may not be 
  granted after September 30, 2000.                                       

                    SEC. 517. FURNISHING OF BURIAL FLAGS FOR DECEASED MEMBERS AND 
          FORMER MEMBERS OF THE SELECTED RESERVE.                                 
     Section 2301 of title 38, United States Code, is amended by adding at
  the end the following new subsection:                                   
     ``(f)(1) The Secretary shall furnish a flag to drape the casket of   
  each deceased member or former member of the Selected Reserve (as       
  1Bdescribed in section 10143 of title 10) who is not otherwise eligible 
  for a flag under this section or section 1482(a) of title 10--          
       ``(A) who completed at least one enlistment as a member of the      
   Selected Reserve or, in the case of an officer, completed the period of 
   initial obligated service as a member of the Selected Reserve;          
       ``(B) who was discharged before completion of the person's initial  
   enlistment as a member of the Selected Reserve or, in the case of an    
   officer, period of initial obligated service as a member of the Selected
   Reserve, for a disability incurred or aggravated in line of duty; or    
     ``(C) who died while a member of the Selected Reserve.                

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


                    SEC. 521. SEPARATE HOUSING FOR MALE AND FEMALE RECRUITS DURING
          RECRUIT BASIC TRAINING.                                                 
     (a) Army.--(1) Chapter 401 of title 10, United States Code, is       
  amended by adding at the end the following new section:                 
                    ``4319. Recruit basic training: separate housing for male and 
          female recruits                                                         
     ``(a) Physically Separate Housing.--(1) The Secretary of the Army    
  shall provide for housing male recruits and female recruits separately  
  and securely from each other during basic training.                     
     ``(2) To meet the requirements of paragraph (1), the sleeping areas  
  and latrine areas provided for male recruits shall be physically        
  separated from the sleeping areas and latrine areas provided for female 
  recruits by permanent walls, and the areas for male recruits and the    
  areas for female recruits shall have separate entrances.                
     ``(3) The Secretary shall ensure that, when a recruit is in an area  
  referred to in paragraph (2), the area is supervised by                 

                    one or more persons who are authorized and trained to         
          supervise the area.                                                     
     ``(b) Alternative Separate Housing.--If male recruits and female     
  recruits cannot be housed as provided under subsection (a) by October 1,
  2001, at a particular installation, the Secretary of the Army shall     
  require (on and after that date) that male recruits in basic training at
  such installation be housed in barracks or other troop housing          
  facilities that are only for males and that female recruits in basic    
  training at such installation be housed in barracks or other troop      
  housing facilities that are only for females.                           
     ``(c) Construction Planning.--In planning for the construction of    
  housing to be used for housing recruits during basic training, the      
  Secretary of the Army shall ensure that the housing is to be constructed
  in a manner that facilitates the housing of male recruits and female    
  recruits separately and securely from each other.                       
     ``(d) Basic Training Defined.--In this section, the term `basic      
  training' means the initial entry training program of the Army that     
  constitutes the basic training of new recruits.''.                      
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


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


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

     (b) Navy and Marine Corps.--(1) Part III of subtitle C of title 10,  
  United States Code, is amended by inserting after chapter 601 the       
  following new chapter:                                                  
                              ``CHAPTER 602--TRAINING GENERALLY                   


      ``Sec.                                                                  

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

                    ``6931. Recruit basic training: separate housing for male and 
          female recruits                                                         
     ``(a) Physically Separate Housing.--(1) The Secretary of the Navy    
  shall provide for housing male recruits and female recruits separately  
  and securely from each other during basic training.                     
     ``(2) To meet the requirements of paragraph (1), the sleeping areas  
  and latrine areas provided for male recruits shall be physically        
  separated from the sleeping areas and latrine areas provided for female 
  recruits by permanent walls, and the areas for male recruits and the    
  areas for female recruits shall have separate entrances.                
     ``(3) The Secretary shall ensure that, when a recruit is in an area  
  referred to in paragraph (2), the area is supervised by one or more     
  persons who are authorized and trained to supervise the area.           
     ``(b) Alternative Separate Housing.--If male recruits and female     
  recruits cannot be housed as provided under subsection (a) by October 1,
  2001, at a particular installation, the Secretary of the Navy shall     
  require (on and after that date) that male recruits in basic training at
  such installation be housed in barracks or other troop housing          
  facilities that are only for males and that female recruits in basic    
  training at such installation be housed in barracks or other troop      
  housing facilities that are only for females.                           
     ``(c) Construction Planning.--In planning for the construction of    
  housing to be used for housing recruits during basic training, the      
  Secretary of the Navy shall ensure that the housing is to be constructed
  in a manner that facilitates the housing of male recruits and female    
  recruits separately and securely from each other.                       
     ``(d) Basic Training Defined.--In this section, the term `basic      
  training' means the initial entry training programs of the Navy and     
  Marine Corps that constitute the basic training of new recruits.''.     

     (2) The tables of chapters at the beginning of subtitle C, and at the
  beginning of part III of subtitle C, of such title are amended by       
  inserting after the item relating to chapter 601 the following new item:


         ``602. Training Generally                                              

        6931''.                                                                



     (3) The Secretary of the Navy shall implement section 6931 of title  
  10, United States Code, as added by paragraph (1), as rapidly as        
  feasible and shall ensure that the provisions of that section are       
  applied to all recruit basic training classes beginning not later than  
  the first such class that enters basic training on or after April 15,   
  1999.                                                                   
     (c) Air Force.--(1) Chapter 901 of title 10, United States Code, is  
  amended by adding at the end the following new section:                 
                    ``9319. Recruit basic training: separate housing for male and 
          female recruits                                                         
     ``(a) Physically Separate Housing.--(1) The Secretary of the Air     
  Force shall provide for housing male recruits and female recruits       
  separately and securely from each other during basic training.          
     ``(2) To meet the requirements of paragraph (1), the sleeping areas  
  and latrine areas provided for male recruits shall be physically        
  separated from the sleeping areas and latrine areas provided for female 
  recruits by permanent walls, and the areas for male recruits and the    
  areas for female recruits shall have separate entrances.                
     ``(3) The Secretary shall ensure that, when a recruit is in an area  
  referred to in paragraph (2), the area is supervised by one or more     
  persons who are authorized and trained to supervise the area.           
     ``(b) Alternative Separate Housing.--If male recruits and female     
  recruits cannot be housed as provided under subsection (a) by October 1,
  2001, at a particular installation, the Secretary of the Air Force shall
  require (on and after that date) that male recruits in basic training at
  such installation be housed in barracks or other troop housing          
  facilities that are only for males and that female recruits in basic    
  training at such installation be housed in barracks or other troop      
  housing facilities that are only for females.                           
     ``(c) Construction Planning.--In planning for the construction of    
  housing to be used for housing recruits during basic training, the      
  Secretary of the Air Force shall ensure that the housing is to be       
  constructed in a manner that facilitates the housing of male recruits   
  and female recruits separately and securely from each other.            
     ``(d) Basic Training Defined.--In this section, the term `basic      
  training' means the initial entry training program of the Air Force that
  constitutes the basic training of new recruits.''.                      
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


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


     (3) The Secretary of the Air Force shall implement section 9319 of   
  title 10, United States Code, as added by paragraph (1), as rapidly as  
  feasible and shall ensure that the provisions of that section are       
  applied to all recruit basic training classes beginning not later than  
  the first such class that enters basic training on or after April 15,   
  1999.                                                                   
     (d) GAO Review of Costs of Separate Housing Facilities for Male and  
  Female Recruits During Recruit Basic Training.--Not later than March 1, 
  1999, the Comptroller General shall submit to the Committee on Armed    
  Services of the Senate and the Committee on National Security of the    
  House of Representatives a report on the costs that would be incurred by
  each of the military departments if required to provide housing for male
  and female recruits during basic training in separate structures. The   
  report shall be prepared separately for each of the Army, Navy, and Air 
  Force and shall be based on reviews and cost analyses prepared          
  independently of the Department of Defense.                             

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

     (a) Army.--(1) Chapter 401 of title 10, United States Code, is       
  amended by adding after section 4319, as added by section 521(a)(1), the
  following new section:                                                  
          ``4320. Recruit basic training: privacy                                 

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


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



     (3) The Secretary of the Army shall implement section 4320 of title  
  10, United States Code, as added by paragraph (1), as rapidly as        
  feasible and shall ensure that the provisions of that section are       
  applied to all recruit basic training classes beginning not later than  
  the first such class that enters basic training on or after April 15,   
  1999.                                                                   
     (b) Navy.--(1) Chapter 602 of title 10, United States Code, as added 
  by section 521(b)(1), is amended by adding at the end the following new 
  section:                                                                
          ``6932. Recruit basic training: privacy                                 

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


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



     (3) The Secretary of the Navy shall implement section 6932 of title  
  10, United States Code, as added by paragraph (1), as rapidly as        
  feasible and shall ensure that the provisions of that section are       
  applied to all recruit basic training classes beginning not later than  
  the first such class that enters basic training on or after April 15,   
  1999.                                                                   
     (c) Air Force.--(1) Chapter 901 of title 10, United States Code, is  
  amended by adding after section 9319, as added by section 521(c)(1), the
  following new section:                                                  
          ``9320. Recruit basic training: privacy                                 

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


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



     (3) The Secretary of the Air Force shall implement section 9320 of   
  title 10, United States Code, as added by paragraph                     

                    (1), as rapidly as feasible and shall ensure that the         
          provisions of that section are applied to all recruit basic training    
          classes beginning not later than the first such class that enters basic 
          training on or after April 15, 1999.                                    

                    SEC. 523. SENSE OF THE HOUSE OF REPRESENTATIVES RELATING TO   
          SMALL UNIT ASSIGNMENTS BY GENDER DURING RECRUIT BASIC TRAINING.         
     It is the sense of the House of Representatives that the Secretary of
  each military department should require that during recruit basic       
  training male recruits and female recruits be assigned to separate units
  at the small unit levels designated by the different services as        
  platoons, divisions, or flights, as recommended in the report of the    
  Federal Advisory Committee on Gender-Integrated Training and Related    
  Issues, chaired by Nancy Kassebaum-Baker, that was submitted to the     
  Secretary of Defense on December 16, 1997.                              

                    SEC. 524. EXTENSION OF REPORTING DATES FOR COMMISSION ON      
          MILITARY TRAINING AND GENDER-RELATED ISSUES.                            
     (a) First Report.--Subsection (e)(1) of section 562 of the National  
  Defense Authorization Act for Fiscal Year 1998 (Public Law 105 85; 111  
  Stat. 1754) is amended by striking out ``April 15, 1998'' and inserting 
  in lieu thereof ``October 15, 1998''.                                   
     (b) Final Report.--Subsection (e)(2) of such section is amended by   
  striking out ``September 16, 1998'' and inserting in lieu thereof       
  ``March 15, 1999''.                                                     

          SEC. 525. IMPROVED OVERSIGHT OF INNOVATIVE READINESS TRAINING.          

     (a) In General.--Section 2012 of title 10, United States Code, is    
  amended by adding at the end the following new subsection:              
     ``(j) Oversight and Cost Accounting.--The Secretary of Defense shall 
  establish a program to improve the oversight and cost accounting of     
  training projects conducted in accordance with this section. The program
  shall include measures to accomplish the following:                     
       ``(1) Ensure that each project that is proposed to be conducted in  
   accordance with this section (regardless of whether additional funding  
   from the Secretary of Defense is sought) is requested in writing,       
   reviewed for full compliance with this section, and approved in advance 
   of initiation by the Secretary of the military department concerned and,
   in the case of a project that seeks additional funding from the         
   Secretary of Defense, by the Secretary of Defense.                      
       ``(2) Ensure that each project that is conducted in accordance with 
   this section is required to provide, within a specified period following
   completion of the project, an after-action report to the Secretary of   
   Defense.                                                                
       ``(3) Require that each application for a project to be conducted in
   accordance with this section include an analysis and certification that 
   the proposed project would not result in a significant increase in the  
   cost of training (as determined in accordance with procedures prescribed
   by the Secretary of Defense).                                           
       ``(4) Determine the total program cost for each project, including  
   both those costs that are borne by the military departments from their  
   own accounts and those costs that are borne by defense-wide accounts.   
       ``(5) Provide for oversight of project execution to ensure that a   
   training project under this section is carried out in accordance with   
   the proposal for that project as approved.''.                           
     (b) Implementation.--The Secretary of Defense may not initiate any   
  project under section 2012 of title 10, United States Code, after       
  October 1, 1998, until the program required by subsection (i) of that   
  section (as added by subsection (a)) has been established.              

                     SUBTITLE D--DECORATIONS, AWARDS, AND COMMENDATIONS           

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

     (a) Study of Need and Criteria for New Decoration.--(1) The Secretary
  of Defense shall carry out a study of the need for, and the appropriate 
  criteria for, two possible new decorations.                             
     (2) The first such decoration would, if implemented, be awarded to   
  members of the Armed Forces who, while serving under competent authority
  in any capacity with the Armed Forces, are killed or injured in the line
  of duty as a result of noncombat circumstances occurring--              
       (A) as a result of an international terrorist attack against the    
   United States or a foreign nation friendly to the United States;        
       (B) while engaged in, training for, or traveling to or from a       
   peacetime or contingency operation; or                                  
       (C) while engaged in, training for, or traveling to or from service 
   outside the territory of the United States as part of a peacekeeping    
   force.                                                                  
     (3) The second such decoration would, if implemented, be awarded to  
  civilian nationals of the United States who, while serving under        
  competent authority in any capacity with the Armed Forces, are killed or
  injured in the line of duty under circumstances which, if they were     
  members of the Armed Forces, would qualify them for award of the Purple 
  Heart or the medal described in paragraph (2).                          
     (b) Recommendation to Congress.--Not later than July 31, 1999, the   
  Secretary shall submit to Congress a report setting forth the           
  Secretary's recommendation concerning the need for, and propriety of,   
  each of the possible new decorations referred to in subsection (a).     
     (c) Coordination.--The Secretary shall carry out this section in     
  coordination with the Secretaries of the military departments and the   
  Secretary of Transportation with regard to the Coast Guard.             

                    SEC. 532. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN     
          DECORATIONS TO CERTAIN PERSONS.                                         
     (a) Waiver.--Any limitation established by law or policy for the time
  within which a recommendation for the award of a military decoration or 
  award must be submitted shall not apply to awards of decorations        
  described in this section, the award of each such decoration having been
  determined by the Secretary of the military department concerned to be  
  warranted in accordance with section 1130 of title 10, United States    
  Code.                                                                   
     (b) Distinguished-Service Cross.--Subsection (a) applies to the award
  of the Distinguished-Service Cross of the Army as follows:              
       (1) To Isaac Camacho of El Paso, Texas, for extraordinary heroism in
   actions at Camp Hiep Hoa in Vietnam on November 24, 1963, while serving 
   as a member of the Army.                                                
       (2) To Bruce P. Crandall of Mesa, Arizona, for extraordinary heroism
   in actions at Landing Zone X-Ray in Vietnam on November 14, 1965, while 
   serving as a member of the Army.                                        
       (3) To Leland B. Fair of Jessieville, Arkansas, for extraordinary   
   heroism in actions in the Philippine Islands on July 4, 1945, while     
   serving as a member of the Army.                                        
     (c) Distinguished-Service Medal.--Subsection (a) applies to the award
  of the Distinguished-Service Medal of the Army to Richard P. Sakakida of
  Fremont, California, for exceptionally meritorious service while a      
  prisoner of war in the Philippine Islands from May 7, 1942, to September
  14, 1945, while serving as a member of the Army.                        
     (d) Navy Cross.--Subsection (a) applies to the posthumous award of   
  the Navy Cross to Joseph F. Keenan for extraordinary heroism in actions 
  on March 26 27, 1953, while serving as a member of the Navy.            

     (e) Silver Star Medal.--Subsection (a) applies to the award of the   
  Silver Star Medal of the Navy to Andrew A. Bernard of Methuen,          
  Massachusetts, for gallantry in action on November 24, 1943, while      
  serving as a member of the Navy.                                        
     (f) Distinguished Flying Cross.--Subsection (a) applies to the award 
  of the Distinguished Flying Cross for service during World War II or    
  Korea (including multiple awards to the same individual) in the case of 
  each individual (not covered by section 573(d) of the National Defense  
  Authorization Act for Fiscal Year 1998 (Public Law 105 85; 111 Stat.    
  1757)) concerning whom the Secretary of the Navy (or an officer of the  
  Navy acting on behalf of the Secretary) submitted to the Committee on   
  National Security of the House of Representatives and the Committee on  
  Armed Services of the Senate, before the date of the enactment of this  
  Act, a notice as provided in section 1130(b) of title 10, United States 
  Code, that the award of the Distinguished Flying Cross to that          
  individual is warranted and that a waiver of time restrictions          
  prescribed by law for recommendation for such award is recommended.     

                    SEC. 533. COMMENDATION AND COMMEMORATION OF THE NAVY AND      
          MARINE CORPS PERSONNEL WHO SERVED IN THE UNITED STATES NAVY ASIATIC     
          FLEET FROM 1910 1942.                                                   
    (a)  Findings.--Congress makes the following findings:                

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

       (1) commends the Navy and Marine Corps personnel who served in the  
   Asiatic Fleet of the United States Navy during the period from 1910 to  
   1942; and                                                               
       (2) honors those who gave their lives in the line of duty while     
   serving in the Asiatic Fleet.                                           
     (c) Commemoration of United States Navy Asiatic Fleet.--The President
  is authorized and requested to issue a proclamation designating an      
  appropriate commemoration of the United States Navy Asiatic Fleet and   
  calling upon the people of the United States to observe such            
  commemoration with appropriate programs, ceremonies, and activities.    

                    SEC. 534. APPRECIATION FOR SERVICE DURING WORLD WAR I AND     
          WORLD WAR II BY MEMBERS OF THE NAVY ASSIGNED ON BOARD MERCHANT SHIPS AS 
          THE NAVAL ARMED GUARD SERVICE.                                          
    (a)  Findings.--Congress makes the following findings:                

       (1) The Navy established a special force during both World War I and
   World War II, known as the Naval Armed Guard Service, to protect        
   merchant ships of the United States from enemy attack by stationing     
   members of the Navy and weapons on board those ships.                   
       (2) Members of the Naval Armed Guard Service served on 6,236        
   merchant ships during World War II, of which 710 were sunk by enemy     
   action.                                                                 
       (3) Over 144,900 members of the Navy served in the Naval Armed Guard
   Service during World War II as officers,                                

                    gun crewmen, signalmen, and radiomen, of whom 1,810 were      
          killed in action.                                                       
       (4) The efforts of the members of the Naval Armed Guard Service     
   played a significant role in the safe passage of United States merchant 
   ships to their destinations in the Soviet Union and various locations in
   western Europe and the Pacific Theater.                                 
       (5) The efforts of the members of the Navy who served in the Naval  
   Armed Guard Service have been largely overlooked due to the rapid       
   disbanding of the service after World War II and lack of adequate       
   records.                                                                
       (6) Recognition of the service of the naval personnel who served in 
   the Naval Armed Guard Service is highly warranted and long overdue.     
     (b) Sense of the Congress.--Congress expresses its appreciation, and 
  the appreciation of the American people, for the dedicated service      
  performed during World War I and World War II by members of the Navy    
  assigned as gun crews on board merchant ships as part of the Naval Armed
  Guard Service.                                                          

                    SEC. 535. SENSE OF CONGRESS REGARDING THE HEROISM, SACRIFICE, 
          AND SERVICE OF THE MILITARY FORCES OF SOUTH VIETNAM, OTHER NATIONS, AND 
          INDIGENOUS GROUPS IN CONNECTION WITH THE UNITED STATES ARMED FORCES     
          DURING THE VIETNAM CONFLICT.                                            
    (a)  Findings.--Congress finds the following:                         

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

                    SEC. 536. SENSE OF CONGRESS REGARDING THE HEROISM, SACRIFICE, 
          AND SERVICE OF FORMER SOUTH VIETNAMESE COMMANDOS IN CONNECTION WITH     
          UNITED STATES ARMED FORCES DURING THE VIETNAM CONFLICT.                 
    (a)  Findings.--Congress finds the following:                         

       (1) South Vietnamese commandos were recruited by the United States  
   as part of OPLAN 34A or its predecessor or OPLAN 35 from 1961 to 1970.  
       (2) The commandos conducted covert operations in North Vietnam      
   during the Vietnam conflict.                                            
       (3) Many of the commandos were captured and imprisoned by North     
   Vietnamese forces, some for as long as 20 years.                        

       (4) The commandos served and fought proudly during the Vietnam      
   conflict.                                                               
       (5) Many of the commandos lost their lives serving in operations    
   conducted by the United States during the Vietnam conflict.             
     (6) Many of the Vietnamese commandos now reside in the United States. 

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

                    SEC. 537. PROHIBITION ON MEMBERS OF ARMED FORCES ENTERING     
          CORRECTIONAL FACILITIES TO PRESENT DECORATIONS TO PERSONS WHO HAVE      
          COMMITTED SERIOUS VIOLENT FELONIES.                                     
     (a) Prohibition.--Chapter 57 of title 10, United States Code, is     
  amended by adding at the end the following new section:                 
                    ``1132. Presentation of decorations: prohibition on entering  
          correctional facilities for presentation to prisoners convicted of      
          serious violent felonies                                                
     ``(a) Prohibition.--A member of the armed forces may not enter a     
  Federal, State, local, or foreign correctional facility to present a    
  decoration to a person who is incarcerated due to conviction of a       
  serious violent felony.                                                 
    ``(b)  Definitions.--In this section:                                 

       ``(1) The term `decoration' means any decoration or award that may  
   be presented or awarded to a member of the armed forces.                
       ``(2) The term `serious violent felony' has the meaning given that  
   term in section 3559(c)(2)(F) of title 18.''.                           
     (b) Clerical Amendment.--The table of sections at the beginning of   
  that chapter is amended by adding at the end the following new item:    


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

             SUBTITLE E--ADMINISTRATION OF AGENCIES RESPONSIBLE FOR REVIEW AND    
                         CORRECTION OF MILITARY RECORDS                           
          SEC. 541. PERSONNEL FREEZE.                                             

     (a) Limitation.--During fiscal years 1999, 2000, and 2001, the       
  Secretary of a military department may not carry out any reduction in   
  the number of military and civilian personnel assigned to duty with the 
  service review agency for that military department below the baseline   
  number for that agency until--                                          
       (1) the Secretary submits to Congress a report that describes the   
   reduction proposed to be made, provides the Secretary's rationale for   
   that reduction, and specifies the number of such personnel that would be
   assigned to duty with that agency after the reduction; and              
       (2) a period of 90 days has elapsed after the date on which such    
   report is submitted.                                                    
     (b) Baseline Number.--The baseline number for a service review agency
  under this section is--                                                 
       (1) for purposes of the first report with respect to a service      
   review agency under this section, the number of military and civilian   
   personnel assigned to duty with that agency as of October 1, 1997; and  
       (2) for purposes of any subsequent report with respect to a service 
   review agency under this section, the number of such personnel specified
   in the most recent report with respect to that agency under this        
   section.                                                                
     (c) Service Review Agency Defined.--In this section, the term        
  ``service review agency'' means--                                       
       (1) with respect to the Department of the Army, the Army Review     
   Boards Agency;                                                          
       (2) with respect to the Department of the Navy, the Board for       
   Correction of Naval Records; and                                        

       (3) with respect to the Department of the Air Force, the Air Force  
   Review Boards Agency.                                                   
          SEC. 542. PROFESSIONAL STAFF.                                           

     (a) In General.--(1) Chapter 79 of title 10, United States Code, is  
  amended by adding at the end the following new section:                 
          ``1555. Professional staff                                              

     ``(a) The Secretary of each military department shall assign to the  
  staff of the service review agency of that military department at least 
  one attorney and at least one physician. Such assignments shall be made 
  on a permanent, full-time basis and may be made from members of the     
  armed forces or civilian employees.                                     
    ``(b) Personnel assigned pursuant to subsection (a)--                 

       ``(1) shall work under the supervision of the director or executive 
   director (as the case may be) of the service review agency; and         
       ``(2) shall be assigned duties as advisers to the director or       
   executive director or other staff members on legal and medical matters, 
   respectively, that are being considered by the agency.                  
    ``(c) In this section, the term `service review agency' means--       

       ``(1) with respect to the Department of the Army, the Army Review   
   Boards Agency;                                                          
       ``(2) with respect to the Department of the Navy, the Board for     
   Correction of Naval Records; and                                        
       ``(3) with respect to the Department of the Air Force, the Air Force
   Review Boards Agency.''.                                                
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


      ``1555. Professional staff.''.                                          



     (b) Effective Date.--Section 1555 of title 10, United States Code, as
  added by subsection (a), shall take effect 180 days after the date of   
  the enactment of this Act.                                              
          SEC. 543. EX PARTE COMMUNICATIONS.                                      

     (a) In General.--(1) Chapter 79 of title 10, United States Code, is  
  amended by adding after section 1555, as added by section 542(a)(1), the
  following new section:                                                  
          ``1556. Ex parte communications prohibited                              

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

     ``(1) Classified information.                                         

       ``(2) Information the release of which is otherwise prohibited by   
   law or regulation.                                                      
       ``(3) Any record previously provided to the applicant or known to be
   possessed by the applicant.                                             
     ``(4) Any correspondence that is purely administrative in nature.     

       ``(5) Any military record that is (or may be) provided to the       
   applicant by the Secretary of the military department or other          
   source.''.                                                              
     (2) The table of sections at the beginning of such chapter is amended
  by adding after the item relating to 1555, as added by section          
  542(a)(2), the following new item:                                      


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



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

          SEC. 544. TIMELINESS STANDARDS.                                         

     (a) In General.--Chapter 79 of title 10, United States Code, is      
  amended by adding after section 1556, as added by section 543(a)(1), the
  following new section:                                                  
                    ``1557. Timeliness standards for disposition of applications  
          before Corrections Boards                                               
     ``(a) Ten-Month Clearance Percentage.--Of the applications received  
  by a Corrections Board during a period specified in the following table,
  the percentage on which final action by the Corrections Board must be   
  completed within 10 months of receipt (other than for those applications
  considered suitable for administrative correction) is as follows:       

                                                                              

      The percentage on which final                                           

      ``For applications                                                      

       Correction Board action                                                

       received during--                                                      

        must be completed within                                              

                                                                              

       10 months of receipt is--                                              

       the period of fiscal years 2001 and 2002                                

       50 05                                                                   

       the period of fiscal years 2003 and 2004                                

       60 05                                                                   

       the period of fiscal years 2005, 2006, and 2007                         

       70 05                                                                   

       the period of fiscal years 2008, 2009, and 2010                         

       80 05                                                                   

       the period of any fiscal year after fiscal year 2010                    

       90.                                                                     


     ``(b) Clearance Deadline for All Applications.--Effective October 1, 
  2002, final action by a Corrections Board on all applications received  
  by the Corrections Board (other than those applications considered      
  suitable for administrative correction) shall be completed within 18    
  months of receipt.                                                      
     ``(c) Waiver Authority.--The Secretary of the military department    
  concerned may exclude an individual application from the timeliness     
  standards prescribed in subsections (a) and (b) if the Secretary        
  determines that the application warrants a longer period of             
  consideration. The authority of the Secretary of a military department  
  under this subsection may not be delegated.                             
     ``(d) Failure To Meet Timeliness Standards Not To Affect Any         
  Individual Application.--Failure of a Corrections Board to meet the     
  applicable timeliness standard for any period of time under subsection  
  (a) or (b) does not confer any presumption or advantage with respect to 
  consideration by the board of any application.                          
     ``(e) Reports on Failure To Meet Timeliness Standards.--The Secretary
  of the military department concerned shall submit to the Committee on   
  Armed Services of the Senate and the Committee on National Security of  
  the House of Representatives a report not later than June 1 following   
  any fiscal year during which the Corrections Board of that Secretary's  
  military department was unable to meet the applicable timeliness        
  standard for that fiscal year under subsections (a) and (b). The report 
  shall specify the reasons why the standard could not be met and the     
  corrective actions initiated to ensure compliance in the future. The    
  report shall also specify the number of waivers granted under subsection
  (c) during that fiscal year.                                            
     ``(f) Corrections Board Defined.--In this section, the term          
  `Corrections Board' means--                                             
       ``(1) with respect to the Department of the Army, the Army Board for
   Correction of Military Records;                                         
       ``(2) with respect to the Department of the Navy, the Board for     
   Correction of Naval Records; and                                        
       ``(3) with respect to the Department of the Air Force, the Air Force
   Board for Correction of Military Records.''.                            
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding after the item relating to section    
  1556, as added by section 543(a)(2), the following new item:            


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

          SEC. 545. SCOPE OF CORRECTION OF MILITARY RECORDS.                      

     (a) Payment of Claims Arising From Correction.--Subsection (c) of    
  section 1552 of title 10, United States Code, is amended in the first   
  sentence by inserting before the period the following: ``, or on account
  of his or another's service as a civilian employee''.                   
     (b) Definition of Military Record.--Such section is further amended  
  by adding at the end the following new subsection:                      

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

                                     SUBTITLE F--REPORTS                          


          SEC. 551. REPORT ON PERSONNEL RETENTION.                                

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

                    SEC. 552. REPORT ON PROCESS FOR SELECTION OF MEMBERS FOR      
          SERVICE ON COURTS-MARTIAL.                                              
     (a) Report Required.--Not later than April 15, 1999, the Secretary of
  Defense shall submit to Congress a report on the method of selection of 
  members of the Armed Forces to serve on courts-martial.                 
     (b) Consideration of Alternatives.--In preparing the report, the     
  Secretary shall examine alternatives, including random selection, to the
  current system of selection of members of courts-martial by the         
  convening authority. Any alternative examined by the Secretary shall be 
  consistent with the provisions relating to service on courts-martial    
  specified in section 825(d) of title 10, United States Code (article    
  25(d) of the Uniform Code of Military Justice). The Secretary shall     
  include in the report the Secretary's evaluation of each alternative    
  examined.                                                               
     (c) Views of Code Committee.--In preparing the report under          
  subsection (a), the Secretary shall obtain the views of the members of  
  the committee referred to in section 946 of such title (known as the    
  ``Code Committee'').                                                    

                    SEC. 553. REPORT ON PRISONERS TRANSFERRED FROM UNITED STATES  
          DISCIPLINARY BARRACKS, FORT LEAVENWORTH, KANSAS, TO FEDERAL BUREAU OF   
          PRISONS.                                                                
     (a) Report.--Not later than 90 days after the date of the enactment  
  of this Act, the Secretary of Defense shall submit to Congress a report,
  to be prepared by the General Counsel of the Department of Defense,     
  concerning the decision of the                                          

                    Secretary of the Army in 1994 to transfer approximately 500   
          prisoners from the United States Disciplinary Barracks, Fort            
          Leavenworth, Kansas, to the Federal Bureau of Prisons.                  
     (b) Matters To Be Included.--The Secretary shall include in the      
  report the following:                                                   
       (1) A description of the basis for the selection of prisoners to be 
   transferred, particularly in light of the fact that many of the         
   prisoners transferred are minimum or medium security prisoners, who are 
   considered to have the best chance for rehabilitation, and whether the  
   transfer of those prisoners indicates a change in Department of Defense 
   policy regarding the rehabilitation of military prisoners.              
       (2) A comparison of the historical recidivism rates of prisoners    
   released from the United States Disciplinary Barracks and the Federal   
   Bureau of Prisons, together with a description of any plans of the Army 
   to track the parole and recidivism rates of prisoners transferred to the
   Federal Bureau of Prisons and whether it has tracked those factors for  
   previous transferees.                                                   
       (3) A description of the projected future flow of prisoners into the
   new United States Disciplinary Barracks being constructed at Fort       
   Leavenworth, Kansas, and whether the Secretary of the Army plans to     
   automatically send new prisoners to the Federal Bureau of Prisons       
   without serving at the United States Disciplinary Barracks if that      
   Barracks is at capacity and whether the Memorandum of Understanding     
   between the Federal Bureau of Prisons and the Army covers that          
   possibility.                                                            
       (4) A description of the cost of incarcerating a prisoner in the    
   Federal Bureau of Prisons compared to the United States Disciplinary    
   Barracks and the assessment of the Secretary as to the extent to which  
   the transfer of prisoners to the Federal Bureau of Prisons by the       
   Secretary of the Army is made in order to shift a budgetary burden.     
     (c) Monitoring.--During fiscal years 1999 through 2003, the Secretary
  of the Army shall track the parole and recidivism rates of prisoners    
  transferred from the United States Disciplinary Barracks, Fort          
  Leavenworth, Kansas, to the Federal Bureau of Prisons.                  

                    SEC. 554. REVIEW AND REPORT REGARDING THE DISTRIBUTION OF     
          NATIONAL GUARD FULL-TIME SUPPORT AMONG THE STATES.                      
     (a) Requirement for Review.--The Chief of the National Guard Bureau  
  shall review the process used for allocating and distributing all       
  categories of full-time support personnel among the States for the      
  National Guard of the States.                                           
     (b) Purpose of Review.--The purpose of the review is to determine    
  whether that allocation and distribution process provides for adequately
  meeting the full-time support personnel requirements of the National    
  Guard in the case of those States that have fewer than 16 National Guard
  units categorized in readiness tiers I, II, and III.                    
     (c) Matters To Be Reviewed.--The matters reviewed shall include the  
  following:                                                              
       (1) The factors considered for the process of determining the       
   distribution among the States of full-time support personnel, including 
   the weights assigned to those factors.                                  
       (2) The extent to which that process results in full-time support   
   personnel levels for the units of the States described in subsection (b)
   that are at the levels necessary to optimize the preparedness of those  
   units to meet the mission requirements applicable to those units.       
       (3) The effects that full-time support personnel at levels          
   determined under that process will have on the National Guard of those  
   States in the future, including the effects on all categories of        
   full-time support personnel, and unit readiness, recruitment, and       
   continued use of existing National Guard armories and other facilities. 
     (d) Report.--Not later than March 15, 1999, the Chief of the National
  Guard Bureau shall submit to the Secretary of Defense a report on the   
  results of the review. Not later than April 30, 1999, the Secretary     
  shall transmit the report, and the Secretary's evaluation of and        
  comments on the report, to the                                          

                    Committee on Armed Services of the Senate and the Committee on
          National Security of the House of Representatives.                      

                                  SUBTITLE G--OTHER MATTERS                       


                    SEC. 561. TWO-YEAR EXTENSION OF CERTAIN FORCE DRAWDOWN        
          TRANSITION AUTHORITIES RELATING TO PERSONNEL MANAGEMENT AND BENEFITS.   
     (a) Early Retirement Authority for Active Force Members.--Section    
  4403(i) of the National Defense Authorization Act for Fiscal Year 1993  
  (10 U.S.C. 1293 note) is amended by striking out ``October 1, 1999'' and
  inserting in lieu thereof ``October 1, 2001''.                          
     (b) SSB and VSI.--Sections 1174a(h) and 1175(d)(3) of title 10,      
  United States Code, are amended by striking out ``September 30, 1999''  
  and inserting in lieu thereof ``September 30, 2001''.                   
     (c) Selective Early Retirement Boards.--Section 638a(a) of such title
  is amended by striking out ``during the nine-year period beginning on   
  October 1, 1990'' and inserting in lieu thereof ``during the period     
  beginning on October 1, 1990, and ending on September 30, 2001''.       
     (d) Time-in-Grade Requirement for Retention of Grade Upon Voluntary  
  Retirement.--Section 1370(a)(2)(A) of such title is amended by striking 
  out ``during the nine-year period beginning on October 1, 1990'' and    
  inserting in lieu thereof ``during the period beginning on October 1,   
  1990, and ending on September 30, 2001''.                               
     (e) Minimum Commissioned Service for Voluntary Retirement as an      
  Officer.--Sections 3911(b), 6323(a)(2), and 8911(b) of such title are   
  amended by striking out ``during the nine-year period beginning on      
  October 1, 1990'' and inserting in lieu thereof ``during the period     
  beginning on October 1, 1990, and ending on September 30, 2001''.       
     (f) Travel, Transportation, and Storage Benefits.--Sections          
  404(c)(1)(C), 404(f)(2)(B)(v), 406(a)(2)(B)(v), and 406(g)(1)(C) of     
  title 37, United States Code, and section 503(c) of the National Defense
  Authorization Act for Fiscal Year 1991 (37 U.S.C. 406 note) are amended 
  by striking out ``during the nine-year period beginning on October 1,   
  1990'' and inserting in lieu thereof ``during the period beginning on   
  October 1, 1990, and ending on September 30, 2001''.                    
     (g) Educational Leave for Public and Community Service.--Section     
  4463(f) of the National Defense Authorization Act for Fiscal Year 1993  
  (10 U.S.C. 1143a note) is amended by striking out ``September 30, 1999''
  and inserting in lieu thereof ``September 30, 2001''.                   
     (h) Transitional Health Benefits.--Section 1145 of title 10, United  
  States Code, is amended--                                               
       (1) in subsections (a)(1) and (c)(1), by striking out ``during the  
   nine-year period beginning on October 1, 1990'' and inserting in lieu   
   thereof ``during the period beginning on October 1, 1990, and ending on 
   September 30, 2001''; and                                               
       (2) in subsection (e), by striking out ``during the five-year period
   beginning on October 1, 1994'' and inserting in lieu thereof ``during   
   the period beginning on October 1, 1994, and ending on September 30,    
   2001''.                                                                 
     (i) Transitional Commissary and Exchange Benefits.--Section 1146 of  
  such title is amended--                                                 
       (1) by striking out ``during the nine-year period beginning on      
   October 1, 1990'' and inserting in lieu thereof ``during the period     
   beginning on October 1, 1990, and ending on September 30, 2001''; and   
       (2) by striking out ``during the five-year period beginning on      
   October 1, 1994'' and inserting in lieu thereof ``during the period     
   beginning on October 1, 1994, and ending on September 30, 2001''.       
     (j) Transitional Use of Military Housing.--Section 1147(a) of such   
  title is amended--                                                      
       (1) in paragraph (1), by striking out ``during the nine-year period 
   beginning on October 1, 1990'' and inserting in lieu thereof ``during   
   the period beginning on October 1, 1990, and ending on September 30,    
   2001''; and                                                             

       (2) in paragraph (2), by striking out ``during the five-year period 
   beginning on October 1, 1994'' and inserting in lieu thereof ``during   
   the period beginning on October 1, 1994, and ending on September 30,    
   2001''.                                                                 
     (k) Continued Enrollment of Dependents in Defense Dependents'        
  Education System.--Section 1407(c)(1) of the Defense Dependents'        
  Education Act of 1978 (20 U.S.C. 926(c)(1)) is amended by striking out  
  ``during the nine-year period beginning on October 1, 1990'' and        
  inserting in lieu thereof ``during the period beginning on October 1,   
  1990, and ending on September 30, 2001''.                               
     (l) Force Reduction Transition Period Definition.--Section 4411 of   
  the National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C.  
  12681 note) is amended by striking out ``September 30, 1999'' and       
  inserting in lieu thereof ``September 30, 2001''.                       
     (m) Temporary Special Authority for Force Reduction Period           
  Retirements.--Section 4416(b)(1) of the National Defense Authorization  
  Act for Fiscal Year 1993 (10 U.S.C. 12681 note) is amended by striking  
  out ``October 1, 1999'' and inserting in lieu thereof ``October 1,      
  2001''.                                                                 
     (n) Retired Pay for Non-Regular Service.--(1) Section 12731(f) of    
  title 10, United States Code, is amended by striking out ``September 30,
  1999'' and inserting in lieu thereof ``September 30, 2001''.            
     (2) Section 12731a of such title is amended in subsections (a)(1)(B) 
  and (b) by striking out ``October 1, 1999'' and inserting in lieu       
  thereof ``October 1, 2001''.                                            
     (o) Reduction of Time-in-Grade Requirement for Retention of Grade    
  Upon Voluntary Retirement.--Section 1370(d) of such title is amended by 
  adding at the end the following new paragraph:                          
     ``(5) The Secretary of Defense may authorize the Secretary of a      
  military department to reduce the three-year period required by         
  paragraph (3)(A) to a period not less than two years in the case of     
  retirements effective during the period beginning on the date of the    
  enactment of this paragraph and ending on September 30, 2001. The number
  of reserve commissioned officers of an armed force in the same grade for
  whom a reduction is made during any fiscal year in the period of        
  service-in-grade otherwise required under this paragraph may not exceed 
  the number equal to two percent of the strength authorized for that     
  fiscal year for reserve commissioned officers of that armed force in an 
  active status in that grade.''.                                         
     (p) Affiliation With Guard and Reserve Units; Waiver of Certain      
  Limitations.--Section 1150(a) of such title is amended by striking out  
  ``during the nine-year period beginning on October 1, 1990'' and        
  inserting in lieu thereof ``during the period beginning on October 1,   
  1990, and ending on September 30, 2001''.                               
     (q) Reserve Montgomery GI Bill.--Section 16133(b)(1)(B) of such title
  is amended by striking out ``September 30, 1999'' and inserting in lieu 
  thereof ``September 30, 2001''.                                         

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

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

       (3) by inserting after subsection (a) the following new subsection  
   (b):                                                                    
     ``(b) Involuntary Leave Without Pay for Suspended Academy Cadets and 
  Midshipmen.--(1) Under regulations prescribed under subsection (d), the 
  Secretary concerned may place an academy cadet or midshipman on         
  involuntary leave for any period during which the Superintendent of the 
  Academy at which the cadet or midshipman is admitted has suspended the  
  cadet or midshipman from duty at the Academy--                          
     ``(A) pending separation from the Academy;                            


       ``(B) pending return to the Academy to repeat an academic semester  
   or year; or                                                             
     ``(C) for other good cause.                                           

     ``(2) A cadet or midshipman placed on involuntary leave under        
  paragraph (1) is not entitled to any pay under section 230(c) of title  
  37 for the period of the leave.                                         
     ``(3) Return of an academy cadet or midshipman to a pay status at the
  Academy concerned from involuntary leave status under paragraph (1) does
  not restore any entitlement of the cadet or midshipman to pay for the   
  period of the involuntary leave.''.                                     
    (b)  Definition.--Such section is further amended--                   

       (1) in subsection (c) (as redesignated by subsection (a)(2)), by    
   striking out ``cadets at'' and all that follows through ``Naval         
   Academy,'' and inserting in lieu thereof ``academy cadets or            
   midshipmen''; and                                                       
     (2) by adding at the end the following new subsection:                

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

     ``(2) a midshipman of the United States Naval Academy;                

     ``(3) a cadet of the United States Air Force Academy; or              

     ``(4) a cadet of the United States Coast Guard Academy.''.            

    (c)  Subsection Headings.--Such section is further amended--          

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

                    SEC. 563. CONTINUED ELIGIBILITY UNDER VOLUNTARY SEPARATION    
          INCENTIVE PROGRAM FOR MEMBERS WHO INVOLUNTARILY LOSE MEMBERSHIP IN A    
          RESERVE COMPONENT.                                                      
     (a) Period of Eligibility.--Subsection (a) of section 1175 of title  
  10, United States Code, is amended--                                    
     (1) by inserting ``(1)'' after ``(a)'';                               

       (2) by striking out ``, for the period of time the member serves in 
   a reserve component''; and                                              
     (3) by adding at the end the following:                               

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

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

                    SEC. 564. REINSTATEMENT OF DEFINITION OF FINANCIAL INSTITUTION
          IN AUTHORITIES FOR REIMBURSEMENT OF DEFENSE PERSONNEL FOR GOVERNMENT    
          ERRORS IN DIRECT DEPOSIT OF PAY.                                        
     (a) Members of the Armed Forces.--Paragraph (1) of section 1053(d) of
  title 10, United States Code, is amended to read as follows:            
       ``(1) The term `financial institution' means a bank, savings and    
   loan association, or similar institution or a credit union chartered by 
   the United States or a State.''.                                        
     (b) Civilian Personnel.--Paragraph (1) of section 1594(d) of such    
  title is amended to read as follows:                                    
       ``(1) The term `financial institution' means a bank, savings and    
   loan association, or similar institution or a credit union chartered by 
   the United States or a State.''.                                        

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

     (a) Increase in Maximum Rate for Active Component Montgomery GI Bill 
  Supplement.--Section 3015(d) of title 38, United States Code, is        
  amended--                                                               
       (1) by inserting ``, at the time the individual first becomes a     
   member of the Armed Forces,'' after ``Secretary of Defense, may''; and  
       (2) by striking out ``$400'' and all that follows through ``that    
   date'' and inserting in lieu thereof ``$950 per month''.                
     (b) Effective Date.--The amendments made by subsection (a) shall take
  effect on October 1, 1998, and shall apply with respect to individuals  
  who first become members of the Armed Forces on or after that date.     

          SEC. 566. CENTRAL IDENTIFICATION LABORATORY, HAWAII.                    

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

          SEC. 567. MILITARY FUNERAL HONORS FOR VETERANS.                         

     (a) Conference on Practices Concerning Military Honors at Funerals   
  for Veterans.--(1) The Secretary of Defense, in consultation with the   
  Secretary of Veterans Affairs, shall convene and preside over a         
  conference, to be completed not later than December 31, 1998, for the   
  purpose of determining means of improving and increasing the            
  availability of military funeral honors for veterans. The Secretary of  
  Veterans Affairs shall also participate in the conference.              

     (2) The Secretaries shall invite and encourage the participation at  
  the conference of appropriate representatives of veterans service       
  organizations.                                                          
    (3) The conference shall perform the following:                       

       (A) Review current policies and practices of the military           
   departments and the Department of Veterans Affairs relating to the      
   provision of military funeral honors for veterans.                      
       (B) Consider alternative methods for providing military funeral     
   honors for veterans and develop new strategies for providing those      
   honors.                                                                 
       (C) Determine what resources may be available outside the Department
   of Defense that could be used to provide military funeral honors for    
   veterans.                                                               
       (D) Analyze the costs associated with providing military funeral    
   honors for veterans, including the costs associated with using personnel
   and other resources for that purpose.                                   
     (E) Assess trends in the rate of death of veterans.                   

       (F) Propose, consider, and determine means of improving and         
   increasing the availability of military funeral honors for veterans.    
     (4) Not later than March 31, 1999, the Secretary of Defense shall    
  submit to Congress a report on the conference. The report shall set     
  forth any modifications to Department of Defense directives on military 
  funeral honors adopted as a result of the conference and include any    
  recommendations for legislation that the Secretary considers appropriate
  as a result of the conference.                                          
     (b) Honor Guard Details at Funerals of Veterans.--(1) Chapter 75 of  
  title 10, United States Code, is amended by adding at the end the       
  following new section:                                                  
          ``1491. Honor guard details at funerals of veterans                     

     ``(a) Availability.--The Secretary of a military department shall,   
  upon request, provide an honor guard detail (or ensure that an honor    
  guard detail is provided) for the funeral of any veteran that occurs    
  after December 31, 1999.                                                
     ``(b) Composition of Honor Guard Details.--The Secretary of each     
  military department shall ensure that an honor guard detail for the     
  funeral of a veteran consists of not less than three persons and (unless
  a bugler is part of the detail) has the capability to play a recorded   
  version of Taps.                                                        
     ``(c) Persons Forming Honor Guards.--An honor guard detail may       
  consist of members of the armed forces or members of veterans           
  organizations or other organizations approved for purposes of this      
  section under regulations prescribed by the Secretary of Defense. The   
  Secretary of a military department may provide transportation, or       
  reimbursement for transportation, and expenses for a person who         
  participates in an honor guard detail under this section and is not a   
  member of the armed forces or an employee of the United States.         
     ``(d) Regulations.--The Secretary of Defense shall by regulation     
  establish a system for selection of units of the armed forces and other 
  organizations to provide honor guard details. The system shall place an 
  emphasis on balancing the funeral detail workload among the units and   
  organizations providing honor guard details in an equitable manner as   
  they are able to respond to requests for such details in terms of       
  geographic proximity and available resources. The Secretary shall       
  provide in such regulations that the armed force in which a veteran     
  served shall not be considered to be a factor when selecting the        
  military unit or other organization to provide an honor guard detail for
  the funeral of the veteran.                                             
     ``(e) Annual Report.--The Secretary of Defense shall submit to the   
  Committee on Armed Services of the Senate and the Committee on National 
  Security of the House of Representatives a report not later than January
  31 of each year beginning with 2001 and ending with 2005 on the         
  experience of the Department of Defense under this section. Each such   
  report shall provide data on the number of funerals supported under this
  section, the cost for that support, shown by manpower and other cost    
  factors, and the number and costs of funerals supported                 

                    by each participating organization. The data in the report    
          shall be presented in a standard format, regardless of military         
          department or other organization.                                       
     ``(f) Veteran Defined.--In this section, the term `veteran' has the  
  meaning given that term in section 101(2) of title 38.''.               
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


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



     (c) Treatment of Performance of Honor Guard Functions by             
  Reserves.--(1) Chapter 1215 of title 10, United States Code, is amended 
  by adding at the end the following new section:                         
                    ``12552. Funeral honor guard functions: prohibition of        
          treatment as drill or training                                          
     ``Performance by a Reserve of honor guard functions at the funeral of
  a veteran may not be considered to be a period of drill or training     
  otherwise required.''.                                                  
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


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


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

     (2) by striking out subsection (b).                                   

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

                    SEC. 568. STATUS IN THE NAVAL RESERVE OF CADETS AT THE        
          MERCHANT MARINE ACADEMY.                                                
     Section 1303(c) of the Merchant Marine Act, 1936 (46 U.S.C. App.     
  1295(c)), is amended--                                                  
     (1) by inserting ``(1)'' after ``(c)'';                               

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

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

                    SEC. 569. REPEAL OF RESTRICTION ON CIVILIAN EMPLOYMENT OF     
          ENLISTED MEMBERS.                                                       
     (a) Repeal.--Section 974 of title 10, United States Code, is         
  repealed.                                                               
     (b) Clerical Amendment.--The table of sections at the beginning of   
  chapter 49 of such title is amended by striking out the item relating to
  section 974.                                                            

                    SEC. 570. TRANSITIONAL COMPENSATION FOR ABUSED DEPENDENT      
          CHILDREN NOT RESIDING WITH THE SPOUSE OR FORMER SPOUSE OF A MEMBER      
          CONVICTED OF DEPENDENT ABUSE.                                           
     (a) Entitlement Not Conditioned on Forfeiture of Spousal             
  Compensation.--Subsection (d) of section 1059 of title 10, United States
  Code, is amended--                                                      
     (1) in paragraph (1)--                                                

       (A) by striking out ``(except as otherwise provided in this         
   subsection)''; and                                                      
       (B) by inserting before the period the following: ``, including an  
   amount (determined under subsection (f)(2)) for each, if any, dependent 
   child of the individual described in subsection (b) who resides in the  
   same household as that spouse or former spouse'';                       
     (2) in paragraph (2)--                                                


       (A) by striking out ``(but for subsection (g)) would be eligible''  
   and inserting in lieu thereof ``is or, but for subsection (g), would be 
   eligible''; and                                                         
       (B) by striking out ``such compensation'' and inserting in lieu     
   thereof ``compensation under this section''; and                        
       (3) in paragraph (4), by striking out ``For purposes of paragraphs  
   (2) and (3)'' and inserting in lieu thereof ``For purposes of this      
   subsection''.                                                           
     (b) Amount of Payment.--Subsection (f)(2) of such section is amended 
  by striking out ``has custody of a dependent child or children of the   
  member'' and inserting in lieu thereof ``has custody of a dependent     
  child of the member who resides in the same household as that spouse or 
  former spouse''.                                                        
     (c) Prospective Applicability.--No benefits shall accrue by reason of
  the amendments made by this section for any month that begins before the
  date of the enactment of this Act.                                      

                    SEC. 571. PILOT PROGRAM FOR TREATING GED AND HOME SCHOOL      
          DIPLOMA RECIPIENTS AS HIGH SCHOOL GRADUATES FOR DETERMINATIONS OF       
          ELIGIBILITY FOR ENLISTMENT IN THE ARMED FORCES.                         
     (a) Program Required.--The Secretary of Defense shall establish a    
  pilot program to assess whether the Armed Forces could better meet      
  recruiting requirements by treating GED recipients and home school      
  diploma recipients as having graduated from high school with a high     
  school diploma for the purpose of determining the eligibility of those  
  persons to enlist in the Armed Forces. The Secretary of each military   
  department shall administer the pilot program for the armed force or    
  armed forces under the jurisdiction of that Secretary.                  
     (b) Persons Eligible Under the Pilot Program as High School          
  Graduates.--Under the pilot program, a person shall be treated as having
  graduated from high school with a high school diploma for the purpose   
  described in subsection (a) if--                                        
       (1) the person has completed a general education development program
   while participating in the National Guard Challenge Program under       
   section 509 of title 32, United States Code, and is a GED recipient; or 
       (2) the person is a home school diploma recipient and provides a    
   transcript demonstrating completion of high school to the military      
   department involved under the pilot program.                            
     (c) GED and Home School Diploma Recipients.--For the purposes of this
  section--                                                               
       (1) a person is a GED recipient if the person, after completing a   
   general education development program, has obtained certification of    
   high school equivalency by meeting State requirements and passing a     
   State approved exam that is administered for the purpose of providing an
   appraisal of the person's achievement or performance in the broad       
   subject matter areas usually required for high school graduates; and    
       (2) a person is a home school diploma recipient if the person has   
   received a diploma for completing a program of education through the    
   high school level at a home school, without regard to whether the home  
   school is treated as a private school under the law of the State in     
   which located.                                                          
     (d) Annual Limit on Number.--Not more than 1,250 GED recipients and  
  home school diploma recipients enlisted by an armed force during a      
  fiscal year may be treated under the pilot program as having graduated  
  from high school with a high school diploma.                            
     (e) Duration of Pilot Program.--The pilot program shall be in effect 
  during the period beginning on October 1, 1998, and ending on September 
  30, 2003.                                                               
     (f) Report.--Not later than February 1, 2004, the Secretary of       
  Defense shall submit to the Committee on Armed Services of the Senate   
  and the Committee on National Security of the House of Representatives a
  report on the pilot program. The report shall include the following, set
  forth separately for GED recipients and home school diploma recipients: 
       (1) The assessment of the Secretary of Defense, and any assessment  
   of any of the Secretaries of the military departments,                  

                    regarding the value of, and any necessity for, authority to   
          treat GED recipients and home school diploma recipients as having       
          graduated from high school with a high school diploma for the purpose of
          determining the eligibility of those persons to enlist in the Armed     
          Forces.                                                                 
       (2) A comparison (shown by armed force and by each fiscal year of   
   the pilot program) of the performance of the persons who enlisted during
   the fiscal year as GED or home school diploma recipients treated under  
   the pilot program as having graduated from high school with a high      
   school diploma with the performance of the persons who enlisted in that 
   armed force during the same fiscal year after having graduated from high
   school with a high school diploma, with respect to the following:       
     (A) Attrition.                                                        

     (B) Discipline.                                                       

     (C) Adaptability to military life.                                    

       (D) Aptitude for mastering the skills necessary for technical       
   specialties.                                                            
     (E) Reenlistment rates.                                               

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

                    SEC. 572. SENSE OF CONGRESS CONCERNING NEW PARENT SUPPORT     
          PROGRAM AND MILITARY FAMILIES.                                          
    (a)  Sense of Congress.--It is the sense of Congress that--           

       (1) the New Parent Support Program that was begun as a pilot program
   of the Marine Corps at Camp Pendleton, California, has been an effective
   tool in curbing family violence within the military community;          
       (2) such program is a model for future New Parent Support Programs  
   throughout the Marine Corps, Navy, Army, and Air Force; and             
       (3) in light of the pressures and strains placed upon military      
   families and the benefits of the New Parent Support Program in helping  
   ``at-risk'' families, the Department of Defense should seek ways to     
   ensure that in future fiscal years funds are made available for New     
   Parent Support Programs for the Army, Navy, Air Force, and Marine Corps 
   in amounts sufficient to meet requirements for those programs.          
     (b) Report.--Not later than 120 days after the date of the enactment 
  of this Act, the Secretary of Defense shall submit to Congress a report 
  on the New Parent Support Program of the Department of Defense. The     
  Secretary shall include in the report the following:                    
       (1) A description of how the Army, Navy, Air Force, and Marine Corps
   are each implementing a New Parent Support Program and how each such    
   program is organized.                                                   
       (2) A description of how the implementation of programs for the     
   Army, Navy, and Air Force compare to the fully implemented Marine Corps 
   program.                                                                
       (3) The number of installations that the four Armed Forces have each
   scheduled to receive support for the New Parent Support Program.        
     (4) The number of installations delayed in providing the program.     

     (5) The number of programs terminated.                                

     (6) The number of programs with reduced support.                      

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

                    SEC. 573. ADVANCEMENT OF BENJAMIN O. DAVIS, JUNIOR, TO GRADE  
          OF GENERAL ON THE RETIRED LIST OF THE AIR FORCE.                        
     (a) Authority.--The President is authorized to advance Lieutenant    
  General Benjamin O. Davis, Junior, United States                        

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

                    SEC. 574. SENSE OF THE HOUSE OF REPRESENTATIVES CONCERNING    
          ADHERENCE BY CIVILIANS IN MILITARY CHAIN OF COMMAND TO THE STANDARD OF  
          EXEMPLARY CONDUCT REQUIRED OF COMMANDING OFFICERS AND OTHERS IN         
          AUTHORITY IN THE ARMED FORCES.                                          
     It is the sense of the House of Representatives that civilians in the
  military chain of command (as provided in section 162(b) of title 10,   
  United States Code) should (in the same manner as is required by law of 
  commanding officers and others in authority in the Armed Forces)--      
       (1) show in themselves a good example of virtue, honor, and         
   patriotism and subordinate themselves to those ideals;                  
       (2) be vigilant in inspecting the conduct of all persons who are    
   placed under their command;                                             
       (3) guard against and put an end to all dissolute and immoral       
   practices and correct, according to the laws and regulations of the     
   Armed Forces, all persons who are guilty of them; and                   
       (4) take all necessary and proper measures, under the laws,         
   regulations, and customs of the Armed Forces, to promote and safeguard  
   the morale, the physical well-being, and the general welfare of the     
   officers and enlisted persons under their command or charge.            

                     TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS          


                               SUBTITLE A--PAY AND ALLOWANCES                     

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

            Sec. 602. Rate of pay for cadets and midshipmen at the service    
      academies.                                                              
      Sec. 603. Basic allowance for housing outside the United States.        

      Sec. 604. Basic allowance for subsistence for reserves.                 

                     SUBTITLE B--BONUSES AND SPECIAL AND INCENTIVE PAYS           

            Sec. 611. Three-month extension of certain bonuses and special pay
      authorities for reserve forces.                                         
            Sec. 612. Three-month extension of certain bonuses and special pay
      authorities for nurse officer candidates, registered nurses, and nurse  
      anesthetists.                                                           
            Sec. 613. Three-month extension of authorities relating to payment
      of other bonuses and special pays.                                      
            Sec. 614. Increased hazardous duty pay for aerial flight          
      crewmembers in certain pay grades.                                      
            Sec. 615. Aviation career incentive pay and aviation officer      
      retention bonus.                                                        
            Sec. 616. Diving duty special pay for divers having diving duty as
      a nonprimary duty.                                                      
      Sec. 617. Hardship duty pay.                                            

            Sec. 618. Selective reenlistment bonus eligibility for Reserve    
      members performing active Guard and Reserve duty.                       
            Sec. 619. Repeal of ten percent limitation on certain selective   
      reenlistment bonuses.                                                   
            Sec. 620. Increase in maximum amount authorized for Army          
      enlistment bonus.                                                       
            Sec. 621. Equitable treatment of Reserves eligible for special pay
      for duty subject to hostile fire or imminent danger.                    
            Sec. 622. Retention incentives initiative for critically short    
      military occupational specialties.                                      
                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            

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

            Sec. 632. Exception to maximum weight allowance for baggage and   
      household effects.                                                      
            Sec. 633. Travel and transportation allowances for travel         
      performed by members in connection with rest and recuperative leave from
      overseas stations.                                                      
      Sec. 634. Storage of baggage of certain dependents.                     

            Sec. 635. Commercial travel of Reserves at Federal supply schedule
      rates for attendance at inactive-duty training assemblies.              
               SUBTITLE D--RETIRED PAY, SURVIVOR BENEFITS, AND RELATED MATTERS    

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

      Sec. 642. Survivor Benefit Plan open enrollment period.                 

            Sec. 643. Effective date of court-required former spouse Survivor 
      Benefit Plan coverage effectuated through elections and deemed          
      elections.                                                              
            Sec. 644. Presentation of United States flag to members of the    
      Armed Forces upon retirement.                                           

            Sec. 645. Recovery, care, and disposition of remains of medically 
      retired member who dies during hospitalization that begins while on     
      active duty.                                                            
      Sec. 646. Revision to computation of retired pay for certain members.   

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

                                  SUBTITLE E--OTHER MATTERS                       

            Sec. 651. Definition of possessions of the United States for pay  
      and allowances purposes.                                                
      Sec. 652. Accounting of advance payments.                               

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

                               SUBTITLE A--PAY AND ALLOWANCES                     

          SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 1999.                   

     (a) Waiver of Section 1009 Adjustment.--Except as provided in        
  subsection (b), the adjustment to become effective during fiscal year   
  1999 required by section 1009 of title 37, United States Code, in the   
  rate of monthly basic pay authorized members of the uniformed services  
  by section 203(a) of such title shall not be made.                      
     (b) Increase in Basic Pay.--Effective on January 1, 1999, the rates  
  of basic pay of members of the uniformed services shall be increased by 
  the greater of--                                                        
     (1) 3.6 percent; or                                                   

       (2) the percentage increase determined under subsection (c) of      
   section 1009 of title 37, United States Code, by which the monthly basic
   pay of members would be adjusted under subsection (a) of that section on
   that date in the absence of subsection (a) of this section.             

                    SEC. 602. RATE OF PAY FOR CADETS AND MIDSHIPMEN AT THE SERVICE
          ACADEMIES.                                                              
     (a) Increased Rate.--Section 203(c) of title 37, United States Code, 
  is amended by striking out ``$558.04'' and inserting in lieu thereof    
  ``$600.00''.                                                            
     (b) Effective Date.--The amendment made by subsection (a) shall take 
  effect on January 1, 1999.                                              
          SEC. 603. BASIC ALLOWANCE FOR HOUSING OUTSIDE THE UNITED STATES.        

     (a) Payment of Certain Expenses Related to Overseas Housing.--Section
  403(c) of title 37, United States Code, is amended by adding at the end 
  the following new paragraph:                                            
     ``(3)(A) In the case of a member of the uniformed services authorized
  to receive an allowance under paragraph (1), the Secretary concerned may
  make a lump-sum payment to the member for required deposits and advance 
  rent, and for expenses relating thereto, that are--                     
       ``(i) incurred by the member in occupying private housing outside of
   the United States; and                                                  
       ``(ii) authorized or approved under regulations prescribed by the   
   Secretary concerned.                                                    
     ``(B) Expenses for which a member may be reimbursed under this       
  paragraph may include losses relating to housing that are sustained by  
  the member as a result of fluctuations in the relative value of the     
  currencies of the United States and the foreign country in which the    
  housing is located.                                                     
     ``(C) The Secretary concerned shall recoup the full amount of any    
  deposit or advance rent payments made by the Secretary under            
  subparagraph (A), including any gain resulting from currency            
  fluctuations between the time of payment and the time of recoupment.''. 
     (b) Conforming Amendment.--Section 405 of title 37, United States    
  Code, is amended by striking out subsection (c).                        
     (c) Retroactive Application.--The reimbursement authority provided by
  section 403(c)(3)(B) of title 37, United States Code, as added by       
  subsection (a), applies with respect                                    

                    to losses relating to housing that are sustained, on or after 
          July 1, 1997, by a member of the uniformed services as a result of      
          fluctuations in the relative value of the currencies of the United      
          States and the foreign country in which the housing is located.         
          SEC. 604. BASIC ALLOWANCE FOR SUBSISTENCE FOR RESERVES.                 

     (a) In General.--Section 402 of title 37, United States Code, is     
  amended--                                                               
       (1) by redesignating subsections (e) and (f) as subsections (f) and 
   (g), respectively; and                                                  
     (2) by inserting after subsection (d) the following new subsection:   

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

                    SEC. 611. THREE-MONTH EXTENSION OF CERTAIN BONUSES AND SPECIAL
          PAY AUTHORITIES FOR RESERVE FORCES.                                     
     (a) Special Pay for Health Professionals in Critically Short Wartime 
  Specialties.--Section 302g(f) of title 37, United States Code, is       
  amended by striking out ``September 30, 1999'' and inserting in lieu    
  thereof ``December 31, 1999''.                                          
     (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title   
  37, United States Code, is amended by striking out ``September 30,      
  1999'' and inserting in lieu thereof ``December 31, 1999''.             
     (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 37, 
  United States Code, is amended by striking out ``September 30, 1999''   
  and inserting in lieu thereof ``December 31, 1999''.                    
     (d) Special Pay for Enlisted Members Assigned to Certain High        
  Priority Units.--Section 308d(c) of title 37, United States Code, is    
  amended by striking out ``September 30, 1999'' and inserting in lieu    
  thereof ``December 31, 1999''.                                          
     (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 37,
  United States Code, is amended by striking out ``September 30, 1999''   
  and inserting in lieu thereof ``December 31, 1999''.                    
     (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 308h(g)
  of title 37, United States Code, is amended by striking out ``September 
  30, 1999'' and inserting in lieu thereof ``December 31, 1999''.         
     (g) Prior Service Enlistment Bonus.--Section 308i(f) of title 37,    
  United States Code, as redesignated by section 622, is amended by       
  striking out ``September 30, 1999'' and inserting in lieu thereof       
  ``December 31, 1999''.                                                  

     (h) Repayment of Education Loans for Certain Health Professionals Who
  Serve in the Selected Reserve.--Section 16302(d) of title 10, United    
  States Code, is amended by striking out ``October 1, 1999'' and         
  inserting in lieu thereof ``January 1, 2000''.                          
                    SEC. 612. THREE-MONTH EXTENSION OF CERTAIN BONUSES AND SPECIAL
          PAY AUTHORITIES FOR NURSE OFFICER CANDIDATES, REGISTERED NURSES, AND    
          NURSE ANESTHETISTS.                                                     
     (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1)  
  of title 10, United States Code, is amended by striking out ``September 
  30, 1999'' and inserting in lieu thereof ``December 31, 1999''.         
     (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of    
  title 37, United States Code, is amended by striking out ``September 30,
  1999'' and inserting in lieu thereof ``December 31, 1999''.             
     (c) Incentive Special Pay for Nurse Anesthetists.--Section 302e(a)(1)
  of title 37, United States Code, is amended by striking out ``September 
  30, 1999'' and inserting in lieu thereof ``December 31, 1999''.         
                    SEC. 613. THREE-MONTH EXTENSION OF AUTHORITIES RELATING TO    
          PAYMENT OF OTHER BONUSES AND SPECIAL PAYS.                              
     (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37,  
  United States Code, is amended by striking out ``September 30, 1999,''  
  and inserting in lieu thereof ``December 31, 1999,''.                   
     (b) Reenlistment Bonus for Active Members.--Section 308(g) of title  
  37, United States Code, is amended by striking out ``September 30,      
  1999'' and inserting in lieu thereof ``December 31, 1999''.             
     (c) Enlistment Bonuses for Members With Critical Skills.--Sections   
  308a(c) and 308f(c) of title 37, United States Code, are each amended by
  striking out ``September 30, 1999'' and inserting in lieu thereof       
  ``December 31, 1999''.                                                  
     (d) Special Pay for Nuclear-Qualified Officers Extending Period of   
  Active Service.--Section 312(e) of title 37, United States Code, is     
  amended by striking out ``September 30, 1999'' and inserting in lieu    
  thereof ``December 31, 1999''.                                          
     (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37,    
  United States Code, is amended by striking out ``September 30, 1999''   
  and inserting in lieu thereof ``December 31, 1999''.                    
     (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of title 
  37, United States Code, is amended by striking out ``October 1, 1999''  
  and inserting in lieu thereof ``October 1, 1998, and the 15-month period
  beginning on that date and ending on December 31, 1999''.               
                    SEC. 614. INCREASED HAZARDOUS DUTY PAY FOR AERIAL FLIGHT      
          CREWMEMBERS IN CERTAIN PAY GRADES.                                      
     (a) Rates.--The table in section 301(b) of title 37, United States   
  Code, is amended by striking out the items relating to pay grades E 4, E
  5, E 6, E 7, E 8, and E 9, and inserting in lieu thereof the following: 




          ``E 9                          240



           E 8                           240



           E 7                           240



           E 6                           215



           E 5                           190



           E 4                           165''.



     (b) Effective Date.--The amendment made by subsection (a) shall take 
  effect on October 1, 1998, and shall apply with respect to months       
  beginning on or after that date.                                        
                    SEC. 615. AVIATION CAREER INCENTIVE PAY AND AVIATION OFFICER  
          RETENTION BONUS.                                                        
     (a) Definition of Aviation Service.--(1) Section 301a(a)(6) of title 
  37, United States Code, is amended--                                    
       (A) by redesignating subparagraphs (A), (B), and (C) as             
   subparagraphs (B), (C), and (D), respectively; and                      

       (B) by inserting before subparagraph (B) (as so redesignated) the   
   following new subparagraph:                                             
       ``(A) The term `aviation service' means service performed by an     
   officer (except a flight surgeon or other medical officer) while holding
   an aeronautical rating or designation or while in training to receive an
   aeronautical rating or designation.''.                                  
     (2) Section 301b(j) of such title is amended by striking out         
  paragraph (1) and inserting in lieu thereof the following new paragraph:
       ``(1) The term `aviation service' means service performed by an     
   officer (except a flight surgeon or other medical officer) while holding
   an aeronautical rating or designation or while in training to receive an
   aeronautical rating or designation.''.                                  
     (b) Amount of Incentive Pay.--Subsection (b) of section 301a of such 
  title is amended to read as follows:                                    
     ``(b)(1) A member who satisfies the requirements described in        
  subsection (a) is entitled to monthly incentive pay as follows:         

        ``Years of aviation service (including                                 

        Monthly                                                                

         flight training) as an officer:                                       

        rate                                                                   

  2 or less                                                               

 $125                                                                    

  Over 2                                                                  

 $156                                                                    

  Over 3                                                                  

 $188                                                                    

  Over 4                                                                  

 $206                                                                    

  Over 6                                                                  

 $650                                                                    

  Over 14                                                                 

 $840                                                                    

  Over 22                                                                 

 $585                                                                    

  Over 23                                                                 

 $495                                                                    

  Over 24                                                                 

 $385                                                                    

  Over 25                                                                 

 $250                                                                    


     ``(2) An officer in a pay grade above O 6 is entitled, until the     
  officer completes 25 years of aviation service, to be paid at the rates 
  set forth in the table in paragraph (1), except that--                  
       ``(A) an officer in pay grade O 7 may not be paid at a rate greater 
   than $200 a month; and                                                  
       ``(B) an officer in pay grade O 8 or above may not be paid at a rate
   greater than $206 a month.                                              
     ``(3) For a warrant officer with over 22, 23, 24, or 25 years of     
  aviation service who is qualified under subsection (a), the rate        
  prescribed in the table in paragraph (1) for officers with over 14 years
  of aviation service shall continue to apply to the warrant officer.''.  
     (c) References to Aviation Service.--(1) Section 301a of such title  
  is further amended--                                                    
     (A) in subsection (a)(4)--                                            

       (i) by striking out ``22 years of the officer's service as an       
   officer'' and inserting in lieu thereof ``22 years of aviation service  
   of the officer''; and                                                   
       (ii) by striking out ``25 years of service as an officer (as        
   computed under section 205 of this title)'' and inserting in lieu       
   thereof ``25 years of aviation service''; and                           
       (B) in subsection (d), by striking out ``subsection (b)(1) or (2),  
   as the case may be, for the performance of that duty by a member of     
   corresponding years of aviation or officer service, as appropriate,''   
   and inserting in lieu thereof ``subsection (b) for the performance of   
   that duty by a member with corresponding years of aviation service''.   
     (2) Section 301b(b)(5) of such title is amended by striking out      
  ``active duty'' and inserting in lieu thereof ``aviation service''.     
     (d) Conforming Amendment.--Section 615 of the National Defense       
  Authorization Act for Fiscal Year 1998 (Public Law 105 85; 111 Stat.    
  1787) is repealed.                                                      
                    SEC. 616. DIVING DUTY SPECIAL PAY FOR DIVERS HAVING DIVING    
          DUTY AS A NONPRIMARY DUTY.                                              
     (a) Eligibility for Maintaining Proficiency.--Section 304(a)(3) of   
  title 37, United States Code, is amended to read as follows:            
     ``(3) either--                                                        

       ``(A) actually performs diving duty while serving in an assignment  
   for which diving is a primary duty; or                                  
       ``(B) meets the requirements to maintain proficiency as described in
   paragraph (2) while serving in                                          

          an assignment that includes diving duty other than as a primary duty.''.

     (b) Effective Date.--The amendment made by subsection (a) shall take 
  effect on October 1, 1998, and shall apply with respect to months       
  beginning on or after that date.                                        
          SEC. 617. HARDSHIP DUTY PAY.                                            

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

       (3) in subsection (d), by striking out ``hardship duty location     
   pay'' and inserting in lieu thereof ``hardship duty pay''; and          
     (4) by redesignating subsection (d) as subsection (b).                

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

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


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



                    SEC. 618. SELECTIVE REENLISTMENT BONUS ELIGIBILITY FOR RESERVE
          MEMBERS PERFORMING ACTIVE GUARD AND RESERVE DUTY.                       
     Section 308(a)(1)(D) of title 37, United States Code, is amended to  
  read as follows:                                                        
       ``(D) reenlists or voluntarily extends the member's enlistment for a
   period of at least three years--                                        
     ``(i) in a regular component of the service concerned; or             

       ``(ii) in a reserve component of the service concerned, if the      
   member is performing active Guard and Reserve duty (as defined in       
   section 101(d)(6) of title 10).''.                                      
                    SEC. 619. REPEAL OF TEN PERCENT LIMITATION ON CERTAIN         
          SELECTIVE REENLISTMENT BONUSES.                                         
    Section 308(b) of title 37, United States Code, is amended--          

     (1) by striking out paragraph (2); and                                

     (2) by striking out ``(1)'' after ``(b)''.                            

                    SEC. 620. INCREASE IN MAXIMUM AMOUNT AUTHORIZED FOR ARMY      
          ENLISTMENT BONUS.                                                       
     Section 308f(a) of title 37, United States Code, is amended by       
  striking out ``$4,000'' and inserting in lieu thereof ``$6,000''.       
                    SEC. 621. EQUITABLE TREATMENT OF RESERVES ELIGIBLE FOR SPECIAL
          PAY FOR DUTY SUBJECT TO HOSTILE FIRE OR IMMINENT DANGER.                
    Section 310(b) of title 37, United States Code, is amended--          

     (1) by inserting ``(1)'' after ``(b)''; and                           

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

     ``(2) A member of a reserve component who is eligible for special pay
  under this section for a month shall receive the full amount authorized 
  in subsection (a) for that month regardless of the number of days during
  that month on which the member satisfies the eligibility criteria       
  specified in such subsection.''.                                        
                    SEC. 622. RETENTION INCENTIVES INITIATIVE FOR CRITICALLY SHORT
          MILITARY OCCUPATIONAL SPECIALTIES.                                      
     (a) Requirement for New Incentives.--The Secretary of Defense shall  
  establish and provide for members of the Armed Forces qualified in      
  critically short military occupational specialties a series of new      
  incentives that the Secretary considers potentially effective for       
  increasing the rates at which those                                     

                    members are retained in the Armed Forces for service in such  
          specialties.                                                            
     (b) Critically Short Military Occupational Specialties.--For the     
  purposes of this section, a military occupational specialty is a        
  critically short military occupational specialty for an Armed Force if  
  the number of members retained in that Armed Force in fiscal year 1998  
  for service in that specialty is less than 50 percent of the number of  
  members of that Armed Force that were projected to be retained in that  
  Armed Force for service in the specialty by the Secretary of the        
  military department concerned as of October 1, 1997.                    
     (c) Incentives.--It is the sense of Congress that, among the new     
  incentives established and provided under this section, the Secretary of
  Defense should include the following incentives:                        
     (1) Family support and leave allowances.                              

     (2) Increased special reenlistment or retention bonuses.              

     (3) Repayment of educational loans.                                   

       (4) Priority of selection for assignment to preferred permanent duty
   station or for extension at permanent duty station.                     
     (5) Modified leave policies.                                          

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

                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            


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

     (a) Monetary Allowance Authorized.--Subsection (b)(1) of section 406 
  of title 37, United States Code, is amended--                           
     (1) in subparagraph (A)--                                             

     (A) by striking out ``, or reimbursement therefor,''; and             

       (B) by inserting after the second sentence the following new        
   sentence: ``Alternatively, the member may be paid reimbursement or a    
   monetary allowance under subparagraph (F).''; and                       
     (2) by adding at the end the following new subparagraph:              

     ``(F) A member entitled to transportation of baggage and household   
  effects under subparagraph (A) may, as an alternative to the provision  
  of transportation, be paid reimbursement or, at the member's request, a 
  monetary allowance in advance for the cost of transportation of the     
  baggage and household effects. The monetary allowance may be paid only  
  if the amount of the allowance does not exceed the cost that would be   
  incurred by the Government under subparagraph (A) for the transportation
  of the baggage and household effects. Appropriations available to the   
  Department of Defense, the Department of Transportation, and the        
  Department of Health and Human Services for providing transportation of 
  baggage or household effects of members of the uniformed services shall 
  be available to pay a reimbursement or monetary allowance under this    
  subparagraph. The Secretary concerned may prescribe the manner in which 
  the risk of liability for damage, destruction, or loss of baggage or    
  household effects arranged, packed, crated, or loaded by a member is    
  allocated among the member,                                             

                    the United States, and any contractor when a reimbursement or 
          monetary allowance is elected under this subparagraph.''.               
     (b) Repeal of Superseded Provision.--(1) Such section is further     
  amended--                                                               
     (A) by striking out subsection (j); and                               

       (B) by redesignating subsections (k), (l), and (m) as subsections   
   (j), (k), and (l), respectively.                                        
     (2) Section 2634(d) of title 10, United States Code, is amended by   
  striking out ``section 406(k)'' and inserting in lieu thereof ``section 
  406(j)''.                                                               
                    SEC. 632. EXCEPTION TO MAXIMUM WEIGHT ALLOWANCE FOR BAGGAGE   
          AND HOUSEHOLD EFFECTS.                                                  
     Section 406(b)(1)(D) of title 37, United States Code, is amended in  
  the second sentence by inserting before the period the following: ``,   
  unless the additional weight allowance in excess of such maximum is     
  intended to permit the shipping of consumables that cannot be reasonably
  obtained at the new station of the member''.                            
                    SEC. 633. TRAVEL AND TRANSPORTATION ALLOWANCES FOR TRAVEL     
          PERFORMED BY MEMBERS IN CONNECTION WITH REST AND RECUPERATIVE LEAVE FROM
          OVERSEAS STATIONS.                                                      
     (a) Provision of Transportation.--Section 411c of title 37, United   
  States Code, is amended by striking out subsection (b) and inserting in 
  lieu thereof the following new subsection:                              
     ``(b) When the transportation authorized by subsection (a) is        
  provided by the Secretary concerned, the Secretary may use Government or
  commercial carriers. The Secretary concerned may limit the amount of    
  payments made to members under subsection (a).''.                       
     (b) Clerical Amendments.--(1) The heading of such section is amended 
  to read as follows:                                                     
                    ``411c. Travel and transportation allowances: travel performed
          in connection with rest and recuperative leave from certain stations in 
          foreign countries''.                                                    
     (2) The item relating to such section in the table of sections at the
  beginning of chapter 7 of such title is amended to read as follows:     


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

          SEC. 634. STORAGE OF BAGGAGE OF CERTAIN DEPENDENTS.                     

    Section 430(b) of title 37, United States Code, is amended--          

     (1) by inserting ``(1)'' after ``(b)''; and                           

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

     ``(2) At the option of the member, in lieu of the transportation of  
  baggage of a dependent child under paragraph (1) from the dependent's   
  school in the continental United States, the Secretary concerned may pay
  or reimburse the member for costs incurred to store the baggage at or in
  the vicinity of the school during the dependent's annual trip between   
  the school and the member's duty station. The amount of the payment or  
  reimbursement may not exceed the cost that the Government would incur to
  transport the baggage.''.                                               
                    SEC. 635. COMMERCIAL TRAVEL OF RESERVES AT FEDERAL SUPPLY     
          SCHEDULE RATES FOR ATTENDANCE AT INACTIVE-DUTY TRAINING ASSEMBLIES.     
     (a) Authority.--Chapter 1217 of title 10, United States Code is      
  amended by adding at the end the following new section:                 
                    ``12603. Attendance at inactive-duty training assemblies:     
          commercial travel at Federal supply schedule rates                      
     ``(a) Federal Supply Schedule Travel.--Commercial travel under       
  Federal supply schedules is authorized for the travel of a Reserve to   
  the location of inactive duty training to                               

                    be performed by the Reserve and from that location upon       
          completion of the training.                                             
     ``(b) Regulations.--The Secretary of Defense shall prescribe in      
  regulations such requirements, conditions, and restrictions for travel  
  under the authority of subsection (a) as the Secretary considers        
  appropriate. The regulations shall include policies and procedures for  
  preventing abuses of that travel authority.                             
     ``(c) Reimbursement Not Authorized.--A Reserve is not entitled to    
  Government reimbursement for the cost of travel authorized under        
  subsection (a).                                                         
     ``(d) Treatment of Transportation as Use by Military                 
  Departments.--For the purposes of section 201(a) of the Federal Property
  and Administrative Services Act of 1949 (40 U.S.C. 481(a)), travel      
  authorized under subsection (a) shall be treated as transportation for  
  the use of a military department.''.                                    
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    


            ``12603. Attendance at inactive-duty training assemblies:         
      commercial travel at Federal supply schedule rates.''.                  

               SUBTITLE D--RETIRED PAY, SURVIVOR BENEFITS, AND RELATED MATTERS    


          SEC. 641. PAID-UP COVERAGE UNDER SURVIVOR BENEFIT PLAN.                 


     Section 1452 of title 10, United States Code, is amended by adding at
  the end the following new subsection:                                   
     ``(j) Coverage Paid Up at 30 Years and Age 70.--Effective October 1, 
  2008, no reduction may be made under this section in the retired pay of 
  a participant in the Plan for any month after the later of--            
       ``(1) the 360th month for which the participant's retired pay is    
   reduced under this section; and                                         
       ``(2) the month during which the participant attains 70 years of    
   age.''.                                                                 

          SEC. 642. SURVIVOR BENEFIT PLAN OPEN ENROLLMENT PERIOD.                 

    (a)  Persons Not Currently Participating in Survivor Benefit Plan.--  

       (1) Election of sbp coverage.--An eligible retired or former member 
   may elect to participate in the Survivor Benefit Plan during the open   
   enrollment period specified in subsection (d).                          
       (2) Election of supplemental annuity coverage.--An eligible retired 
   or former member who elects under paragraph (1) to participate in the   
   Survivor Benefit Plan may also elect during the open enrollment period  
   to participate in the Supplemental Survivor Benefit Plan.               
       (3) Eligible retired or former member.--For purposes of paragraphs  
   (1) and (2), an eligible retired or former member is a member or former 
   member of the uniformed services who on the day before the first day of 
   the open enrollment period is not a participant in the Survivor Benefit 
   Plan and--                                                              
     (A) is entitled to retired pay; or                                    

       (B) would be entitled to retired pay under chapter 1223 of title 10,
   United States Code (or chapter 67 of such title as in effect before     
   October 5, 1994), but for the fact that such member or former member is 
   under 60 years of age.                                                  
     (4)  Status under sbp of persons making elections.--                  

       (A) Standard annuity.--A person making an election under paragraph  
   (1) by reason of eligibility under paragraph (3)(A) shall be treated for
   all purposes as providing a standard annuity under the Survivor Benefit 
   Plan.                                                                   
       (B) Reserve-component annuity.--A person making an election under   
   paragraph (1) by reason of eligibility under paragraph (3)(B) shall be  
   treated for all purposes as providing a reserve-component annuity under 
   the Survivor Benefit Plan.                                              

    (b)  Manner of Making Elections.--                                    

       (1) In general.--An election under this section must be made in     
   writing, signed by the person making the election, and received by the  
   Secretary concerned before the end of the open enrollment period. Except
   as provided in paragraph (2), any such election shall be made subject to
   the same conditions, and with the same opportunities for designation of 
   beneficiaries and specification of base amount, that apply under the    
   Survivor Benefit Plan or the Supplemental Survivor Benefit Plan, as the 
   case may be. A person making an election under subsection (a) to provide
   a reserve-component annuity shall make a designation described in       
   section 1448(e) of title 10, United States Code.                        
       (2) Election must be voluntary.--An election under this section is  
   not effective unless the person making the election declares the        
   election to be voluntary. An election to participate in the Survivor    
   Benefit Plan under this section may not be required by any court. An    
   election to participate or not to participate in the Survivor Benefit   
   Plan is not subject to the concurrence of a spouse or former spouse of  
   the person.                                                             
     (c) Effective Date for Elections.--Any such election shall be        
  effective as of the first day of the first calendar month following the 
  month in which the election is received by the Secretary concerned.     
     (d) Open Enrollment Period Defined.--The open enrollment period is   
  the one-year period beginning on March 1, 1999.                         
     (e) Effect of Death of Person Making Election Within Two Years of    
  Making Election.--If a person making an election under this section dies
  before the end of the two-year period beginning on the effective date of
  the election, the election is void and the amount of any reduction in   
  retired pay of the person that is attributable to the election shall be 
  paid in a lump sum to the person who would have been the deceased       
  person's beneficiary under the voided election if the deceased person   
  had died after the end of such two-year period.                         
     (f) Applicability of Certain Provisions of Law.--The provisions of   
  sections 1449, 1453, and 1454 of title 10, United States Code, are      
  applicable to a person making an election, and to an election, under    
  this section in the same manner as if the election were made under the  
  Survivor Benefit Plan or the Supplemental Survivor Benefit Plan, as the 
  case may be.                                                            
    (g)  Premiums for Open Enrollment Election.--                         

       (1) Premiums to be charged.--The Secretary of Defense shall         
   prescribe in regulations premiums which a person electing under this    
   section shall be required to pay for participating in the Survivor      
   Benefit Plan pursuant to the election. The total amount of the premiums 
   to be paid by a person under the regulations shall be equal to the sum  
   of--                                                                    
       (A) the total amount by which the retired pay of the person would   
   have been reduced before the effective date of the election if the      
   person had elected to participate in the Survivor Benefit Plan (for the 
   same base amount specified in the election) at the first opportunity    
   that was afforded the member to participate under chapter 73 of title   
   10, United States Code;                                                 
       (B) interest on the amounts by which the retired pay of the person  
   would have been so reduced, computed from the dates on which the retired
   pay would have been so reduced at such rate or rates and according to   
   such methodology as the Secretary of Defense determines reasonable; and 
       (C) any additional amount that the Secretary determines necessary to
   protect the actuarial soundness of the Department of Defense Military   
   Retirement Fund against any increased risk for the fund that is         
   associated with the election.                                           
       (2) Premiums to be credited to retirement fund.--Premiums paid under
   the regulations shall be                                                

          credited to the Department of Defense Military Retirement Fund.         

    (h)  Definitions.--In this section:                                   

       (1) The term ``Survivor Benefit Plan'' means the program established
   under subchapter II of chapter 73 of title 10, United States Code.      
       (2) The term ``Supplemental Survivor Benefit Plan'' means the       
   program established under subchapter III of chapter 73 of title 10,     
   United States Code.                                                     
       (3) The term ``retired pay'' includes retainer pay paid under       
   section 6330 of title 10, United States Code.                           
       (4) The terms ``uniformed services'' and ``Secretary concerned''    
   have the meanings given those terms in section 101 of title 37, United  
   States Code.                                                            
       (5) The term ``Department of Defense Military Retirement Fund''     
   means the Department of Defense Military Retirement Fund established    
   under section 1461(a) of title 10, United States Code.                  

                    SEC. 643. EFFECTIVE DATE OF COURT-REQUIRED FORMER SPOUSE      
          SURVIVOR BENEFIT PLAN COVERAGE EFFECTUATED THROUGH ELECTIONS AND DEEMED 
          ELECTIONS.                                                              
     (a) Elimination of Disparity in Effective Date Provisions.--Section  
  1448(b)(3) of title 10, United States Code, is amended--                
     (1) in subparagraph (C)--                                             

     (A) by striking out the second sentence; and                          

     (B) by striking out `` effective date,'' in the heading; and          

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

       ``(E) Effective date of election.--An election under this paragraph 
   is effective as of--                                                    
       ``(i) the first day of the first month following the month in which 
   the election is received by the Secretary concerned; or                 
       ``(ii) in the case of a person required (as described in section    
   1450(f)(3)(B) of this title) to make the election by reason of a court  
   order or filing the date of which is on or after the date of the        
   enactment of the subparagraph, the first day of the first month which   
   begins after the date of that court order or filing.''.                 
     (b) Conformity by Cross Reference.--Section 1450(f)(3)(D) of such    
  title is amended by striking out ``the first day of the first month     
  which begins after the date of the court order or filing involved'' and 
  inserting in lieu thereof ``the day referred to in section              
  1448(b)(3)(E)(ii) of this title''.                                      

                    SEC. 644. PRESENTATION OF UNITED STATES FLAG TO MEMBERS OF THE
          ARMED FORCES UPON RETIREMENT.                                           
     (a) Army.--(1) Chapter 353 of title 10, United States Code, is       
  amended by inserting after the table of sections the following new      
  section:                                                                
          ``3681. Presentation of United States flag upon retirement              

     ``(a) Presentation of Flag.--Upon the release of a member of the Army
  from active duty for retirement, the Secretary of the Army shall present
  a United States flag to the member.                                     
     ``(b) Multiple Presentations Not Authorized.--A member is not        
  eligible for a presentation of a flag under subsection (a) if the member
  has previously been presented a flag under this section or section 6141 
  or 8681 of this title or section 516 of title 14.                       
     ``(c) No Cost to Recipient.--The presentation of a flag under this   
  section shall be at no cost to the recipient.''.                        
     (2) The table of sections at the beginning of such chapter is amended
  by inserting before the item relating to section 3684 the following new 
  item:                                                                   


      ``3681. Presentation of United States flag upon retirement.''.          



     (b) Navy and Marine Corps.--(1) Chapter 561 of title 10, United      
  States Code, is amended by inserting after the table of sections the    
  following new section:                                                  
          ``6141. Presentation of United States flag upon retirement              

     ``(a) Presentation of Flag.--Upon the release of a member of the Navy
  or Marine Corps from active duty for retirement or transfer to the Fleet
  Reserve or the Fleet Marine Corps Reserve, the Secretary of the Navy    
  shall present a United States flag to the member.                       
     ``(b) Multiple Presentations Not Authorized.--A member is not        
  eligible for a presentation of a flag under subsection (a) if the member
  has previously been presented a flag under this section or section 3681 
  or 8681 of this title or section 516 of title 14.                       
     ``(c) No Cost to Recipient.--The presentation of a flag under this   
  section shall be at no cost to the recipient.''.                        
     (2) The table of sections at the beginning of such chapter is amended
  by inserting before the item relating to section 6151 the following new 
  item:                                                                   


      ``6141. Presentation of United States flag upon retirement.''.          



     (c) Air Force.--(1) Chapter 853 of title 10, United States Code, is  
  amended by inserting after the table of sections the following new      
  section:                                                                
          ``8681. Presentation of United States flag upon retirement              

     ``(a) Presentation of Flag.--Upon the release of a member of the Air 
  Force from active duty for retirement, the Secretary of the Air Force   
  shall present a United States flag to the member.                       
     ``(b) Multiple Presentations Not Authorized.--A member is not        
  eligible for a presentation of a flag under subsection (a) if the member
  has previously been presented a flag under this section or section 3681 
  or 6141 of this title or section 516 of title 14.                       
     ``(c) No Cost to Recipient.--The presentation of a flag under this   
  section shall be at no cost to the recipient.''.                        
     (2) The table of sections at the beginning of such chapter is amended
  by inserting before the item relating to section 8684 the following new 
  item:                                                                   


      ``8681. Presentation of United States flag upon retirement.''.          



     (d) Coast Guard.--(1) Chapter 13 of title 14, United States Code, is 
  amended by adding at the end the following new section:                 
          ``516. Presentation of United States flag upon retirement               

     ``(a) Presentation of Flag.--Upon the release of a member of the     
  Coast Guard from active duty for retirement, the Secretary of           
  Transportation shall present a United States flag to the member.        
     ``(b) Multiple Presentations Not Authorized.--A member is not        
  eligible for a presentation of a flag under subsection (a) if the member
  has previously been presented a flag under this section or section 3681,
  6141, and 8681 of title 10.                                             
     ``(c) No Cost to Recipient.--The presentation of a flag under his    
  section shall be at no cost to the recipient.''.                        
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


      ``516. Presentation of United States flag upon retirement.''.           



     (e) Effective Date.--Sections 3681, 6141, and 8681 of title 10,      
  United States Code (as added by this section), and section 516 of title 
  14, United States Code (as added by subsection (d)), shall apply with   
  respect to releases from active duty described in those sections on or  
  after October 1, 1998.                                                  

                    SEC. 645. RECOVERY, CARE, AND DISPOSITION OF REMAINS OF       
          MEDICALLY RETIRED MEMBER WHO DIES DURING HOSPITALIZATION THAT BEGINS    
          WHILE ON ACTIVE DUTY.                                                   
     (a) In General.--Paragraph (7) of section 1481(a) of title 10, United
  States Code, is amended to read as follows:                             
     ``(7) A person who--                                                  


       ``(A) dies as a retired member of an armed force under the          
   Secretary's jurisdiction during a continuous hospitalization of the     
   member as a patient in a United States hospital that began while the    
   member was on active duty for a period of more than 30 days; or         
       ``(B) is not covered by subparagraph (A) and, while in a retired    
   status by reason of eligibility to retire under chapter 61 of this      
   title, dies during a continuous hospitalization of the person that began
   while the person was on active duty as a Regular of an armed force under
   the Secretary's jurisdiction.''.                                        
     (b) Repeal of Obsolete Terminology.--Paragraph (1) of such section is
  amended by striking out ``, or a member of an armed force without       
  component,''.                                                           
     (c) Effective Date.--The amendment made by subsection (a) applies    
  with respect to deaths occurring on or after the date of the enactment  
  of this Act.                                                            

          SEC. 646. REVISION TO COMPUTATION OF RETIRED PAY FOR CERTAIN MEMBERS.   

    Section 1406(i) of title 10, United States Code, is amended--         

     (1) by redesignating paragraph (2) as paragraph (3); and              

     (2) by inserting after paragraph (1) the following new paragraph (2); 

       ``(2) Exception for members reduced in grade or who do not serve    
   satisfactorily.--Paragraph (1) does not apply in the case of a member   
   who, while or after serving in a position specified in that paragraph   
   and by reason of conduct occurring on or after the date of the enactment
   of the Strom Thurmond National Defense Authorization Act for Fiscal Year
   1999--                                                                  
       ``(A) in the case of an enlisted member, is reduced in grade as the 
   result of a court-martial sentence, nonjudicial punishment, or other    
   administrative process; or                                              
       ``(B) in the case an officer, is not certified by the Secretary of  
   Defense under section 1370(c) of this title as having served on active  
   duty satisfactorily in the grade of general or admiral, as the case may 
   be, while serving in that position.''.                                  

          SEC. 647. ELIMINATION OF BACKLOG OF UNPAID RETIRED PAY.                 

     (a) Requirement.--The Secretary of the Army shall take such actions  
  as are necessary to eliminate, by December 31, 1998, the backlog of     
  unpaid retired pay for members and former members of the Army (including
  members and former members of the Army Reserve and the Army National    
  Guard).                                                                 
     (b) Report.--Not later than 30 days after the date of the enactment  
  of this Act, the Secretary of the Army shall submit to Congress a report
  on the backlog of unpaid retired pay. The report shall include the      
  following:                                                              
     (1) The actions taken under subsection (a).                           

     (2) The extent of the remaining backlog.                              

       (3) A discussion of any additional actions that are necessary to    
   ensure that retired pay is paid in a timely manner.                     

                                  SUBTITLE E--OTHER MATTERS                       

                    SEC. 651. DEFINITION OF POSSESSIONS OF THE UNITED STATES FOR  
          PAY AND ALLOWANCES PURPOSES.                                            
     Section 101(2) of title 37, United States Code, is amended by        
  striking out ``the Canal Zone,''.                                       

          SEC. 652. ACCOUNTING OF ADVANCE PAYMENTS.                               

    Section 1006(e) of title 37, United States Code, is amended--         

     (1) by inserting ``(1)'' after ``(e)''; and                           

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

     ``(2)(A) Notwithstanding any other provision of law, an obligation   
  for an advance of pay made pursuant to this section shall be recorded as
  an obligation only in the fiscal year in which the entitlement of the   
  member to the pay accrues.                                              
     ``(B) Current appropriations available for advance payments under    
  this section may be transferred to the prior fiscal year appropriation  
  available for the same purpose in the                                   

                    amount of any unliquidated advance payments that remain at the
          end of such prior fiscal year. Such unliquidated advance payments shall 
          then be credited to the current appropriation.''.                       

                    SEC. 653. REIMBURSEMENT OF RENTAL VEHICLE COSTS WHEN MOTOR    
          VEHICLE TRANSPORTED AT GOVERNMENT EXPENSE IS LATE.                      
     (a) Transportation in Connection With Change of Permanent            
  Station.--Section 2634 of title 10, United States Code, is amended--    
     (1) by redesignating subsection (g) as subsection (h); and            

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

     ``(g) If a motor vehicle of a member (or a dependent of the member)  
  that is transported at the expense of the United States under this      
  section does not arrive at the authorized destination of the vehicle by 
  the designated delivery date, the Secretary concerned shall reimburse   
  the member for expenses incurred after that date to rent a motor vehicle
  for the member's use, or for the use of the dependent for whom the      
  delayed vehicle was transported. The amount reimbursed may not exceed   
  $30 per day, and the rental period for which reimbursement may be       
  provided expires after seven days or on the date on which the delayed   
  vehicle arrives at the authorized destination (whichever occurs         
  first).''.                                                              
     (b) Transportation in Connection With Other Moves.--Section 406(h) of
  title 37, United States Code, is amended by adding at the end the       
  following new paragraph:                                                
     ``(3) If a motor vehicle of a member (or a dependent of the member)  
  that is transported at the expense of the United States under this      
  subsection does not arrive at the authorized destination of the vehicle 
  by the designated delivery date, the Secretary concerned shall reimburse
  the member for expenses incurred after that date to rent a motor vehicle
  for the dependent's use. The amount reimbursed may not exceed $30 per   
  day, and the rental period for which reimbursement may be provided      
  expires after seven days or on the date on which the delayed vehicle    
  arrives at the authorized destination (whichever occurs first).''.      
     (c) Transportation in Connection With Departure Allowances for       
  Dependents.--Section 405a(b) of title 37, United States Code, is        
  amended--                                                               
     (1) by inserting ``(1)'' after ``(b)''; and                           

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

     ``(2) If a motor vehicle of a member (or a dependent of the member)  
  that is transported at the expense of the United States under paragraph 
  (1) does not arrive at the authorized destination of the vehicle by the 
  designated delivery date, the Secretary concerned shall reimburse the   
  member for expenses incurred after that date to rent a motor vehicle for
  the dependent's use. The amount reimbursed may not exceed $30 per day,  
  and the rental period for which reimbursement may be provided expires   
  after seven days or on the date on which the delayed vehicle arrives at 
  the authorized destination (whichever occurs first).''.                 
     (d) Transportation in Connection With Effects of Missing             
  Persons.--Section 554 of title 37, United States Code, is amended--     
     (1) by redesignating subsection (i) as subsection (j); and            

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

     ``(i) If a motor vehicle of a member (or a dependent of the member)  
  that is transported at the expense of the United States under this      
  section does not arrive at the authorized destination of the vehicle by 
  the designated delivery date, the Secretary concerned shall reimburse   
  the dependent for expenses incurred after that date to rent a motor     
  vehicle for the dependent's use. The amount reimbursed may not exceed   
  $30 per day, and the rental period for which reimbursement may be       
  provided expires after seven days or on the date on which the delayed   
  vehicle arrives at the authorized destination (whichever occurs         
  first).''.                                                              

     (e) Application of Amendments.--(1) Reimbursement for motor vehicle  
  rental expenses may not be provided under the amendments made by this   
  section until after the date on which the Secretary of Defense submits  
  to Congress a report containing a certification that the Department of  
  Defense has in place and operational a system to recover the cost of    
  providing such reimbursement from commercial carriers that are          
  responsible for the delay in the delivery of the motor vehicles of      
  members of the Armed Forces and their dependents. The Secretary of      
  Defense shall prepare the report in consultation with the Secretary of  
  Transportation, with respect to the Coast Guard.                        
     (2) The amendments shall apply with respect to rental expenses       
  described in such amendments that are incurred on or after the date of  
  the submission of the report. The report shall be submitted not later   
  than six months after the date of the enactment of this Act and shall   
  include, in addition to the certification, a description of the system  
  to be used to recover from commercial carriers the costs incurred under 
  such amendments.                                                        
                    SEC. 654. EDUCATION LOAN REPAYMENT PROGRAM FOR HEALTH         
          PROFESSIONS OFFICERS SERVING IN SELECTED RESERVE.                       
     (a) Eligible Persons.--Subsection (b)(2) of section 16302 of title   
  10, United States Code, is amended by inserting ``, or is enrolled in a 
  program of education leading to professional qualifications,'' after    
  ``possesses professional qualifications''.                              
    (b)  Increased Benefits.--Subsection (c) of such section is amended-- 

       (1) in paragraph (2), by striking out ``$3,000'' and inserting in   
   lieu thereof ``$20,000''; and                                           
       (2) in paragraph (3), by striking out ``$20,000'' and inserting in  
   lieu thereof ``$50,000''.                                               

                    SEC. 655. FEDERAL EMPLOYEES' COMPENSATION COVERAGE FOR        
          STUDENTS PARTICIPATING IN CERTAIN OFFICER CANDIDATE PROGRAMS.           
     (a) Periods of Coverage.--Subsection (a)(2) of section 8140 of title 
  5, United States Code, is amended to read as follows:                   
       ``(2) during the period of the member's attendance at training or a 
   practice cruise under chapter 103 of title 10, beginning when the       
   authorized travel to the training or practice cruise begins and ending  
   when authorized travel from the training or practice cruise ends.''.    
     (b) Line of Duty.--Subsection (b) of such section is amended to read 
  as follows:                                                             
     ``(b) For the purpose of this section, an injury, disability, death, 
  or illness of a member referred to in subsection (a) may be considered  
  as incurred or contracted in line of duty only if the injury,           
  disability, or death is incurred, or the illness is contracted, by the  
  member during a period described in that subsection. Subject to review  
  by the Secretary of Labor, the Secretary of the military department     
  concerned (under regulations prescribed by that Secretary), shall       
  determine whether an injury, disability, or death was incurred, or an   
  illness was contracted, by a member in line of duty.''.                 
     (c) Clarification of Casualties Covered.--Subsection (a) of such     
  section, as amended by subsection (a) of this section, is further       
  amended by inserting ``, or an illness contracted,'' after ``death      
  incurred'' in the matter preceding paragraph (1).                       
     (d) Effective Date and Applicability.--The amendments made by        
  subsections (a) and (b) shall take effect on the date of the enactment  
  of this Act and apply with respect to injuries, illnesses, disabilities,
  and deaths incurred or contracted on or after that date.                

                    SEC. 656. RELATIONSHIP OF ENLISTMENT BONUSES TO ELIGIBILITY TO
          RECEIVE ARMY COLLEGE FUND SUPPLEMENT UNDER MONTGOMERY GI BILL           
          EDUCATIONAL ASSISTANCE PROGRAM.                                         

     (a) Enlistement Bonuses and GI Bill Supplement not                   
  Exclusive.--Section 3015(d) of title 38, United States Code, is         
  amended--                                                               
     (1) by inserting ``(1)'' after ``(d)''; and                           

     (2) by adding at the end the following:                               

     ``(2) In the case of an individual who after October 7, 1997,        
  receives an enlistment bonus under section 308a or 308f of title 37,    
  receipt of that bonus does not affect the eligibility of that individual
  for an increase under paragraph (1) in the rate of the basic educational
  assistance allowance applicable to that individual, and the Secretary   
  concerned may provide such an increase for that individual (and enter   
  into an agreement with that individual that the United States agrees to 
  make payments pursuant to such an increase) without regard to any       
  provision of law (enacted before, on, or after the date of the enactment
  of this paragraph) that limits the authority to make such payments.''.  
     (b) Repeal of Related Limitations.--(1) Section 8013(a) of the       
  Department of Defense Appropriations Act, 1998 (111 Stat. 1222), is     
  amended--                                                               
       (A) by striking out ``on or after the date of enactment of this     
   Act--'' and all that follows through ``nor shall any amounts'' and      
   inserting in lieu thereof ``after October 7, 1997, enlists in the armed 
   services for a period of active duty of less than three years, nor shall
   any amounts''; and                                                      
       (B) in the first proviso, by striking out ``in the case of a member 
   covered by clause (1),''.                                               
     (2) Section 8013(a) of the Department of Defense Appropriations Act, 
  1999, is amended--                                                      
       (A) by striking out ``of this Act--'' and all that follows through  
   ``nor shall any amounts'' and inserting in lieu thereof ``of this Act,  
   enlists in the armed services for a period of active duty of less that  
   three years, nor shall any amounts''; and                               
       (B) in the first proviso, by striking out ``in the case of a member 
   covered by clause (1),''.                                               
     (3) The amendments made by paragraph (2) shall take effect on the    
  later of the following:                                                 
     (A) The date of the enactment of this Act.                            

       (B) The date of the enactment of the Department of Defense          
   Appropriations Act, 1999.                                               

                    SEC. 657. AUTHORITY TO PROVIDE FINANCIAL ASSISTANCE FOR       
          EDUCATION OF CERTAIN DEFENSE DEPENDENTS OVERSEAS.                       
     Section 1407(b) of the Defense Dependents' Education Act of 1978 (20 
  U.S.C. 926(b)) is amended--                                             
       (1) by striking out ``(b) Under such circumstances as he may by     
   regulation prescribe, the Secretary of Defense'' and inserting in lieu  
   thereof ``(b) Tuition and Assistance When Schools Unavailable.--(1)     
   Under such circumstances as the Secretary of Defense may prescribe in   
   regulations, the Secretary''; and                                       
     (2) by adding at the end the following new paragraph:                 

     ``(2)(A) The Secretary of Defense, and the Secretary of              
  Transportation with respect to the Coast Guard when it is not operating 
  as a service of the Navy, may provide financial assistance to sponsors  
  of dependents in overseas areas where schools operated by the Secretary 
  of Defense under subsection (a) are not reasonably available in order to
  assist the sponsors to defray the costs incurred by the sponsors for the
  attendance of the dependents at schools in such areas other than schools
  operated by the Secretary of Defense.                                   
     ``(B) The Secretary of Defense and the Secretary of Transportation   
  shall each prescribe regulations relating to the availability of        
  financial assistance under subparagraph (A). Such regulations shall, to 
  the maximum extent practicable, be consistent with Department of State  
  regulations relating to the availability of financial assistance for the
  education of dependents of Department of State personnel overseas.''.   

                    SEC. 658. CLARIFICATIONS CONCERNING PAYMENTS TO CERTAIN       
          PERSONS CAPTURED OR INTERNED BY NORTH VIETNAM.                          
     (a) Eligibile Survivors.--Subsection (b) of section 657 of the       
  National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 
  201; 110 Stat. 2585) is amended by adding at the end the following new  
  paragraphs:                                                             
       ``(3) If there is no surviving spouse or surviving child, to the    
   parents of the decedent, in equal shares, or, if one parent of the      
   decedent has died, to the surviving parent.                             
       ``(4) If there is no surviving spouse, surviving child, or surviving
   parent, to the surviving siblings by blood of the decedent, in equal    
   shares.''.                                                              
     (b) Permitted Recipients of Payment Disbursement.--Subsection (f)(1) 
  of such section is amended by striking out ``The actual disbursement''  
  and inserting in lieu thereof ``Notwithstanding any agreement (including
  a power of attorney) to the contrary, the actual disbursement''.        

                              TITLE VII--HEALTH CARE PROVISIONS                   


                              SUBTITLE A--HEALTH CARE SERVICES                    

      Sec. 701. Dependents' dental program.                                   

            Sec. 702. Expansion of dependent eligibility under retiree dental 
      program.                                                                
      Sec. 703. Plan for redesign of military pharmacy system.                

            Sec. 704. Transitional authority to provide continued health care 
      coverage for certain persons unaware of loss of CHAMPUS eligibility.    
                                 SUBTITLE B--TRICARE PROGRAM                      

            Sec. 711. Payment of claims for provision of health care under the
      TRICARE program for which a third party may be liable.                  
            Sec. 712. TRICARE Prime automatic enrollments and retiree payment 
      options.                                                                
            Sec. 713. System for tracking data and measuring performance in   
      meeting TRICARE access standards.                                       
      Sec. 714. Establishment of appeals process for claimcheck denials.      

            Sec. 715. Reviews relating to accessibility of health care under  
      TRICARE.                                                                
            SUBTITLE C--HEALTH CARE SERVICES FOR MEDICARE-ELIGIBLE DEPARTMENT OF  
                              DEFENSE BENEFICIARIES                               
            Sec. 721. Demonstration project to include certain covered        
      beneficiaries within Federal Employees Health Benefits Program.         
      Sec. 722. TRICARE as Supplement to Medicare demonstration.              

      Sec. 723. Implementation of redesign of pharmacy system.                

            Sec. 724. Comprehensive evaluation of implementation of           
      demonstration projects and TRICARE pharmacy redesign.                   
              SUBTITLE D--OTHER CHANGES TO EXISTING LAWS REGARDING HEALTH CARE    
                                   MANAGEMENT                                     
            Sec. 731. Process for waiving informed consent requirement for    
      administration of certain drugs to members of Armed Forces for purposes 
      of a particular military operation.                                     
            Sec. 732. Health benefits for abused dependents of members of the 
      Armed Forces.                                                           
            Sec. 733. Provision of health care at military entrance processing
      stations and elsewhere outside medical treatment facilities.            
            Sec. 734. Professional qualifications of physicians providing     
      military health care.                                                   
                                  SUBTITLE E--OTHER MATTERS                       

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

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

            Sec. 743. Authority to establish center for study of              
      post-deployment health concerns of members of the Armed Forces.         
            Sec. 744. Report on implementation of enrollment-based capitation 
      for funding for military medical treatment facilities.                  
            Sec. 745. Joint Department of Defense and Department of Veterans  
      Affairs reports relating to interdepartmental cooperation in the        
      delivery of medical care.                                               
            Sec. 746. Report on research and surveillance activities regarding
      lyme disease and other tick-borne diseases.                             

                              SUBTITLE A--HEALTH CARE SERVICES                    


          SEC. 701. DEPENDENTS' DENTAL PROGRAM.                                   

     (a) Premium Increase.--Section 1076a(b)(2) of title 10, United States
  Code, is amended--                                                      
     (A) by inserting ``(A)'' after ``(2)''; and                           

     (B) by adding at the end the following:                               

     ``(B) Effective as of January 1 of each year, the amount of the      
  premium required under subparagraph (A) shall be increased by the       
  percent equal to the lesser of--                                        
       ``(i) the percent by which the rates of basic pay of members of the 
   uniformed services are increased on such date; or                       
       ``(ii) the sum of one-half percent and the percent computed under   
   section 5303(a) of title 5 for the increase in rates of basic pay for   
   statutory pay systems for pay periods beginning on or after such        
   date.''.                                                                
     (2) The amendment made by subparagraph (B) of paragraph (1) shall    
  take effect on January 1, 1999, and shall apply to months after 1998 as 
  if such subparagraph had been in effect since December 31, 1993.        
     (b) Limitation on Reduction of Benefits.--Section 1076a is further   
  amended by adding at the end the following new subsection:              
     ``(j) Limitation on Reduction of Benefits.--The Secretary of Defense 
  may not reduce benefits provided under this section until--             
       ``(1) the Secretary provides notice of the Secretary's intent to    
   reduce such benefits to the Committee on National Security of the House 
   of Representatives and the Committee on Armed Services of the Senate;   
   and                                                                     
     ``(2) one year has elapsed following the date of such notice.''.      

                    SEC. 702. EXPANSION OF DEPENDENT ELIGIBILITY UNDER RETIREE    
          DENTAL PROGRAM.                                                         
     (a) In General.--Subsection (b) of section 1076c of title 10, United 
  States Code, is amended--                                               
     (1) by redesignating paragraph (4) as paragraph (5); and              

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

       ``(4) Eligible dependents of a member described in paragraph (1) or 
   (2) who is not enrolled in the plan and who--                           
       ``(A) is enrolled under section 1705 of title 38 to receive dental  
   care from the Secretary of Veterans Affairs;                            
     ``(B) is enrolled in a dental plan that--                             

       ``(i) is available to the member as a result of employment by the   
   member that is separate from the military service of the member; and    
       ``(ii) is not available to dependents of the member as a result of  
   such separate employment by the member; or                              
       ``(C) is prevented by a medical or dental condition from being able 
   to obtain benefits under the plan.''.                                   
     (b) Conforming Amendment.--Subsection (f)(3) of such section is      
  amended by striking out ``(b)(4)'' and inserting in lieu thereof        
  ``(b)(5)''.                                                             

          SEC. 703. PLAN FOR REDESIGN OF MILITARY PHARMACY SYSTEM.                

     (a) Plan Required.--The Secretary of Defense shall submit to Congress
  a plan that would provide for a system-wide redesign of the military and
  contractor retail and mail-order pharmacy system of the Department of   
  Defense by incorporating ``best business practices'' of the private     
  sector. The Secretary shall work with contractors of TRICARE retail     
  pharmacy and national mail-order pharmacy programs to develop a plan for
  the redesign of the pharmacy system that--                              
       (1) may include a plan for an incentive-based formulary for military
   medical treatment facilities and contractors of TRICARE retail          
   pharmacies and the national mail-order pharmacy; and                    
     (2) shall include a plan for each of the following:                   


     (A) A uniform formulary for such facilities and contractors.          

       (B) A centralized database that integrates the patient databases of 
   pharmacies of military medical treatment facilities and contractor      
   retail and mail-order programs to implement automated prospective drug  
   utilization review systems.                                             
       (C) A system-wide drug benefit for covered beneficiaries under      
   chapter 55 of title 10, United States Code, who are entitled to hospital
   insurance benefits under part A of title XVIII of the Social Security   
   Act (42 U.S.C. 1395c et seq.).                                          
     (b) Submission of Plan.--The Secretary shall submit the plan required
  under subsection (a) not later than March 1, 1999.                      
     (c) Suspension of Implementation of Program.--The Secretary shall    
  suspend any plan to establish a national retail pharmacy program for the
  Department of Defense until--                                           
     (1) the plan required under subsection (a) is submitted; and          

       (2) the Secretary implements cost-saving reforms with respect to the
   military and contractor retail and mail order pharmacy system.          

                    SEC. 704. TRANSITIONAL AUTHORITY TO PROVIDE CONTINUED HEALTH  
          CARE COVERAGE FOR CERTAIN PERSONS UNAWARE OF LOSS OF CHAMPUS            
          ELIGIBILITY.                                                            
     (a) Transitional Coverage.--The administering Secretaries may        
  continue eligibility of a person described in subsection (b) for health 
  care coverage under the Civilian Health and Medical Program of the      
  Uniformed Services based on a determination that such continuation is   
  appropriate to assure health care coverage for any such person who may  
  have been unaware of the loss of eligibility to receive health benefits 
  under that program.                                                     
     (b) Persons Eligible.--A person shall be eligible for transitional   
  health care coverage under subsection (a) if the person--               
       (1) is a person described in paragraph (1) of subsection (d) of     
   section 1086 of title 10, United States Code;                           
       (2) in the absence of such paragraph, would be eligible for health  
   benefits under such section; and                                        
       (3) satisfies the criteria specified in subparagraphs (A) and (B) of
   paragraph (2) of such subsection.                                       
     (c) Extent of Transitional Authority.--The authority to continue     
  eligibility under this section shall apply with respect to health care  
  services provided between October 1, 1998, and July 1, 1999.            
     (d) Definition.--In this section, the term ``administering           
  Secretaries'' has the meaning given that term in section 1072(3) of     
  title 10, United States Code.                                           
                                 SUBTITLE B--TRICARE PROGRAM                      


                    SEC. 711. PAYMENT OF CLAIMS FOR PROVISION OF HEALTH CARE UNDER
          THE TRICARE PROGRAM FOR WHICH A THIRD PARTY MAY BE LIABLE.              
     (a) In General.--(1) Chapter 55 of title 10, United States Code, is  
  amended by inserting after section 1095a the following new section:     
          ``1095b. TRICARE program: contractor payment of certain claims          

     ``(a) Payment of Claims.--(1) The Secretary of Defense may authorize 
  a contractor under the TRICARE program to pay a claim described in      
  paragraph (2) before seeking to recover from a third-party payer the    
  costs incurred by the contractor to provide health care services that   
  are the basis of the claim to a beneficiary under such program.         
    ``(2) A claim under this paragraph is a claim--                       

       ``(A) that is submitted to the contractor by a provider under the   
   TRICARE program for payment for services for health care provided to a  
   covered beneficiary; and                                                

       ``(B) that is identified by the contractor as a claim for which a   
   third-party payer may be liable.                                        
     ``(b) Recovery From Third-Party Payers.--A contractor for the        
  provision of health care services under the TRICARE program that pays a 
  claim described in subsection (a)(2) shall have the right to collect    
  from the third-party payer the costs incurred by such contractor on     
  behalf of the covered beneficiary. The contractor shall have the same   
  right to collect such costs under this subsection as the right of the   
  United States to collect costs under section 1095 of this title.        
     ``(c) Definition of Third-Party Payer.--In this section, the term    
  `third-party payer' has the meaning given that term in section 1095(h)  
  of this title, except that such term excludes primary medical           
  insurers.''.                                                            
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by inserting after the item relating to section 
  1095a the following new item:                                           


      ``1095b. TRICARE program: contractor payment of certain claims.''.      


                    SEC. 712. TRICARE PRIME AUTOMATIC ENROLLMENTS AND RETIREE     
          PAYMENT OPTIONS.                                                        
     (a) Procedures.--(1) Chapter 55 of title 10, United States Code, is  
  amended by inserting after section 1097 the following new section:      
          ``1097a. TRICARE Prime: automatic enrollments; payment options          

     ``(a) Automatic Enrollment of Certain Dependents.--Each dependent of 
  a member of the uniformed services in grade E4 or below who is entitled 
  to medical and dental care under section 1076(a)(2)(A) of this title and
  resides in the catchment area of a facility of a uniformed service      
  offering TRICARE Prime shall be automatically enrolled in TRICARE Prime 
  at the facility. The Secretary concerned shall provide written notice of
  the enrollment to the member. The enrollment of a dependent of the      
  member may be terminated by the member or the dependent at any time.    
     ``(b) Automatic Renewal of Enrollments of Covered Beneficiaries.--(1)
  An enrollment of a covered beneficiary in TRICARE Prime shall be        
  automatically renewed upon the expiration of the enrollment unless the  
  renewal is declined.                                                    
     ``(2) Not later than 15 days before the expiration date for an       
  enrollment of a covered beneficiary in TRICARE Prime, the Secretary     
  concerned shall--                                                       
       ``(A) transmit a written notification of the pending expiration and 
   renewal of enrollment to the covered beneficiary or, in the case of a   
   dependent of a member of the uniformed services, to the member; and     
       ``(B) afford the beneficiary or member, as the case may be, an      
   opportunity to decline the renewal of enrollment.                       
     ``(c) Payment Options for Retirees.--A member or former member of the
  uniformed services eligible for medical care and dental care under      
  section 1074(b) of this title may elect to have any fee payable by the  
  member or former member for an enrollment in TRICARE Prime withheld from
  the member's retired pay, retainer pay, or equivalent pay, as the case  
  may be, or to be paid from a financial institution through electronic   
  transfers of funds. The fee shall be paid in accordance with the        
  election. A member may elect under this section to pay the fee in full  
  at the beginning of the enrollment period or to make payments on a      
  monthly or quarterly basis.                                             
     ``(d) Regulations and Exceptions.--The Secretary of Defense shall    
  prescribe regulations, including procedures, to carry out this section. 
  Regulations prescribed to carry out the automatic enrollment            
  requirements under this section may include such exceptions to the      
  automatic enrollment procedures as the Secretary determines appropriate 
  for the effective operation of TRICARE Prime.                           
    ``(e)  Definitions.--In this section:                                 

       ``(1) The term `TRICARE Prime' means the managed care option of the 
   TRICARE program.                                                        
       ``(2) The term `catchment area', with respect to a facility of a    
   uniformed service, means the service area of the                        

                    facility, as designated under regulations prescribed by the   
          administering Secretaries.''.                                           
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 1097 the following new  
  item:                                                                   


      1097a. TRICARE Prime: automatic enrollments; payment options.''.        



     (b) Deadline for Implementation.--The regulations required under     
  subsection (d) of section 1097a of title 10, United States Code (as     
  added by subsection (a)), shall be prescribed to take effect not later  
  than September 30, 1999. The section shall be applied under TRICARE     
  Prime on and after the date on which the regulations take effect.       

                    SEC. 713. SYSTEM FOR TRACKING DATA AND MEASURING PERFORMANCE  
          IN MEETING TRICARE ACCESS STANDARDS.                                    
     (a) Requirement To Establish System.--(1) The Secretary of Defense   
  shall establish a system--                                              
       (A) to track data regarding access of covered beneficiaries under   
   chapter 55 of title 10, United States Code, to primary health care under
   the TRICARE program; and                                                
       (B) to measure performance in increasing such access against the    
   primary care access standards established by the Secretary under the    
   TRICARE program.                                                        
     (2) In implementing the system described in paragraph (1), the       
  Secretary shall collect data on the timeliness of appointments and      
  precise waiting times for appointments in order to measure performance  
  in meeting the primary care access standards established under the      
  TRICARE program.                                                        
     (b) Deadline for Establishment.--The Secretary shall establish the   
  system described in subsection (a) not later than April 1, 1999.        

          SEC. 714. ESTABLISHMENT OF APPEALS PROCESS FOR CLAIMCHECK DENIALS.      

     (a) Establishment of Appeals Process.--Not later than January 1,     
  1999, the Secretary of Defense shall establish an appeals process in    
  cases of denials through the ClaimCheck computer software system (or any
  other claims processing system that may be used by the Secretary) of    
  claims by civilian providers for payment for health care services       
  provided under the TRICARE program.                                     
     (b) Report.--Not later than March 1, 1999, the Secretary shall submit
  to Congress a report on the implementation of this section.             

                    SEC. 715. REVIEWS RELATING TO ACCESSIBILITY OF HEALTH CARE    
          UNDER TRICARE.                                                          
     (a) Review of Rehabilitative Services for Head Injuries.--The        
  Secretary of Defense shall review policies under the TRICARE program    
  (including a review of the TRICARE policy manual) to determine if       
  policies addressing the availability of rehabilitative services for     
  TRICARE patients suffering from head injuries are adequate and          
  appropriately address consideration of certification by an attending    
  physician that such services would be beneficial for such a patient.    
     (b) Review of Adequacy of Provider Network.--The Secretary of Defense
  shall review the administration of the TRICARE Prime health plans to    
  determine whether, for each region covered by such a plan, there is a   
  sufficient number, distribution, and variety of qualified participating 
  health care providers to ensure that covered health care services,      
  including specialty services and rehabilitative services, are accessible
  in the vicinity of the residence of the enrollees and available in a    
  timely manner to such enrollees, regardless of where such enrollees are 
  located within the TRICARE region.                                      
     (c) Report.--Not later than April 1, 1999, the Secretary of Defense  
  shall submit to the Committee on Armed Services of the Senate and the   
  Committee on National Security of the House of Representatives a report 
  on the results of the reviews required by subsections (a) and (b),      
  together with a description of any actions taken or directed as a result
  of those reviews.                                                       

            SUBTITLE C--HEALTH CARE SERVICES FOR MEDICARE-ELIGIBLE DEPARTMENT OF  
                              DEFENSE BENEFICIARIES                               
                    SEC. 721. DEMONSTRATION PROJECT TO INCLUDE CERTAIN COVERED    
          BENEFICIARIES WITHIN FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM.         
     (a) FEHBP Demonstration Project.--(1) Chapter 55 of title 10, United 
  States Code, is amended by adding at the end the following new section: 
                    ``1108. Health care coverage through Federal Employees Health 
          Benefits program: demonstration project                                 
     ``(a) FEHBP Option Demonstration.--The Secretary of Defense, after   
  consulting with the other administering Secretaries, shall enter into an
  agreement with the Office of Personnel Management to conduct a          
  demonstration project (in this section referred to as the `demonstration
  project') under which eligible beneficiaries described in subsection (b)
  and residing within one of the areas covered by the demonstration       
  project may enroll in health benefits plans offered through the Federal 
  Employees Health Benefits program under chapter 89 of title 5. The      
  number of eligible beneficiaries and family members of such             
  beneficiaries under subsection (b)(2) who may be enrolled in health     
  benefits plans during the enrollment period under subsection (d)(2) may 
  not exceed 66,000.                                                      
     ``(b) Eligible Beneficiaries; Coverage.--(1) An eligible beneficiary 
  under this subsection is--                                              
       ``(A) a member or former member of the uniformed services described 
   in section 1074(b) of this title who is entitled to hospital insurance  
   benefits under part A of title XVIII of the Social Security Act (42     
   U.S.C. 1395c et seq.);                                                  
       ``(B) an individual who is an unremarried former spouse of a member 
   or former member described in section 1072(2)(F) or 1072(2)(G));        
     ``(C) an individual who is--                                          

       ``(i) a dependent of a deceased member or former member described in
   section 1076(b) or 1076(a)(2)(B) of this title or of a member who died  
   while on active duty for a period of more than 30 days; and             
     ``(ii) a member of family as defined in section 8901(5) of title 5; or

     ``(D) an individual who is--                                          

       ``(i) a dependent of a living member or former member described in  
   section 1076(b)(1) of this title who is entitled to hospital insurance  
   benefits under part A of title XVIII of the Social Security Act,        
   regardless of the member's or former member's eligibility for such      
   hospital insurance benefits; and                                        
     ``(ii) a member of family as defined in section 8901(5) of title 5.   

     ``(2) Eligible beneficiaries may enroll in a Federal Employees Health
  Benefit plan under chapter 89 of title 5 under this section for         
  self-only coverage or for self and family coverage which includes any   
  dependent of the member or former member who is a family member for     
  purposes of such chapter.                                               
     ``(3) A person eligible for coverage under this subsection shall not 
  be required to satisfy any eligibility criteria specified in chapter 89 
  of title 5 (except as provided in paragraph (1)(C) or (1)(D)) as a      
  condition for enrollment in health benefits plans offered through the   
  Federal Employees Health Benefits program under the demonstration       
  project.                                                                
     ``(4) For purposes of determining whether an individual is a member  
  of family under paragraph (5) of section 8901 of title 5 for purposes of
  paragraph (1)(C) or (1)(D), a member or former member described in      
  section 1076(b) or 1076(a)(2)(B) of this title shall be deemed to be an 
  employee under such section.                                            
     ``(5) An eligible beneficiary who is eligible to enroll in the       
  Federal Employees Health Benefits program as an employee under chapter  
  89 of title 5 is not eligible to enroll in a Federal Employees Health   
  Benefits plan under this section.                                       

     ``(c) Area of Demonstration Project.--The Secretary of Defense and   
  the Director of the Office of Personnel Management shall jointly        
  identify and select the geographic areas in which the demonstration     
  project will be conducted. The Secretary and the Director shall         
  establish at least six, but not more than ten, such demonstration areas.
  In establishing the areas, the Secretary and Director shall include--   
       ``(1) an area that includes the catchment area of one or more       
   military medical treatment facilities;                                  
       ``(2) an area that is not located in the catchment area of a        
   military medical treatment facility;                                    
       ``(3) an area in which there is a Medicare Subvention Demonstration 
   project area under section 1896 of title XVIII of the Social Security   
   Act (42 U.S.C. 1395ggg); and                                            
     ``(4) not more than one area for each TRICARE region.                 

     ``(d) Duration of Demonstration Project.--(1) The Secretary of       
  Defense shall conduct the demonstration project during three contract   
  years under the Federal Employees Health Benefits program.              
     ``(2) Eligible beneficiaries shall, as provided under the agreement  
  pursuant to subsection (a), be permitted to enroll in the demonstration 
  project during an open enrollment period for the year 2000 (conducted in
  the fall of 1999). The demonstration project shall terminate on December
  31, 2002.                                                               
     ``(e) Prohibition Against Use of MTFs and Enrollment Under           
  TRICARE.--Covered beneficiaries under this chapter who are provided     
  coverage under the demonstration project shall not be eligible to       
  receive care at a military medical treatment facility or to enroll in a 
  heath care plan under the TRICARE program.                              
     ``(f) Term of Enrollment in Project.--(1) Subject to paragraphs (2)  
  and (3), the period of enrollment of an eligible beneficiary who enrolls
  in the demonstration project during the open enrollment period for the  
  year 2000 shall be three years unless the beneficiary disenrolls before 
  the termination of the project.                                         
     ``(2) A beneficiary who elects to enroll in the project, and who     
  subsequently discontinues enrollment in the project before the end of   
  the period described in paragraph (1), shall not be eligible to reenroll
  in the project.                                                         
     ``(3) An eligible beneficiary enrolled in a Federal Employees Health 
  Benefits plan under this section may change health benefits plans and   
  coverage in the same manner as any other Federal Employees Health       
  Benefits program beneficiary may change such plans.                     
     ``(g) Effect of Cancellation.--The cancellation by an eligible       
  beneficiary of coverage under the Federal Employee Health Benefits      
  program shall be irrevocable during the term of the demonstration       
  project.                                                                
     ``(h) Separate Risk Pools; Charges.--(1) The Director of the Office  
  of Personnel Management shall require health benefits plans under       
  chapter 89 of title 5 that participate in the demonstration project to  
  maintain a separate risk pool for purposes of establishing premium rates
  for eligible beneficiaries who enroll in such a plan in accordance with 
  this section.                                                           
     ``(2) The Director shall determine total subscription charges for    
  self only or for family coverage for eligible beneficiaries who enroll  
  in a health benefits plan under chapter 89 of title 5 in accordance with
  this section. The subscription charges shall include premium charges    
  paid to the plan and amounts described in section 8906(c) of title 5 for
  administrative expenses and contingency reserves.                       
     ``(i) Government Contributions.--The Secretary of Defense shall be   
  responsible for the Government contribution for an eligible beneficiary 
  who enrolls in a health benefits plan under chapter 89 of title 5 in    
  accordance with this section, except that the amount of the contribution
  may not exceed the amount of the Government contribution which would be 
  payable if the electing beneficiary were an employee (as defined for    
  purposes of such chapter) enrolled in the same health benefits plan and 
  level of benefits.                                                      
     ``(j) Report Requirements.--(1) The Secretary of Defense and the     
  Director of the Office of Personnel Management                          

                    shall jointly submit to Congress two reports containing the   
          information described in paragraph (2). The first report shall be       
          submitted not later than the date that is 15 months after the date that 
          the Secretary begins to implement the demonstration project. The second 
          report shall be submitted not later than December 31, 2002.             
     ``(2) The reports required by paragraph (1) shall include the        
  following:                                                              
       ``(A) Information on the number of eligible beneficiaries who elect 
   to participate in the demonstration project.                            
       ``(B) An analysis of the percentage of eligible beneficiaries who   
   participate in the demonstration project as compared to the percentage  
   of covered beneficiaries under this chapter who elect to enroll in a    
   health care plan under such chapter.                                    
       ``(C) Information on eligible beneficiaries who elect to participate
   in the demonstration project and did not have Medicare Part B coverage  
   before electing to participate in the project.                          
       ``(D) An analysis of the enrollment rates and cost of health        
   services provided to eligible beneficiaries who elect to participate in 
   the demonstration project as compared with similarly situated enrollees 
   in the Federal Employees Health Benefits program under chapter 89 of    
   title 5.                                                                
       ``(E) An analysis of how the demonstration project affects the      
   accessibility of health care in military medical treatment facilities,  
   and a description of any unintended effects on the treatment priorities 
   in those facilities in the demonstration area.                          
       ``(F) An analysis of any problems experienced by the Department of  
   Defense in managing the demonstration project.                          
       ``(G) A description of the effects of the demonstration project on  
   medical readiness and training of the armed forces at military medical  
   treatment facilities located in the demonstration area, and a           
   description of the probable effects that making the project permanent   
   would have on the medical readiness and training.                       
       ``(H) An examination of the effects that the demonstration project, 
   if made permanent, would be expected to have on the overall budget of   
   the Department of Defense, the budget of the Office of Personnel and    
   Management, and the budgets of individual military medical treatment    
   facilities.                                                             
       ``(I) An analysis of whether the demonstration project affects the  
   cost to the Department of Defense of prescription drugs or the          
   accessibility, availability, and cost of such drugs to eligible         
   beneficiaries.                                                          
       ``(J) Any additional information that the Secretary of Defense or   
   the Director of the Office of Personnel Management consider appropriate 
   to assist Congress in determining the viability of expanding the project
   to all Medicare-eligible members of the uniformed services and their    
   dependents.                                                             
     ``(K) Recommendations on whether eligible beneficiaries--             

       ``(i) should be given more than one chance to enroll in a the       
   demonstration project under this section;                               
       ``(ii) should be eligible to enroll in the project only during the  
   first year following the date that the eligible beneficiary becomes     
   eligible to receive hospital insurance benefits under part A of title   
   XVIII of the Social Security Act; or                                    
       ``(iii) should be eligible to enroll in the project only during the 
   two-year period following the date on which the beneficiary first       
   becomes eligible to enroll in the project.                              
     ``(k) Comptroller General Report.--Not later than December 31, 2002, 
  the Comptroller General shall submit to Congress a report addressing the
  same matters required to be addressed under subsection (j)(2). The      
  report shall describe any limitations with respect to the data contained
  in the report as a result of the size and design of the demonstration   
  project.                                                                

     ``(l) Application of Medigap Protections to Demonstration Project    
  Enrollees.--(1) Subject to paragraph (2), the provisions of section     
  1882(s)(3) (other than clauses (i) through (iv) of subparagraph (B)) and
  1882(s)(4) of the Social Security Act shall apply to enrollment (and    
  termination of enrollment) in the demonstration project under this      
  section, in the same manner as they apply to enrollment (and termination
  of enrollment) with a Medicare+Choice organization in a Medicare+Choice 
  plan.                                                                   
    ``(2) In applying paragraph (1)--                                     

       ``(A) any reference in clause (v) or (vi) of section 1882(s)(3)(B)  
   of such Act to 12 months is deemed a reference to 36 months; and        
       ``(B) the notification required under section 1882(s)(3)(D) of such 
   Act shall be provided in a manner specified by the Secretary of Defense 
   in consultation with the Director of the Office of Personnel            
   Management.''.                                                          
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


            ``1108. Health care coverage through Federal Employees Health     
      Benefits program: demonstration project.''.                             


     (b) Conforming Amendments.--Chapter 89 of title 5, United States     
  Code, is amended--                                                      
     (1) in section 8905--                                                 

       (A) by redesignating subsections (d) through (f) as subsections (e) 
   through (g), respectively; and                                          
     (B) by inserting after subsection (c) the following new subsection:   

     ``(d) An individual whom the Secretary of Defense determines is an   
  eligible beneficiary under subsection (b) of section 1108 of title 10   
  may enroll, as part of the demonstration project under such section, in 
  a health benefits plan under this chapter in accordance with the        
  agreement under subsection (a) of such section between the Secretary and
  the Office and applicable regulations under this chapter.'';            
     (2) in section 8906(b)--                                              

       (A) in paragraph (1), by striking ``paragraphs (2) and (3)'' and    
   inserting in lieu thereof ``paragraphs (2), (3), and (4)''; and         
     (B) by adding at the end the following new paragraph:                 

     ``(4) In the case of persons who are enrolled in a health benefits   
  plan as part of the demonstration project under section 1108 of title   
  10, the Government contribution shall be subject to the limitation set  
  forth in subsection (i) of that section.'';                             
     (3) in section 8906(g)--                                              

       (A) in paragraph (1), by striking ``paragraph (2)'' and inserting in
   lieu thereof ``paragraphs (2) and (3)''; and                            
     (B) by adding at the end the following new  paragraph:                

     ``(3) The Government contribution for persons enrolled in a health   
  benefits plan as part of the demonstration project under section 1108 of
  title 10 shall be paid as provided in subsection (i) of that section.'';
  and                                                                     
       (4) in section 8909, by adding at the end the following new         
   subsection:                                                             
     ``(g) The fund described in subsection (a) is available to pay costs 
  that the Office incurs for activities associated with implementation of 
  the demonstration project under section 1108 of title 10.''.            
          SEC. 722. TRICARE AS SUPPLEMENT TO MEDICARE DEMONSTRATION.              

     (a) In General.--(1) The Secretary of Defense shall, after           
  consultation with the other administering Secretaries, carry out a      
  demonstration project in order to assess the feasibility and            
  advisability of providing medical care coverage under the TRICARE       
  program to the individuals described in subsection (c). The             
  demonstration project shall be known as the ``TRICARE Senior            
  Supplement''.                                                           
     (2) The Secretary shall commence the demonstration project not later 
  than January 1, 2000, and shall terminate the demonstration project not 
  later than December 31, 2002.                                           

     (3) Under the demonstration project, the Secretary shall permit      
  eligible individuals described in subsection (c) to enroll in the       
  TRICARE program.                                                        
     (4) Payment for care and services received by eligible individuals   
  who enroll in the TRICARE program under the demonstration project shall 
  be made as follows:                                                     
       (A) First, under title XVIII of the Social Security Act, but only to
   the extent that payment for such care and services is provided for under
   that title.                                                             
       (B) Second, under the TRICARE program, but only to the extent that  
   payment for such care and services is provided under that program and is
   not provided for under subparagraph (A).                                
       (C) Third, by the eligible individual concerned, but only to the    
   extent that payment for such care and services is not provided for under
   subparagraphs (A) or (B).                                               
     (5)(A) The Secretary shall require each eligible individual who      
  enrolls in the TRICARE program under the demonstration project to pay an
  enrollment fee. The Secretary shall provide, to the extent feasible, the
  option of payment of the enrollment fee through electronic transfers of 
  funds and through withholding of such payment from the pay of a member  
  or former member of the Armed Forces, and shall provide the option that 
  payment of the enrollment fee be made in full at the beginning of the   
  enrollment period or that payments be made on a monthly or quarterly    
  basis.                                                                  
     (B) The amount of the enrollment fee charged an eligible individual  
  under subparagraph (A) for self only or family enrollment in any year   
  may not exceed the amount equal to 75 percent of the total subscription 
  charges in that year for self-only or family, respectively,             
  fee-for-service coverage under the health benefits plan under the       
  Federal Employees Health Benefits program under chapter 89 of title 5,  
  United States Code, that is most similar in coverage to the TRICARE     
  program.                                                                
     (6) A covered beneficiary who enrolls in TRICARE Senior Supplement   
  under this subsection shall not be eligible to receive health care at a 
  facility of the uniformed services during the period such enrollment is 
  in effect.                                                              
     (b) Evaluation; Review.--(1) The Secretary shall provide for an      
  evaluation of the demonstration project conducted under this subsection 
  by an appropriate person or entity that is independent of the Department
  of Defense. The evaluation shall include the following:                 
       (A) An analysis of the costs of the demonstration project to the    
   United States and to the eligible individuals who participate in such   
   demonstration project.                                                  
       (B) An assessment of the extent to which the demonstration project  
   satisfies the requirements of such eligible individuals for the health  
   care services available under the demonstration project.                
       (C) An assessment of the effect, if any, of the demonstration       
   project on military medical readiness.                                  
       (D) A description of the rate of the enrollment in the demonstration
   project of the individuals who were eligible to enroll in the           
   demonstration project.                                                  
       (E) An assessment of whether the demonstration project provides the 
   most suitable model for a program to provide adequate health care       
   services to the population of individuals consisting of the eligible    
   individuals.                                                            
       (F) An evaluation of any other matters that the Secretary considers 
   appropriate.                                                            
     (2) The Comptroller General shall review the evaluation conducted    
  under paragraph (1). In carrying out the review, the Comptroller General
  shall--                                                                 
     (A) assess the validity of the processes used in the evaluation; and  

       (B) assess the validity of any findings under the evaluation,       
   including any limitations with respect to the data contained in the     
   evaluation as a result of the size and design of the demonstration      
   project.                                                                
     (3)(A) The Secretary shall submit a report on the results of the     
  evaluation under paragraph (1), together with the evaluation, to the    
  Committee on Armed Services of the Senate and                           

                    the Committee on National Security of the House of            
          Representatives not later than December 31, 2002.                       
     (B) The Comptroller General shall submit a report on the results of  
  the review under paragraph (2) to the committees referred to in         
  subparagraph (A) not later than February 15, 2003.                      
     (c) Eligible Individuals.--(1) An individual is eligible to          
  participate under this section if the individual is a member or former  
  member of the uniformed services described in section 1074(b) of title  
  10, United States Code, a dependent of the member described in section  
  1076(a)(2)(B) or 1076(b) of that title, or a dependent of a member of   
  the uniformed services who died while on active duty for a period of    
  more than 30 days, who--                                                
     (A) is 65 years of age or older;                                      

       (B) is entitled to hospital insurance benefits under part A of title
   XVIII of the Social Security Act (42 U.S.C. 1395c et seq.);             
       (C) is enrolled in the supplemental medical insurance program under 
   part B of such title XVIII (42 U.S.C. 1395j et seq.); and               
     (D) resides in an area selected by the Secretary under subsection (c).

     (c) Areas of Implementation.--(1) The Secretary shall carry out the  
  demonstration project under this section in two separate areas selected 
  by the Secretary.                                                       
     (2) The areas selected by the Secretary under paragraph (1) shall be 
  as follows:                                                             
       (A) One area shall be an area outside the catchment area of a       
   military medical treatment facility in which--                          
       (i) no eligible organization has a contract in effect under section 
   1876 of the Social Security Act (42 U.S.C. 1395mm) and no               
   Medicare+Choice organization has a contract in effect under part C of   
   title XVIII of that Act (42 U.S.C. 1395w 21); or                        
       (ii) the aggregate number of enrollees with an eligible organization
   with a contract in effect under section 1876 of that Act or with a      
   Medicare+Choice organization with a contract in effect under part C of  
   title XVIII of that Act is less than 2.5 percent of the total number of 
   individuals in the area who are entitled to hospital insurance benefits 
   under part A of title XVIII of that Act.                                
       (B) The other area shall be an area outside the catchment area of a 
   military medical treatment facility in which--                          
       (i) at least one eligible organization has a contract in effect     
   under section 1876 of that Act or one Medicare+Choice organization has a
   contract in effect under part C of title XVIII of that Act; and         
       (ii) the aggregate number of enrollees with an eligible organization
   with a contract in effect under section 1876 of that Act or with a      
   Medicare+Choice organization with a contract in effect under part C of  
   title XVIII of that Act exceeds 10 percent of the total number of       
   individuals in the area who are entitled to hospital insurance benefits 
   under part A of title XVIII of that Act.                                
    (d)  Definitions.--In this section:                                   

       (1) The term ``administering Secretaries'' has the meaning given    
   that term in section 1072(3) of title 10, United States Code.           
       (2) The term ``TRICARE program'' has the meaning given that term in 
   section 1072(7) of title 10, United States Code.                        
          SEC. 723. IMPLEMENTATION OF REDESIGN OF PHARMACY SYSTEM.                

     (a) In General.--Not later than October 1, 1999, the Secretary of    
  Defense shall implement, with respect to eligible individuals described 
  in subsection (e) who reside in an area selected under subsection (f),  
  the redesign of the pharmacy system under TRICARE (including the        
  mail-order and retail pharmacy benefit under TRICARE) to incorporate    
  ``best business                                                         

                    practices'' of the private sector in providing                
          pharmaceuticals, as developed under the plan described in section 703.  
     (b) Collection of Premiums and Other Charges.--The Secretary of      
  Defense may collect from eligible individuals described in subsection   
  (e) who participate in the redesigned pharmacy system any premiums,     
  deductibles, copayments, or other charges that the Secretary would      
  otherwise collect from individuals similar to such individuals.         
     (c) Evaluation.--The Secretary shall provide for an evaluation of the
  implementation of the redesign of the pharmacy system under TRICARE     
  under this section by an appropriate person or entity that is           
  independent of the Department of Defense. The evaluation shall include  
  the following:                                                          
       (1) An analysis of the costs of the implementation of the redesign  
   of the pharmacy system under TRICARE and to the eligible individuals who
   participate in the system.                                              
       (2) An assessment of the extent to which the implementation of such 
   system satisfies the requirements of the eligible individuals for the   
   health care services available under TRICARE.                           
       (3) An assessment of the effect, if any, of the implementation of   
   the system on military medical readiness.                               
       (4) A description of the rate of the participation in the system of 
   the individuals who were eligible to participate.                       
       (5) An evaluation of any other matters that the Secretary considers 
   appropriate.                                                            
     (d) Reports.--The Secretary shall submit two reports on the results  
  of the evaluation under subsection (c), together with the evaluation, to
  the Committee on Armed Services of the Senate and the Committee on      
  National Security of the House of Representatives. The first report     
  shall be submitted not later than December 31, 2000, and the second     
  report shall be submitted not later than December 31, 2002.             
     (e) Eligible Individuals.--(1) An individual is eligible to          
  participate under this section if the individual is a member or former  
  member of the uniformed services described in section 1074(b) of title  
  10, United States Code, a dependent of the member described in section  
  1076(a)(2)(B) or 1076(b) of that title, or a dependent of a member of   
  the uniformed services who died while on active duty for a period of    
  more than 30 days, who--                                                
     (A) is 65 years of age or older;                                      

       (B) is entitled to hospital insurance benefits under part A of title
   XVIII of the Social Security Act (42 U.S.C. 1395c et seq.);             
       (C) except as provided in paragraph (2), is enrolled in the         
   supplemental medical insurance program under part B of such title XVIII 
   (42 U.S.C. 1395j et seq.); and                                          
     (D) resides in an area selected by the Secretary under subsection (f).

     (2) Paragraph (1)(C) shall not apply in the case of an individual who
  at the time of attaining the age of 65 lived within 100 miles of the    
  catchment area of a military medical treatment facility.                
     (f) Areas of Implementation.--(1) The Secretary shall carry out the  
  implementation of the redesign of the pharmacy system under TRICARE in  
  two separate areas selected by the Secretary.                           
     (2) The areas selected by the Secretary under paragraph (1) shall be 
  as follows:                                                             
       (A) One area shall be an area outside the catchment area of a       
   military medical treatment facility in which--                          
       (i) no eligible organization has a contract in effect under section 
   1876 of the Social Security Act (42 U.S.C. 1395mm) and no               
   Medicare+Choice organization has a contract in effect under part C of   
   title XVIII of that Act (42 U.S.C. 1395w 21); or                        
       (ii) the aggregate number of enrollees with an eligible organization
   with a contract in effect under section 1876 of that Act or with a      
   Medicare+Choice organization with a contract in effect under part C of  
   title XVIII of that Act is less than 2.5 percent of the total number of 
   individuals in the area who are entitled to                             

          hospital insurance benefits under part A of title XVIII of that Act.    

       (B) The other area shall be an area outside the catchment area of a 
   military medical treatment facility in which--                          
       (i) at least one eligible organization has a contract in effect     
   under section 1876 of that Act or one Medicare+Choice organization has a
   contract in effect under part C of title XVIII of that Act; and         
       (ii) the aggregate number of enrollees with an eligible organization
   with a contract in effect under section 1876 of that Act or with a      
   Medicare+Choice organization with a contract in effect under part C of  
   title XVIII of that Act exceeds 10 percent of the total number of       
   individuals in the area who are entitled to hospital insurance benefits 
   under part A of title XVIII of that Act.                                
                    SEC. 724. COMPREHENSIVE EVALUATION OF IMPLEMENTATION OF       
          DEMONSTRATION PROJECTS AND TRICARE PHARMACY REDESIGN.                   
     Not later than March 31, 2003, the Comptroller General shall submit  
  to the Committee on Armed Services of the Senate and the Committee on   
  National Security of the House of Representatives a report containing a 
  comprehensive comparative analysis of the FEHBP demonstration project   
  conducted under section 1108 of title 10, United States Code (as added  
  by section 721), the TRICARE Senior Supplement under section 722, and   
  the redesign of the TRICARE pharmacy system under section 723. The      
  comprehensive analysis shall incorporate the findings of the evaluation 
  submitted under section 723(c) and the report submitted under subsection
  (j) of such section 1108.                                               
              SUBTITLE D--OTHER CHANGES TO EXISTING LAWS REGARDING HEALTH CARE    
                                   MANAGEMENT                                     
                    SEC. 731. PROCESS FOR WAIVING INFORMED CONSENT REQUIREMENT FOR
          ADMINISTRATION OF CERTAIN DRUGS TO MEMBERS OF ARMED FORCES FOR PURPOSES 
          OF A PARTICULAR MILITARY OPERATION.                                     
     (a) Limitation and Waiver.--(1) Section 1107 of title 10, United     
  States Code, is amended--                                               
     (A) by redesignating subsection (f) as subsection (g); and            

       (B) by inserting after subsection (e) the following new subsection  
   (f):                                                                    
     ``(f) Limitation and Waiver.--(1) In the case of the administration  
  of an investigational new drug or a drug unapproved for its applied use 
  to a member of the armed forces in connection with the member's         
  participation in a particular military operation, the requirement that  
  the member provide prior consent to receive the drug in accordance with 
  the prior consent requirement imposed under section 505(i)(4) of the    
  Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)(4)) may be waived
  only by the President. The President may grant such a waiver only if the
  President determines, in writing, that obtaining consent--              
     ``(A) is not feasible;                                                

     ``(B) is contrary to the best interests of the member; or             

     ``(C) is not in the interests of national security.                   

     ``(2) In making a determination to waive the prior consent           
  requirement on a ground described in subparagraph (A) or (B) of         
  paragraph (1), the President shall apply the standards and criteria that
  are set forth in the relevant FDA regulations for a waiver of the prior 
  consent requirement on that ground.                                     
     ``(3) The Secretary of Defense may request the President to waive the
  prior consent requirement with respect to the administration of an      
  investigational new drug or a drug unapproved                           

                    for its applied use to a member of the armed forces in        
          connection with the member's participation in a particular military     
          operation. With respect to any such administration--                    
       ``(A) the Secretary may not delegate to any other official the      
   authority to request the President to waive the prior consent           
   requirement for the Department of Defense; and                          
       ``(B) if the President grants the requested waiver, the Secretary   
   shall submit to the chairman and ranking minority member of each        
   congressional defense committee a notification of the waiver, together  
   with the written determination of the President under paragraph (1) and 
   the Secretary's justification for the request or requirement under      
   subsection (a) for the member to receive the drug covered by the waiver.
    ``(4) In this subsection:                                             

       ``(A) The term `relevant FDA regulations' means the regulations     
   promulgated under section 505(i) of the Federal Food, Drug, and Cosmetic
   Act (21 U.S.C. 355(i)).                                                 
       ``(B) The term `prior consent requirement' means the requirement    
   included in the relevant FDA regulations pursuant to section 505(i)(4)  
   of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)(4)).      
       ``(C) The term `congressional defense committee' means each of the  
   following:                                                              
       ``(i) The Committee on Armed Services and the Committee on          
   Appropriations of the Senate.                                           
       ``(ii) The Committee on National Security and the Committee on      
   Appropriations of the House of Representatives.''.                      
     (2) Subsection (f) of section 1107 of title 10, United States Code   
  (as added by paragraph (1)), shall apply to the administration of an    
  investigational new drug or a drug unapproved for its applied use to a  
  member of the Armed Forces in connection with the member's participation
  in a particular military operation on or after the date of the enactment
  of this Act.                                                            
     (3) A waiver of the requirement for prior consent imposed under the  
  regulations required under paragraph (4) of section 505(i) of the       
  Federal Food, Drug, and Cosmetic Act (or under any antecedent provision 
  of law or regulations) that has been granted under that section (or     
  antecedent provision of law or regulations) before the date of the      
  enactment of this Act for the administration of a drug to a member of   
  the Armed Forces in connection with the member's participation in a     
  particular military operation may be applied in that case after that    
  date only if--                                                          
       (A) the Secretary of Defense personally determines that the waiver  
   is justifiable on each ground on which the waiver was granted;          
     (B) the President concurs in that determination in writing; and       

       (C) the Secretary submits to the chairman and ranking minority      
   member of each congressional committee referred to in section           
   1107(f)(4)(C) of title 10, United States Code (as added by paragraph    
   (1))--                                                                  
     (i) a notification of the waiver;                                     

     (ii) the President's written concurrence; and                         

       (iii) the Secretary's justification for the request or for the      
   requirement under subsection 1107(a) of such title for the member to    
   receive the drug covered by the waiver.                                 
     (b) Time and Form of Notice.--(1) Subsection (b) of such section is  
  amended by striking out ``, if practicable'' and all that follows       
  through ``first administered to the member''.                           
     (2) Subsection (c) of such section is amended by striking out        
  ``unless the Secretary of Defense determines'' and all that follows     
  through ``alternative method''.                                         

                    SEC. 732. HEALTH BENEFITS FOR ABUSED DEPENDENTS OF MEMBERS OF 
          THE ARMED FORCES.                                                       
    Section 1076(e) of title 10, United States Code, is amended--         

     (1) by amending paragraph (1) to read as follows:                     


     ``(1) Subject to paragraph (3), the administering Secretary shall    
  furnish an abused dependent of a former member of a uniformed service   
  described in paragraph (4), during that period that the abused dependent
  is in receipt of transitional compensation under section 1059 of this   
  title, with medical and dental care, including mental health services,  
  in facilities of the uniformed services in accordance with the same     
  eligibility and benefits as were applicable for that abused dependent   
  during the period of active service of the former member.''; and        
     (2) in paragraph (3)--                                                

     (A) by adding ``and'' at the end of subparagraph (A);                 

       (B) by striking ``; and'' at the end of subparagraph (B) and        
   inserting a period; and                                                 
     (C) by striking subparagraph (C).                                     


                    SEC. 733. PROVISION OF HEALTH CARE AT MILITARY ENTRANCE       
          PROCESSING STATIONS AND ELSEWHERE OUTSIDE MEDICAL TREATMENT FACILITIES. 
     (a) Extension of Authorization for Use of Personal Services          
  Contracts.--Section 1091(a)(2) of title 10, United States Code, is      
  amended in the second sentence by striking out ``the end of the one-year
  period beginning on the date of the enactment of this paragraph'' and   
  inserting in lieu thereof ``December 31, 2000''.                        
     (b) Test of Alternative Process for Conducting Medical Screenings for
  Enlistment Qualification.--(1) The Secretary of Defense shall conduct a 
  test to--                                                               
       (A) determine whether the use of an alternative to the system       
   currently used by the Department of Defense of employing fee-basis      
   physicians for determining the medical qualifications for enlistment of 
   applicants for military service would reduce the number of disqualifying
   medical conditions that are detected during the initial entry training  
   of such applicants;                                                     
       (B) determine whether any savings or cost avoidance may be achieved 
   through use of an alternative system as a result of any increased       
   detection of disqualifying medical conditions before entry by applicants
   into initial entry training; and                                        
       (C) compare the capability of an alternative system to meet or      
   exceed the cost, responsiveness, and timeliness standards of the system 
   currently used by the Department.                                       
     (2) The alternative system described in paragraph (1) may include the
  system used under the TRICARE system, the health-care system of the     
  Department of Veterans Affairs, or any other system, or combination of  
  systems, considered appropriate by the Secretary.                       
     (3) Not later than March 1, 2000, the Secretary shall submit to the  
  Committee on National Security of the House of Representatives and the  
  Committee on Armed Services of the Senate a report on the results and   
  findings of the test conducted under paragraph (1).                     
                    SEC. 734. PROFESSIONAL QUALIFICATIONS OF PHYSICIANS PROVIDING 
          MILITARY HEALTH CARE.                                                   
     (a) Requirement for Unrestricted License.--Section 1094(a)(1) of     
  title 10, United States Code, is amended by adding at the end the       
  following: ``In the case of a physician, the physician may not provide  
  health care as a physician under this chapter unless the current license
  is an unrestricted license that is not subject to limitation on the     
  scope of practice ordinarily granted to other physicians for a similar  
  specialty by the jurisdiction that granted the license.''.              
     (b) Satisfaction of Continuing Medical Education Requirements.--(1)  
  Chapter 55 of title 10, United States Code, is amended by inserting     
  after section 1094 the following new section:                           
                    ``1094a. Continuing medical education requirements: system for
          monitoring physician compliance                                         
     ``The Secretary of Defense shall establish a mechanism for ensuring  
  that each person under the jurisdiction of the Secretary of a military  
  department who provides health care under                               

                    this chapter as a physician satisfies the continuing medical  
          education requirements applicable to the physician.''.                  
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 1094 the following new  
  item:                                                                   

            ``1094a. Continuing medical education requirements: system for    
      monitoring physician compliance.''.                                     

     (c) Effective Dates.--(1) The amendment made by subsection (a) shall 
  take effect on October 1, 1999.                                         
     (2) The system required by section 1094a of title 10, United States  
  Code (as added by subsection (b)), shall take effect on the date that is
  three years after the date of the enactment of this Act.                
                                  SUBTITLE E--OTHER MATTERS                       


          SEC. 741. ENHANCED DEPARTMENT OF DEFENSE ORGAN AND TISSUE DONOR PROGRAM.

    (a)  Findings.--Congress makes the following findings:                

       (1) Organ and tissue transplantation is one of the most remarkable  
   medical success stories in the history of medicine.                     
       (2) Each year, the number of people waiting for organ or tissue     
   transplantation increases. It is estimated that there are approximately 
   39,000 patients, ranging in age from babies to those in retirement,     
   awaiting transplants of kidneys, hearts, livers, and other solid organs.
       (3) The Department of Defense has made significant progress in      
   increasing the awareness of the importance of organ and tissue donations
   among members of the Armed Forces.                                      
       (4) The inclusion of organ and tissue donor elections in the Defense
   Enrollment Eligibility Reporting System (DEERS) central database        
   represents a major step in ensuring that organ and tissue donor         
   elections are a matter of record and are accessible in a timely manner. 
     (b) Responsibilities Regarding Organ and Tissue Donation.--(1)       
  Chapter 55 of title 10, United States Code, is amended by adding after  
  section 1108, as added by section 721(a)(1), the following new section: 
          ``1109. Organ and tissue donor program                                  

     ``(a) Responsibilities of the Secretary of Defense.--The Secretary of
  Defense shall ensure that the advanced systems developed for recording  
  armed forces members' personal data and information (such as the        
  SMARTCARD, MEDITAG, and Personal Information Carrier) include the       
  capability to record organ and tissue donation elections.               
     ``(b) Responsibilities of the Secretaries of the Military            
  Departments.--(1) The Secretaries of the military departments shall     
  ensure that--                                                           
       ``(1) appropriate information about organ and tissue donation is    
   provided--                                                              
     ``(A) to each officer candidate during initial training; and          

     ``(B) to each recruit--                                               

     ``(i) after completion by the recruit of basic training; and          

       ``(ii) before arrival of the recruit at the first duty assignment of
   the recruit;                                                            
       ``(2) members of the armed forces are given recurring, specific     
   opportunities to elect to be organ or tissue donors during service in   
   the armed forces and upon retirement; and                               
       ``(3) members of the armed forces electing to be organ or tissue    
   donors are encouraged to advise their next of kin concerning the        
   donation decision and any subsequent change of that decision.           
     ``(c) Responsibilities of the Surgeons General of the Military       
  Departments.--The Surgeons General of the military departments shall    
  ensure that--                                                           
       ``(1) appropriate training is provided to enlisted and officer      
   medical personnel to facilitate the effective operation of organ and    
   tissue donation activities under garrison conditions and, to the extent 
   possible, under operational conditions; and                             

       ``(2) medical logistical activities can, to the extent possible     
   without jeopardizing operational requirements, support an effective     
   organ and tissue donation program.''.                                   

     (2) The table of sections at the beginning of such chapter is amended
  by adding after the item relating to section 1108, as added by section  
  721(a)(2), the following new item:                                      

      ``1109. Organ and tissue donor program.''.                              


     (c) Report.--Not later than September 1, 1999, the Secretary of      
  Defense shall submit to the Committee on Armed Services of the Senate   
  and the Committee on National Security of the House of Representatives a
  report on the implementation of section 1109 of title 10, United States 
  Code (as added by subsection (b).                                       
          SEC. 742. AUTHORIZATION TO ESTABLISH A LEVEL 1 TRAUMA TRAINING CENTER.  

     The Secretary of the Army is hereby authorized to establish a Level 1
  Trauma Training Center (as designated by the American College of        
  Surgeons) in order to provide the Army with a trauma center capable of  
  training forward surgical teams.                                        

                    SEC. 743. AUTHORITY TO ESTABLISH CENTER FOR STUDY OF          
          POST-DEPLOYMENT HEALTH CONCERNS OF MEMBERS OF THE ARMED FORCES.         
     The Secretary of Defense is hereby authorized to establish a center  
  devoted to a longitudinal study to evaluate data on the health          
  conditions of members of the Armed Forces upon their return from        
  deployment on military operations for purposes of ensuring the rapid    
  identification of any trends in diseases, illnesses, or injuries among  
  such members as a result of such operations.                            

                    SEC. 744. REPORT ON IMPLEMENTATION OF ENROLLMENT-BASED        
          CAPITATION FOR FUNDING FOR MILITARY MEDICAL TREATMENT FACILITIES.       
     (a) Report Required.--The Secretary of Defense shall submit to       
  Congress a report on the potential impact of using an enrollment-based  
  capitation methodology to allocate funds for military medical treatment 
  facilities. The report shall address the following:                     
       (1) A description of the plans of the Secretary to implement an     
   enrollment-based capitation methodology for military medical treatment  
   facilities and with respect to contracts for the delivery of health care
   under the TRICARE program.                                              
       (2) The justifications for implementing an enrollment-based         
   capitation methodology without first conducting a demonstration project 
   for implementation of such methodology.                                 
       (3) The impact that implementation of an enrollment based capitation
   methodology would have on the provision of space-available care at      
   military medical treatment facilities, particularly in the case of care 
   for--                                                                   
       (A) military retirees entitled who are entitled to hospital         
   insurance benefits under part A of title XVIII of the Social Security   
   Act (42 U.S.C. 1395c et seq.); and                                      
       (B) covered beneficiaries under chapter 55 of title 10, United      
   States Code, who reside outside the catchment area of a military medical
   treatment facility.                                                     
       (4) The impact that implementation of an enrollment-based capitation
   methodology would have with respect to the pharmacy benefits provided at
   military medical treatment facilities, given that the enrollment-based  
   capitation methodology would fund military medical treatment facilities 
   based on the number of members at such facilities enrolled in TRICARE   
   Prime, but all covered beneficiaries may fill prescriptions at military 
   medical treatment facility pharmacies.                                  
       (5) An explanation of how additional funding will be provided for a 
   military medical treatment facility if an enrollment-based capitation   
   methodology is implemented to ensure that space-available care and      
   pharmacy coverage can be provided to covered beneficiaries who are not  
   enrolled                                                                

                    at the military medical treatment facility, and the amount of 
          funding that will be available.                                         
       (6) An explanation of how implementation of an enrollment-based     
   capitation methodology would impact the provision of uniform benefits   
   under TRICARE Prime, and how the Secretary would ensure, if such        
   methodology were implemented, that the provision of health care under   
   TRICARE Prime would not be bifurcated between the provision of such care
   at military medical treatment facilities and the provision of such care 
   from civilian providers.                                                
     (b) Deadline for Submission.--The Secretary shall submit the report  
  required by subsection (a) not later than March 1, 1999.                

                    SEC. 745. JOINT DEPARTMENT OF DEFENSE AND DEPARTMENT OF       
          VETERANS AFFAIRS REPORTS RELATING TO INTERDEPARTMENTAL COOPERATION IN   
          THE DELIVERY OF MEDICAL CARE.                                           
    (a)  Findings.--Congress makes the following findings:                

       (1) The military health care system of the Department of Defense and
   the Veterans Health Administration of the Department of Veterans Affairs
   are national institutions that collectively manage more than 1,500      
   hospitals, clinics, and health care facilities worldwide to provide     
   services to more than 11,000,000 beneficiaries.                         
       (2) In the post-Cold War era, these institutions are in a profound  
   transition that involves challenging opportunities.                     
       (3) During the period from 1988 to 1998, the number of military     
   medical personnel has declined by 15 percent and the number of military 
   hospitals has been reduced by one-third.                                
       (4) During the two years since 1996, the Department of Veterans     
   Affairs has revitalized its structure by decentralizing authority into  
   22 Veterans Integrated Service Networks.                                
       (5) In the face of increasing costs of medical care, increased      
   demands for health care services, and increasing budgetary constraints, 
   the Department of Defense and the Department of Veterans Affairs have   
   embarked on a variety of dynamic and innovative cooperative programs    
   ranging from shared services to joint venture operations of medical     
   facilities.                                                             
       (6) In 1984, there was a combined total of 102 Department of        
   Veterans Affairs and Department of Defense facilities with sharing      
   agreements. By 1997, that number had grown to 420. During the six years 
   from fiscal year 1992 through fiscal year 1997, shared services         
   increased from slightly over 3,000 services to more than 6,000 services,
   ranging from major medical and surgical services, laundry, blood, and   
   laboratory services to unusual speciality care services.                
       (7) The Department of Defense and the Department of Veterans Affairs
   are conducting four health care joint ventures in New Mexico, Nevada,   
   Texas, and Oklahoma, and are planning to conduct four more such ventures
   in Alaska, Florida, Hawaii, and California.                             
    (b)  Sense of Congress.--It is the sense of Congress that--           

       (1) the Department of Defense and the Department of Veterans Affairs
   should be commended for the cooperation between the two departments in  
   the delivery of medical care, of which the cooperation involved in the  
   establishment and operation of the Department of Defense and the        
   Department of Veterans Affairs Executive Council is a praiseworthy      
   example;                                                                
       (2) the Department of Defense and the Department of Veterans Affairs
   are encouraged to continue to explore new opportunities to enhance the  
   availability and delivery of medical care to beneficiaries by further   
   enhancing the cooperative efforts of the departments; and               
       (3) enhanced cooperation between the Department of Defense and the  
   Department of Veterans Affairs is encouraged regarding--                

       (A) the general areas of access to quality medical care,            
   identification and elimination of impediments to enhanced cooperation,  
   and joint research and program development; and                         
       (B) the specific areas in which there is significant potential to   
   achieve progress in cooperation in a short term, including              
   computerization of patient records systems, participation of the        
   Department of Veterans Affairs in the TRICARE program, pharmaceutical   
   programs, and joint physical examinations.                              
     (c) Joint Survey of Populations Served.--(1) The Secretary of Defense
  and the Secretary of Veterans Affairs shall jointly conduct a survey of 
  their respective medical care beneficiary populations to identify, by   
  category of beneficiary (defined as the Secretaries consider            
  appropriate), the expectations of, requirements for, and behavior       
  patterns of the beneficiaries with respect to medical care. The two     
  Secretaries shall develop the protocol for the survey jointly, but shall
  obtain the services of an entity independent of the Department of       
  Defense and the Department of Veterans Affairs to carry out the survey. 
    (2) The survey shall include the following:                           

       (A) Demographic characteristics, economic characteristics, and      
   geographic location of beneficiary populations with regard to catchment 
   or service areas.                                                       
       (B) The types and frequency of care required by veterans, retirees, 
   and dependents within catchment or service areas of Department of       
   Defense and Department of Veterans Affairs medical facilities and       
   outside those areas.                                                    
       (C) The numbers of, characteristics of, and types of medical care   
   needed by the veterans, retirees, and dependents who, though eligible   
   for medical care in Department of Defense or Department of Veterans     
   Affairs treatment facilities or through other federally funded medical  
   programs, choose not to seek medical care from those facilities or under
   those programs, and the reasons for that choice.                        
       (D) The obstacles or disincentives for seeking medical care from    
   such facilities or under such programs that are perceived by veterans,  
   retirees, and dependents.                                               
       (E) Any other matters that the Secretary of Defense and the         
   Secretary of Veterans Affairs consider appropriate for the survey.      
     (3) The Secretary of Defense or the Secretary of Veterans Affairs may
  waive the survey requirements under this subsection with respect to     
  information that can be better obtained from a source other than the    
  survey.                                                                 
     (4) The Secretary of Defense and the Secretary of Veterans Affairs   
  shall submit a report on the results of the survey to the appropriate   
  committees of Congress. The report shall contain the matters described  
  in paragraph (2) and any proposals for legislation that the Secretaries 
  recommend for enhancing Department of Defense and Department of Veterans
  Affairs cooperative efforts with respect to the delivery of medical     
  care.                                                                   
     (d) Review of Law and Policies.--(1) The Secretary of Defense and the
  Secretary of Veterans Affairs shall jointly conduct a review to identify
  impediments to cooperation between the Department of Defense and the    
  Department of Veterans Affairs regarding the delivery of medical care.  
  The matters reviewed shall include the following:                       
       (A) All laws, policies, and regulations, and any attitudes of       
   beneficiaries of the health care systems of the two departments, that   
   have the effect of preventing the establishment, or limiting the        
   effectiveness, of cooperative health care programs of the departments.  
       (B) The requirements and practices involved in the credentialling   
   and licensure of health care providers.                                 
       (C) The perceptions of beneficiaries in a variety of categories     
   (defined as the Secretaries consider appropriate) regarding the various 
   Federal health care systems available for their use.                    
       (D) The types and frequency of medical services furnished by the    
   Department of Defense and the Department                                

                    of Veterans Affairs through cooperative arrangements to each  
          category of beneficiary (including active-duty members, retirees,       
          dependents, veterans in the health-care eligibility categories referred 
          to as Category A and Category C, and persons authorized to receive      
          medical care under section 1713 of title 38, United States Code) of the 
          other department.                                                       
       (E) The extent to which health care facilities of the Department of 
   Defense and Department of Veterans Affairs have sufficient capacity, or 
   could jointly or individually create sufficient capacity, to provide    
   services to beneficiaries of the other department without diminution of 
   access or services to their primary beneficiaries.                      
       (F) The extent to which the recruitment of scarce medical           
   specialists and allied health personnel by the Department of Defense and
   the Department of Veterans Affairs could be enhanced through cooperative
   arrangements for providing health care services.                        
       (G) The obstacles and disincentives to providing health care        
   services through cooperative arrangements between the Department of     
   Defense and the Department of Veterans Affairs.                         
     (2) The Secretaries shall jointly submit a report on the results of  
  the review to the appropriate committees of Congress. The report shall  
  include any proposals for legislation that the Secretaries recommend for
  eliminating or reducing impediments to interdepartmental cooperation    
  that are identified during the review.                                  
     (e) Participation in TRICARE.--(1) 7E 7EThe Secretary of Defense     
  shall review the TRICARE program to identify opportunities for increased
  participation by the Department of Veterans Affairs in that program. The
  ongoing collaboration between Department of Defense officials and       
  Department of Veterans Affairs officials regarding increased            
  participation shall be included among the matters reviewed.             
     (2) The Secretary of Defense and the Secretary of Veterans Affairs   
  shall jointly submit to the appropriate committees of Congress a        
  semiannual report on the status of the review under this subsection and 
  on efforts to increase the participation of the Department of Veterans  
  Affairs in the TRICARE program. No report is required under this        
  paragraph after the submission of a semiannual report in which the      
  Secretaries declare that the Department of Veterans Affairs is          
  participating in the TRICARE program to the extent that can reasonably  
  be expected to be attained.                                             
     (f) Pharmaceutical Benefits and Programs.--(1) The Department of     
  Defense--Department of Veterans Affairs Federal Pharmacy Executive      
  Steering Committee shall--                                              
       (A) undertake a comprehensive examination of existing pharmaceutical
   benefits and programs for beneficiaries of Department of Defense medical
   care programs, including matters relating to the purchasing,            
   distribution, and dispensing of pharmaceuticals and the management of   
   mail order pharmaceuticals programs; and                                
       (B) review the existing methods for contracting for and distributing
   medical supplies and services.                                          
     (2) The committee shall submit a report on the results of the        
  examination to the appropriate committees of Congress.                  
     (g) Standardization of Physical Examinations for Disability.--The    
  Secretary of Defense and the Secretary of Veterans Affairs shall jointly
  submit to the appropriate committees of Congress a report on the status 
  of the efforts of the Department of Defense and the Department of       
  Veterans Affairs to standardize physical examinations administered by   
  the two departments for the purpose of determining or rating            
  disabilities.                                                           
     (h) Appropriate Committees of Congress Defined.--For the purposes of 
  this section, the appropriate committees of Congress are as follows:    
       (1) The Committee on Armed Services and the Committee on Veterans'  
   Affairs of the Senate.                                                  
       (2) The Committee on National Security and the Committee on         
   Veterans' Affairs of the House of Representatives.                      

     (i) Deadlines for Submission of Reports.--(1) The report required by 
  subsection (c)(3) shall be submitted not later than January 1, 2000.    
     (2) The report required by subsection (d)(2) shall be submitted not  
  later than March 1, 1999.                                               
     (3) The semiannual report required by subsection (e)(2) shall be     
  submitted not later than March 1 and September 1 of each year.          
     (4) The report on the examination required under subsection (f) shall
  be submitted not later than 60 days after the completion of the         
  examination.                                                            
     (5) The report required by subsection (g) shall be submitted not     
  later than March 1, 1999.                                               

                    SEC. 746. REPORT ON RESEARCH AND SURVEILLANCE ACTIVITIES      
          REGARDING LYME DISEASE AND OTHER TICK-BORNE DISEASES.                   
     Not later than April 1, 1999, the Secretary of Defense shall submit  
  to the Committee on National Security of the House of Representatives   
  and the Committee on Armed Services of the Senate a report on the       
  current and recommended levels of research and surveillance activities  
  regarding Lyme disease and other tick-borne diseases among members of   
  the Armed Forces. The report shall include the following:               
       (1) An analysis of the current and projected threat to the          
   operational readiness of the Armed Forces posed by Lyme disease and     
   other tick-borne diseases in the United States and in overseas locations
   at which members of the Armed Forces might be deployed.                 
       (2) A review of the current research efforts being implemented to   
   prevent the contraction of Lyme disease and other tick-borne diseases by
   members of the Armed Forces, and to enhance the early identification of 
   such diseases once they have been contracted.                           
       (3) An assessment of the adequacy of existing and projected funding 
   levels for research and surveillance activities relating to Lyme disease
   and other tick-borne diseases among members of the Armed Forces.        
       (4) The recommended funding levels necessary to address the threats 
   posed to the operational readiness of the Armed Forces by Lyme disease  
   and other tick-borne diseases.                                          

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

           SUBTITLE A--AMENDMENTS TO GENERAL CONTRACTING AUTHORITIES, PROCEDURES, 
                                 AND LIMITATIONS                                  
            Sec. 801. Limitation on use of price preference upon achievement  
      of contract goal for small and disadvantaged businesses.                
            Sec. 802. Distribution of assistance under the Procurement        
      Technical Assistance Cooperative Agreement Program.                     
      Sec. 803. Defense commercial pricing management improvement.            

            Sec. 804. Modification of senior executives covered by limitation 
      on allowability of compensation for certain contractor personnel.       
            Sec. 805. Separate determinations of exceptional waivers of truth 
      in negotiation requirements for prime contracts and subcontracts.       
      Sec. 806. Procurement of conventional ammunition.                       

      Sec. 807. Para-aramid fibers and yarns.                                 

            Sec. 808. Clarification of responsibility for submission of       
      information on prices previously charged for property or services       
      offered.                                                                
            Sec. 809. Amendments and study relating to procurement from firms 
      in industrial base for production of small arms.                        
                                  SUBTITLE B--OTHER MATTERS                       

            Sec. 811. Eligibility of involuntarily downgraded employee for    
      membership in an acquisition corps.                                     
            Sec. 812. Time for submission of annual report relating to Buy    
      American Act.                                                           
            Sec. 813. Procurement of travel services for official and         
      unofficial travel under one contract.                                   
      Sec. 814. Department of Defense purchases through other agencies.       

            Sec. 815. Supervision of defense acquisition university structure 
      by Under Secretary of Defense for Acquisition and Technology.           
            Sec. 816. Pilot programs for testing program manager performance  
      of product support oversight responsibilities for life cycle of         
      acquisition programs.                                                   
      Sec. 817. Scope of protection of certain information from disclosure.   

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

           SUBTITLE A--AMENDMENTS TO GENERAL CONTRACTING AUTHORITIES, PROCEDURES, 
                                 AND LIMITATIONS                                  

                    SEC. 801. LIMITATION ON USE OF PRICE PREFERENCE UPON          
          ACHIEVEMENT OF CONTRACT GOAL FOR SMALL AND DISADVANTAGED BUSINESSES.    
    Section 2323(e)(3) of title 10, United States Code, is amended--      

     (1) by inserting ``(A)'' after ``(3)'';                               

       (2) by inserting ``, except as provided in subparagraph (B),'' after
   ``the head of an agency may'' in the first sentence; and                
     (3) by adding at the end the following:                               

       ``(B)(i) The Secretary of Defense may not exercise the authority    
   under subparagraph (A) to enter into a contract for a price exceeding   
   fair market cost if the regulations implementing that authority are     
   suspended under clause (ii) with respect to that contract.              
       ``(ii) At the beginning of each fiscal year, the Secretary shall    
   determine, on the basis of the most recent data, whether the Department 
   of Defense achieved the 5 percent goal described in subsection (a)      
   during the fiscal year to which the data relates. Upon determining that 
   the Department achieved the goal for the fiscal year to which the data  
   relates, the Secretary shall issue a suspension, in writing, of the     
   regulations that implement the authority under subparagraph (A). Such a 
   suspension shall be in effect for the one-year period beginning 30 days 
   after the date on which the suspension is issued and shall apply with   
   respect to contracts awarded pursuant to solicitations issued during    
   that period.                                                            
       ``(iii) For purposes of clause (ii), the term `most recent data'    
   means data relating to the most recent fiscal year for which data are   
   available.''.                                                           

                    SEC. 802. DISTRIBUTION OF ASSISTANCE UNDER THE PROCUREMENT    
          TECHNICAL ASSISTANCE COOPERATIVE AGREEMENT PROGRAM.                     
     (a) Correction of Description of Geographic Unit.--(1) Section       
  2413(c) of title 10, United States Code, is amended by striking out     
  ``region'' and inserting in lieu thereof ``district''.                  
    (2)  Section 2415 of such title is amended--                          

       (A) by striking out ``region'' and inserting in lieu thereof        
   ``district'' each place it appears; and                                 
       (B) by striking out ``regions'' and inserting in lieu thereof       
   ``districts''.                                                          
     (b) Technical Amendment.--Section 2415 of such title is amended by   
  striking out ``Defense Contract Administrative Services'' and inserting 
  in lieu thereof ``Department of Defense contract administrative         
  services''.                                                             

          SEC. 803. DEFENSE COMMERCIAL PRICING MANAGEMENT IMPROVEMENT.            

     (a) Modification of Pricing Regulations for Certain Commercial Items 
  Exempt From Cost or Pricing Data Certification Requirements.--(1) The   
  Federal Acquisition Regulation issued in accordance with sections 6 and 
  25 of the Office of Federal Procurement Policy Act (41 U.S.C. 405, 421) 
  shall be revised to clarify the procedures and methods to be used for   
  determining the reasonableness of prices of exempt commercial items (as 
  defined in subsection (d)).                                             
     (2) The regulations shall, at a minimum, provide specific guidance   
  on--                                                                    
       (A) the appropriate application and precedence of such price        
   analysis tools as catalog-based pricing, market-based pricing,          
   historical pricing, parametric pricing, and value analysis;             
       (B) the circumstances under which contracting officers should       
   require offerors of exempt commercial items to provide--                
       (i) information on prices at which the offeror has previously sold  
   the same or similar items; or                                           
     (ii) other information other than certified cost or pricing data;     

       (C) the role and responsibility of Department of Defense support    
   organizations in procedures for determining price reasonableness; and   
       (D) the meaning and appropriate application of the term ``purposes  
   other than governmental purposes'' in section 4(12) of the Office of    
   Federal Procurement Policy Act (41 U.S.C. 403(12)).                     
     (3) This subsection shall cease to be effective one year after the   
  date on which final regulations prescribed pursuant to paragraph (1)    
  take effect.                                                            
     (b) Unified Management of Procurement of Exempt Commercial           
  Items.--The Secretary of Defense shall develop and implement procedures 
  to ensure that, whenever appropriate, a single item manager or          
  contracting officer is responsible for negotiating and entering into all
  contracts from a single contractor for the procurement of exempt        
  commercial items or for the procurement of items in a category of exempt
  commercial items.                                                       
     (c) Commercial Price Trend Analysis.--(1) The Secretary of Defense   
  shall develop and implement procedures that, to the maximum extent that 
  is practicable and consistent with the efficient operation of the       
  Department of Defense, provide for the collection and analysis of       
  information on price trends for categories of exempt commercial items   
  described in paragraph (2).                                             
     (2) A category of exempt commercial items referred to in paragraph   
  (1) consists of exempt commercial items--                               
       (A) that are in a single Federal Supply Group or Federal Supply     
   Class, are provided by a single contractor, or are otherwise logically  
   grouped for the purpose of analyzing information on price trends; and   
       (B) for which there is a potential for the price paid to be         
   significantly higher (on a percentage basis) than the prices previously 
   paid in procurements of the same or similar items for the Department of 
   Defense, as determined by                                               

                    the head of the procuring Department of Defense agency or the 
          Secretary of the procuring military department on the basis of criteria 
          prescribed by the Secretary of Defense.                                 
     (3) The head of a Department of Defense agency or the Secretary of a 
  military department shall take appropriate action to address any        
  unreasonable escalation in prices being paid for items procured by that 
  agency or military department as identified in an analysis conducted    
  pursuant to paragraph (1).                                              
     (4) Not later than April 1 of each of fiscal years 2000, 2001, and   
  2002, the Secretary of Defense shall submit to the Committee on Armed   
  Services of the Senate and the Committee on National Security of the    
  House of Representatives a report on the analyses of price trends that  
  were conducted for categories of exempt commercial items during the     
  preceding fiscal year under the procedures prescribed pursuant to       
  paragraph (1). The report shall include a description of the actions    
  taken to identify and address any unreasonable price escalation for the 
  categories of items.                                                    
     (d) Exempt Commercial Items Defined.--For the purposes of this       
  section, the term ``exempt commercial item'' means a commercial item    
  that is exempt under subsection (b)(1)(B) of section 2306a of title 10, 
  United States Code, or subsection (b)(1)(B) of section 304A of the      
  Federal Property and Administrative Services Act of 1949 (41 U.S.C.     
  254b), from the requirements for submission of certified cost or pricing
  data under that section.                                                

                    SEC. 804. MODIFICATION OF SENIOR EXECUTIVES COVERED BY        
          LIMITATION ON ALLOWABILITY OF COMPENSATION FOR CERTAIN CONTRACTOR       
          PERSONNEL.                                                              
     (a) Armed Services Acquisitions.--Section 2324(l)(5) of title 10,    
  United States Code, is amended to read as follows:                      
       ``(5) The term `senior executives', with respect to a contractor,   
   means the five most highly compensated employees in management positions
   at each home office and each segment of the contractor.''.              
     (b) Civilian Agency Acquisitions.--Section 306(m)(2) of the Federal  
  Property and Administrative Services Act of 1949 (41 U.S.C. 256(m)(2))  
  is amended to read as follows:                                          
       ``(2) The term `senior executives', with respect to a contractor,   
   means the five most highly compensated employees in management positions
   at each home office and each segment of the contractor.''.              
     (c) Conforming Amendments.--(1) Section 39(c)(2) of the Office of    
  Federal Procurement Policy Act (41 U.S.C. 435(c)(2)) is amended to read 
  as follows:                                                             
       ``(2) The term `senior executives', with respect to a contractor,   
   means the five most highly compensated employees in management positions
   at each home office and each segment of the contractor.''.              
     (2) Section 808(g)(2) of the National Defense Authorization Act for  
  Fiscal Year 1998 (Public Law 105 85; 111 Stat. 1838) is amended by      
  striking out ``senior executive'' and inserting in lieu thereof ``senior
  executives''.                                                           
     (d) Effective Date.--The amendments made by this section shall apply 
  with respect to costs of compensation of senior executives incurred     
  after January 1, 1999, under covered contracts (as defined in section   
  2324(l) of title 10, United States Code, and section 306(l) of the      
  Federal Property and Administrative Services Act of 1949 (41 U.S.C.     
  256(l)) entered into before, on, or after the date of the enactment of  
  this Act.                                                               

                    SEC. 805. SEPARATE DETERMINATIONS OF EXCEPTIONAL WAIVERS OF   
          TRUTH IN NEGOTIATION REQUIREMENTS FOR PRIME CONTRACTS AND SUBCONTRACTS. 
     (a) Armed Services Acquisitions.--Section 2306a(a)(5) of title 10,   
  United States Code, is amended to read as follows:                      
     ``(5) A waiver of requirements for submission of certified cost or   
  pricing data that is granted under subsection (b)(1)(C) in the case of a
  contract or subcontract does not waive the requirement under paragraph  
  (1)(C) for submission of cost or pricing data in the case of            
  subcontracts under that contract or                                     

                    subcontract unless the head of the procuring activity granting
          the waiver determines that the requirement under that paragraph should  
          be waived in the case of such subcontracts and justifies in writing the 
          reasons for the determination.''.                                       
     (b) Civilian Agency Acquisitions.--Section 304A(a)(5) of the Federal 
  Property and Administrative Services Act of 1949 (41 U.S.C. 254b(a)(5)) 
  is amended to read as follows:                                          
     ``(5) A waiver of requirements for submission of certified cost or   
  pricing data that is granted under subsection (b)(1)(C) in the case of a
  contract or subcontract does not waive the requirement under paragraph  
  (1)(C) for submission of cost or pricing data in the case of            
  subcontracts under that contract or subcontract unless the head of the  
  procuring activity granting the waiver determines that the requirement  
  under that paragraph should be waived in the case of such subcontracts  
  and justifies in writing the reasons for the determination.''.          
          SEC. 806. PROCUREMENT OF CONVENTIONAL AMMUNITION.                       

     (a) Authority.--The official in the Department of Defense designated 
  as the single manager for conventional ammunition in the Department     
  shall have the authority to restrict the procurement of conventional    
  ammunition to sources within the national technology and industrial base
  in accordance with the authority in section 2304(c) of title 10, United 
  States Code.                                                            
     (b) Requirement.--The official in the Department of Defense          
  designated as the single manager for conventional ammunition in the     
  Department of Defense shall limit a specific procurement of ammunition  
  to sources within the national technology and industrial base in        
  accordance with section 2304(c)(3) of title 10, United States Code, in  
  any case in which that manager determines that such limitation is       
  necessary to maintain a facility, producer, manufacturer, or other      
  supplier available for furnishing an essential item of ammunition or    
  ammunition component in cases of national emergency or to achieve       
  industrial mobilization.                                                
     (c) Conventional Ammunition Defined.--For purposes of this section,  
  the term ``conventional ammunition'' has the meaning given that term in 
  Department of Defense Directive 5160.65, dated March 8, 1995.           

          SEC. 807. PARA-ARAMID FIBERS AND YARNS.                                 

     (a) Authority.--The Secretary of Defense may procure articles        
  containing para-aramid fibers and yarns manufactured in a foreign       
  country referred to in subsection (d) if the Secretary determines that--
       (1) procuring articles that contain only para-aramid fibers and     
   yarns manufactured from suppliers within the national technology and    
   industrial base would result in sole-source contracts or subcontracts   
   for the supply of such para-aramid fibers and yarns; and                
       (2) such sole-source contracts or subcontracts would not be in the  
   best interests of the Government or consistent with the objectives of   
   section 2304 of title 10, United States Code.                           
     (b) Submission to Congress.--Not later than 30 days after making a   
  determination under subsection (a), the Secretary shall submit to       
  Congress a copy of the determination.                                   
     (c) Applicability to Subcontracts.--The authority under subsection   
  (a) applies with respect to subcontracts under Department of Defense    
  contracts as well as to such contracts.                                 
     (d) Foreign Countries Covered.--The authority under subsection (a)   
  applies with respect to a foreign country that--                        
       (1) is a party to a defense memorandum of understanding entered into
   under section 2531 of this title; and                                   
       (2) permits United States firms that manufacture para-aramid fibers 
   and yarns to compete with foreign firms for the sale of para-aramid     
   fibers and yarns in that country, as determined by the Secretary of     
   Defense.                                                                
     (e) Definition.--In this section, the term ``national technology and 
  industrial base'' has the meaning given that term in section 2500 of    
  title 10, United States Code.                                           

                    SEC. 808. CLARIFICATION OF RESPONSIBILITY FOR SUBMISSION OF   
          INFORMATION ON PRICES PREVIOUSLY CHARGED FOR PROPERTY OR SERVICES       
          OFFERED.                                                                
     (a) Armed Services Procurements.--Section 2306a(d)(1) of title 10,   
  United States Code, is amended by striking out ``the data submitted     
  shall'' in the second sentence and inserting in lieu thereof the        
  following: ``the contracting officer shall require that the data        
  submitted''.                                                            
     (b) Civilian Agency Procurements.--Section 304A(d)(1) of the Federal 
  Property and Administrative Services Act of 1949 (41 U.S.C. 254b(d)(1)),
  is amended by striking out ``the data submitted shall'' in the second   
  sentence and inserting in lieu thereof the following: ``the contracting 
  officer shall require that the data submitted''.                        
     (c) Eligibility for Contracts and Subcontracts To Be Conditioned on  
  Compliance.--Not later than 180 days after the date of the enactment of 
  this Act, the Federal Acquisition Regulation shall be amended to provide
  that an offeror's compliance with a requirement to submit data for a    
  contract or subcontract in accordance with section 2306a(d)(1) of title 
  10, United States Code, or section 304A(d)(1) of the Federal Property   
  and Administrative Services Act of 1949 shall be a condition for the    
  offeror to be eligible to enter into the contract or subcontract,       
  subject to such exceptions as the Federal Acquisition Regulatory Council
  determines appropriate.                                                 
     (d) Criteria for Certain Determinations.--Not later than 180 days    
  after the date of the enactment of this Act, the Federal Acquisition    
  Regulation shall be amended to include criteria for contracting officers
  to apply for determining the specific price information that an offeror 
  should be required to submit under section 2306a(d) of title 10, United 
  States Code, or section 304A(d) of the Federal Property and             
  Administrative Services Act of 1949 (41 U.S.C. 254b(d)).                

                    SEC. 809. AMENDMENTS AND STUDY RELATING TO PROCUREMENT FROM   
          FIRMS IN INDUSTRIAL BASE FOR PRODUCTION OF SMALL ARMS.                  
     (a) Requirement To Limit Procurements to Certain Sources.--Subsection
  (a) of section 2473 of title 10, United States Code, is amended--       
       (1) in the heading, by striking out the first word and inserting in 
   lieu thereof `` Requirement'' ;                                         
       (2) by striking out ``To the extent that the Secretary of Defense   
   determines necessary to preserve the small arms production industrial   
   base, the Secretary may'' and inserting in lieu thereof ``In order to   
   preserve the small arms production industrial base, the Secretary of    
   Defense shall''; and                                                    
       (3) by inserting before the period at the end the following: ``,    
   unless the Secretary determines, with regard to a particular            
   procurement, that such requirement is not necessary to preserve the     
   small arms production industrial base''.                                
     (b) Specification of Included Repair Parts.--Subsection (b) of such  
  section is amended in paragraph (1) by inserting before the period the  
  following: ``, including repair parts consisting of barrels, receivers, 
  and bolts''.                                                            
    (c)  Applicability of Requirement.--Such section is further amended-- 

       (1) in subsection (b), by striking out ``Subsection'' and inserting 
   in lieu thereof ``Subject to subsection (d), subsection''; and          
     (2)  by adding at the end the following new subsection:               

     ``(d) Applicability.--This section applies only to procurements of   
  covered property and services involving the following small arms:       
     ``(1) M16 series rifle.                                               

     ``(2) MK19 grenade machine gun.                                       

     ``(3) M4 series carbine.                                              

     ``(4) M240 series machine gun.                                        

     ``(5) M249 squad automatic weapon.''.                                 


     (d) Submission of Certified Cost or Pricing Data.--Such section is   
  further amended by adding at the end the following new subsection:      
     ``(e) Submission of Certified Cost or Pricing Data.--If a procurement
  under subsection (a) is a procurement of a commercial item, the         
  Secretary may, notwithstanding section 2306a(b)(1)(B) of this title,    
  require the submission of certified cost or pricing data under section  
  2306a(a) of this title.''.                                              
     (e) Study.--Not later than 60 days after the date of the enactment of
  this Act, the Secretary of the Army shall conduct a study, to be carried
  out by the Army Science Board, to examine whether the requirements of   
  section 2473 of title 10, United States Code, should be extended to     
  small arms (as specified in subsection (d) of such section) and the     
  parts manufactured under a contract with the Department of Defense to   
  produce such small arms.                                                
     (f) Authority to Extend Requirements of Section 2473.--Based upon    
  recommendations of the Army Science Board resulting from the study      
  conducted under subsection (e), the Secretary of the Army may apply the 
  requirements of section 2473 of title 10, United States Code, to the    
  small arms and parts referred to in subsection (e).                     

                                  SUBTITLE B--OTHER MATTERS                       

                    SEC. 811. ELIGIBILITY OF INVOLUNTARILY DOWNGRADED EMPLOYEE FOR
          MEMBERSHIP IN AN ACQUISITION CORPS.                                     
     Section 1732(c) of title 10, United States Code, is amended by adding
  at the end the following new paragraph:                                 
     ``(3) Paragraph (1) of subsection (b) shall not apply to an employee 
  who--                                                                   
       ``(A) having previously served in a position within a grade referred
   to in subparagraph (A) of that paragraph, is currently serving in the   
   same position within a grade below GS 13 of the General Schedule, or in 
   another position within that grade, by reason of a reduction in force or
   the closure or realignment of a military installation, or for any other 
   reason other than by reason of an adverse personnel action for cause;   
   and                                                                     
       ``(B) except as provided in paragraphs (1) and (2), satisfies the   
   educational, experience, and other requirements prescribed under        
   paragraphs (2), (3), and (4) of that subsection.''.                     
                    SEC. 812. TIME FOR SUBMISSION OF ANNUAL REPORT RELATING TO BUY
          AMERICAN ACT.                                                           
     Section 827 of the National Defense Authorization Act for Fiscal Year
  1997 (Public Law 104 201; 110 Stat. 2611; 41 U.S.C. 10b 3) is amended by
  striking out ``90 days'' and inserting in lieu thereof ``60 days''.     

                    SEC. 813. PROCUREMENT OF TRAVEL SERVICES FOR OFFICIAL AND     
          UNOFFICIAL TRAVEL UNDER ONE CONTRACT.                                   
     (a) Authority.--Chapter 157 of title 10, United States Code, is      
  amended by adding at the end the following new section:                 
                    ``2646. Travel services: procurement for official and         
          unofficial travel under one contract                                    
     ``(a) Authority.--The head of an agency may enter into a contract for
  travel-related services that provides for the contractor to furnish     
  services for both official travel and unofficial travel.                
     ``(b) Credits, Discounts, Commissions, Fees.--(1) A contract entered 
  into under this section may provide for credits, discounts, or          
  commissions or other fees to accrue to the Department of Defense. The   
  accrual and amounts of credits, discounts, or commissions or other fees 
  may be determined on the basis of the volume (measured in the number or 
  total amount of transactions or otherwise) of the travel-related sales  
  that are made by the contractor under the contract.                     
     ``(2) The evaluation factors applicable to offers for a contract     
  under this section may include a factor that relates to the estimated   
  aggregate value of any credits, discounts, commissions, or other fees   
  that would accrue to the Department of Defense for the travel-related   
  sales made under the contract.                                          

     ``(3) Commissions or fees received by the Department of Defense as a 
  result of travel-related sales made under a contract entered into under 
  this section shall be distributed as follows:                           
       ``(A) For amounts relating to sales for official travel, credit to  
   appropriations available for official travel for the fiscal year in     
   which the amounts were charged.                                         
       ``(B) For amounts relating to sales for unofficial travel, deposit  
   in nonappropriated fund accounts available for morale, welfare, and     
   recreation programs.                                                    
    ``(c)  Definitions.--In this section:                                 

       ``(1) The term `head of an agency' has the meaning given that term  
   in section 2302(1) of this title.                                       
       ``(2) The term `official travel' means travel at the expense of the 
   Federal Government.                                                     
       ``(3) The term `unofficial travel' means personal travel or other   
   travel that is not paid for or reimbursed by the Federal Government out 
   of appropriated funds.                                                  
     ``(d) Inapplicability to Coast Guard and NASA.--This section does not
  apply to the Coast Guard when it is not operating as a service in the   
  Navy, nor to the National Aeronautics and Space Administration.''.      
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    

            ``2646. Travel services: procurement for official and unofficial  
      travel under one contract.''.                                           

          SEC. 814. DEPARTMENT OF DEFENSE PURCHASES THROUGH OTHER AGENCIES.       

     (a) Extension of Regulations.--Not later than 90 days after the date 
  of the enactment of this Act, the Secretary of Defense shall revise the 
  regulations issued pursuant to section 844 of the National Defense      
  Authorization Act for Fiscal Year 1994 (Public Law 103 160; 107 Stat.   
  1720; 31 U.S.C. 1535 note) to--                                         
       (1) cover any purchase described in subsection (b) that is greater  
   than the micro-purchase threshold; and                                  
       (2) provide for a streamlined method of compliance for any such     
   purchase that is not greater than the simplified acquisition threshold. 
     (b) Description of Purchases.--A purchase referred to in subsection  
  (a) is a purchase of goods or services for one agency of the Department 
  of Defense by any other agency under a task or delivery order contract  
  entered into by the other agency under section 2304a of title 10, United
  States Code, or section 303H of the Federal Property and Administrative 
  Services Act of 1949 (41 U.S.C. 253h).                                  
    (c)  Definitions.--In this section:                                   

       (1) The term ``micro-purchase threshold'' has the meaning provided  
   in section 32 of the Office of Federal Procurement Policy Act (41 U.S.C.
   428).                                                                   
       (2) The term ``simplified acquisition threshold'' has the meaning   
   provided in section 4 of such Act (41 U.S.C. 403).                      
     (d) Termination.--This section shall cease to be effective one year  
  after the date on which final regulations prescribed pursuant to        
  subsection (a) take effect.                                             

                    SEC. 815. SUPERVISION OF DEFENSE ACQUISITION UNIVERSITY       
          STRUCTURE BY UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND TECHNOLOGY. 
     Section 1702 of title 10, United States Code, is amended by adding at
  the end the following: ``The Under Secretary shall prescribe policies   
  and requirements for the educational programs of the defense acquisition
  university structure established under section 1746 of this title.''.   

                    SEC. 816. PILOT PROGRAMS FOR TESTING PROGRAM MANAGER          
          PERFORMANCE OF PRODUCT SUPPORT OVERSIGHT RESPONSIBILITIES FOR LIFE CYCLE
          OF ACQUISITION PROGRAMS.                                                
     (a) Designation of Pilot Programs.--The Secretary of Defense, acting 
  through the Secretaries of the military departments, shall designate 10 
  acquisition programs of the military departments as pilot programs on   
  program manager responsibility for product support.                     

     (b) Responsibilities of Program Managers.--The program manager for   
  each acquisition program designated as a pilot program under this       
  section shall have the responsibility for ensuring that the product     
  support functions for the program are properly carried out over the     
  entire life cycle of the program.                                       
     (c) Report.--Not later than February 1, 1999, the Secretary of       
  Defense shall submit to the congressional defense committees a report on
  the pilot programs. The report shall contain the following:             
       (1) A description of the acquisition programs designated as pilot   
   programs under subsection (a).                                          
       (2) For each such acquisition program, the specific management      
   actions taken to ensure that the program manager has the responsibility 
   for oversight of the performance of the product support functions.      
       (3) Any proposed change to law, policy, regulation, or organization 
   that the Secretary considers desirable, and determines feasible to      
   implement, for ensuring that the program managers are fully responsible 
   under the pilot programs for the performance of all such                
   responsibilities.                                                       

          SEC. 817. SCOPE OF PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.   

     Section 2371(i)(2)(A) of title 10, United States Code, is amended by 
  striking out ``cooperative agreement that includes a clause described in
  subsection (d)'' and inserting in lieu thereof ``cooperative agreement  
  for performance of basic, applied, or advanced research authorized by   
  section 2358 of this title''.                                           

                    SEC. 818. PLAN FOR RAPID TRANSITION FROM COMPLETION OF SMALL  
          BUSINESS INNOVATION RESEARCH INTO DEFENSE ACQUISITION PROGRAMS.         
     (a) Plan Required.--(1) Not later than February 1, 1999, the         
  Secretary of Defense, in consultation with the Administrator of the     
  Small Business Administration, shall develop a plan for facilitating the
  rapid transition into Department of Defense acquisition programs of     
  successful first phase and second phase activities under the Small      
  Business Innovation Research program under section 9 of the Small       
  Business Act (15 U.S.C. 638).                                           
     (2) The Secretary shall submit the plan developed under paragraph (1)
  to--                                                                    
       (A) the Committee on Armed Services and the Committee on Small      
   Business of the Senate; and                                             
       (B) the Committee on National Security and the Committee on Small   
   Business of the House of Representatives.                               
    (b)  Conditions.--The plan developed under subsection (a) shall--     

       (1) be consistent with the Small Business Innovation Research       
   program and with the provisions of division D of the Clinger-Cohen Act  
   of 1996 (division D of Public Law 104 106; 110 Stat. 642) and the       
   Federal Acquisition Streamlining Act of 1994 (Public Law 103 355; 108   
   Stat. 3243) that are applicable to the Department of Defense; and       
       (2) provide for favorable consideration, in the acquisition planning
   process, for funding projects under the Small Business Innovation       
   Research program that have successfully completed the second phase or   
   are subject to a third phase agreement entered into pursuant to section 
   9(r) of the Small Business Act (15 U.S.C. 638(r)).                      

                    SEC. 819. FIVE-YEAR AUTHORITY FOR SECRETARY OF THE NAVY TO    
          EXCHANGE CERTAIN ITEMS.                                                 
     (a) Barter Authority.--The Secretary of the Navy may enter into a    
  barter agreement to convey trucks and other tactical vehicles in        
  exchange for the repair and remanufacture of ribbon bridges for the     
  Marine Corps. The Secretary shall enter into any such agreement in      
  accordance with section 201(c) of the Federal Property and              
  Administrative Services Act of 1949 (40 U.S.C. 481(c)), and the         
  regulations issued under such section, except that the requirement that 
  the items to be exchanged be similar shall not apply to the authority   
  provided under this subsection.                                         

     (b) Period of Authority.--The authority to enter into agreements     
  under subsection (a) and to make exchanges under any such agreement is  
  effective during the five-year period beginning on October 1, 1998.     

                    SEC. 820. PERMANENT AUTHORITY FOR USE OF MAJOR RANGE AND TEST 
          FACILITY INSTALLATIONS BY COMMERCIAL ENTITIES.                          
     (a) Permanent Authority.--Subsection (g) of section 2681 of title 10,
  United States Code, is repealed.                                        
     (b) Repeal of Executed Reporting Requirement.--Subsection (h) of such
  section is repealed.                                                    

                    SEC. 821. INVENTORY EXCHANGE AUTHORIZED FOR CERTAIN FUEL      
          DELIVERY CONTRACT.                                                      
     (a) Exchange of Barrels Authorized.--(1) The Secretary of Defense    
  shall provide, under a contract described in subsection (f), that the   
  contract may be performed, during the period described in paragraph (2),
  by means of delivery of fuel obtained by the refiner concerned in an    
  inventory exchange of barrels of fuel, in any case in which--           
       (A) the refiner is unable to physically deliver fuel in compliance  
   with the contract requirements because of ice conditions in Cook Inlet, 
   as determined by the Coast Guard; and                                   
       (B) the Secretary determines that such inability will result in an  
   inequity to the refiner.                                                
     (2) The period referred to in paragraph (1) is the period beginning  
  on the date of the enactment of this Act and ending on February 28,     
  1999.                                                                   
     (b) Limitation.--The number of barrels of fuel exchanged pursuant to 
  a contract described in subsection (f) may contain up to 15 percent of  
  the total quantity of fuel required to be delivered under the contract. 
     (c) Effect on Status as Small Disadvantaged Business.--Nothing in    
  this section, and no action taken pursuant to this section, may be      
  construed as affecting the status of the refiner as a small             
  disadvantaged business.                                                 
     (d) Effect on Contractual Obligations.--Nothing in this section may  
  be construed as affecting the requirement of a refiner to fulfill its   
  contractual obligations under a contract described in subsection (e),   
  other than as provided under subsection (b).                            
     (e) Small Disadvantaged Business Defined.--For the purposes of this  
  section, the term `small disadvantaged business' means a socially and   
  economically disadvantaged small business concern, a small business     
  concern owned and controlled by socially and economically disadvantaged 
  individuals, and a qualified HUBZone small business concern, as those   
  terms are defined in sections 8(a)(4)(A), 8(d)(3)(C), and 3(p) of the   
  Small Business Act (15 U.S.C. 637(a)(4)(A)), 637(d)(3)(C), and 632(p)), 
  respectively.                                                           
     (f) Applicability.--This section applies to any contract between the 
  Defense Energy Supply Center of the Department of Defense and a refiner 
  that qualifies as a small disadvantaged business for the delivery of    
  fuel by barge to Defense Energy Supply Point-Anchorage.                 

                 TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT      

                 SUBTITLE A--DEPARTMENT OF DEFENSE OFFICERS AND ORGANIZATION      

            Sec. 901. Reduction in number of Assistant Secretary of Defense   
      positions.                                                              
            Sec. 902. Repeal of statutory requirement for position of         
      Assistant Secretary of Defense for Command, Control, Communications, and
      Intelligence.                                                           
            Sec. 903. Independent task force on transformation and Department 
      of Defense organization.                                                
      Sec. 904. Authority to expand the National Defense University.          

      Sec. 905. Center for Hemispheric Defense Studies.                       

      Sec. 906. Restructuring of administration of Fisher Houses.             

            Sec. 907. Management reform for research, development, test, and  
      evaluation activities.                                                  
                   SUBTITLE B--DEPARTMENT OF DEFENSE FINANCIAL MANAGEMENT         

      Sec. 911. Improved accounting for defense contract services.            

            Sec. 912. Report on Department of Defense financial management    
      improvement plan.                                                       
            Sec. 913. Study of feasibility of performance of Department of    
      Defense finance and accounting functions by private sector sources or   
      other Federal sources.                                                  
            Sec. 914. Limitation on reorganization and consolidation of       
      operating locations of the Defense Finance and Accounting Service.      
            Sec. 915. Annual report on resources allocated to support and     
      mission activities.                                                     
                        SUBTITLE C--JOINT WARFIGHTING EXPERIMENTATION             

      Sec. 921. Findings concerning joint warfighting experimentation.        

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

                                  SUBTITLE D--OTHER MATTERS                       

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

                 SUBTITLE A--DEPARTMENT OF DEFENSE OFFICERS AND ORGANIZATION      


                    SEC. 901. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF       
          DEFENSE POSITIONS.                                                      
     (a) Reduction to Nine Positions.--Section 138(a) of title 10, United 
  States Code, is amended by striking out ``ten'' and insert in lieu      
  thereof ``nine''.                                                       
     (b) Conforming Amendment.--Section 5315 of title 5, United States    
  Code, is amended by striking out ``(10)'' after `Assistant Secretaries  
  of Defense'' and inserting in lieu thereof ``(9)''.                     

                    SEC. 902. REPEAL OF STATUTORY REQUIREMENT FOR POSITION OF     
          ASSISTANT SECRETARY OF DEFENSE FOR COMMAND, CONTROL, COMMUNICATIONS, AND
          INTELLIGENCE.                                                           
     Section 138(b) of title 10, United States Code is amended by striking
  out paragraph (3).                                                      

                    SEC. 903. INDEPENDENT TASK FORCE ON TRANSFORMATION AND        
          DEPARTMENT OF DEFENSE ORGANIZATION.                                     
    (a)  Findings.--Congress finds the following:                         

       (1) The post-Cold War era is marked by geopolitical uncertainty and 
   by accelerating technological change, particularly with regard to       
   information technologies.                                               
       (2) The combination of that geopolitical uncertainty and            
   accelerating technological change portends a transformation in the      
   conduct of war, particularly in ways that are likely to increase the    
   effectiveness of joint operations.                                      
       (3) The Department of Defense must be organized appropriately in    
   order to fully exploit the opportunities offered by, and to meet the    
   challenges posed by, this anticipated transformation in the conduct of  
   war.                                                                    
       (4) The basic organization of the Department of Defense was         
   established by the National Security Act of 1947 and the 1949 amendments
   to that Act.                                                            
       (5) The Goldwater-Nichols Department of Defense Reorganization Act  
   of 1986 (Public Law 99 433) dramatically improved the capability of the 
   Department of Defense                                                   

                    to carry out operations involving joint forces, but did not   
          specifically address issues pertaining to the development of joint      
          operations.                                                             
       (6) In the future, the ability to achieve improved operations of    
   joint forces, particularly under rapidly changing technological         
   conditions, will depend on improved force development for joint         
   operations.                                                             
     (b) Independent Task Force on Transformation and Department of       
  Defense Organization.--The Secretary of Defense shall establish a task  
  force of the Defense Science Board to examine the current organization  
  of the Department of Defense with regard to the appropriateness of that 
  organization for preparing for a transformation in the conduct of war.  
  The task force shall be established not later than November 1, 1998.    
     (c) Duties of the Task Force.--The task force shall assess, and shall
  make recommendations for the appropriate organization of, the Office of 
  the Secretary of Defense, the Joint Chiefs of Staff, the individual     
  Armed Forces, and the executive parts of the military departments for   
  the purpose of preparing the Department of Defense for a transformation 
  in the conduct of war. In making those assessments and developing those 
  recommendations, the task force shall review the following:             
       (1) The general organization of the Department of Defense, including
   whether responsibility and authority for issues relating to a           
   transformation in the conduct of war are appropriately allocated,       
   especially among the Office of the Secretary of Defense, the Joint      
   Chiefs of Staff, and the individual Armed Forces.                       
       (2) The joint requirements process and the requirements processes   
   for each of the Armed Forces, including the establishment of measures of
   effectiveness and methods for resource allocation.                      
       (3) The process and organizations responsible for doctrinal         
   development, including the appropriate relationship between joint force 
   and service doctrine and doctrinal development organizations.           
       (4) The current programs and organizations under the Office of the  
   Secretary of Defense, the Joint Chiefs of Staff and the Armed Forces    
   devoted to innovation and experimentation related to a transformation in
   the conduct of war, including the appropriateness of--                  
     (A) conducting joint field tests;                                     

       (B) establishing a separate unified command as a joint forces       
   command to serve, as its sole function, as the trainer, provider, and   
   developer of forces for joint operations and for conducting joint       
   warfighting experimentation;                                            
       (C) establishing a separate Joint Concept Development Center to     
   monitor exercises and develop measures of effectiveness, analytical     
   concepts, models, and simulations appropriate for understanding the     
   transformation in the conduct of war;                                   
       (D) establishing a Joint Battle Laboratory to conduct joint         
   experimentation and to integrate the similar efforts of the Armed       
   Forces; and                                                             
       (E) establishing an Assistant Secretary of Defense responsible for  
   transformation in the conduct of war.                                   
       (5) Joint training establishments and training establishments of the
   Armed Forces, including those devoted to professional military          
   education, and the appropriateness of establishing national training    
   centers.                                                                
       (6) Other issues relating to a transformation in the conduct of war 
   that the Secretary considers appropriate.                               
     (d) Report.--The task force shall submit to the Secretary of Defense 
  a report containing its assessments and recommendations not later than  
  February 1, 1999. The Secretary shall submit the report to the Committee
  on National Security of the House of Representatives and the Committee  
  on Armed Services of the Senate not later than March 1, 1999, together  
  with the recommendations and comments of the Secretary of Defense.      

          SEC. 904. AUTHORITY TO EXPAND THE NATIONAL DEFENSE UNIVERSITY.          

     Section 2165(b) of title 10, United States Code, is amended by adding
  at the end the following:                                               
       ``(7) Any other educational institution of the Department of Defense
   that the Secretary considers appropriate and designates as an           
   institution of the university.''.                                       

          SEC. 905. CENTER FOR HEMISPHERIC DEFENSE STUDIES.                       

     (a) Funding for Center.--Section 2165 of title 10, United States     
  Code, is amended by adding at the end the following new subsection:     
     ``(c) Source of Funds for Center for Hemispheric Defense             
  Studies.--Funds available for the payment of personnel expenses under   
  the Latin American cooperation authority set forth in section 1050 of   
  this title are also available for the costs of the operation of the     
  Center for Hemispheric Defense Studies.''.                              
     (b) Conforming Amendment.--Section 1050 of such title is amended by  
  inserting ``Secretary of Defense or the'' before ``Secretary of a       
  military department''.                                                  

          SEC. 906. RESTRUCTURING OF ADMINISTRATION OF FISHER HOUSES.             

     (a) Administration as Nonappropriated Fund Instrumentality.--(1)     
  Chapter 147 of title 10, United States Code, is amended by inserting    
  after section 2492 (as added by section 365) the following new section: 
                    ``2493. Fisher Houses: administration as nonappropriated fund 
          instrumentality                                                         
    ``(a)  Fisher Houses and Suites Defined.--In this section:            

     ``(1) The term `Fisher House' means a housing facility that--         

       ``(A) is located in proximity to a health care facility of the Army,
   the Air Force, or the Navy;                                             
       ``(B) is available for residential use on a temporary basis by      
   patients of that health care facility, members of the families of such  
   patients, and others providing the equivalent of familial support for   
   such patients; and                                                      
     ``(C) is constructed and donated by--                                 

       ``(i) the Zachary and Elizabeth M. Fisher Armed Services Foundation;
   or                                                                      
       ``(ii) another source, if the Secretary of the military department  
   concerned designates the housing facility as a Fisher House.            
     ``(2) The term `Fisher Suite' means one or more rooms that--          

       ``(A) meet the requirements of subparagraphs (A) and (B) of         
   paragraph (1);                                                          
       ``(B) are constructed, altered, or repaired and donated by a source 
   described in subparagraph (C) of that paragraph; and                    
       ``(C) are designated by the Secretary of the military department    
   concerned as a Fisher Suite.                                            
     ``(b) Nonappropriated Fund Instrumentality.--The Secretary of each   
  military department shall administer all Fisher Houses and Fisher Suites
  associated with health care facilities of that military department as a 
  nonappropriated fund instrumentality of the United States.              
     ``(c) Governance.--The Secretary of each military department shall   
  establish a system for the governance of the nonappropriated fund       
  instrumentality required by subsection (b) for that military department.
     ``(d) Central Fund.--The Secretary of each military department shall 
  establish a single fund as the source of funding for the operation,     
  maintenance, and improvement of all Fisher Houses and Fisher Suites of  
  the nonappropriated fund instrumentality required by subsection (b) for 
  that military department.                                               
     ``(e) Acceptance of Contributions; Imposition of Fees.--(1) The      
  Secretary of a military department may--                                

       ``(A) accept money, property, and services donated for the support  
   of a Fisher House or Fisher Suite associated with health care facilities
   of that military department; and                                        
       ``(B) may impose fees relating to the use of such Fisher Houses and 
   Fisher Suites.                                                          
     ``(2) All monetary donations, and the proceeds of the disposal of any
  other donated property, accepted by the Secretary of a military         
  department under this subsection shall be credited to the fund          
  established under subsection (d) for the Fisher Houses and Fisher Suites
  associated with health care facilities of that military department and  
  shall be available to that Secretary to support all such Fisher Houses  
  and Fisher Suites.                                                      
     ``(f) Annual Report.--Not later than January 15 of each year, the    
  Secretary of each military department shall submit to Congress a report 
  describing the operation of Fisher Houses and Fisher Suites associated  
  with health care facilities of that military department. The report     
  shall include, at a minimum, the following:                             
       ``(1) The amount in the fund established by that Secretary under    
   subsection (d) as of October 1 of the previous year.                    
       ``(2) The operation of the fund during the preceding fiscal year,   
   including--                                                             
     ``(A) all gifts, fees, and interest credited to the fund; and         

     ``(B) all disbursements from the fund.                                

       ``(3) The budget for the operation of the Fisher Houses and Fisher  
   Suites for the fiscal year in which the report is submitted.''.         
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 2492 (as added by       
  section 365) the following new item:                                    

            ``2493. Fisher Houses: administration as nonappropriated fund     
      instrumentality.''.                                                     

     (b) Establishment of Funds.--Not later than 90 days after the date of
  the enactment of this Act, the Secretary of each military department    
  shall--                                                                 
       (1) establish the fund required under section 2493(d) of title 10,  
   United States Code (as added by subsection (a)); and                    
       (2) close the Fisher House Trust Fund established for that          
   department under section 2221 of such title and transfer the amounts in 
   the closed fund to the newly established fund.                          
     (c) Funding Transition.--(1) Of the amount authorized to be          
  appropriated pursuant to section 301(2) for operation and maintenance   
  for the Navy, the Secretary of the Navy shall transfer to the fund      
  established by that Secretary under section 2493(d) of title 10, United 
  States Code (as added by subsection (a)), such amount as that Secretary 
  considers appropriate for establishing in the fund a corpus sufficient  
  for operating Fisher Houses and Fisher Suites associated with health    
  care facilities of the Department of the Navy.                          
     (2) Of the amount authorized to be appropriated pursuant to section  
  301(4) for operation and maintenance for the Air Force, the Secretary of
  the Air Force shall transfer to the fund established by that Secretary  
  under section 2493(d) of title 10, United States Code (as added by      
  subsection (a)), such amount as that Secretary considers appropriate for
  establishing in the fund a corpus sufficient for operating Fisher Houses
  and Fisher Suites associated with health care facilities of the         
  Department of the Air Force.                                            
     (d) Reporting Requirements.--The Secretary of each military          
  department, upon completing the actions required of the Secretary under 
  subsections (b) and (c), shall submit to Congress a report containing-- 
       (1) the certification of that Secretary that those actions have been
   completed; and                                                          
       (2) a statement of the amount deposited in the fund established by  
   that Secretary under section 2493(d) of title 10, United States Code (as
   added by subsection (a)).                                               
     (e) Availability of Transferred Amounts.--Amounts transferred under  
  subsection (b) or (c) to a fund established under section 2493(d) of    
  title 10, United States Code                                            

                    (as added by subsection (a)), shall be available without      
          fiscal year limitation for the purposes for which the fund is           
          established and shall be administered as nonappropriated funds.         
     (f) Conforming Repeals.--(1) Section 2221 of title 10, United States 
  Code, and the item relating to that section in the table of sections at 
  the beginning of chapter 131 of such title, are repealed.               
     (2) Section 1321(a) of title 31, United States Code, is amended by   
  striking out paragraphs (92), (93), and (94).                           
     (3) The amendments made by this subsection shall take effect 90 days 
  after the date of the enactment of this Act.                            
                    SEC. 907. MANAGEMENT REFORM FOR RESEARCH, DEVELOPMENT, TEST,  
          AND EVALUATION ACTIVITIES.                                              
     (a) Analysis and Plan for Reform of Management of RDTE               
  Activities.--(1) The Secretary of Defense, acting through the Under     
  Secretary of Defense for Acquisition and Technology, shall analyze the  
  structures and processes of the Department of Defense for management of 
  its laboratories and test and evaluation centers. Taking into           
  consideration the results of that analysis, the Secretary shall develop 
  a plan for improving the management of those laboratories and centers.  
  The plan shall include such reorganizations and reforms as the Secretary
  considers appropriate.                                                  
     (2) The analysis under paragraph (1) shall include an analysis of    
  each of the following with respect to Department of Defense laboratories
  and test and evaluation centers:                                        
       (A) Opportunities to improve efficiency and reduce duplication of   
   efforts by those laboratories and centers by designating a lead agency  
   or executive agent by area or function or other methods of streamlining 
   management.                                                             
       (B) Reform of the management processes of those laboratories and    
   centers that would reduce costs and increase efficiency in the conduct  
   of research, development, test, and evaluation activities.              
       (C) Opportunities for those laboratories and centers to enter into  
   partnership arrangements with laboratories in industry, academia, and   
   other Federal agencies that demonstrate leadership, initiative, and     
   innovation in research, development, test, and evaluation activities.   
       (D) The extent to which there is disseminated within those          
   laboratories and centers information regarding initiatives that have    
   successfully improved efficiency through reform of management processes 
   and other means.                                                        
       (E) Any cost savings that can be derived directly from              
   reorganization of management structures of those laboratories and       
   centers.                                                                
       (F) Options for reinvesting any such cost savings in those          
   laboratories and centers.                                               
     (3) The Secretary shall submit the plan required under paragraph (1) 
  to the congressional defense committees not later than 180 days after   
  the date of the enactment of this Act.                                  
     (b) Cost-Based Management Information System.--(1) The Secretary of  
  Defense shall develop a plan, including a schedule, for establishing a  
  cost-based management information system for Department of Defense      
  laboratories and test and evaluation centers. The system shall provide  
  for accurately identifying and comparing the costs of operating each    
  laboratory and each center.                                             
     (2) In preparing the plan, the Secretary shall assess the feasibility
  and desirability of establishing a common methodology for assessing     
  costs. The Secretary shall consider the use of a revolving fund as one  
  potential methodology.                                                  
     (3) The Secretary shall submit the plan required under paragraph (1) 
  to the congressional defense committees not later than 90 days after the
  date of the enactment of this Act.                                      
                   SUBTITLE B--DEPARTMENT OF DEFENSE FINANCIAL MANAGEMENT         


          SEC. 911. IMPROVED ACCOUNTING FOR DEFENSE CONTRACT SERVICES.            

     (a) In General.--(1) Chapter 131 of title 10, United States Code, is 
  amended by inserting after section 2211 the following new section:      

                    ``2212. Obligations for contract services: reporting in budget
          object classes                                                          
     ``(a) Limitation on Reporting in Miscellaneous Services Object       
  Class.--The Secretary of Defense shall ensure that, in reporting to the 
  Office of Management and Budget (pursuant to OMB Circular A 11 (relating
  to preparation and submission of budget estimates)) obligations of the  
  Department of Defense for any period of time for contract services, no  
  more than 15 percent of the total amount of obligations so reported is  
  reported in the miscellaneous services object class.                    
     ``(b) Definition of Reporting Categories for Advisory and Assistance 
  Services.--In carrying out section 1105(g) of title 31 for the          
  Department of Defense (and in determining what services are to be       
  reported to the Office of Management and Budget in the advisory and     
  assistance services object class), the Secretary of Defense shall apply 
  to the terms used for the definition of `advisory and assistance        
  services' in paragraph (2)(A) of that section the following meanings    
  (subject to the authorized exemptions):                                 
       ``(1) Management and professional support services.--The term       
   `management and professional support services' (used in clause (i) of   
   section 1105(g)(2)(A) of title 31) means services that provide          
   engineering or technical support, assistance, advice, or training for   
   the efficient and effective management and operation of organizations,  
   activities, or systems. Those services--                                
       ``(A) are closely related to the basic responsibilities and mission 
   of the using organization; and                                          
       ``(B) include efforts that support or contribute to improved        
   organization or program management, logistics management, project       
   monitoring and reporting, data collection, budgeting, accounting,       
   auditing, and administrative or technical support for conferences and   
   training programs.                                                      
       ``(2) Studies, analyses, and evaluations.--The term `studies,       
   analyses, and evaluations' (used in clause (ii) of section 1105(g)(2)(A)
   of title 31) means services that provide organized, analytic assessments
   to understand or evaluate complex issues to improve policy development, 
   decisionmaking, management, or administration and that result in        
   documents containing data or leading to conclusions or recommendations. 
   Those services may include databases, models, methodologies, and related
   software created in support of a study, analysis, or evaluation.        
       ``(3) Engineering and technical services.--The term `engineering and
   technical services' (used in clause (iii) of section 1105(g)(2)(A) of   
   title 31) means services that take the form of advice, assistance,      
   training, or hands-on training necessary to maintain and operate fielded
   weapon systems, equipment, and components (including software when      
   applicable) at design or required levels of effectiveness.              
     ``(c) Proper Classification of Advisory and Assistance               
  Services.--Before the submission to the Office of Management and Budget 
  of the proposed Department of Defense budget for inclusion in the       
  President's budget for a fiscal year pursuant to section 1105 of title  
  31, the Secretary of Defense, acting through the Under Secretary of     
  Defense (Comptroller), shall conduct a review of Department of Defense  
  services expected to be performed as contract services during the fiscal
  year for which that budget is to be submitted in order to ensure that   
  those services that are advisory and assistance services (as defined in 
  accordance with subsection (b)) are in fact properly classified, in     
  accordance with that subsection, in the advisory and assistance services
  object class.                                                           
     ``(d) Report to Congress.--The Secretary shall submit to Congress    
  each year, not later than 30 days after the date on which the budget for
  the next fiscal year is submitted pursuant to section 1105 of title 31, 
  a report containing the information derived from the review under       
  subsection (c).                                                         
     ``(e) Assessment by Comptroller General.--(1) The Comptroller General
  shall conduct a review of the report of the Secretary of Defense under  
  subsection (d) each year and shall--                                    

       ``(A) assess the methodology used by the Secretary in obtaining the 
   information submitted to Congress in that report; and                   
     ``(B) assess the information submitted to Congress in that report.    

     ``(2) Not later than 120 days after the date on which the Secretary  
  submits to Congress the report required under subsection (d) for any    
  year, the Comptroller General shall submit to Congress the Comptroller  
  General's report containing the results of the review for that year     
  under paragraph (1).                                                    
    ``(f)  Definitions.--In this section:                                 

       ``(1) The term `contract services' means all services that are      
   reported to the Office of Management and Budget pursuant to OMB Circular
   A 11 (relating to preparation and submission of budget estimates) in    
   budget object classes that are designated in the Object Class 25 series.
       ``(2) The term `advisory and assistance services object class' means
   those contract services constituting the budget object class that is    
   denominated `Advisory and Assistance Service and designated (as the date
   of the enactment of this section) as Object Class 25.1 (or any similar  
   object class established after the date of the enactment of this section
   for the reporting of obligations for advisory and assistance contract   
   services).                                                              
       ``(3) The term `miscellaneous services object class' means those    
   contract services constituting the budget object class that is          
   denominated `Other Services (services not otherwise specified in the 25 
   series)' and designated (as the date of the enactment of this section)  
   as Object Class 25.2 (or any similar object class established after the 
   date of the enactment of this section for the reporting of obligations  
   for miscellaneous or unspecified contract services).                    
       ``(4) The term `authorized exemptions' means those exemptions       
   authorized (as of the date of the enactment of this section) under      
   Department of Defense Directive 4205.2, captioned `Acquiring and        
   Managing Contracted Advisory and Assistance Services (CAAS)' and issued 
   by the Under Secretary of Defense for Acquisition and Technology on     
   February 10, 1992, such exemptions being set forth in Enclosure 3 to    
   that directive (captioned `CAAS Exemptions').''.                        
     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 2211 the following new  
  item:                                                                   

            ``2212. Obligations for contract services: reporting in budget    
      object classes.''.                                                      

     (b) Transition.--For the budget for fiscal year 2000, and the        
  reporting of information to the Office of Management and Budget in      
  connection with the preparation of that budget, section 2212 of title   
  10, United States Code, as added by subsection (a), shall be applied by 
  substituting ``30 percent'' in subsection (a) for ``15 percent''.       
     (c) Initial Classification of Advisory and Assistance Services.--Not 
  later than February 1, 1999, the Secretary of Defense, acting through   
  the Under Secretary of Defense (Comptroller), shall conduct a review of 
  Department of Defense services performed or expected to be performed as 
  contract services during fiscal year 1999 in order to ensure that those 
  services that are advisory and assistance services (as defined in       
  accordance with subsection (b) of section 2212 of title 10, United      
  States Code, as added by subsection (a)) are in fact properly           
  classified, in accordance with that subsection, in the advisory and     
  assistance services object class (as defined in subsection (f)(2) of    
  that section).                                                          
     (d) Fiscal Year 1999 Reduction.--The total amount that may be        
  obligated by the Secretary of Defense for contracted advisory and       
  assistance services from amounts appropriated for fiscal year 1999 is   
  the amount programmed for those services resulting from the review      
  referred to in subsection (c) reduced by $240,000,000.                  

                    SEC. 912. REPORT ON DEPARTMENT OF DEFENSE FINANCIAL MANAGEMENT
          IMPROVEMENT PLAN.                                                       
     Not later than 60 days after the date on which the Secretary of      
  Defense submits the first biennial financial management improvement plan
  required by section 2222 of title 10, United States Code, the           
  Comptroller General shall submit to Congress an analysis of the plan.   
  The analysis shall include a discussion of the content of the plan and  
  the extent to which the plan--                                          
     (1) complies with the requirements of such section 2222; and          

       (2) is a workable plan for addressing the financial management      
   problems of the Department of Defense.                                  

                    SEC. 913. STUDY OF FEASIBILITY OF PERFORMANCE OF DEPARTMENT OF
          DEFENSE FINANCE AND ACCOUNTING FUNCTIONS BY PRIVATE SECTOR SOURCES OR   
          OTHER FEDERAL SOURCES.                                                  
     (a) Study Required.--(1) The Secretary of Defense shall carry out a  
  study of the feasibility and advisability of selecting on a competitive 
  basis the source or sources for performing the finance and accounting   
  functions of the Department of Defense from among the Defense Finance   
  and Accounting Service of the Department of Defense and non-DFAS        
  sources.                                                                
     (2) For the purposes of this section, the term ``non-DFAS sources''  
  means--                                                                 
     (A) the military departments;                                         

     (B) Federal agencies outside the Department of Defense; and           

     (C) private sector sources.                                           

     (b) Report.--Not later than October 1, 1999, the Secretary shall     
  submit to Congress a report in writing on the results of the study. The 
  report shall include the following:                                     
       (1) A discussion of how the finance and accounting functions of the 
   Department of Defense are performed, including the necessary operations,
   the operations actually performed, the personnel required for the       
   operations, and the core competencies that are necessary for the        
   performance of those functions.                                         
       (2) A comparison of the performance of the finance and accounting   
   functions by the Defense Finance and Accounting Service with the        
   performance of finance and accounting functions by non-DFAS sources that
   exemplify the best finance and accounting practices and results,        
   together with a comparison of the costs of the performance of those     
   functions by the Defense Finance and Accounting Service and the         
   estimated costs of the performance of those functions by non-DFAS       
   sources.                                                                
       (3) The finance and accounting functions, if any, that are          
   appropriate for performance by non-DFAS sources, together with a concept
   of operations that--                                                    
     (A) specifies the mission;                                            

     (B) identifies the finance and accounting operations to be performed; 

       (C) describes the work force that is necessary to perform those     
   operations;                                                             
     (D) discusses where the operations are to be performed;               

     (E) describes how the operations are to be performed; and             

       (F) discusses the relationship between how the operations are to be 
   performed and the mission.                                              
       (4) An analysis of how Department of Defense programs or processes  
   would be affected by the performance of the finance and accounting      
   functions of the Department of Defense by one or more non-DFAS source.  
       (5) The status of the efforts within the Department of Defense to   
   consolidate and eliminate redundant finance and accounting systems and  
   to better integrate the automated and manual systems of the department  
   that provide input to financial management or accounting systems of the 
   department.                                                             

       (6) A description of a feasible and effective process for selecting,
   on a competitive basis, sources to perform the finance and accounting   
   functions of the Department of Defense from among the Defense Finance   
   and Accounting Service and non-DFAS sources, including a discussion of  
   the selection criteria the Secretary considers appropriate.             
       (7) An analysis of the costs and benefits of the various policies   
   and actions recommended.                                                
       (8) A discussion of any findings, analyses, and recommendations on  
   the performance of the finance and accounting functions of the          
   Department of Defense that have been made by the Task Force on Defense  
   Reform appointed by the Secretary of Defense on May 14, 1997.           
       (9) Any additional information and recommendations the Secretary    
   considers appropriate.                                                  
     (c) Market Research.--In carrying out the study, the Secretary shall 
  conduct market research to determine whether or not an efficient and    
  competitive domestic market for finance and accounting services exists. 
  In conducting that research, the Secretary shall consider whether the   
  domestic market for finance and accounting services could be reasonably 
  expected to generate responsive private sector competitors for the      
  provision of the finance and accounting services, or a portion of such  
  services, of the Department of Defense and whether there are any        
  substantial barriers to entry or expansion in that market. In conducting
  such research, the Secretary shall consider not only the current state  
  of the domestic market for finance and accounting services, but also the
  potential effects that the entry of the Department of Defense as a      
  large, long-term consumer of such services might have on that market.   

                    SEC. 914. LIMITATION ON REORGANIZATION AND CONSOLIDATION OF   
          OPERATING LOCATIONS OF THE DEFENSE FINANCE AND ACCOUNTING SERVICE.      
     (a) Limitation.--The Secretary of Defense may not close any operating
  location of the Defense Finance and Accounting Service before the date  
  that is 90 days after the date on which the Secretary submits to the    
  Committee on Armed Services of the Senate and the Committee on National 
  Security of the House of Representatives the plan required by subsection
  (b).                                                                    
     (b) Plan Required.--The Secretary of Defense shall submit to the     
  Committee on Armed Services of the Senate and the Committee on National 
  Security of the House of Representatives a strategic plan for improving 
  the financial management operations at each of the operating locations  
  of the Defense Finance and Accounting Service.                          
    (c)  Content of Plan.--The plan shall include the following:          

       (1) The workloads that it is necessary to perform at those operating
   locations each fiscal year.                                             
       (2) The capacity and number of operating locations that are         
   necessary for performing those workloads.                               
       (3) A discussion of the costs and benefits that could result from   
   reorganizing the operating locations of the Defense Finance and         
   Accounting Service on the basis of function performed, together with the
   Secretary's assessment of the feasibility of carrying out such a        
   reorganization.                                                         
     (d) Submittal of Plan.--The plan shall be submitted to the Committee 
  on Armed Services of the Senate and the Committee on National Security  
  of the House of Representatives not later than January 15, 1999.        

                    SEC. 915. ANNUAL REPORT ON RESOURCES ALLOCATED TO SUPPORT AND 
          MISSION ACTIVITIES.                                                     
     (a) Requirement.--Section 113 of title 10, United States Code, is    
  amended by adding at the end the following new subsection:              
     ``(l) The Secretary shall include in the annual report to Congress   
  under subsection (c) the following:                                     
       ``(1) A comparison of the amounts provided in the defense budget for
   support and for mission activities for each of the preceding five fiscal
   years.                                                                  
       ``(2) A comparison of the number of military and civilian personnel,
   shown by major occupational category, assigned                          

                    to support positions and to mission positions for each of the 
          preceding five fiscal years.                                            
       ``(3) An accounting, shown by service and by major occupational     
   category, of the number of military and civilian personnel assigned to  
   support positions during each of the preceding five fiscal years.       
       ``(4) A listing of the number of military and civilian personnel    
   assigned to management headquarters and headquarters support activities 
   as a percentage of military end-strength for each of the preceding five 
   fiscal years.''.                                                        
     (b) Report on Terminology.--Not later than 90 days after the date of 
  the enactment of this Act, the Secretary of Defense shall submit to the 
  Committee on Armed Services of the Senate and the Committee on National 
  Security of the House of Representatives a report setting forth the     
  definitions of the terms ``support'' and ``mission'' that the Secretary 
  proposes to use for purposes of the report requirement under section    
  113(l) of title 10, United States Code, as added by subsection (a).     

                        SUBTITLE C--JOINT WARFIGHTING EXPERIMENTATION             


          SEC. 921. FINDINGS CONCERNING JOINT WARFIGHTING EXPERIMENTATION.        

    Congress makes the following findings:                                

       (1) The assessments of the Quadrennial Defense Review and the       
   National Defense Panel provide a compelling argument--                  
       (A) that the security environment in the early 21st century will    
   include fundamentally different military challenges than the security   
   environment in the late 20th century; and                               
       (B) reinforce the premise of the Goldwater-Nichols Department of    
   Defense Reorganization Act of 1986 that future warfare will require more
   effective joint operational concepts.                                   
     (2) Joint experimentation is necessary for--                          

       (A) integrating advances in technology with changes in              
   organizational structure and joint operational concepts; and            
       (B) determining the interdependent aspects of joint warfare that are
   key for transforming the conduct of military operations to meet future  
   challenges successfully.                                                
       (3) It is essential that an energetic and innovative organization be
   established in the Department of Defense with the authority (subject to 
   the authority and guidance of the Secretary of Defense and Chairman of  
   the Joint Chiefs of Staff) to design and implement a process of joint   
   experimentation to investigate and test technologies and alternative    
   forces and concepts in field environments under realistic conditions    
   against the full range of future challenges to assist in developing and 
   validating new joint warfighting concepts and transforming the Armed    
   Forces to meet the threats to national security anticipated for the     
   early 21st century.                                                     
                    SEC. 922. SENSE OF CONGRESS CONCERNING JOINT WARFIGHTING      
          EXPERIMENTATION.                                                        
     (a) Designation of Commander To Have Joint Warfighting               
  Experimentation Mission.--It is the sense of Congress that the          
  initiative of the Secretary of Defense to designate the commander of a  
  combatant command to have the mission of joint warfighting              
  experimentation is a key step in exploiting the potential of advanced   
  technologies, new organizational structures, and new joint operational  
  concepts to transform the conduct of military operations by the Armed   
  Forces.                                                                 
     (b) Resources and Authority of Commander.--It is, further, the sense 
  of Congress that the commander of the combatant command referred to in  
  subsection (a) should be provided with appropriate and sufficient       
  resources for joint warfighting experimentation and with the appropriate
  authority to execute the commander's assigned responsibilities and that 
  such authority should include the following:                            

       (1) Planning, preparing, and conducting the program of joint        
   warfighting experimentation, which program should include analyses,     
   simulations, wargames, experiments, advanced concept technology         
   demonstrations, joint exercises conducted in virtual and field          
   environments, and, as a particularly critical aspect, assessments of    
   ``red team'' vulnerability.                                             
       (2) Developing scenarios and measures of effectiveness to meet the  
   operational challenges expected to be encountered in the early 21st     
   century and assessing the effectiveness of current and new              
   organizational structures, operational concepts, and technologies in    
   addressing those challenges.                                            
       (3) Integrating and testing in joint experimentation the systems and
   concepts that result from warfighting experimentation conducted by the  
   Armed Forces and the Defense Agencies.                                  
       (4) Coordinating with each of the Armed Forces and Defense Agencies 
   regarding the development and acquisition of equipment (including       
   surrogate or real technologies, platforms, and systems), supplies, and  
   services necessary for joint experimentation.                           
       (5) Providing the Secretary of Defense and the Chairman of the Joint
   Chiefs of Staff with recommendations, based on the conduct of joint     
   warfighting experimentation, for--                                      
     (A) improving interoperability;                                       

     (B) reducing unnecessary redundancy;                                  

     (C) synchronizing technology fielding;                                

     (D) developing joint operational concepts;                            

       (E) prioritizing the most promising joint capabilities for future   
   experimentation; and                                                    
     (F) prioritizing joint requirements and acquisition programs.         

       (6) Making recommendations to the Chairman of the Joint Chiefs of   
   Staff on mission needs statements and operational requirements          
   documents.                                                              
     (c) Congressional Review.--It is, further, the sense of Congress that
  Congress--                                                              
       (1) should review the adequacy of the process of transformation to  
   meet future challenges to the national security; and                    
       (2) if progress is determined inadequate, should consider           
   legislation to--                                                        
       (A) establish an appropriate organization to conduct the mission    
   described in subsection (a); and                                        
       (B) provide to the commander given the responsibility for that      
   mission appropriate and sufficient resources for joint warfighting      
   experimentation and the appropriate authority to execute that           
   commander's assigned responsibilities for that mission, including the   
   authorities specified in subsection (b).                                
          SEC. 923. REPORTS ON JOINT WARFIGHTING EXPERIMENTATION.                 

     (a) Initial Report.--(1) The commander of the combatant command      
  assigned by the Secretary of Defense to have the mission for joint      
  warfighting experimentation shall submit to the Secretary an initial    
  report on the implementation of joint experimentation. Not later than   
  April 1, 1999, the Secretary shall submit that report, together with any
  comments that the Secretary considers appropriate and any comments that 
  the Chairman of the Joint Chiefs of Staff considers appropriate, to the 
  Committee on Armed Services of the Senate and the Committee on National 
  Security of the House of Representatives.                               
     (2) The report of the commander under paragraph (1) shall include the
  commander's assessment of the following:                                
       (A) The authority and responsibilities of the commander as described
   in section 922(b).                                                      
       (B) The organization of the commander's combatant command, and of   
   its staff, for carrying out the joint warfighting experimentation       
   mission.                                                                
       (C) The process established for tasking forces to participate in    
   experimentation and the commander's specific                            

                    authority over those forces, including forces designated as   
          joint experimentation forces.                                           
       (D) The resources provided for initial implementation of joint      
   warfighting experimentation, the process for providing those resources  
   to the commander, the categories of the funding, and the authority of   
   the commander for budget execution.                                     
       (E) The process established for the development and acquisition of  
   the materiel, supplies, services, and equipment necessary for the       
   conduct of joint warfighting experimentation.                           
       (F) The process established for designing, preparing, and conducting
   joint experiments.                                                      
     (G) The role assigned the commander for--                             

       (i) integrating and testing in joint warfighting experimentation the
   systems that emerge from warfighting experimentation by the Armed Forces
   or the Defense Agencies;                                                
       (ii) assessing the effectiveness of organizational structures,      
   operational concepts, and technologies; and                             
       (iii) assisting the Secretary of Defense and Chairman of the Joint  
   Chiefs of Staff to prioritize requirements or acquisition programs.     
     (b) Annual Report.--(1) Chapter 23 of title 10, United States Code,  
  is amended by adding at the end the following new section:              

          ``485. Joint warfighting experimentation                                

     ``(a) Annual Report.--The commander of the combatant command assigned
  by the Secretary of Defense to have the mission for joint warfighting   
  experimentation shall submit to the Secretary an annual report on the   
  conduct of joint experimentation activities for the fiscal year ending  
  in the year of the report. Not later than December 1 of each year, the  
  Secretary shall submit that report, together with any comments that the 
  Secretary considers appropriate and any comments that the Chairman of   
  the Joint Chiefs of Staff considers appropriate, to the Committee on    
  Armed Services of the Senate and the Committee on National Security of  
  the House of Representatives.                                           
     ``(b) Matters To Be Included.--Each report under this section shall  
  include, for the fiscal year covered by the report, the following:      
       ``(1) Any changes in the assessments of the matters described in    
   section 923(a)(2) of the Strom Thurmond National Defense Authorization  
   Act for Fiscal Year 1999 since the preparation of the assessments of    
   those matters set forth in the latest report submitted under this       
   section.                                                                
       ``(2) A description of the conduct of joint experimentation         
   activities, including the number of activities, the forces involved, the
   national security challenges addressed, the operational concepts        
   assessed, and the scenarios and measures of effectiveness used.         
       ``(3) An assessment of the results of joint warfighting             
   experimentation within the Department of Defense.                       
       ``(4) With respect to joint warfighting experimentation, any        
   recommendations that the commander considers appropriate regarding--    
     ``(A) the development or acquisition of advanced technologies;        

       ``(B) changes in organizational structure, operational concepts, or 
   joint doctrine;                                                         
     ``(C) the conduct of experiments;                                     

     ``(D) the adequacy of resources; or                                   

       ``(E) changes in authority of the commander to develop or acquire   
   materiel, supplies, services, or equipment directly for the conduct of  
   joint warfighting experimentation.''.                                   

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


      ``485. Joint warfighting experimentation.''.                            



     (c) First Annual Report.--The first report under section 485 of title
  10, United States Code, as added by subsection (b), shall be made with  
  respect to fiscal year 1999. In                                         

                    the case of the report under that section for fiscal year     
          1999, the reference in subsection (b)(1) of that section to the most    
          recent report under that section shall be treated as referring to the   
          report under subsection (a) of this section.                            
                                  SUBTITLE D--OTHER MATTERS                       


                    SEC. 931. FURTHER REDUCTIONS IN DEFENSE ACQUISITION AND       
          SUPPORT WORKFORCE.                                                      
     (a) Reduction of Defense Acquisition and Support Workforce.--The     
  Secretary of Defense shall accomplish reductions in defense acquisition 
  and support personnel positions during fiscal year 1999 so that the     
  total number of such personnel as of October 1, 1999, is less than the  
  total number of such personnel as of October 1, 1998, by at least the   
  applicable number determined under subsection (b).                      
     (b) Required Reduction.--(1) The applicable number for purposes of   
  subsection (a) is 25,000. However, the Secretary of Defense may specify 
  a lower number, which may not be less than 12,500, as the applicable    
  number for purposes of subsection (a) if the Secretary determines, and  
  certifies to Congress not later than May 1, 1999, that an applicable    
  number greater than the number specified by the Secretary would be      
  inconsistent with the cost-effective management of the defense          
  acquisition system to obtain best value equipment and with ensuring     
  military readiness.                                                     
     (2) The Secretary shall include with such a certification a report   
  setting forth a detailed explanation of each of the matters certified.  
  The report shall include--                                              
       (A) a detailed explanation of all matters incorporated in the       
   Secretary's determination;                                              
       (B) a definition of the components of the defense acquisition and   
   support positions; and                                                  
       (C) the allocation of the reductions under this section among the   
   occupational elements of those positions.                               
     (3) The authority of the Secretary under paragraph (1) may only be   
  delegated to the Deputy Secretary of Defense.                           
     (c) Limitation on Reduction of Core Acquisition Workforce.--The      
  Secretary shall implement this section so that the core defense         
  acquisition workforce identified by the Secretary in the report         
  submitted pursuant to section 912(b) of the National Defense            
  Authorization Act for Fiscal Year 1998 (Public Law 105 85; 111 Stat.    
  1860) is reduced proportionally no more than the other occupational     
  elements included as defense acquisition and support positions in that  
  report.                                                                 
     (d) Defense Acquisition and Support Personnel Defined.--For purposes 
  of this section, the term ``defense acquisition and support personnel'' 
  means military and civilian personnel (other than civilian personnel who
  are employed at a maintenance depot) who are assigned to, or employed   
  in, acquisition organizations of the Department of Defense (as specified
  in Department of Defense Instruction numbered 5000.58 dated January 14, 
  1992), and any other organizations which the Secretary may determine to 
  have a predominantly acquisition mission.                               

                    SEC. 932. LIMITATION ON OPERATION AND SUPPORT FUNDS FOR THE   
          OFFICE OF THE SECRETARY OF DEFENSE.                                     
     Of the amount available for fiscal year 1999 for operation and       
  support activities of the Office of the Secretary of Defense, not more  
  than 90 percent may be obligated until each of the following reports has
  been submitted:                                                         
       (1) The report required to be submitted to the congressional defense
   committees by section 904(b) of the National Defense Authorization Act  
   for Fiscal Year 1997 (Public Law 104 201; 110 Stat. 2619).              
       (2) The reports required to be submitted to Congress by sections    
   911(b) and 911(c) of the National Defense Authorization Act for Fiscal  
   Year 1998 (Public Law 105 85; 111 Stat. 1858, 1859).                    

                    SEC. 933. CLARIFICATION AND SIMPLIFICATION OF RESPONSIBILITIES
          OF INSPECTORS GENERAL REGARDING WHISTLEBLOWER PROTECTIONS.              
     (a) Roles of Inspectors General of the Armed Forces.--(1) Subsection 
  (c) of section 1034 of title 10, United States Code, is amended--       

       (A) by striking out paragraph (1) and inserting in lieu thereof the 
   following:                                                              
     ``(1) If a member of the armed forces submits to an Inspector General
  an allegation that a personnel action prohibited by subsection (b) has  
  been taken (or threatened) against the member with respect to a         
  communication described in paragraph (2), the Inspector General shall   
  take the action required under paragraph (3).''; and                    
       (B) by striking out paragraph (3) and inserting in lieu thereof the 
   following:                                                              
     ``(3)(A) An Inspector General receiving an allegation as described in
  paragraph (1) shall expeditiously determine whether there is sufficient 
  evidence to warrant an investigation of the allegation.                 
     ``(B) If the Inspector General receiving such an allegation is an    
  Inspector General within a military department, that Inspector General  
  shall promptly notify the Inspector General of the Department of Defense
  of the allegation. Such notification shall be made in accordance with   
  regulations prescribed under subsection (h).                            
     ``(C) If an allegation under paragraph (1) is submitted to an        
  Inspector General within a military department and if the determination 
  of that Inspector General under subparagraph (A) is that there is not   
  sufficient evidence to warrant an investigation of the allegation, that 
  Inspector General shall forward the matter to the Inspector General of  
  the Department of Defense for review.                                   
     ``(D) Upon determining that an investigation of an allegation under  
  paragraph (1) is warranted, the Inspector General making the            
  determination shall expeditiously investigate the allegation. In the    
  case of a determination made by the Inspector General of the Department 
  of Defense, that Inspector General may delegate responsibility for the  
  investigation to an appropriate Inspector General within a military     
  department.                                                             
     ``(E) In the case of an investigation under subparagraph (D) within  
  the Department of Defense, the results of the investigation shall be    
  determined by, or approved by, the Inspector General of the Department  
  of Defense (regardless of whether the investigation itself is conducted 
  by the Inspector General of the Department of Defense or by an Inspector
  General within a military department).                                  
     ``(4) Neither an initial determination under paragraph (3)(A) nor an 
  investigation under paragraph (3)(D) is required in the case of an      
  allegation made more than 60 days after the date on which the member    
  becomes aware of the personnel action that is the subject of the        
  allegation.                                                             
     ``(5) The Inspector General of the Department of Defense, or the     
  Inspector General of the Department of Transportation (in the case of a 
  member of the Coast Guard when the Coast Guard is not operating as a    
  service in the Navy), shall ensure that the Inspector General conducting
  the investigation of an allegation under this subsection is outside the 
  immediate chain of command of both the member submitting the allegation 
  and the individual or individuals alleged to have taken the retaliatory 
  action.''.                                                              
    (2) Subsection (d) of such section is amended--                       

       (A) by inserting ``receiving the allegation'' after ``the Inspector 
   General'' the first place it appears; and                               
       (B) by adding at the end the following: ``In the case of an         
   allegation received by the Inspector General of the Department of       
   Defense, the Inspector General may delegate that responsibility to the  
   Inspector General of the armed force concerned.''.                      
     (b) Mismanagement Covered by Protected Communications.--Subsection   
  (c)(2)(B) of such section is amended by striking out ``Mismanagement''  
  and inserting in lieu thereof ``Gross mismanagement''.                  
     (c) Simplified Reporting and Notice Requirements.--(1) Paragraph (1) 
  of subsection (e) of such section is amended--                          
       (A) by striking out ``Not later than 30 days after completion of an 
   investigation under subsection (c) or (d),'' and inserting in lieu      
   thereof ``After completion of an investigation under subsection (c) or  
   (d) or, in the case of an investigation                                 

                    under subsection (c) by an Inspector General within a military
          department, after approval of the report of that investigation under    
          subsection (c)(3)(E),''                                                 
       (B) by striking out ``the Inspector General shall submit a report   
   on'' and inserting in lieu thereof ``the Inspector General conducting   
   the investigation shall submit a report on'';                           
       (C) by inserting ``shall transmit a copy of the report on the       
   results of the investigation to'' before ``the member of the armed      
   forces''; and                                                           
       (D) by adding at the end the following new sentence: ``The report   
   shall be transmitted to the Secretary, and the copy of the report shall 
   be transmitted to the member, not later than 30 days after the          
   completion of the investigation or, in the case of an investigation     
   under subsection (c) by an Inspector General within a military          
   department, after approval of the report of that investigation under    
   subsection (c)(3)(E).''.                                                
    (2) Paragraph (2) of such subsection is amended--                     

       (A) by striking out ``submitted'' after ``In the copy of the        
   report'' and inserting in lieu thereof ``transmitted''; and             
       (B) by adding at the end the following new sentence: ``However, the 
   copy need not include summaries of interviews conducted, nor any        
   document acquired, during the course of the investigation. Such items   
   shall be transmitted to the member, if the member requests the items,   
   with the copy of the report or after the transmittal to the member of   
   the copy of the report, regardless of whether the request for those     
   items is made before or after the copy of the report is transmitted to  
   the member.''.                                                          
     (3) Paragraph (3) of such subsection is amended by striking out ``90 
  days'' and inserting in lieu thereof ``180 days''.                      
     (d) Repeal of Post-Investigation Interview Requirement.--Subsection  
  (h) of such section is repealed.                                        
     (e) Definition of Inspector General Defined.--Subsection (j)(2) of   
  such section is amended--                                               
       (1) by redesignating subparagraph (B) as subparagraph (G) and, in   
   that subparagraph, by striking out ``an officer'' and inserting in lieu 
   thereof ``An officer'';                                                 
       (2) by striking out subparagraph (A) and inserting in lieu thereof  
   the following:                                                          
     ``(A) The Inspector General of the Department of Defense.             

       ``(B) The Inspector General of the Department of Transportation, in 
   the case of a member of the Coast Guard when the Coast Guard is not     
   operating as a service in the Navy.                                     
       ``(C) The Inspector General of the Army, in the case of a member of 
   the Army.                                                               
       ``(D) The Naval Inspector General, in the case of a member of the   
   Navy.                                                                   
       ``(E) The Inspector General of the Air Force, in the case of a      
   member of the Air Force.                                                
       ``(F) The Deputy Naval Inspector General for Marine Corps Matters,  
   in the case of a member of the Marine Corps.''; and                     
       (3) in the matter preceding subparagraph (A), by striking out       
   ``means--'' and inserting in lieu thereof ``means the following:''.     
     (f) Technical and Conforming Amendments.--(1) Subsections (i) and (j)
  of such section are redesignated as subsections (h) and (i),            
  respectively.                                                           
     (2) Subsection (b)(1)(B)(ii) of such section is amended by striking  
  out ``subsection (j))'' and inserting in lieu thereof ``subsection (i)) 
  or any other Inspector General appointed under the Inspector General Act
  of 1978''.                                                              

                    SEC. 934. REPEAL OF REQUIREMENT RELATING TO ASSIGNMENT OF     
          TACTICAL AIRLIFT MISSION TO RESERVE COMPONENTS.                         
     Section 1438 of the National Defense Authorization Act for Fiscal    
  Year 1991 (Public Law 101 510; 104 Stat. 1689), as amended by section   
  1023 of the National Defense Authorization                              

                    Act for Fiscal Years 1992 and 1993 (Public Law 102 190; 105   
          Stat. 1460), is repealed.                                               

                    SEC. 935. CONSULTATION WITH MARINE CORPS ON MAJOR DECISIONS   
          DIRECTLY CONCERNING MARINE CORPS AVIATION.                              
     (a) In General.--Chapter 503 of title 10, United States Code, is     
  amended by adding at the end the following new section:                 
                    ``5026. Consultation with Commandant of the Marine Corps on   
          major decisions directly concerning Marine Corps aviation               
       ``The Secretary of the Navy shall ensure that the views of the      
   Commandant of the Marine Corps are given appropriate consideration      
   before a major decision is made by an element of the Department of the  
   Navy outside the Marine Corps on a matter that directly concerns Marine 
   Corps aviation.''.                                                      
       (b) Clerical Amendment.--The table of sections at the beginning of  
   such chapter is amended by adding at the end the following new item:    

            ``5026. Consultation with Commandant of the Marine Corps on major 
      decisions directly concerning Marine Corps aviation.''.                 

                                 TITLE X--GENERAL PROVISIONS                      


                                SUBTITLE A--FINANCIAL MATTERS                     

      Sec. 1001. Transfer authority.                                          

      Sec. 1002. Incorporation of classified annex.                           

            Sec. 1003. Authorization of prior emergency supplemental          
      appropriations for fiscal year 1998.                                    
            Sec. 1004. Authorization of appropriations for Bosnia peacekeeping
      operations for fiscal year 1999.                                        
      Sec. 1005. Partnership for Peace Information Management System.         

            Sec. 1006. United States contribution to NATO common-funded       
      budgets in fiscal year 1999.                                            
      Sec. 1007. Liquidity of working-capital funds.                          

            Sec. 1008. Termination of authority to manage working-capital     
      funds and certain activities through the Defense Business Operations    
      Fund.                                                                   
            Sec. 1009. Clarification of authority to retain recovered costs of
      disposals in working-capital funds.                                     
            Sec. 1010. Crediting of amounts recovered from third parties for  
      loss or damage to personal property shipped or stored at Government     
      expense.                                                                
                           SUBTITLE B--NAVAL VESSELS AND SHIPYARDS                

            Sec. 1011. Revision to requirement for continued listing of two   
      Iowa-class battleships on the Naval Vessel Register.                    
      Sec. 1012. Transfer of U.S.S. NEW JERSEY.                               

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

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

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

            Sec. 1016. Long-term charter of three vessels in support of       
      submarine rescue, escort, and towing.                                   
      Sec. 1017. Transfer of obsolete Army tugboat.                           

           SUBTITLE C--COUNTER DRUG ACTIVITIES AND OTHER ASSISTANCE FOR CIVILIAN  
                                 LAW ENFORCEMENT                                  
            Sec. 1021. Department of Defense support to other agencies for    
      counter-drug activities.                                                
            Sec. 1022. Department of Defense support of National Guard drug   
      interdiction and counter-drug activities.                               
            Sec. 1023. Department of Defense counter-drug activities in       
      transit zone.                                                           
                  SUBTITLE D--MISCELLANEOUS REPORT REQUIREMENTS AND REPEALS       

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

            Sec. 1032. Report regarding use of tagging system to identify     
      hydrocarbon fuels used by Department of Defense.                        
                          SUBTITLE E--ARMED FORCES RETIREMENT HOME                

            Sec. 1041. Appointment of Director and Deputy Director of the     
      Naval Home.                                                             
            Sec. 1042. Revision of inspection requirements relating to Armed  
      Forces Retirement Home.                                                 
            Sec. 1043. Clarification of land conveyance authority, Armed      
      Forces Retirement Home.                                                 
                      SUBTITLE F--MATTERS RELATING TO DEFENSE PROPERTY            

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

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

                       SUBTITLE G--OTHER DEPARTMENT OF DEFENSE MATTERS            

            Sec. 1061. Pilot program on alternative notice of receipt of legal
      process for garnishment of Federal pay for child support and alimony.   
            Sec. 1062. Training of special operations forces with friendly    
      foreign forces.                                                         
      Sec. 1063. Research grants competitively awarded to service academies.  

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

      Sec. 1065. Department of Defense aviation accident investigations.      

            Sec. 1066. Investigation of actions relating to 174th Fighter Wing
      of New York Air National Guard.                                         
      Sec. 1067. Program to commemorate 50th anniversary of the Korean War.   

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

      Sec. 1069. Technical and clerical amendments.                           

                                  SUBTITLE H--OTHER MATTERS                       

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

                                SUBTITLE A--FINANCIAL MATTERS                     

          SEC. 1001. TRANSFER AUTHORITY.                                          

     (a) Authority To Transfer Authorizations.--(1) Upon determination by 
  the Secretary of Defense that such action is necessary in the national  
  interest, the Secretary may transfer amounts of authorizations made     
  available to the Department of Defense in this division for fiscal year 
  1999 between any such authorizations for that fiscal year (or any       
  subdivisions thereof). Amounts of authorizations so transferred shall be
  merged with and be available for the same purposes as the authorization 
  to which transferred.                                                   
     (2) The total amount of authorizations that the Secretary may        
  transfer under the authority of this section may not exceed             
  $2,000,000,000.                                                         
     (b) Limitations.--The authority provided by this section to transfer 
  authorizations--                                                        
       (1) may only be used to provide authority for items that have a     
   higher priority than the items from which authority is transferred; and 
       (2) may not be used to provide authority for an item that has been  
   denied authorization by Congress.                                       
     (c) Effect on Authorization Amounts.--A transfer made from one       
  account to another under the authority of this section shall be deemed  
  to increase the amount authorized for the account to which the amount is
  transferred by an amount equal to the amount transferred.               
     (d) Notice to Congress.--The Secretary shall promptly notify Congress
  of each transfer made under subsection (a).                             

          SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.                           

     (a) Status of Classified Annex.--The Classified Annex prepared by the
  committee of conference to accompany the conference report on the bill  
  H.R. 3616 of the One Hundred Fifth Congress and transmitted to the      
  President is hereby incorporated into this Act.                         
     (b) Construction With Other Provisions of Act.--The amounts specified
  in the Classified Annex are not in addition to amounts authorized to be 
  appropriated by other provisions of this Act.                           
     (c) Limitation on Use of Funds.--Funds appropriated pursuant to an   
  authorization contained in this Act that are made available for a       
  program, project, or activity referred to in the Classified Annex may   
  only be expended for such program, project, or activity in accordance   
  with such terms, conditions, limitations, restrictions, and requirements
  as are set out for that program, project, or activity in the Classified 
  Annex.                                                                  
     (d) Distribution of Classified Annex.--The President shall provide   
  for appropriate distribution of the Classified Annex, or of appropriate 
  portions of the annex, within the executive branch of the Government.   

                    SEC. 1003. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL      
          APPROPRIATIONS FOR FISCAL YEAR 1998.                                    
     Amounts authorized to be appropriated to the Department of Defense   
  for fiscal year 1998 in the National Defense Authorization Act for      
  Fiscal Year 1998 (Public Law 105 85) are hereby adjusted, with respect  
  to any such authorized amount, by the amount by which appropriations    
  pursuant to such authorization were increased (by a supplemental        
  appropriation) or decreased (by a rescission), or both, in the 1998     
  Supplemental Appropriations and Rescissions Act (Public Law 105 174).   

                    SEC. 1004. AUTHORIZATION OF APPROPRIATIONS FOR BOSNIA         
          PEACEKEEPING OPERATIONS FOR FISCAL YEAR 1999.                           
     (a) Authorization of Appropriations.--Funds are hereby authorized to 
  be appropriated for the Department of Defense for fiscal year 1999 for  
  incremental costs of the Armed Forces for Bosnia peacekeeping operations
  in the total amount of $1,858,600,000, as follows:                      
       (1) For military personnel, in addition to the amounts authorized to
   be appropriated in title IV of this Act:                                
     (A) For the Army, $297,700,000.                                       

     (B) For the Navy, $9,700,000.                                         

     (C) For the Marine Corps, $2,700,000.                                 

     (D) For the Air Force, $33,900,000.                                   

     (E) For the Naval Reserve, $2,200,000.                                

       (2) For operation and maintenance for the Overseas Contingency      
   Operations Transfer Fund, in addition to the total amount authorized to 
   be appropriated for that fund in section 301(24) of this Act,           
   $1,512,400,000.                                                         
     (b) Designation as Emergency.--Funds authorized to be appropriated in
  accordance with subsection (a) are designated as emergency requirements 
  pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency   
  Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(A)).                    
     (c) Limitation.--(1) Funds available for the Department of Defense   
  for fiscal year 1999 for military personnel for the Army, Navy, Marine  
  Corps, Air Force, or Naval Reserve or for operation and maintenance for 
  the Overseas Contingency Operations Transfer Fund may not be obligated  
  or expended for Bosnia peacekeeping operations in excess of the amount  
  authorized to be appropriated for that purpose under subsection (a).    
     (2) The President may waive the limitation in paragraph (1) after    
  submitting to Congress the following:                                   
       (A) The President's written certification that the waiver is        
   necessary in the national security interests of the United States.      
       (B) The President's written certification that exercising the waiver
   will not adversely affect the readiness of United States military       
   forces.                                                                 
     (C) A report setting forth the following:                             

       (i) The reasons that the waiver is necessary in the national        
   security interests of the United States.                                
       (ii) The specific reasons that additional funding is required for   
   the continued presence of United States military forces participating   
   in, or supporting, Bosnia peacekeeping operations for fiscal year 1999. 
       (iii) A discussion of the impact on the military readiness of United
   States Armed Forces of the continuing deployment of United States       
   military forces participating in, or supporting, Bosnia peacekeeping    
   operations.                                                             
       (D) A supplemental appropriations request for the Department of     
   Defense for such amounts as are necessary for the additional fiscal year
   1999 costs associated with United States military forces participating  
   in, or supporting, Bosnia peacekeeping operations.                      
     (d) Transfer Authority.--The Secretary of Defense may transfer       
  amounts of authorizations made available to the Department of Defense in
  subsection (a)(2) for fiscal year 1999 to any of the authorizations for 
  that fiscal year in section 301. Amounts of authorizations so           
  transferred shall be merged with and be available for the same purposes 
  as the authorization to which transferred. The transfer authority under 
  this                                                                    

                    subsection is in addition to any other transfer authority     
          provided in this Act.                                                   
     (e) Bosnia Peacekeeping Operations Defined.--For the purposes of this
  section, the term ``Bosnia peacekeeping operations''--                  
       (1) means the operation designated as Operation Joint Forge and any 
   other operation involving the participation of any of the Armed Forces  
   in peacekeeping or peace enforcement activities in and around the       
   Republic of Bosnia and Herzegovina; and                                 
       (2) includes, with respect to Operation Joint Forge or any such     
   other operation, each activity that is directly related to the support  
   of the operation.                                                       
          SEC. 1005. PARTNERSHIP FOR PEACE INFORMATION SYSTEM MANAGEMENT.         

     Funds authorized to be appropriated under titles II and III of this  
  Act shall be available for the Partnership for Peace Information        
  Management System as follows:                                           
       (1) Of the amount authorized to be appropriated under section 201(4)
   for Defense-wide activities, $2,000,000.                                
       (2) Of the amount authorized to be appropriated under section 301(5)
   for Defense-wide activities, $3,000,000.                                

                    SEC. 1006. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED   
          BUDGETS IN FISCAL YEAR 1999.                                            
     (a) Fiscal Year 1999 Limitation.--The total amount contributed by the
  Secretary of Defense in fiscal year 1999 for the common-funded budgets  
  of NATO may be any amount up to, but not in excess of, the amount       
  specified in subsection (b) (rather than the maximum amount that would  
  otherwise be applicable to those contributions under the fiscal year    
  1998 baseline limitation).                                              
     (b) Total Amount.--The amount of the limitation applicable under     
  subsection (a) is the sum of the following:                             
       (1) The amounts of unexpended balances, as of the end of fiscal year
   1998, of funds appropriated for fiscal years before fiscal year 1999 for
   payments for those budgets.                                             
       (2) The amount authorized to be appropriated under section 301(1)   
   that is available for contributions for the NATO common-funded military 
   budget under section 314.                                               
       (3) The amount authorized to be appropriated under section 201 that 
   is available for contribution for the NATO common-funded civil budget   
   under section 243.                                                      
       (4) The total amount of the contributions authorized to be made     
   under section 2501.                                                     
    (c)  Definitions.--For purposes of this section:                      

       (1) Common-funded budgets of nato.--The term ``common-funded budgets
   of NATO'' means the Military Budget, the Security Investment Program,   
   and the Civil Budget of the North Atlantic Treaty Organization (and any 
   successor or additional account or program of NATO).                    
       (2) Fiscal year 1998 baseline limitation.--The term ``fiscal year   
   1998 baseline limitation'' means the maximum annual amount of Department
   of Defense contributions for common-funded budgets of NATO that is set  
   forth as the annual limitation in section 3(2)(C)(ii) of the resolution 
   of the Senate giving the advice and consent of the Senate to the        
   ratification of the Protocols to the North Atlantic Treaty of 1949 on   
   the Accession of Poland, Hungary, and the Czech Republic (as defined in 
   section 4(7) of that resolution), approved by the Senate on April 30,   
   1998.                                                                   

          SEC. 1007. LIQUIDITY OF WORKING-CAPITAL FUNDS.                          

     (a) Increased Cash Balances.--The Secretary of Defense shall         
  administer the working-capital funds of the Department of Defense during
  fiscal year 1999 so as to ensure that the total amount of the cash      
  balances in such funds on September 30, 1999, exceeds the total amount  
  of the cash balances in such funds on September 30, 1998, by            
  $1,300,000,000.                                                         

     (b) Actions Regarding Unbudgeted Losses.--The Under Secretary of     
  Defense (Comptroller) shall take such actions regarding unbudgeted      
  losses for the working-capital funds as may be necessary in order to    
  ensure that such unbudgeted losses do not preclude the Secretary of     
  Defense from achieving the increase in cash balances in working-capital 
  funds required under subsection (a).                                    
     (c) Waiver.--(1) The Secretary of Defense may waive the requirements 
  of this section upon certifying to Congress, in writing, that the waiver
  is necessary to meet requirements associated with--                     
       (A) a contingency operation (as defined in section 101(a)(13) of    
   title 10, United States Code); or                                       
       (B) an operation of the Armed Forces that commenced before October  
   1, 1998, and continues during fiscal year 1999.                         
     (2) The waiver authority under paragraph (1) may not be delegated to 
  any official other than the Deputy Secretary of Defense.                
     (3) The waiver authority under paragraph (1) does not apply to the   
  limitation in subsection (d) or the limitation in section 2208(l)(3) of 
  title 10, United States Code (as added by subsection (e)).              
     (d) Fiscal Year 1999 Limitation on Advance Billings.--(1) The total  
  amount of the advance billings rendered or imposed for the              
  working-capital funds of the Department of Defense and the Defense      
  Business Operations Fund in fiscal year 1999--                          
     (A) for the Department of the Navy, may not exceed $400,000,000; and  

     (B) for the Department of the Air Force, may not exceed $400,000,000. 

     (2) In paragraph (1), the term ``advance billing'' has the meaning   
  given such term in section 2208(l) of title 10, United States Code.     
     (e) Permanent Limitation on Advance Billings.--(1) Section 2208(l) of
  title 10, United States Code, is amended--                              
     (A) by redesignating paragraph (3) as paragraph (4); and              

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

     ``(3) The total amount of the advance billings rendered or imposed   
  for all working-capital funds of the Department of Defense in a fiscal  
  year may not exceed $1,000,000,000.''.                                  
     (2) Section 2208(l)(3) of such title, as added by paragraph (1),     
  applies to fiscal years after fiscal year 1999.                         
     (f) Semiannual Report.--(1) The Under Secretary shall submit to the  
  Committee on Armed Services of the Senate and the Committee on National 
  Security of the House of Representatives--                              
       (A) not later than May 1, 1999, a report on the administration of   
   this section for the six-month period ending on March 31, 1999; and     
       (B) not later than November 1, 1999, a report on the administration 
   of this section for the six-month period ending on September 30, 1999.  
     (2) Each report shall include, for the period covered by the report, 
  the following:                                                          
     (A) The profit and loss status of each working-capital fund activity. 

       (B) The actions taken by the Secretary of each military department  
   to use assessments of surcharges to correct for unbudgeted losses.      

                    SEC. 1008. TERMINATION OF AUTHORITY TO MANAGE WORKING-CAPITAL 
          FUNDS AND CERTAIN ACTIVITIES THROUGH THE DEFENSE BUSINESS OPERATIONS    
          FUND.                                                                   
     (a) Revision of Certain DBOF Provisions and Reenactment To Apply to  
  Working-Capital Funds Generally.--Section 2208 of title 10, United      
  States Code, is amended by adding at the end the following:             

     ``(m) Capital Asset Subaccounts.--Amounts charged for depreciation of
  capital assets shall be credited to a separate capital asset subaccount 
  established within a working-capital fund.                              
     ``(n) Separate Accounting, Reporting, and Auditing of Funds and      
  Activities.--The Secretary of Defense, with respect to the              
  working-capital funds of each Defense Agency, and the Secretary of each 
  military department, with respect to the working-capital funds of the   
  military department, shall provide for separate accounting, reporting,  
  and auditing of funds and activities managed through the working-capital
  funds.                                                                  
     ``(o) Charges for Goods and Services Provided Through the Fund.--(1) 
  Charges for goods and services provided for an activity through a       
  working-capital fund shall include the following:                       
       ``(A) Amounts necessary to recover the full costs of the goods and  
   services provided for that activity.                                    
       ``(B) Amounts for depreciation of capital assets, set in accordance 
   with generally accepted accounting principles.                          
     ``(2) Charges for goods and services provided through a              
  working-capital fund may not include the following:                     
       ``(A) Amounts necessary to recover the costs of a military          
   construction project (as defined in section 2801(b) of this title),     
   other than a minor construction project financed by the fund pursuant to
   section 2805(c)(1) of this title.                                       
       ``(B) Amounts necessary to cover costs incurred in connection with  
   the closure or realignment of a military installation.                  
       ``(C) Amounts necessary to recover the costs of functions designated
   by the Secretary of Defense as mission critical, such as ammunition     
   handling safety, and amounts for ancillary tasks not directly related to
   the mission of the function or activity managed through the fund.       
     ``(p) Procedures For Accumulation of Funds.--The Secretary of        
  Defense, with respect to each working-capital fund of a Defense Agency, 
  and the Secretary of a military department, with respect to each        
  working-capital fund of the military department, shall establish billing
  procedures to ensure that the balance in that working-capital fund does 
  not exceed the amount necessary to provide for the working-capital      
  requirements of that fund, as determined by the Secretary.              
     ``(q) Annual Reports and Budget.--The Secretary of Defense, with     
  respect to each working-capital fund of a Defense Agency, and the       
  Secretary of each military department, with respect to each             
  working-capital fund of the military department, shall annually submit  
  to Congress, at the same time that the President submits the budget     
  under section 1105 of title 31, the following:                          
       ``(1) A detailed report that contains a statement of all receipts   
   and disbursements of the fund (including such a statement for each      
   subaccount of the fund) for the fiscal year ending in the year preceding
   the year in which the budget is submitted.                              
       ``(2) A detailed proposed budget for the operation of the fund for  
   the fiscal year for which the budget is submitted.                      
       ``(3) A comparison of the amounts actually expended for the         
   operation of the fund for the fiscal year referred to in paragraph (1)  
   with the amount proposed for the operation of the fund for that fiscal  
   year in the President's budget.                                         
       ``(4) A report on the capital asset subaccount of the fund that     
   contains the following information:                                     
       ``(A) The opening balance of the subaccount as of the beginning of  
   the fiscal year in which the report is submitted.                       
       ``(B) The estimated amounts to be credited to the subaccount in the 
   fiscal year in which the report is submitted.                           
       ``(C) The estimated amounts of outlays to be paid out of the        
   subaccount in the fiscal year in which the report is submitted.         

       ``(D) The estimated balance of the subaccount at the end of the     
   fiscal year in which the report is submitted.                           
       ``(E) A statement of how much of the estimated balance at the end of
   the fiscal year in which the report is submitted will be needed to pay  
   outlays in the immediately following fiscal year that are in excess of  
   the amount to be credited to the subaccount in the immediately following
   fiscal year.''.                                                         
     (b) Repeal of Authority To Manage Through the Defense Business       
  Operations Fund.--Section 2216a of title 10, United States Code, and the
  item relating to that section in the table of sections at the beginning 
  of chapter 131 of such title, are repealed.                             
                    SEC. 1009. CLARIFICATION OF AUTHORITY TO RETAIN RECOVERED     
          COSTS OF DISPOSALS IN WORKING-CAPITAL FUNDS.                            
     Section 2210(a) of title 10, United States Code, is amended to read  
  as follows:                                                             
     ``(a)(1) A working-capital fund established pursuant to section 2208 
  of this title may retain so much of the proceeds of disposals of        
  property referred to in paragraph (2) as is necessary to recover the    
  expenses incurred by the fund in disposing of such property. Proceeds   
  from the sale or disposal of such property in excess of amounts         
  necessary to recover the expenses may be credited to current applicable 
  appropriations of the Department of Defense.                            
     ``(2) Paragraph (1) applies to disposals of supplies, material,      
  equipment, and other personal property that were not financed by stock  
  funds established under section 2208 of this title.''.                  

                    SEC. 1010. CREDITING OF AMOUNTS RECOVERED FROM THIRD PARTIES  
          FOR LOSS OR DAMAGE TO PERSONAL PROPERTY SHIPPED OR STORED AT GOVERNMENT 
          EXPENSE.                                                                
     (a) In General.--(1) Chapter 163 of title 10, United States Code, is 
  amended by adding at the end the following new section:                 
                    ``2739. Amounts recovered from third parties for loss or      
          damage to personal property shipped or stored at Government expense:    
          crediting to appropriations                                             
     ``(a) Crediting of Collections.--Any qualifying military department  
  third-party collection shall be credited to the appropriate current     
  appropriation. Amounts so credited shall be merged with the funds in    
  that appropriation and shall be available for the same period and       
  purposes as the funds with which merged.                                
     ``(b) Appropriate Current Appropriation.--For purposes of subsection 
  (a), the appropriate current appropriation with respect to a qualifying 
  military department third-party collection is the appropriation         
  currently available, as of the date of the collection, for the payment  
  of claims by that military department for loss or damage of personal    
  property shipped or stored at Government expense.                       
     ``(c) Qualifying Military Department Third-party Collections.--For   
  purposes of subsection (a), a qualifying military department third-party
  collection is any amount that a military department collects under      
  sections 3711, 3716, 3717, and 3721 of title 31 from a third party for a
  loss or damage to personal property that occurred during shipment or    
  storage of the property at Government expense and for which the         
  Secretary of the military department paid the owner in settlement of a  
  claim.''.                                                               
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


            ``2739. Amounts recovered from third parties for loss or damage to
      personal property shipped or stored at Government expense: crediting to 
      appropriations.''.                                                      


     (b) Effective Date.--Section 2739 of title 10, United States Code, as
  added by subsection (a), applies with respect to amounts collected by a 
  military department on or after the date of the enactment of this Act.  

                           SUBTITLE B--NAVAL VESSELS AND SHIPYARDS                

                    SEC. 1011. REVISION TO REQUIREMENT FOR CONTINUED LISTING OF   
          TWO IOWA-CLASS BATTLESHIPS ON THE NAVAL VESSEL REGISTER.                
     In carrying out section 1011 of the National Defense Authorization   
  Act for Fiscal Year 1996 (Public Law 104 106; 110 Stat. 421), the       
  Secretary of the Navy shall list on the Naval Vessel Register, and      
  maintain on that register, the following two Iowa-class battleships: the
  U.S.S. IOWA (BB 61) and the U.S.S. WISCONSIN (BB 64).                   
          SEC. 1012. TRANSFER OF U.S.S. NEW JERSEY.                               

     The Secretary of the Navy shall strike the U.S.S. NEW JERSEY (BB 62) 
  from the Naval Vessel Register and shall transfer that vessel to a      
  non-for-profit entity in accordance with section 7306 of title 10,      
  United States Code. The Secretary shall require as a condition of the   
  transfer of that vessel that the transferee locate the vessel in the    
  State of New Jersey.                                                    
          SEC. 1013. HOMEPORTING OF THE U.S.S. IOWA IN SAN FRANCISCO, CALIFORNIA. 

     It is the sense of Congress that the U.S.S. IOWA (BB 61) should be   
  homeported at the Port of San Francisco, California.                    

          SEC. 1014. SENSE OF CONGRESS CONCERNING THE NAMING OF AN LPD 17 VESSEL .

     It is the sense of Congress that, consistent with section 1018 of the
  National Defense Authorization Act for Fiscal Year 1996 (Public Law 104 
  106; 110 Stat. 425), the Secretary of the Navy should name the next     
  vessel of the LPD 17 class of amphibious vessels to be named after the  
  date of the enactment of this Act as the U.S.S. Clifton B. Cates, in    
  honor of former Commandant of the Marine Corps Clifton B. Cates (1893   
  1970), a native of Tennessee whose distinguished career of service in   
  the Marine Corps included combat service in World War I so heroic that  
  he became the most decorated Marine Corps officer of that war, exemplary
  combat leadership in the Pacific theater during World War II from       
  Guadalcanal to Tinian and Iwo Jima and beyond, and appointment in 1948  
  as the 19th Commandant of the Marine Corps with the rank of lieutenant  
  general, a position from which he led the efficient and alacritous      
  response of the Marine Corps to the invasion of the Republic of South   
  Korea by Communist North Korea.                                         

          SEC. 1015. REPORTS ON NAVAL SURFACE FIRE-SUPPORT CAPABILITIES.          

     (a) Navy Report.--(1) Not later than March 31, 1999, the Secretary of
  the Navy shall submit to the Committee on Armed Services of the Senate  
  and the Committee on National Security of the House of Representatives a
  report on battleship readiness for meeting requirements of the Armed    
  Forces for naval surface fire support.                                  
    (2) The report shall contain the following:                           

       (A) The reasons for the Secretary's failure to comply with the      
   requirements of section 1011 of the National Defense Authorization Act  
   for Fiscal Year 1996 (Public Law 104 106; 110 Stat. 421) until February 
   1998.                                                                   
     (B) The requirements for specialized air-naval gunfire liaison units. 

       (C) The plans of the Navy for retaining and maintaining 16-inch     
   ammunition for the main guns of battleships.                            
       (D) The plans of the Navy for retaining the hammerhead crane        
   essential for lifting battleship turrets.                               
       (E) An estimate of the cost of reactivating Iowa-class battleships  
   for listing on the Naval Vessel Register, restoring the vessels to      
   seaworthiness with operational capabilities necessary to meet           
   requirements for naval surface fire-support, and maintaining the        
   battleships in that condition for continued listing on the register,    
   together with an estimate of the time necessary to reactivate and       
   restore the vessels to that condition.                                  
       (F) An assessment of the short-term costs and the long-term costs   
   associated with alternative methods for executing the naval surface     
   fire-support mission of the Navy, including the alternative of          
   reactivating two battleships.                                           

     (3) The Secretary shall act through the Director of Expeditionary    
  Warfare Division (N85) of the Office of the Chief of Naval Operations in
  preparing the report.                                                   
     (b) GAO Report.--(1) The Comptroller General shall submit to the     
  Committee on Armed Services of the Senate and the Committee on National 
  Security of the House of Representatives a report on the naval surface  
  fire-support capabilities of the Navy.                                  
    (2) The report shall contain the following:                           

       (A) An assessment of the extent of the compliance by the Secretary  
   of the Navy with the requirements of section 1011 of the National       
   Defense Authorization Act for Fiscal Year 1996 (Public Law 104 106; 110 
   Stat. 421).                                                             
       (B) The plans of the Navy for executing the naval surface           
   fire-support mission of the Navy.                                       
       (C) An assessment of the short-term costs and the long-term costs   
   associated with the plans.                                              
     (D) An analysis of the assessment required under subsection (a)(2)(F).


                    SEC. 1016. LONG-TERM CHARTER OF THREE VESSELS IN SUPPORT OF   
          SUBMARINE RESCUE, ESCORT, AND TOWING.                                   
     The Secretary of the Navy may enter into contracts in accordance with
  section 2401 of title 10, United States Code, for the charter through   
  September 30, 2003, of the following vessels:                           
     (1) The CAROLYN CHOUEST (United States official number D102057).      

     (2) The KELLIE CHOUEST (United States official number D1038519).      

     (3) The DOLORES CHOUEST (United States official number D600288).      


          SEC. 1017. TRANSFER OF OBSOLETE ARMY TUGBOAT.                           

     In carrying out section 1023 of the National Defense Authorization   
  Act for Fiscal Year 1998 (Public Law 105 85; 111 Stat. 1876), the       
  Secretary of the Army may substitute the obsolete, decommissioned       
  tugboat Attleboro (LT 1977) for the tugboat Normandy (LT 1971) as one of
  the two obsolete tugboats authorized to be transferred by the Secretary 
  under that section.                                                     

           SUBTITLE C--COUNTER DRUG ACTIVITIES AND OTHER ASSISTANCE FOR CIVILIAN  
                                 LAW ENFORCEMENT                                  

                    SEC. 1021. DEPARTMENT OF DEFENSE SUPPORT TO OTHER AGENCIES FOR
          COUNTER-DRUG ACTIVITIES.                                                
     (a) Continuation of Authority.--Subsection (a) of section 1004 of the
  National Defense Authorization Act for Fiscal Year 1991 (Public Law 101 
  510; 10 U.S.C. 374 note) is amended by striking out ``through 1999'' and
  inserting in lieu thereof ``through 2002''.                             
     (b) Bases and Facilities Support.--Subsection (b)(4) of such section 
  is amended--                                                            
       (1) by striking out ``unspecified minor construction'' and inserting
   in lieu thereof ``an unspecified minor military construction project''; 
       (2) by inserting ``of the Department of Defense or any Federal,     
   State, or local law enforcement agency'' after ``counter-drug           
   activities''; and                                                       
       (3) by inserting before the period at the end the following: ``or   
   counter-drug activities of a foreign law enforcement agency outside the 
   United States''.                                                        
     (c) Congressional Notification of Facilities Projects.--Such section 
  is further amended by adding at the end the following new section:      
     ``(h) Congressional Notification of Facilities Projects.--(1) When a 
  decision is made to carry out a military construction project described 
  in paragraph (2), the Secretary of Defense shall submit to the          
  congressional defense committees written notice of the decision,        
  including the justification for the project and the estimated cost of   
  the project. The project may be commenced only after the end of the     
  21-day period beginning on the date on which the written notice is      
  received by Congress.                                                   

     ``(2) Paragraph (1) applies to an unspecified minor military         
  construction project that--                                             
       ``(A) is intended for the modification or repair of a Department of 
   Defense facility for the purpose set forth in subsection (b)(4); and    
     ``(B) has an estimated cost of more than $500,000.''.                 


                    SEC. 1022. DEPARTMENT OF DEFENSE SUPPORT OF NATIONAL GUARD    
          DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES.                          
     (a) Procurement of Equipment.--Subsection (a)(3) of section 112 of   
  title 32, United States Code, is amended--                              
       (1) by striking out ``and leasing of equipment'' and inserting in   
   lieu thereof ``and equipment, and the leasing of equipment,''; and      
       (2) by adding at the end the following new sentence: ``However, the 
   use of such funds for the procurement of equipment may not exceed $5,000
   per purchase order, unless approval for procurement of equipment in     
   excess of that amount is granted in advance by the Secretary of         
   Defense.''.                                                             
     (b) Training and Readiness.--Subsection (b)(2) of such section is    
  amended to read as follows:                                             
     ``(2)(A) A member of the National Guard serving on full-time National
  Guard duty under orders authorized under paragraph (1) shall participate
  in the training required under section 502(a) of this title in addition 
  to the duty performed for the purpose authorized under that paragraph.  
  The pay, allowances, and other benefits of the member while             
  participating in the training shall be the same as those to which the   
  member is entitled while performing duty for the purpose of carrying out
  drug interdiction and counter-drug activities. The member is not        
  entitled to additional pay, allowances, or other benefits for           
  participation in training required under section 502(a)(1) of this      
  title.                                                                  
     ``(B) Appropriations available for the Department of Defense for drug
  interdiction and counter-drug activities may be used for paying costs   
  associated with a member's participation in training described in       
  subparagraph (A). The appropriation shall be reimbursed in full, out of 
  appropriations available for paying those costs, for the amounts paid.  
  Appropriations available for paying those costs shall be available for  
  making the reimbursements.                                              
     ``(C) To ensure that the use of units and personnel of the National  
  Guard of a State pursuant to a State drug interdiction and counter-drug 
  activities plan does not degrade the training and readiness of such     
  units and personnel, the following requirements shall apply in          
  determining the drug interdiction and counter-drug activities that units
  and personnel of the National Guard of a State may perform:             
       ``(i) The performance of the activities may not adversely affect the
   quality of that training or otherwise interfere with the ability of a   
   member or unit of the National Guard to perform the military functions  
   of the member or unit.                                                  
       ``(ii) National Guard personnel will not degrade their military     
   skills as a result of performing the activities.                        
       ``(iii) The performance of the activities will not result in a      
   significant increase in the cost of training.                           
       ``(iv) In the case of drug interdiction and counter-drug activities 
   performed by a unit organized to serve as a unit, the activities will   
   support valid unit training requirements.''.                            
     (c) Assistance to Youth and Charitable Organizations.--Subsection    
  (b)(3) of such section is amended to read as follows:                   

     ``(3) A unit or member of the National Guard of a State may be used, 
  pursuant to a State drug interdiction and counter-drug activities plan  
  approved by the Secretary of Defense under this section, to provide     
  services or other assistance (other than air transportation) to an      
  organization eligible to receive services under section 508 of this     
  title if--                                                              
       ``(A) the State drug interdiction and counter-drug activities plan  
   specifically recognizes the organization as being eligible to receive   
   the services or assistance;                                             

       ``(B) in the case of services, the performance of the services meets
   the requirements of paragraphs (1) and (2) of subsection (a) of section 
   508 of this title; and                                                  
       ``(C) the services or assistance is authorized under subsection (b) 
   or (c) of such section or in the State drug interdiction and            
   counter-drug activities plan''.                                         
     (d) Definition of Drug Interdiction and Counter-drug                 
  Activities.--Subsection (i)(1) of such section is amended by inserting  
  after ``drug interdiction and counter-drug law enforcement activities'' 
  the following: ``, including drug demand reduction activities,''.       
     (e) Conforming Amendments.--Subsection (a) of such section is further
  amended--                                                               
       (1) by striking out ``for--'' and inserting in lieu thereof ``for   
   the following:'';                                                       
       (2) by striking out ``the'' at the beginning of paragraphs (1), (2),
   and (3) and inserting in lieu thereof ``The'';                          
       (3) in paragraph (1), by striking out the semicolon at the end and  
   inserting in lieu thereof a period; and                                 
       (4) in paragraph (2), by striking out ``; and'' and inserting in    
   lieu thereof a period.                                                  
                    SEC. 1023. DEPARTMENT OF DEFENSE COUNTER-DRUG ACTIVITIES IN   
          TRANSIT ZONE.                                                           
     (a) Sense of Congress Regarding Priority of Drug Interdiction and    
  Counter-Drug Activities.--It is the sense of Congress that the Secretary
  of Defense should--                                                     
       (1) ensure that the international drug interdiction and counter-drug
   activities of the Department of Defense are accorded adequate resources 
   within the budget allocation of the Department to execute the drug      
   interdiction and counter-drug mission under the Global Military Force   
   Policy of the Department; and                                           
       (2) make such changes to that policy as the Secretary considers     
   necessary.                                                              
     (b) Support for Counter-Drug Operation Caper Focus.--(1) During      
  fiscal year 1999, the Secretary of Defense shall make available, to the 
  maximum extent practicable, such surface vessels, maritime patrol       
  aircraft, and personnel of the Navy as may be necessary to conduct the  
  final phase of the counter-drug operation known as Caper Focus, which   
  targets the maritime movement of cocaine on vessels in the eastern      
  Pacific Ocean.                                                          
     (2) Of the amount authorized to be appropriated pursuant to section  
  301(20) for drug interdiction and counter-drug activities, $10,500,000  
  shall be available for the purpose of conducting the counter-drug       
  operation known as Caper Focus.                                         
     (c) Patrol Coastal Craft for Drug Interdiction by Southern           
  Command.--Of the amount authorized to be appropriated pursuant to       
  section 301(20) for drug interdiction and counter-drug activities,      
  $14,500,000 shall be available for the purpose of equipping and         
  operating six of the Cyclone-class coastal defense ships of the         
  Department of Defense in the Caribbean Sea and eastern Pacific Ocean in 
  support of the drug interdiction efforts of the United States Southern  
  Command.                                                                
     (d) Resulting Availability of Funds for Counterproliferation and     
  Counterterrorism Activities.--(1) In light of subsection (c), of the    
  amount authorized to be appropriated pursuant to section 301(5) for the 
  Special Operations Command, $4,500,000 shall be available for the       
  purpose of increased training and related operations in support of the  
  activities of the Special Operations Command regarding                  
  counterproliferation of weapons of mass destruction and                 
  counterterrorism.                                                       
     (2) The amount made available under this subsection is in addition to
  other funds authorized to be appropriated under section 301(5) for the  
  Special Operations Command for such purpose.                            

                  SUBTITLE D--MISCELLANEOUS REPORT REQUIREMENTS AND REPEALS       

          SEC. 1031. REPEAL OF UNNECESSARY AND OBSOLETE REPORTING PROVISIONS.     

     (a) Health and Medical Care Studies and Demonstrations.--Section     
  1092(a) of title 10, United States Code, is amended by striking out     
  paragraph (3).                                                          
     (b) Executed Requirement for Biannual Reports on Alternative         
  Utilization of Military Facilities.--Section 2819 of the National       
  Defense Authorization Act, Fiscal Year 1989 (10 U.S.C. 2391 note),      
  relating to the Commission on Alternative Utilization of Military       
  Facilities, is repealed.                                                

                    SEC. 1032. REPORT REGARDING USE OF TAGGING SYSTEM TO IDENTIFY 
          HYDROCARBON FUELS USED BY DEPARTMENT OF DEFENSE.                        
     (a) Report Required.--Not later than March 30, 1999, the Secretary of
  Defense shall submit to Congress a report evaluating the following:     
       (1) The feasibility of tagging hydrocarbon fuels used by the        
   Department of Defense for the purposes of analyzing and identifying such
   fuels.                                                                  
       (2) The deterrent effect of such tagging on the theft and misuse of 
   fuels purchased by the Department.                                      
       (3) The extent to which such tagging would assist in determining the
   source of surface and underground pollution in locations having separate
   fuel storage facilities of the Department and of civilian companies.    
     (b) System Elements.--In preparing the report, the Secretary shall   
  ensure that any tagging system for the Department of Defense considered 
  by the Secretary satisfies the following requirements:                  
     (1) The tagging system would not harm the environment.                

     (2) Each chemical that would be used in the tagging system is--       

       (A) approved for use under the Toxic Substances Control Act (15     
   U.S.C. 2601 et seq.); and                                               
       (B) substantially similar to the fuel to which added, as determined 
   in accordance with criteria established by the Environmental Protection 
   Agency for the introduction of additives into hydrocarbon fuels.        
       (3) The tagging system would permit a determination if a tag is     
   present and a determination if the concentration of a tag has changed in
   order to facilitate identification of tagged fuels and detection of     
   dilution of tagged fuels.                                               
       (4) The tagging system would not impair or degrade the suitability  
   of tagged fuels for their intended use.                                 
     (c) Recommendations.--The report shall include any recommendations   
  for legislation relating to the tagging of hydrocarbon fuels by the     
  Department of Defense that the Secretary considers appropriate.         

                          SUBTITLE E--ARMED FORCES RETIREMENT HOME                

                    SEC. 1041. APPOINTMENT OF DIRECTOR AND DEPUTY DIRECTOR OF THE 
          NAVAL HOME.                                                             
     (a) Appointment and Qualifications of Director and Deputy            
  Director.--Subsection (a) of section 1517 of the Armed Forces Retirement
  Home Act of 1991 (24 U.S.C. 417) is amended--                           
     (1) in paragraph (2)--                                                

       (A) by striking out ``Each Director'' and inserting in lieu thereof 
   ``The Director of the United States Soldiers' and Airmen's Home''; and  
       (B) by striking out subparagraph (B) and inserting in lieu thereof  
   the following:                                                          
     ``(B) meet the requirements of paragraph (4).'';                      

     (2) by redesignating paragraph (3) as paragraph (5); and              

       (3) by inserting after paragraph (2) the following new paragraphs   
   (3) and (4):                                                            
     ``(3) The Director, and any Deputy Director, of the Naval Home shall 
  be appointed by the Secretary of Defense from among persons recommended 
  by the Secretaries of the military departments who--                    

       ``(A) in the case of the position of Director, are commissioned     
   officers of the Armed Forces serving on active duty in a pay grade above
   O 5;                                                                    
       ``(B) in the case of the position of Deputy Director, are           
   commissioned officers of the Armed Forces serving on active duty in a   
   pay grade above O 4; and                                                
     ``(C) meet the requirements of paragraph (4).                         

     ``(4) Each Director shall have appropriate leadership and management 
  skills, an appreciation and understanding of the culture and norms      
  associated with military service, and significant military              
  background.''.                                                          
     (b) Term of Director and Deputy Director.--Subsection (c) of such    
  section is amended--                                                    
       (1)bystrikingout``(c) TermofDirector.--'' and all that follows      
   through ``A Director'' in the second sentence and inserting in lieu     
   thereof ``(c) Terms of Directors.--(1) The term of office of the        
   Director of the United States Soldiers' and Airmen's Home shall be five 
   years. The Director''; and                                              
     (2) by adding at the end the following new paragraph:                 

     ``(2) The Director and the Deputy Director of the Naval Home shall   
  serve at the pleasure of the Secretary of Defense.''.                   
     (c) Definitions.--Such section is further amended by adding at the   
  end the following new subsection:                                       
    ``(g)  Definitions.--In this section:                                 

       ``(1) The term `United States Soldiers' and Airmen's Home' means the
   separate facility of the Retirement Home that is known as the United    
   States Soldiers' and Airmen's Home.                                     
       ``(2) The term `Naval Home' means the separate facility of the      
   Retirement Home that is known as the Naval Home.''.                     
     (d) Effective Date.--The amendments made by this section shall take  
  effect on October 1, 1998.                                              
                    SEC. 1042. REVISION OF INSPECTION REQUIREMENTS RELATING TO    
          ARMED FORCES RETIREMENT HOME.                                           
     (a) Inspection by Inspectors General of the Military                 
  Departments.--Section 1518 of the Armed Forces Retirement Home Act of   
  1991 (24 U.S.C. 418) is amended to read as follows:                     
          ``SEC. 1518. INSPECTION OF RETIREMENT HOME.                             

     ``(a) Triennial Inspection.--Every three years the Inspector General 
  of a military department shall inspect the Retirement Home, including   
  the records of the Retirement Home.                                     
     ``(b) Alternating Duty Among Inspectors General.--The duty to inspect
  the Retirement Home shall alternate among the Inspector General of the  
  Army, the Naval Inspector General, and the Inspector General of the Air 
  Force on such schedule as the Secretary of Defense shall direct.        
     ``(c) Reports.--Not later than 45 days after completing an inspection
  under subsection (a), the Inspector General carrying out the inspection 
  shall submit to the Retirement Home Board, the Secretary of Defense, and
  Congress a report describing the results of the inspection and          
  containing such recommendations as the Inspector General considers      
  appropriate.''.                                                         
     (b) First Inspection.--The first inspection under section 1518 of the
  Armed Forces Retirement Home Act of 1991, as amended by subsection (a), 
  shall be carried out during fiscal year 1999.                           
                    SEC. 1043. CLARIFICATION OF LAND CONVEYANCE AUTHORITY, ARMED  
          FORCES RETIREMENT HOME.                                                 
     Section 1053 of the National Defense Authorization Act for Fiscal    
  Year 1997 (Public Law 104 201; 110 Stat. 2650) is amended--             
       (1) in subsection (a), by striking out ``may convey, by sale or     
   otherwise,'' and inserting in lieu thereof ``shall convey by sale''; and
       (2) by striking out subsection (b) and inserting in lieu thereof the
   following new subsection (b):                                           

     ``(b) Manner, Terms and Conditions of Disposal.--(1) The sale under  
  subsection (a) shall be made to a neighboring nonprofit organization    
  from whose extensive educational and charitable services the public     
  benefits and has benefited from for more than 100 years, or an entity or
  entities related to such organization, and whose substantial investment 
  in the neighborhood is consistent with the continued existence and      
  purpose of the Armed Forces Retirement Home.                            
     ``(2) As consideration for the real property conveyance under        
  subsection (a), the purchaser selected under paragraph (1) shall pay to 
  the United States an amount equal to the fair market value of the real  
  property at its highest and best economic use, as determined by the     
  Armed Forces Retirement Home Board, based on an independent             
  appraisal.''.                                                           

                      SUBTITLE F--MATTERS RELATING TO DEFENSE PROPERTY            


                    SEC. 1051. PLAN FOR IMPROVED DEMILITARIZATION OF EXCESS AND   
          SURPLUS DEFENSE PROPERTY.                                               
     (a) Plan Required.--Not later than March 1, 1999, the Secretary of   
  Defense shall submit to Congress a plan to address the problems with the
  sale or other disposal of excess and surplus defense materials          
  identified in the report submitted to Congress by the Secretary of      
  Defense on June 5, 1998, pursuant to section 1067 of the National       
  Defense Authorization Act for Fiscal Year 1998 (Public Law 105 85; 111  
  Stat. 1896). The plan shall provide for the following:                  
       (1) Implementation for all appropriate Department personnel of the  
   mandatory demilitarization training specified in Department of Defense  
   revised manual 4160.21 M 1.                                             
       (2) Improvement of oversight of the performance of demilitarization 
   functions and the maintenance of demilitarization codes throughout the  
   life cycle of defense materials.                                        
       (3) Assignment of accurate demilitarization codes and the issuance  
   of accurate demilitarization execution instructions during the system   
   planning phases of the acquisition process.                             
       (4) Implementation of such recommendations of the Defense Science   
   Board task force appointed by the Under Secretary of Defense for        
   Acquisition and Technology to consider the control of military excess   
   and surplus property as the Secretary of Defense considers to be        
   appropriate.                                                            
     (b) Demilitarization Training.--In connection with the               
  demilitarization training that is required to be addressed in the plan, 
  the Secretary shall indicate the time frame for full implementation of  
  such training and the number of Department of Defense personnel to be   
  trained.                                                                
     (c) Centralized Demilitarization Functions.--In connection with the  
  matters specified in paragraphs (2) and (3) of subsection (a) that are  
  required to be addressed in the plan, the Secretary shall consider      
  options for the centralization of demilitarization functions and        
  responsibilities in a single office or agency. The Secretary shall      
  specify in the plan the responsible office or agency, and indicate the  
  time frame for centralizing demilitarization functions and              
  responsibilities, unless the Secretary determines that it is not        
  practical or appropriate to centralize demilitarization functions and   
  responsibilities, in which case the Secretary shall provide the reasons 
  for the determination.                                                  
     (d) Draft Legislation.--The Secretary shall include in the plan any  
  draft legislation that the Secretary considers appropriate to clarify   
  the authority of the Government to recover critical and sensitive       
  defense property that has been inadequately demilitarized.              
    (e)  Related Reports.--(1) The Secretary shall submit with the plan-- 

       (A) a copy of recommendations of the Defense Science Board task     
   force referred to in subsection (a)(4); and                             
       (B) a copy of the report prepared by an independent contractor in   
   accordance with the Secretary's report referred to in subsection (a), at
   the request of the Defense Logistics Agency, to address options for     
   centralizing demilitarization                                           

                    responsibilities, including a central demilitarization office 
          and a central system for coding and maintaining demilitarization codes  
          through the life cycle of the property involved.                        
     (2) With respect to the report of the independent contractor         
  described in paragraph (1)(B), the Secretary shall provide an evaluation
  of the recommendations contained in the report and any plans by the     
  Secretary for implementing the recommendations.                         

          SEC. 1052. TRANSFER OF F 4 PHANTOM II AIRCRAFT TO FOUNDATION.           

     (a) Authority.--The Secretary of the Air Force may convey, without   
  consideration, to the Collings Foundation, Stow, Massachusetts (in this 
  section referred to as the ``foundation''), all right, title, and       
  interest of the United States in and to one surplus F 4 Phantom II      
  aircraft. The conveyance shall be made by means of a conditional deed of
  gift.                                                                   
     (b) Condition of Aircraft.--The Secretary may not convey ownership of
  the aircraft under subsection (a) until the Secretary determines that   
  the foundation has altered the aircraft in such manner as the Secretary 
  determines necessary to ensure that the aircraft does not have any      
  capability for use as a platform for launching or releasing munitions or
  any other combat capability that it was designed to have. The Secretary 
  is not required to repair or alter the condition of the aircraft before 
  conveying ownership of the aircraft.                                    
     (c) Reverter Upon Breach of Conditions.--The Secretary shall include 
  in the instrument of conveyance of the aircraft--                       
       (1) a condition that the foundation not convey any ownership        
   interest in, or transfer possession of, the aircraft to any other party 
   without the prior approval of the Secretary;                            
       (2) a condition that the foundation operate and maintain the        
   aircraft in compliance with all applicable limitations and maintenance  
   requirements imposed by the Administrator of the Federal Aviation       
   Administration; and                                                     
       (3) a condition that if the Secretary determines at any time that   
   the foundation has conveyed an ownership interest in, or transferred    
   possession of, the aircraft to any other party without the prior        
   approval of the Secretary, or has failed to comply with the condition   
   set forth in paragraph (2), all right, title, and interest in and to the
   aircraft, including any repair or alteration of the aircraft, shall     
   revert to the United States, and the United States shall have the right 
   of immediate possession of the aircraft.                                
     (d) Conveyance at No Cost to the United States.--The conveyance of an
  aircraft authorized by this section shall be made at no cost to the     
  United States. Any costs associated with such conveyance, costs of      
  determining compliance with subsection (b), and costs of operation and  
  maintenance of the aircraft conveyed shall be borne by the foundation.  
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  this section as the Secretary considers appropriate to protect the      
  interests of the United States.                                         
     (f) Clarification of Liability.--Notwithstanding any other provision 
  of law, upon the conveyance of ownership of the F 4 Phantom II aircraft 
  to the foundation under subsection (a), the United States shall not be  
  liable for any death, injury, loss, or damage that results from any use 
  of that aircraft by any person other than the United States.            

                       SUBTITLE G--OTHER DEPARTMENT OF DEFENSE MATTERS            


                    SEC. 1061. PILOT PROGRAM ON ALTERNATIVE NOTICE OF RECEIPT OF  
          LEGAL PROCESS FOR GARNISHMENT OF FEDERAL PAY FOR CHILD SUPPORT AND      
          ALIMONY.                                                                
     (a) Program Required.--The Secretary of Defense shall conduct a pilot
  program on alternative notice procedures for withholding or garnishment 
  of pay for the payment of child support and alimony under section 459 of
  the Social Security Act (42 U.S.C. 659).                                

     (b) Purpose.--The purpose of the pilot program is to test the        
  efficacy of providing notice in accordance with subsection (c) to the   
  person whose pay is to be withheld or garnished.                        
     (c) Authorization of Alternative To Providing Copy of Notice or      
  Service Received by the Secretary.--(1) Under the pilot program,        
  whenever the Secretary of Defense (acting through the DOD section 459   
  agent) provides a section 459 notice to an individual, the Secretary may
  include as part of that notice the information specified in subsection  
  (e) in lieu of sending with that notice a copy (otherwise required      
  pursuant to the parenthetical phrase in section 459(c)(2)(A) of the     
  Social Security Act) of the notice or service received by the DOD       
  section 459 agent with respect to that individual's child support or    
  alimony payment obligations.                                            
     (2) Under the pilot program, whenever the Secretary of Defense       
  (acting through the DOD section 5520a agent) provides a section 5520a   
  notice to an individual, the Secretary may include as part of that      
  notice the information specified in subsection (e) in lieu of sending   
  with that notice a copy (otherwise required pursuant to the second      
  parenthetical phrase in section 5520a(c) of the title 5, United States  
  Code) of the legal process received by the DOD section 5520a agent with 
  respect to that individual.                                             
    (d)  Definitions.--For purposes of this section:                      

       (1) DOD section 459 agent.--The term ``DOD section 459 agent'' means
   the agent or agents designated by the Secretary of Defense under        
   subsection (c)(1)(A) of section 459 of the Social Security Act (42      
   U.S.C. 659) to receive orders and accept service of process in matters  
   related to child support or alimony.                                    
       (2) Section 459 notice.--The term ``section 459 notice'' means, with
   respect to the Department of Defense, the notice required by subsection 
   (c)(2)(A) of section 459 of the Social Security Act (42 U.S.C. 659) to  
   be sent to an individual in writing upon the receipt by the DOD section 
   459 agent of notice or service with respect to the individual's child   
   support or alimony payment obligations.                                 
       (3) DOD section 5520a agent.--The term ``DOD section 5520a agent''  
   means a person who is designated by law or regulation to accept service 
   of process to which the Department of Defense is subject under section  
   5520a of title 5, United States Code (including the regulations         
   promulgated under subsection (k) of that section).                      
       (4) Section 5520a notice.--The term ``section 5520a notice'' means, 
   with respect to the Department of Defense, the notice required by       
   subsection (c) of section 5520a of title 5, United States Code, to be   
   sent in writing to an employee (or, pursuant to the regulations         
   promulgated under subsection (k) of that section, to a member of the    
   Armed Forces) upon the receipt by the DOD section 5520a agent of legal  
   process covered by that section.                                        
     (e) Alternative Requirements.--The information referred to in        
  subsection (c) that is to be included as part of a section 459 notice or
  section 5520a notice sent to an individual (in lieu of sending with that
  notice a copy of the notice or service received by the DOD section 459  
  agent or the DOD section 5520a agent) is the following:                 
       (1) A description of the pertinent court order, notice to withhold, 
   or other order, process, or interrogatory received by the DOD section   
   459 agent or the DOD section 5520a agent.                               
       (2) The identity of the court or judicial forum involved and (in the
   case of a notice or process concerning the ordering of a support or     
   alimony obligation) the case number, the amount of the obligation, and  
   the name of the beneficiary.                                            
       (3) Information on how the individual may obtain from the Department
   of Defense a copy of the notice, service, or legal process, including an
   address and telephone number that the individual may be contact for the 
   purpose of obtaining such a copy.                                       
     (f) Period of Pilot Program.--The Secretary shall commence the pilot 
  program not later than 90 days after the                                

                    date of the enactment of this Act. The pilot program shall    
          terminate on September 30, 2001.                                        
     (g) Report.--Not later than January 1, 2001, the Secretary shall     
  submit to Congress a report describing the experience of the Department 
  of Defense under the authority provided by this section. The report     
  shall include the following:                                            
       (1) The number of section 459 notices provided by the DOD section   
   459 agent during the period the authority provided by this section was  
   in effect.                                                              
       (2) The number of individuals who requested the DOD section 459     
   agent to provide to them a copy of the actual notice or service.        
       (3) Any complaint the Secretary received by reason of not having    
   provided the actual notice or service in the section 459 notice.        
       (4) The number of section 5520a notices provided by the DOD section 
   5520a agent during the period the authority provided by this section was
   in effect.                                                              
       (5) The number of individuals who requested the DOD section 5520a   
   agent to provide to them a copy of the actual legal process.            
       (6) Any complaint the Secretary received by reason of not having    
   provided the actual legal process in the section 5520a notice.          

                    SEC. 1062. TRAINING OF SPECIAL OPERATIONS FORCES WITH FRIENDLY
          FOREIGN FORCES.                                                         
     (a) Requirement for Prior Approval of Secretary of                   
  Defense.--Subsection (c) of section 2011 of title 10, United States     
  Code, is amended by inserting after the first sentence the following new
  sentence: ``The regulations shall require that training activities may  
  be carried out under this section only with the prior approval of the   
  Secretary of Defense.''.                                                
     (b) Elements of Annual Report.--Subsection (e) of such section is    
  amended by adding at the end the following new paragraphs:              

       ``(5) A summary of the expenditures under this section resulting    
   from the training for which expenses were paid under this section.      
       ``(6) A discussion of the unique military training benefit to United
   States special operations forces derived from the training activities   
   for which expenses were paid under this section.''.                     

          SEC. 1063. RESEARCH GRANTS COMPETITIVELY AWARDED TO SERVICE ACADEMIES.  

     (a) United States Military Academy.--(1) Chapter 403 of title 10,    
  United States Code, is amended by adding at the end the following new   
  section:                                                                
                    ``4358. Grants for faculty research for scientific, literary, 
          and educational purposes: acceptance; authorized grantees               
     ``(a) Acceptance of Research Grants.--The Secretary of the Army may  
  authorize the Superintendent of the Academy to accept qualifying        
  research grants under this section. Any such grant may only be accepted 
  if the work under the grant is to be carried out by a professor or      
  instructor of the Academy for a scientific, literary, or educational    
  purpose.                                                                
     ``(b) Qualifying Grants.--A qualifying research grant under this     
  section is a grant that is awarded on a competitive basis by an entity  
  referred to in subsection (c) for a research project with a scientific, 
  literary, or educational purpose.                                       
     ``(c) Entities From Which Grants May be Accepted.--A grant may be    
  accepted under this section only from a corporation, fund, foundation,  
  educational institution, or similar entity that is organized and        
  operated primarily for scientific, literary, or educational purposes.   
     ``(d) Administration of Grant Funds.--The Secretary shall establish  
  an account for administering funds received as research grants under    
  this section. The Superintendent shall use the funds in the account in  
  accordance with applicable regulations and the terms and conditions of  
  the grants received.                                                    
     ``(e) Related Expenses.--Subject to such limitations as may be       
  provided in appropriations Acts, appropriations available               

                    for the Academy may be used to pay expenses incurred by the   
          Academy in applying for, and otherwise pursuing, award of a qualifying  
          research grant.                                                         
     ``(f) Regulations.--The Secretary of the Army shall prescribe        
  regulations for the administration of this section.''.                  
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


            ``4358. Grants for faculty research for scientific, literary, and 
      educational purposes: acceptance; authorized grantees.''.               


     (b) United States Naval Academy.--(1) Chapter 603 of title 10, United
  States Code, is amended by adding at the end the following new section: 
                    ``6977. Grants for faculty research for scientific, literary, 
          and educational purposes: acceptance; authorized grantees               
     ``(a) Acceptance of Research Grants.--The Secretary of the Navy may  
  authorize the Superintendent of the Academy to accept qualifying        
  research grants under this section. Any such grant may only be accepted 
  if the work under the grant is to be carried out by a professor or      
  instructor of the Academy for a scientific, literary, or educational    
  purpose.                                                                
     ``(b) Qualifying Grants.--A qualifying research grant under this     
  section is a grant that is awarded on a competitive basis by an entity  
  referred to in subsection (c) for a research project with a scientific, 
  literary, or educational purpose.                                       
     ``(c) Entities From Which Grants May be Accepted.--A grant may be    
  accepted under this section only from a corporation, fund, foundation,  
  educational institution, or similar entity that is organized and        
  operated primarily for scientific, literary, or educational purposes.   
     ``(d) Administration of Grant Funds.--The Secretary shall establish  
  an account for administering funds received as research grants under    
  this section. The Superintendent shall use the funds in the account in  
  accordance with applicable regulations and the terms and conditions of  
  the grants received.                                                    
     ``(e) Related Expenses.--Subject to such limitations as may be       
  provided in appropriations Acts, appropriations available for the       
  Academy may be used to pay expenses incurred by the Academy in applying 
  for, and otherwise pursuing, award of a qualifying research grant.      
     ``(f) Regulations.--The Secretary of the Navy shall prescribe        
  regulations for the administration of this section.''.                  
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


            ``6977. Grants for faculty research for scientific, literary, and 
      educational purposes: acceptance; authorized grantees.''.               


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

                    9357. Grants for faculty research for scientific, literary,   
          and educational purposes: acceptance; authorized grantees               

     ``(a) Acceptance of Research Grants. --The Secretary of the AIr Force
  may authorize the Superintendent of the Academy to accept qualifying    
  research grants under this section. Any such grant may only be accepted 
  if the work under the grant is to be carried out by a professor or      
  instructor of the Academy for a scientific, literary, or educational    
  purpose.                                                                
     ``(b) Qualifying Grants. -- A qualifying research grant under this   
  section is a grant that is awarded on competitive basis by an entity    
  referred to in subsection (c) for a research project with a scientific, 
  literary, or educational purpose.                                       
     ``(c) Entities From Which Grants May be Accepted. --A grant may be   
  accepted under this section only from a corporation, fund, foundation,  
  educational institution, or similar entity that is organized and        
  operated primarily or scientific, literary, or educational purposes.    
     ``(d) Administration of Grant Funds. --The Secretary shall establish 
  an account for administering funds received as research grant under this
  section. The Superintendent shall use the funds in the account in       
  accordance with applicable regulations and the terms and conditions of  
  the grants received.                                                    
     ``(e) Related Expenses. --Subject to such limitations as may be      
  provided in appropriations Acts, appropriations available for the       
  Academy may be used to pay expenses incurred by the Academy in applying 
  for, and otherwise pursuing, award of a qualifying research grant.      
     ``(f) Regulaitons. --The Secretary of the Air Force shall prescribe  
  regulations for the administration of this section.''.                  
     (2) The table of sections at the beginning of such chapter is amended
  by adding at the end the following new item:                            


            ``9357. Grants for faculty research for scientific, literary, and 
      educational purposes: acceptance; authorized grantees.''.               

          SEC. 1064. DEPARTMENT OF DEFENSE USE OF FREQUENCY SPECTRUM.             

     (a) Finding.--Congress finds that the report submitted to Congress by
  the Secretary of Defense on April 2, 1998, regarding the reallocation of
  the frequency spectrum used or dedicated to the Department of Defense   
  and the intelligence community does not include a discussion of the     
  costs to the Department of Defense that are associated with past and    
  potential future reallocations of the frequency spectrum, although such 
  a discussion was to be included in the report as directed in connection 
  with the enactment of the National Defense Authorization Act for Fiscal 
  Year 1998.                                                              
     (b) Additional Report.--The Secretary of Defense shall, not later    
  than October 31, 1998, submit to the Committee on Armed Services of the 
  Senate and the Committee on National Security of the House of           
  Representatives a report that discusses the costs referred to in        
  subsection (a).                                                         
     (c) Relocation of Federal Frequencies.--Section 113(g)(1) of the     
  National Telecommunications and Information Administration Organization 
  Act (47 U.S.C. 923(g)(1)) is amended--                                  
       (1) by striking out ``(1) In general.--In order'' and inserting in  
   lieu thereof the following:                                             
     ``(1)  In general.--                                                  

       ``(A) Authority of federal entities to accept compensation.--In     
   order'';                                                                

       (2) in subparagraph (A), as so designated, by striking out the      
   second, third, and fourth sentences and inserting                       


                    in lieu thereof the following: ``Any such Federal entity which
          proposes to so relocate shall notify the NTIA, which in turn shall      
          notify the Commission, before the auction concerned of the marginal     
          costs anticipated to be associated with such relocation or with         
          modifications necessary to accommodate prospective licensees. The       
          Commission in turn shall notify potential bidders of the estimated      
          relocation or modification costs based on the geographic area covered by
          the proposed licenses before the auction.''; and                        
     (3) by adding at the end the following:                               

       ``(B) Requirement to compensate federal entities.--Any person on    
   whose behalf a Federal entity incurs costs under subparagraph (A) shall 
   compensate the Federal entity in advance for such costs. Such           
   compensation may take the form of a cash payment or in-kind             
   compensation.                                                           
     ``(C)  Disposition of payments.--                                     

       ``(i) Payment by electronic funds transfer.--A person making a cash 
   payment under this paragraph shall make the cash payment by depositing  
   the amount of the payment by electronic funds transfer in the account of
   the Federal entity concerned in the Treasury of the United States or in 
   another account as authorized by law.                                   
       ``(ii) Availability.--Subject to the provisions of authorization    
   Acts and appropriations Acts, amounts deposited under this subparagraph 
   shall be available to the Federal entity concerned to pay directly the  
   costs of relocation under this paragraph, to repay or make advances to  
   appropriations or funds which do or will initially bear all or part of  
   such costs, or to refund excess sums when necessary.                    
       ``(D) Application to certain other relocations.--The provisions of  
   this paragraph also apply to any Federal entity that operates a Federal 
   Government station assigned to used electromagnetic spectrum identified 
   for reallocation under subsection (a) if before August 5, 1997, the     
   Commission has not identified that spectrum for service or assigned     
   licenses or otherwise authorized service for that spectrum.             
       ``(E) Implementation procedures.--The NTIA and the Commission shall 
   develop procedures for the implementation of this paragraph, which      
   procedures shall include a process for resolving any differences that   
   arise between the Federal Government and commercial licensees regarding 
   estimates of relocation or modification costs under this paragraph.     
       ``(F) Inapplicability to certain relocations.--With the exception of
   the band of frequencies located at 1710 1755 megahertz, the provisions  
   of this paragraph shall not apply to Federal spectrum identified for    
   reallocation in the first reallocation report submitted to the President
   and Congress under subsection (a).''.                                   
     (d) Reports on Costs of Relocations.--The head of each department or 
  agency of the Federal Government shall include in the annual budget     
  submission of such department or agency to the Director of the Office of
  Management and Budget a report assessing the costs to be incurred by    
  such department or agency as a result of any frequency relocations of   
  such department or agency that are anticipated under section 113 of the 
  National Telecommunications Information Administration Organization Act 
  (47 U.S.C. 923) as of the date of such report.                          

          SEC. 1065. DEPARTMENT OF DEFENSE AVIATION ACCIDENT INVESTIGATIONS.      

     (a) Report Required.--Not later than March 31, 1999, the Secretary of
  Defense shall submit to Congress a report on the roles of the Office of 
  the Secretary of Defense and of the Joint Staff in the investigation of 
  Department of Defense aviation accidents.                               
    (b)  Content of Report.--The report shall include the following:      


       (1) An assessment of whether the Office of the Secretary of Defense 
   and the Joint Staff should have more direct involvement in the          
   investigation of military aviation accidents.                           
       (2) The advisability of the Office of the Secretary of Defense, the 
   Joint Staff, or another Department of Defense entity independent of the 
   military departments supervising the conduct of aviation accident       
   investigations.                                                         
       (3) An assessment of the minimum training and experience required   
   for aviation accident investigation board presidents and board members. 
       (4) An assessment whether or not the procedures for sharing the     
   results of military aviation accident investigations among the military 
   departments should be improved.                                         
       (5) An assessment of the advisability of centralized training and   
   instruction for military aircraft accident investigators.               
     (c) Uniform Regulations for Provision of Accident Investigation      
  Update Information.--The Secretary of Defense shall prescribe           
  regulations, which shall be applied uniformly across the Department of  
  Defense, establishing procedures by which the military departments shall
  provide to the family members of any person involved in a military      
  aviation accident periodic update reports on the conduct and progress of
  investigations into the accident.                                       

                    SEC. 1066. INVESTIGATION OF ACTIONS RELATING TO 174TH FIGHTER 
          WING OF NEW YORK AIR NATIONAL GUARD.                                    
     (a) Investigation.--The Inspector General of the Department of       
  Defense shall conduct a new investigation into the circumstances that   
  led to the December 1, 1995, grounding of the 174th Fighter Wing of the 
  New York Air National Guard. The investigation shall review those       
  circumstances, examine the administrative and disciplinary actions taken
  against members of that wing, and determine whether those administrative
  and disciplinary measures were appropriate.                             
     (b) Report.--Not later than 180 days after the date of the enactment 
  of this Act, the Inspector General shall submit to the Committee on     
  Armed Services of the Senate and the Committee on National Security of  
  the House of Representatives a report describing the results of the     
  investigation under subsection (a).                                     

          SEC. 1067. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE KOREAN WAR.   

     (a) Limitation on Expenditures.--Subsection (f) of section 1083 of   
  the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
  105 85; 111 Stat. 1918; 10 U.S.C. 113 note) is amended to read as       
  follows:                                                                
     ``(f) Limitation on Expenditures.--The total amount expended by the  
  Department of Defense to carry out the commemorative program for fiscal 
  year 1999 may not exceed $1,820,000.''.                                 
     (b) Redesignation of Commemoration Account.--The account in the      
  Treasury known as the ``Department of Defense Korean Conflict           
  Commemoration Account'' is redesignated as the ``Department of Defense  
  Korean War Commemoration Account''.                                     
     (c) Other References to Korean War.--Such section is further         
  amended--                                                               
       (1) in the section heading, by striking out `` korean conflict'' and
   inserting in lieu thereof `` korean war'';                              
       (2) by striking out ``Korean conflict'' each place it appears and   
   inserting in lieu thereof ``Korean War'';                               
       (3) in subsection (c), by striking out ``names `The Department of   
   Defense Korean Conflict Commemoration','' and inserting in lieu thereof 
   ``name the `Department of Defense Korean War Commemoration',''; and     
       (4) in subsection (d)(1), by striking out ``Korean Conflict'' and   
   inserting in lieu thereof ``Korean War''.                               
     (d) Cross References.--Any reference to the Department of Defense    
  Korean Conflict Commemoration or the Department of Defense Korean       
  Conflict Commemoration Account                                          

                    in any law, regulation, document, record, or other paper of   
          the United States shall be considered to be a reference to the          
          Department of Defense Korean War Commemoration or the Department of     
          Defense Korean War Commemoration Account, respectively.                 

          SEC. 1068. DESIGNATION OF AMERICA'S NATIONAL MARITIME MUSEUM.           

     (a) In General.--America's National Maritime Museum is comprised of  
  those museums designated by law to be museums of America's National     
  Maritime Museum on the basis that they--                                
       (1) house a collection of maritime artifacts clearly representing   
   the Nation's maritime heritage; and                                     
       (2) provide outreach programs to educate the public about the       
   Nation's maritime heritage.                                             
     (b) Initial Designation of Museums.--The following museums (meeting  
  the criteria specified in subsection (a)) are hereby designated as      
  museums of America's National Maritime Museum:                          
       (1) The Mariners' Museum, located at 100 Museum Drive, Newport News,
   Virginia.                                                               
       (2) The South Street Seaport Museum, located at 207 Front Street,   
   New York, New York.                                                     
     (c) Future Designation of Other Museums Not Precluded.--The          
  designation of the museums referred to in subsection (b) as museums of  
  America's National Maritime Museum does not preclude the designation by 
  law after the date of the enactment of this Act of any other museum that
  meets the criteria specified in subsection (a) as a museum of America's 
  National Maritime Museum.                                               
     (d) Reference to Museums.--Any reference in any law, map, regulation,
  document, paper, or other record of the United States to a museum       
  designated by law to be a museum of America's National Maritime Museum  
  shall be deemed to be a reference to that museum as a museum of         
  America's National Maritime Museum.                                     

          SEC. 1069. TECHNICAL AND CLERICAL AMENDMENTS.                           

     (a) Title 10 , United States Code.--Title 10, United States Code, is 
  amended as follows:                                                     
       (1) The item relating to section 484 in the table of sections at the
   beginning of chapter 23 is amended to read as follows:                  


      ``484. Annual report on aircraft inventory.''.                          



       (2) Section 517(a) is amended by striking out ``Except as provided  
   in section 307 of title 37, the'' and inserting in lieu thereof ``The''.
       (3) The item relating to section 2302c in the table of sections at  
   the beginning of chapter 137 is amended to read as follows:             


      ``2302c. Implementation of electronic commerce capability.''.           



       (4) The table of subchapters at the beginning of chapter 148 is     
   amended--                                                               
       (A) by striking out ``2491'' in the item relating to subchapter I   
   and inserting in lieu thereof ``2500''; and                             
       (B) by striking out the item relating to subchapter IV and inserting
   in lieu thereof the following:                                          




          ``IV. Manufacturing Technology                2521''.



       (5) The subchapter heading for subchapter IV of chapter 148 is      
   amended to read as follows:                                             
                         ``SUBCHAPTER IV--MANUFACTURING TECHNOLOGY''              

       (6) Section 7045(c) is amended by striking out ``the'' after ``are  
   subject to''.                                                           
     (7) Section 7572(b) is repealed.                                      

       (8) Section 12683(b)(2) is amended by striking out ``; or'' at the  
   end and inserting in lieu thereof a period.                             
     (b) Public Law 105 85.--Effective as of November 18, 1997, and as if 
  included therein as enacted, the National Defense Authorization Act for 
  Fiscal Year 1998 (Public Law 105 85) is amended as follows:             
       (1) Section 389(g) (111 Stat. 1715) is amended by striking out      
   ``Secretary of Defense'' and inserting in lieu thereof ``Comptroller    
   General''.                                                              

       (2) Section 1006(a) (111 Stat. 1869) is amended by striking out     
   ``or'' in the quoted matter and inserting in lieu thereof ``and''.      
       (3) Section 3133(b)(3) (111 Stat. 2036) is amended by striking out  
   ``III'' and inserting in lieu thereof ``XIV''.                          
     (c) Defense Against Weapons of Mass Destruction Act of 1996.--The    
  Defense Against Weapons of Mass Destruction Act of 1996 (title XIV of   
  Public Law 104 201) is amended as follows:                              
       (1) Section 1423(b)(4) (50 U.S.C. 2332(b)(4); 110 Stat. 2726) is    
   amended by striking out ``(22 U.S.C. 2156a(c))'' and inserting in lieu  
   thereof ``(42 U.S.C. 2139a(c))''.                                       
       (2) Section 1441(b)(2) (50 U.S.C. 2351(b)(2); 110 Stat. 2727) is    
   amended by striking out ``established under section 1342'' and inserting
   in lieu thereof ``of the National Security Council''.                   
       (3) Section 1444 (50 U.S.C. 2354; 110 Stat. 2730) is amended by     
   striking out ``1341'' and ``1342'' and inserting in lieu thereof        
   ``1441'' and ``1442'', respectively.                                    
       (4) Section 1453(1) (50 U.S.C. 2363(1); 110 Stat. 2730) is amended  
   by striking out ``the National Defense Authorization Act for Fiscal     
   Years 1993 and 1994'' and inserting in lieu thereof ``title XIV of the  
   National Defense Authorization Act for Fiscal Year 1993 (Public Law 102 
   484; 22 U.S.C. 5901 et seq.)''.                                         
    (d)  Other Acts.--                                                    

       (1) Section 18(c)(1) of the Office of Federal Procurement Policy Act
   (41 U.S.C. 416(c)(1)) is amended by striking out the period at the end  
   of subparagraph (A) and inserting in lieu thereof a semicolon.          
       (2) Section 3(c)(2) of Public Law 101 533 (22 U.S.C. 3142(c)(2)) is 
   amended by striking out ``included in the most recent plan submitted to 
   the Congress under section 2506 of title 10'' and inserting in lieu     
   thereof ``identified in the most recent assessment prepared under       
   section 2505 of title 10''.                                             
     (e) Coordination With Other Amendments.--For purposes of applying    
  amendments made by provisions of this Act other than provisions of this 
  section, this section shall be treated as having been enacted           
  immediately before the other provisions of this Act.                    

                                  SUBTITLE H--OTHER MATTERS                       


                    SEC. 1071. ACT CONSTITUTING PRESIDENTIAL APPROVAL OF VESSEL   
          WAR RISK INSURANCE REQUESTED BY THE SECRETARY OF DEFENSE.               
     (a) In General.--Section 1205(b) of the Merchant Marine Act, 1936 (46
  U.S.C. App. 1285(b)), is amended by adding at the end the following new 
  sentence: ``The signature of the President (or of an official designated
  by the President) on the agreement shall be treated as an expression of 
  the approval required under section 1202(a) to provide the insurance.''.
     (b) Effective Date.--The amendment made by subsection (a) shall apply
  only to a signature of the President (or of an official designated by   
  the President) on or after the date of the enactment of this Act.       

                    SEC. 1072. EXTENSION AND REAUTHORIZATION OF DEFENSE PRODUCTION
          ACT OF 1950.                                                            
     (a) Extension of Termination Date.--Section 717(a) of the Defense    
  Production Act of 1950 (50 U.S.C. App. 2166(a)) is amended by striking  
  ``September 30, 1998'' and inserting ``September 30, 1999''.            
     (b) Extension of Authorization.--Section 711(b) of the Defense       
  Production Act of 1950 (50 U.S.C. App. 2161(b)) is amended by striking  
  ``and 1998'' and inserting ``1998, and 1999''.                          

                    SEC. 1073. REQUIREMENT THAT BURIAL FLAGS FURNISHED BY THE     
          SECRETARY OF VETERANS AFFAIRS BE WHOLLY PRODUCED IN THE UNITED STATES.  
     (a) Requirement.--Section 2301 of title 38, United States Code, as   
  amended by section 517, is further amended by adding at the end the     
  following new subsection:                                               

     ``(g)(1) The Secretary may not procure any flag for the purposes of  
  this section that is not wholly produced in the United States.          
     ``(2)(A) The Secretary may waive the requirement of paragraph (1) if 
  the Secretary determines--                                              
     ``(i) that the requirement cannot be reasonably met; or               

       ``(ii) that compliance with the requirement would not be in the     
   national interest of the United States.                                 
     ``(B) The Secretary shall submit to Congress in writing notice of a  
  determination under subparagraph (A) not later than 30 days after the   
  date on which such determination is made.                               
     ``(3) For the purpose of paragraph (1), a flag shall be considered to
  be wholly produced in the United States only if--                       
       ``(A) the materials and components of the flag are entirely grown,  
   manufactured, or created in the United States;                          
       ``(B) the processing (including spinning, weaving, dyeing, and      
   finishing) of such materials and components is entirely performed in the
   United States; and                                                      
       ``(C) the manufacture and assembling of such materials and          
   components into the flag is entirely performed in the United States.''. 
     (b) Effective Date.--Subsection (g) of section 2301 of title 38,     
  United States Code, as added by subsection (a), shall apply to flags    
  procured by the Secretary of Veterans Affairs for the purposes of       
  section 2301 of title 38, United States Code, after the end of the      
  30-day period beginning on the date of the enactment of this Act.       

                    SEC. 1074. SENSE OF CONGRESS CONCERNING TAX TREATMENT OF      
          PRINCIPAL RESIDENCE OF MEMBERS OF ARMED FORCES WHILE AWAY FROM HOME ON  
          ACTIVE DUTY.                                                            
     It is the sense of Congress that a member of the Armed Forces should 
  be treated for purposes of section 121 of the Internal Revenue Code of  
  1986 as using property as a principal residence during any continuous   
  period that the member is serving on active duty for 180 days or more   
  with the Armed Forces, but only if the member used the property as a    
  principal residence for any period during or immediately before that    
  period of active duty.                                                  

                    SEC. 1075. CLARIFICATION OF STATE AUTHORITY TO TAX            
          COMPENSATION PAID TO CERTAIN EMPLOYEES.                                 
     (a) Limitation on State Authority To Tax Compensation Paid to        
  Individuals Performing Services at Fort Campbell, Kentucky.--           
       (1) In general.--Chapter 4 of title 4, United States Code, is       
   amended by adding at the end the following:                             
                    ``115. Limitation on State authority to tax compensation paid 
          to individuals performing services at Fort Campbell, Kentucky           
     ``Pay and compensation paid to an individual for personal services at
  Fort Campbell, Kentucky, shall be subject to taxation by the State or   
  any political subdivision thereof of which such employee is a           
  resident.''.                                                            
       (2) Conforming amendment.--The table of sections for chapter 4 of   
   title 4, United States Code, is amended by adding at the end the        
   following:                                                              


            ``115. Limitation on State authority to tax compensation paid to  
      individuals performing services at Fort Campbell, Kentucky.''.          


       (3) Effective date.--The amendments made by this subsection shall   
   apply to pay and compensation paid after the date of the enactment of   
   this Act.                                                               
     (b) Clarification of State Authority To Tax Compensation Paid to     
  Certain Federal Employees.--                                            
       (1) In general.--Section 111 of title 4, United States Code, is     
   amended--                                                               
       (A) by inserting ``(a) General Rule.--'' before ``The United        
   States'' the first place it appears; and                                
     (B) by adding at the end the following:                               

     ``(b) Treatment of Certain Federal Employees Employed at Federal     
  Hydroelectric Facilities Located on the Columbia River.--Pay or         
  compensation paid by the                                                

                    United States for personal services as an employee of the     
          United States at a hydroelectric facility--                             
     ``(1) which is owned by the United States;                            

     ``(2) which is located on the Columbia River; and                     

       ``(3) portions of which are within the States of Oregon and         
   Washington,                                                             

    shall be subject to taxation by the State or any political subdivision
  thereof of which such employee is a resident.                           
     ``(c) Treatment of Certain Federal Employees Employed at Federal     
  Hydroelectric Facilities Located on the Missouri River.--Pay or         
  compensation paid by the United States for personal services as an      
  employee of the United States at a hydroelectric facility--             
     ``(1) which is owned by the United States;                            

     ``(2) which is located on the Missouri River; and                     

       ``(3) portions of which are within the States of South Dakota and   
   Nebraska,                                                               

    shall be subject to taxation by the State or any political subdivision
  thereof of which such employee is a resident.''.                        
       (2) Effective date.--The amendment made by this subsection shall    
   apply to pay and compensation paid after the date of the enactment of   
   this Act.                                                               

                     TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL           


            Sec. 1101. Defense Advanced Research Projects Agency experimental 
      personnel management program for technical personnel.                   
            Sec. 1102. Maximum pay rate comparability for faculty members of  
      the United States Air Force Institute of Technology.                    
            Sec. 1103. Authority for release to Coast Guard of drug test      
      results of civil service mariners of the Military Sealift Command.      
      Sec. 1104. Limitations on back pay awards.                              

            Sec. 1105. Restoration of annual leave accumulated by civilian    
      employees at installations in the Republic of Panama to be closed       
      pursuant to the Panama Canal Treaty of 1977.                            
            Sec. 1106. Repeal of program providing preference for employment  
      of military spouses in military child care facilities.                  
            Sec. 1107. Observance of certain holidays at duty posts outside   
      the United States.                                                      
            Sec. 1108. Continuation of random drug testing program for certain
      Department of Defense employees.                                        
            Sec. 1109. Department of Defense employee voluntary early         
      retirement authority.                                                   

                    SEC. 1101. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY          
          EXPERIMENTAL PERSONNEL MANAGEMENT PROGRAM FOR TECHNICAL PERSONNEL.      
     (a) Program Authorized.--During the five-year period beginning on the
  date of the enactment of this Act, the Secretary of Defense may carry   
  out a program of experimental use of the special personnel management   
  authority provided in subsection (b) in order to facilitate recruitment 
  of eminent experts in science or engineering for research and           
  development projects administered by the Defense Advanced Research      
  Projects Agency.                                                        
     (b) Special Personnel Management Authority.--Under the program, the  
  Secretary may--                                                         
       (1) appoint scientists and engineers from outside the civil service 
   and uniformed services (as such terms are defined in section 2101 of    
   title 5, United States Code) to not more than 20 scientific and         
   engineering positions in the Defense Advanced Research Projects Agency  
   without regard to any provision of title 5, United States Code,         
   governing the appointment of employees in the civil service;            

       (2) prescribe the rates of basic pay for positions to which         
   employees are appointed under paragraph (1) at rates not in excess of   
   the maximum rate of basic pay authorized for senior-level positions     
   under section 5376 of title 5, United States Code, notwithstanding any  
   provision of such title governing the rates of pay or classification of 
   employees in the executive branch; and                                  
       (3) pay any employee appointed under paragraph (1) payments in      
   addition to basic pay within the limit applicable to the employee under 
   subsection (d)(1).                                                      
     (c) Limitation on Term of Appointment.--(1) Except as provided in    
  paragraph (2), the service of an employee under an appointment under    
  subsection (b)(1) may not exceed four years.                            
     (2) The Secretary may, in the case of a particular employee, extend  
  the period to which service is limited under paragraph (1) by up to two 
  years if the Secretary determines that such action is necessary to      
  promote the efficiency of the Defense Advanced Research Projects Agency.
     (d) Limitations on Additional Payments.--(1) The total amount of the 
  additional payments paid to an employee under subsection (b)(3) for any 
  12-month period may not exceed the least of the following amounts:      
     (A) $25,000.                                                          

       (B) The amount equal to 25 percent of the employee's annual rate of 
   basic pay.                                                              
       (C) The amount of the limitation that is applicable for a calendar  
   year under section 5307(a)(1) of title 5, United States Code.           
     (2) An employee appointed under subsection (b)(1) is not eligible for
  any bonus, monetary award, or other monetary incentive for service      
  except for payments authorized under subsection (b)(3).                 
     (e) Period of Program.--(1) The program authorized under this section
  shall terminate at the end of the five-year period referred to in       
  subsection (a).                                                         
    (2) After the termination of the program--                            

     (A) no appointment may be made under paragraph (1) of subsection (b); 

       (B) a rate of basic pay prescribed under paragraph (2) of that      
   subsection may not take effect for a position; and                      
     (C) no period of service may be extended under subsection (c)(1).     

     (f) Savings Provisions.--In the case of an employee who, on the day  
  before the termination of the program, is serving in a position pursuant
  to an appointment under subsection (b)(1)--                             
       (1) the termination of the program does not terminate the employee's
   employment in that position before the expiration of the lesser of--    
     (A) the period for which the employee was appointed; or               

       (B) the period to which the employee's service is limited under     
   subsection (c), including any extension made under paragraph (2) of that
   subsection before the termination of the program; and                   
       (2) the rate of basic pay prescribed for the position under         
   subsection (b)(2) may not be reduced for so long (within the period     
   applicable to the employee under paragraph (1)) as the employee         
   continues to serve in the position without a break in service.          
     (g) Annual Report.--(1) Not later than October 15 of each year,      
  beginning in 1999 and ending in 2004, the Secretary of Defense shall    
  submit a report on the program to the Committee on Armed Services of the
  Senate and the Committee on National Security of the House of           
  Representatives. The report submitted in a year shall cover the 12-month
  period ending on the day before the anniversary, in that year, of the   
  date of the enactment of this Act.                                      
     (2) The annual report shall contain, for the period covered by the   
  report, the following:                                                  
       (A) A detailed discussion of the exercise of authority under this   
   section.                                                                

       (B) The sources from which individuals appointed under subsection   
   (b)(1) were recruited.                                                  
       (C) The methodology used for identifying and selecting such         
   individuals.                                                            
       (D) Any additional information that the Secretary considers helpful 
   for assessing the utility of the authority under this section.          
                    SEC. 1102. MAXIMUM PAY RATE COMPARABILITY FOR FACULTY MEMBERS 
          OF THE UNITED STATES AIR FORCE INSTITUTE OF TECHNOLOGY.                 
     Section 9314(b)(2)(B) of title 10, United States Code, is amended by 
  striking out ``section 5306(e)'' and inserting in lieu thereof ``section
  5373''.                                                                 

                    SEC. 1103. AUTHORITY FOR RELEASE TO COAST GUARD OF DRUG TEST  
          RESULTS OF CIVIL SERVICE MARINERS OF THE MILITARY SEALIFT COMMAND.      
     (a) In General.--Chapter 643 of title 10, United States Code, is     
  amended by adding at the end the following new section:                 
                    ``7479. Civil service mariners of Military Sealift Command:   
          release of drug test results to Coast Guard                             
     ``(a) Release of Drug Test Results to Coast Guard.--The Secretary of 
  the Navy may release to the Commandant of the Coast Guard the results of
  a drug test of any employee of the Department of the Navy who is        
  employed in any capacity on board a vessel of the Military Sealift      
  Command. Any such release shall be in accordance with the standards and 
  procedures applicable to the disclosure and reporting to the Coast Guard
  of drug tests results and drug test records of individuals employed on  
  vessels documented under the laws of the United States.                 
     ``(b) Waiver.--The results of a drug test of an employee may be      
  released under subsection (a) without the prior written consent of the  
  employee that is otherwise required under section 503(e) of the         
  Supplemental Appropriations Act, 1987 (5 U.S.C. 7301 note).''.          
     (b) Clerical Amendment.--The table of sections at the beginning of   
  such chapter is amended by adding at the end the following new item:    


            ``7479. Civil service mariners of Military Sealift Command:       
      release of drug test results to Coast Guard.''.                         

          SEC. 1104. LIMITATIONS ON BACK PAY AWARDS.                              

     (a) In General.--Section 5596(b) of title 5, United States Code, is  
  amended--                                                               
     (1) by redesignating paragraph (4) as paragraph (5); and              

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

     ``(4) The pay, allowances, or differentials granted under this       
  section for the period for which an unjustified or unwarranted personnel
  action was in effect shall not exceed that authorized by the applicable 
  law, rule, regulations, or collective bargaining agreement under which  
  the unjustified or unwarranted personnel action is found, except that in
  no case may pay, allowances, or differentials be granted under this     
  section for a period beginning more than 6 years before the date of the 
  filing of a timely appeal or, absent such filing, the date of the       
  administrative determination.''.                                        
     (b) Conforming Amendment.--Section 7121 of title 5, United States    
  Code, is amended by adding at the end the following new subsection:     
     ``(h) Settlements and awards under this chapter shall be subject to  
  the limitations in section 5596(b)(4) of this title.''.                 

                    SEC. 1105. RESTORATION OF ANNUAL LEAVE ACCUMULATED BY CIVILIAN
          EMPLOYEES AT INSTALLATIONS IN THE REPUBLIC OF PANAMA TO BE CLOSED       
          PURSUANT TO THE PANAMA CANAL TREATY OF 1977.                            
     Section 6304(d)(3)(A) of title 5, United States Code, is amended by  
  inserting ``the closure of an installation of the Department of Defense 
  in the Republic of Panama in accordance with the Panama Canal Treaty of 
  1977,'' after ``2687 note) during any period,''.                        

                    SEC. 1106. REPEAL OF PROGRAM PROVIDING PREFERENCE FOR         
          EMPLOYMENT OF MILITARY SPOUSES IN MILITARY CHILD CARE FACILITIES.       
    Section 1792 of title 10, United States Code, is amended--            

     (1) by striking out subsection (d); and                               

     (2) by redesignating subsection (e) as subsection (d).                


                    SEC. 1107. OBSERVANCE OF CERTAIN HOLIDAYS AT DUTY POSTS       
          OUTSIDE THE UNITED STATES.                                              
     Section 6103(b) of title 5, United States Code, is amended by        
  inserting after paragraph (2) the following new paragraph:              
       ``(3) Instead of a holiday that is designated under subsection (a)  
   to occur on a Monday, for an employee at a duty post outside the United 
   States whose basic workweek is other than Monday through Friday, and for
   whom Monday is a regularly scheduled workday, the legal public holiday  
   is the first workday of the workweek in which the Monday designated for 
   the observance of such holiday under subsection (a) occurs.''.          

                    SEC. 1108. CONTINUATION OF RANDOM DRUG TESTING PROGRAM FOR    
          CERTAIN DEPARTMENT OF DEFENSE EMPLOYEES.                                
     (a) Continuation of Existing Program.--The Secretary of Defense shall
  continue to actively carry out the drug testing program, originally     
  required by section 3(a) of Executive Order 12564 (51 Fed. Reg. 32889;  
  September 15, 1986), involving civilian employees of the Department of  
  Defense who are considered to be employees in sensitive positions. The  
  Secretary shall comply with the drug testing procedures prescribed      
  pursuant to section 4 of the Executive Order.                           
     (b) Testing Upon Reasonable Suspicion of Illegal Drug Use.--The      
  Secretary of Defense shall ensure that the drug testing program referred
  to in subsection (a) authorizes the testing of a civilian employee of   
  the Department of Defense for illegal drug use when there is a          
  reasonable suspicion that the employee uses illegal drugs.              
     (c) Notification to Applicants.--The Secretary of Defense shall      
  notify persons who apply for employment with the Department of Defense  
  that, as a condition of employment by the Department, the person may be 
  required to submit to drug testing under the drug testing program       
  required by Executive Order 12564 (51 Fed. Reg. 32889; September 15,    
  1986) pursuant to the terms of the Executive Order.                     
     (d) Definitions.--In this section, the terms ``illegal drugs'' and   
  ``employee in a sensitive position'' have the meanings given such terms 
  in section 7 of Executive Order 12564 (51 Fed. Reg. 32889; September 15,
  1986).                                                                  

                    SEC. 1109. DEPARTMENT OF DEFENSE EMPLOYEE VOLUNTARY EARLY     
          RETIREMENT AUTHORITY.                                                   
     (a) Civil Service Retirement System.--Section 8336 of title 5, United
  States Code, is amended--                                               
       (1) in subsection (d)(2), by inserting ``except in the case of an   
   employee described in subsection (o)(1),'' after ``(2)''; and           
     (2) by adding at the end the following:                               

     ``(o)(1) An employee of the Department of Defense who is separated   
  from the service under conditions described in paragraph (2) after      
  completing 25 years of service or after becoming 50 years of age and    
  completing 20 years of service is entitled to an annuity.               
    ``(2) Paragraph (1) applies to an employee who--                      

       ``(A) has been employed continuously by the Department of Defense   
   for more than 30 days before the date on which the Secretary concerned  
   requests the determinations required under in subparagraph (D)(i);      
     ``(B) is serving under an appointment that is not limited by time;    

       ``(C) has not received a decision notice of involuntary separation  
   for misconduct or unacceptable performance that is pending decision; and
       ``(D) is separated from the service voluntarily during a period in  
   which--                                                                 

       ``(i) the Department of Defense or the military department or       
   subordinate organization within the Department of Defense or military   
   department in which the employee is serving is undergoing a major       
   reorganization, a major reduction in force, or a major transfer of      
   function, and employees comprising a significant percentage of the      
   employees serving in that department or organization are to be separated
   or subject to an immediate reduction in the rate of basic pay (without  
   regard to subchapter VI of chapter 53, or comparable provisions of law),
   as determined by the Office of Personnel Management (under regulations  
   prescribed by the Office) upon the request of the Secretary concerned;  
   and                                                                     
       ``(ii) the employee is within the scope of an offer of voluntary    
   early retirement (as defined by organizational unit, occupational series
   or level, geographical location, any other similar factor that the      
   Office of Personnel Management determines appropriate, or any           
   combination of such definitions of scope), as determined by the         
   Secretary concerned under regulations prescribed by the Office.         
    ``(3) In this subsection, the term `Secretary concerned' means--      

       ``(A) the Secretary of Defense, with respect to an employee of the  
   Department of Defense not employed in a position in a military          
   department;                                                             
       ``(B) the Secretary of the Army, with respect to an employee of the 
   Department of the Army;                                                 
       ``(C) the Secretary of the Navy, with respect to an employee of the 
   Department of the Navy; and                                             
       ``(D) the Secretary of the Air Force, with respect to an employee of
   the Department of the Air Force.''.                                     
     (b) Federal Employees' Retirement System.--Section 8414 of such title
  is amended--                                                            
       (1) in subsection (b)(1)(B), by inserting ``except in the case of an
   employee described in subsection (d)(1),'' after ``(B)''; and           
     (2) by adding at the end the following:                               

     ``(d)(1) An employee of the Department of Defense who is separated   
  from the service under conditions described in paragraph (2) after      
  completing 25 years of service or after becoming 50 years of age and    
  completing 20 years of service is entitled to an annuity.               
    ``(2) Paragraph (1) applies to an employee who--                      

       ``(A) has been employed continuously by the Department of Defense   
   for more than 30 days before the date on which the Secretary concerned  
   requests the determinations required under subparagraph (D)(i);         
     ``(B) is serving under an appointment that is not limited by time;    

       ``(C) has not received a decision notice of involuntary separation  
   for misconduct or unacceptable performance that is pending decision; and
       ``(D) is separated from the service voluntarily during a period in  
   which--                                                                 
       ``(i) the Department of Defense or the military department or       
   subordinate organization within the Department of Defense or military   
   department in which the employee is serving is undergoing a major       
   reorganization, a major reduction in force, or a major transfer of      
   function, and employees comprising a significant percentage of the      
   employees serving in that department or organization are to be separated
   or subject to an immediate reduction in the rate of basic pay (without  
   regard to subchapter VI of chapter 53, or comparable provisions of law),
   as determined by the Office of Personnel Management (under regulations  
   prescribed by the Office) upon the request of the Secretary concerned;  
   and                                                                     
       ``(ii) the employee is within the scope of an offer of voluntary    
   early retirement (as defined by organizational                          

                    unit, occupational series or level, geographical location, any
          other similar factor that the Office of Personnel Management determines 
          appropriate, or any combination of such definitions of scope), as       
          determined by the Secretary concerned under regulations prescribed by   
          the Office.                                                             
    ``(3) In this subsection, the term `Secretary concerned' means--      

       ``(A) the Secretary of Defense, with respect to an employee of the  
   Department of Defense not employed in a position in a military          
   department;                                                             
       ``(B) the Secretary of the Army, with respect to an employee of the 
   Department of the Army;                                                 
       ``(C) the Secretary of the Navy, with respect to an employee of the 
   Department of the Navy; and                                             
       ``(D) the Secretary of the Air Force, with respect to an employee of
   the Department of the Air Force.''.                                     
     (c) Conforming Amendments.--(1) Section 8339(h) of such title is     
  amended by striking out ``or (j)'' in the first sentence and inserting  
  in lieu thereof ``(j), or (o)''.                                        
     (2) Section 8464(a)(1)(A)(i) of such title is amended by striking out
  ``or (b)(1)(B)'' and inserting in lieu thereof ``, (b)(1)(B), or (d)''. 
     (d) Effective Date; Applicability.--The amendments made by this      
  section--                                                               
     (1) shall take effect on October 1, 2000; and                         

       (2) shall apply with respect to an approval for voluntary early     
   retirement made on or after that date.                                  

                        TITLE XII--MATTERS RELATING TO OTHER NATIONS              


              SUBTITLE A--UNITED STATES ARMED FORCES IN BOSNIA AND HERZEGOVINA    

      Sec. 1201. Findings.                                                    

      Sec. 1202. Sense of Congress.                                           

      Sec. 1203. Presidential reports.                                        

            Sec. 1204. Secretary of Defense reports on operations in Bosnia   
      and Herzegovina.                                                        
      Sec. 1205. Definitions.                                                 

                   SUBTITLE B--MATTERS RELATING TO CONTINGENCY OPERATIONS         

            Sec. 1211. Report on involvement of Armed Forces in contingency   
      and ongoing operations.                                                 
            Sec. 1212. Submission of report on objectives of a contingency    
      operation with requests for funding for the operation.                  
                       SUBTITLE C--MATTERS RELATING TO NATO AND EUROPE            

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

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

            Sec. 1223. Reports on the development of the European security and
      defense identity.                                                       
                                  SUBTITLE D--OTHER MATTERS                       

            Sec. 1231. Limitation on assignment of United States forces for   
      certain United Nations purposes.                                        
            Sec. 1232. Prohibition on restriction of Armed Forces under Kyoto 
      Protocol to the United Nations Framework Convention on Climate Change.  
      Sec. 1233. Defense burdensharing.                                       

            Sec. 1234. Transfer of excess UH 1 Huey and AH 1 Cobra helicopters
      to foreign countries.                                                   
      Sec. 1235. Transfers of naval vessels to certain foreign countries.     

      Sec. 1236. Repeal of landmine moratorium.                               

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

              SUBTITLE A--UNITED STATES ARMED FORCES IN BOSNIA AND HERZEGOVINA    

          SEC. 1201. FINDINGS.                                                    

    Congress makes the following findings:                                

       (1) The contributions of the people of the United States and other  
   nations have, in large measure, resulted in the suspension of fighting  
   and alleviated the suffering of the people of Bosnia and Herzegovina    
   since December 1995.                                                    
       (2) The United States has expended approximately $9,500,000,000     
   between 1992 and mid-1998 just in support                               

                    of the United States military operations in Bosnia to achieve 
          those results.                                                          
       (3) Efforts to restore the economy and political structure in Bosnia
   and Herzegovina have achieved some success in accordance with the Dayton
   Accords.                                                                
       (4) On March 3, 1998, the President certified to Congress (A) that  
   the continued presence of United States forces in Bosnia and Herzegovina
   after June 30, 1998, was required in order to meet the national security
   interests of the United States, and (B) that United States Armed Forces 
   will not serve as, or be used as, civil police in Bosnia and            
   Herzegovina.                                                            
       (5) With that certification, the President submitted to Congress a  
   report stating that the goal of the military presence in Bosnia and     
   Herzegovina is to establish the conditions under which implementation of
   the Dayton Accords can continue without the support of a major NATO-led 
   military force and setting forth the criteria for determining when that 
   goal has been accomplished.                                             
       (6) Since the administration has not specified how long achievement 
   of that goal is expected to take, the mission of United States ground   
   combat forces in Bosnia and Herzegovina is essentially of indefinite    
   duration.                                                               
       (7) The NATO operations plan for the Stabilization Force (Operations
   Plan 10407, which went into effect on June 20, 1998, after approval by  
   allied foreign ministers) incorporates all of the benchmarks set forth  
   in the report referred to in paragraph (5) and states that the          
   Stabilization Force will develop detailed criteria for assessing        
   progress in achieving those benchmarks in close coordination with key   
   international organizations participating in civilian implementation of 
   the Dayton Accords.                                                     
       (8) The military representatives of NATO member nations have been   
   tasked by the North Atlantic Council to provide estimates of the time   
   likely to be required for implementation of the Dayton Accords.         
       (9) NATO has decided to conduct formal reviews when appropriate (but
   at intervals of not more than six months) to assess the security        
   situation and the progress being made in the implementation of the civil
   aspects of the Dayton Accords. Those reviews will enable the Alliance to
   make decisions as to reductions in the size or the Stabilization Force, 
   leading to its eventual full withdrawal.                                
       (10) NATO has approved the creation of a multinational specialized  
   unit of gendarmes or paramilitary police composed of European security  
   forces to help promote public security in Bosnia and Herzegovina as a   
   part of the post-June 1998 mission for the Stabilization Force.         
       (11) The limit established for spending by the United States for the
   defense discretionary budget category for fiscal year 1998 in the       
   Balanced Budget and Emergency Deficit Control Act of 1985 does not take 
   into account the continued deployment of United States forces in Bosnia 
   and Herzegovina after June 30, 1998, leading to the request by the      
   President for emergency supplemental appropriations for the Bosnia and  
   Herzegovina mission through September 30, 1998.                         
       (12) Amounts for Department of Defense operations in Bosnia and     
   Herzegovina during fiscal year 1999 were not included in the budget of  
   the President for fiscal year 1999, as submitted to Congress on February
   2, 1998.                                                                
       (13) The President requested $1,858,600,000 in emergency            
   appropriations in his March 4, 1998, amendment to the fiscal year 1999  
   budget to cover the shortfall in funding in fiscal year 1999 for the    
   costs of extending the mission in Bosnia.                               
          SEC. 1202. SENSE OF CONGRESS.                                           

     (a) Sense of Congress Concerning United States Forces and            
  Accomplishment of Tasks in Bosnia and Herzegovina.--It is the sense of  
  Congress that--                                                         
       (1) United States ground combat forces should not remain in Bosnia  
   and Herzegovina indefinitely in view of the                             

          worldwide commitments of the Armed Forces of the United States;         

       (2) the President should work with NATO allies and the other nations
   whose military forces are participating in the NATO-led Stabilization   
   Force to withdraw United States ground combat forces from Bosnia and    
   Herzegovina within a reasonable period of time, consistent with the     
   safety of those forces and the accomplishment of the Stabilization      
   Force's military tasks;                                                 
       (3) a NATO-led force without the participation of United States     
   ground combat forces in Bosnia and Herzegovina might be suitable for a  
   follow-on force for Bosnia and Herzegovina if the European Security and 
   Defense Identity is not sufficiently developed or is otherwise          
   considered inappropriate for such a mission; and                        
       (4) the United States may decide to provide appropriate support to a
   Western European Union-led or NATO-led follow-on force for Bosnia and   
   Herzegovina, including command and control, intelligence, logistics,    
   and, if necessary, a ready reserve force in the region.                 
     (b) Sense of Congress Concerning Presidential Actions.--It is the    
  sense of Congress that the President--                                  
       (1) should inform the European NATO allies of the expression of the 
   sense of Congress in subsection (a) and should strongly urge them to    
   undertake preparations for establishing a Western European Union-led or 
   a NATO-led force as a follow-on force to the Stabilization Force if     
   needed to maintain peace and stability in Bosnia and Herzegovina; and   
       (2) should consult closely with the congressional leadership and the
   congressional defense committees with respect to the progress being made
   toward achieving a sustainable peace in Bosnia and Herzegovina and the  
   progress being made toward a reduction and ultimate withdrawal of United
   States ground combat forces from Bosnia and Herzegovina.                
     (c) Sense of Congress Concerning Defense Budget.--It is the sense of 
  Congress that--                                                         
       (1) the President should include in the budget for the Department of
   Defense that the President submits to Congress under section 1105(a) of 
   title 31, United States Code, for each fiscal year sufficient amounts to
   pay for any proposed continuation of the participation of United States 
   forces in NATO operations in Bosnia and Herzegovina during that fiscal  
   year; and                                                               
       (2) amounts included in the budget for the purpose stated in        
   paragraph (1) should be over and above the defense discretionary        
   estimates as identified in the Bipartisan Budget Agreement of May 16,   
   1997 and the fiscal year 1998 concurrent budget resolution and not be   
   transferred from amounts in the budget of any other agency of the       
   executive branch, but instead should be an overall increase in the      
   budget for the Department of Defense and the discretionary spending     
   limits in the Balanced Budget Act of 1997.                              
          SEC. 1203. PRESIDENTIAL REPORTS.                                        

     (a) Required Reports.--The President shall ensure that the semiannual
  reports required by section 7(b) of the general provisions of chapter I 
  of the 1998 Supplemental Appropriations and Rescissions Act (Public Law 
  105 174; 112 Stat. 64) are submitted to Congress in a timely manner as  
  long as United States ground combat forces continue to participate in   
  the Stabilization Force (SFOR). In addition, whenever the President     
  submits to Congress a request for funds for continued operations of     
  United States forces in Bosnia and Herzegovina, the President shall     
  submit a supplemental report providing information to update Congress on
  developments since the last semiannual report.                          
     (b) Required Information.--In addition to the information required by
  the section referred to in subsection (a) to be included in a report    
  under that section, each report under that section or under subsection  
  (a) shall include the following:                                        

       (1) The expected duration of the deployment of United States ground 
   combat forces in Bosnia and Herzegovina in support of implementation of 
   the benchmarks set forth in the President's report of March 3, 1998     
   (referred to in section 1201(5)) for achieving a sustainable peace      
   process.                                                                
       (2) The percentage of those benchmarks that have been completed as  
   of the date of the report, the percentage that are expected to be       
   completed within the next reporting period, and the expected time for   
   completion of the remaining tasks.                                      
       (3) The status of the NATO force of gendarmes or paramilitary       
   police, including the mission of the force, the composition of the      
   force, and the extent, if any, to which members of the Armed Forces of  
   the United States are participating (or are to participate) in the      
   force.                                                                  
       (4) The military and nonmilitary missions that the President has    
   directed for United States forces in Bosnia and Herzegovina, including a
   specific discussion of--                                                
       (A) the mission of those forces, if any, in connection with the     
   pursuit and apprehension of war criminals;                              
       (B) the mission of those forces, if any, in connection with civilian
   police functions;                                                       
       (C) the mission of those forces, if any, in connection with the     
   resettlement of refugees; and                                           
       (D) the missions undertaken by those forces, if any, in support of  
   international and local civilian authorities.                           
       (5) An assessment of the risk for the United States forces in Bosnia
   and Herzegovina, including, for each mission identified pursuant to     
   paragraph (4), the assessment of the Chairman of the Joint Chiefs of    
   Staff regarding the nature and level of risk of the mission for the     
   safety and well-being of United States military personnel.              
       (6) An assessment of the cost to the United States, by fiscal year, 
   of carrying out the missions identified pursuant to paragraph (4) and a 
   detailed projection of any additional funding that will be required by  
   the Department of Defense to meet mission requirements for those        
   operations for the remainder of the fiscal year.                        
       (7) A joint assessment by the Secretary of Defense and the Secretary
   of State of the status of planning for--                                
       (A) the assumption of all remaining military missions inside Bosnia 
   and Herzegovina by European military and paramilitary forces; and       
       (B) the establishment and support of a forward-based United States  
   rapid response force outside of Bosnia and Herzegovina that would be    
   capable of deploying rapidly to defeat military threats to a European   
   follow-on force inside Bosnia and Herzegovina and of providing whatever 
   logistical, intelligence, and air support is needed to ensure that a    
   European follow-on force is fully capable of accomplishing its missions 
   under the Dayton Accords.                                               
                    SEC. 1204. SECRETARY OF DEFENSE REPORTS ON OPERATIONS IN      
          BOSNIA AND HERZEGOVINA.                                                 
     (a) Report on Effects on Capabilities of United States Military      
  Forces.--Not later than December 15, 1998, the Secretary of Defense     
  shall submit to the congressional defense committees a report on the    
  effects of military operations in Bosnia and Herzegovina and the Balkans
  region on the capabilities of United States military forces. The report 
  shall, in particular, describe the effects of those operations on the   
  capability of United States military forces to conduct successfully two 
  nearly simultaneous major theater wars as specified in current Defense  
  Planning Guidance and in accordance with the deployment timelines called
  for in the war plans of the commanders of the unified combatant         
  commands.                                                               
     (b) Additional Reports.--Whenever the number of United States ground 
  combat forces in Bosnia and Herzegovina increases or decreases by 20    
  percent or more compared to the number of such forces as of the most    
  recent previous report under this section, the Secretary shall submit an
  additional report as specified in subsection (a). Any such additional   
  report                                                                  

                    shall be submitted within 30 days of the date on which the    
          requirement to submit the report becomes effective under the preceding  
          sentence.                                                               
     (c) Matters To Be Included.--The Secretary shall include in each     
  report under this section information with respect to the effects of    
  military operations in Bosnia and Herzegovina and the Balkans region on 
  the capabilities of United States military forces to conduct            
  successfully two nearly simultaneous major theater wars as specified in 
  current Defense Planning Guidance and in accordance with the deployment 
  timelines called for in the war plans of the commanders of the unified  
  combatant commands. Such information shall include information on the   
  effects of those operations on anticipated deployment plans for major   
  theater wars in Southwest Asia or on the Korean peninsula, including the
  following:                                                              
       (1) Deficiencies or delays in deployment of strategic lift,         
   logistics support and infrastructure, ammunition (including precision   
   guided munitions), support forces, intelligence assets, follow-on forces
   used for planned counteroffensives, and similar forces.                 
       (2) Additional planned reserve component mobilization, including    
   specific units to be ordered to active duty and required dates for      
   activation of presidential call-up authority.                           
       (3) Specific plans and timelines for redeployment of United States  
   forces from Bosnia and Herzegovina, the Balkans region, or supporting   
   forces in the region, to both the first and second major theater war.   
       (4) Preventative actions or deployments involving United States     
   forces in Bosnia and Herzegovina and the Balkans region that would be   
   taken in the event of a single theater war to deter the outbreak of a   
   second theater war.                                                     
       (5) Specific plans and timelines to replace forces deployed to      
   Bosnia and Herzegovina, the Balkans region, or the surrounding region to
   maintain United States military presence.                               
       (6) An assessment, undertaken in consultation with the Chairman of  
   the Joint Chiefs of Staff and the commanders of the unified combatant   
   commands, of the level of increased risk to successful conduct of the   
   major theater wars and the maintenance of security and stability in     
   Bosnia and Herzegovina and the Balkans region, by the requirement to    
   redeploy forces from Bosnia and the Balkans in the event of a major     
   theater war.                                                            
          SEC. 1205. DEFINITIONS.                                                 

    As used in this subtitle:                                             

       (1) Dayton peace accords.--The term ``Dayton Peace Accords'' means  
   the General Framework Agreement for Peace in Bosnia and Herzegovina,    
   initialed by the parties in Dayton, Ohio, on November 21, 1995, and     
   signed in Paris on December 14, 1995.                                   
       (2) Stabilization force.--The term ``Stabilization Force'' means the
   NATO-led force in Bosnia and Herzegovina and other countries in the     
   region (referred to as ``SFOR''), authorized under United Nations       
   Security Council Resolution 1088 (December 12, 1996).                   
       (3) NATO.--The term ``NATO'' means the North Atlantic Treaty        
   Organization.                                                           
                   SUBTITLE B--MATTERS RELATING TO CONTINGENCY OPERATIONS         


                    SEC. 1211. REPORT ON INVOLVEMENT OF ARMED FORCES IN           
          CONTINGENCY AND ONGOING OPERATIONS.                                     
     (a) Report Required.--Not later than January 31, 1999, the Secretary 
  of Defense shall submit to the Committee on Armed Services of the Senate
  and the Committee on National Security of the House of Representatives a
  report on the involvement of the Armed Forces in major contingency      
  operations and major ongoing operations since the end of the Persian    
  Gulf War. The report shall include the following:                       
       (1) A discussion of the effects of the involvement of the Armed     
   Forces in those operations on retention of personnel                    

                    in the Armed Forces, shown in the aggregate and separately for
          officers and enlisted personnel.                                        
       (2) The extent to which the use of combat support and combat service
   support personnel and equipment of the Armed Forces in those operations 
   has resulted in shortages of Armed Forces personnel and equipment in    
   other regions of the world.                                             
       (3) The accounts from which funds have been drawn to pay for those  
   operations and the specific programs for which those funds were         
   available until diverted to pay for those operations.                   
     (4) For each such operation--                                         

       (A) a statement of the vital interests of the United States that are
   involved in the operation or, if none, the interests of the United      
   States that are involved in the operation and a characterization of     
   those interests;                                                        
       (B) a statement of what clear and distinct objectives guide the     
   activities of United States forces in the operation; and                
       (C) a statement of what the President has identified on the basis of
   those objectives as the date, or the set of conditions, that defines the
   end of the operation.                                                   
     (b) Form of Report.--The report shall be submitted in unclassified   
  form, but may also be submitted in a classified form if necessary.      
     (c) Major Operation Defined.--For the purposes of this section, a    
  contingency operation or an ongoing operation is a major contingency    
  operation or a major ongoing operation, respectively, if the operation  
  involves the deployment of more than 500 members of the Armed Forces.   

                    SEC. 1212. SUBMISSION OF REPORT ON OBJECTIVES OF A CONTINGENCY
          OPERATION WITH REQUESTS FOR FUNDING FOR THE OPERATION.                  
    (a)  Findings.--Congress makes the following findings:                

       (1) On May 3, 1994, the President issued Presidential Decision      
   Directive 25 declaring that American participation in United Nations and
   other peace operations would depend in part on whether the role of      
   United States forces is tied to clear objectives and an endpoint for    
   United States participation can be identified.                          
       (2) Between that date and mid-1998, the President and other         
   executive branch officials have obligated or requested appropriations of
   approximately $9,400,000,000 for military-related operations throughout 
   Bosnia and Herzegovina without providing to Congress, in conjunction    
   with the budget submission for any fiscal year, a strategic plan for    
   such operations under the criteria set forth in that Presidential       
   Decision Directive.                                                     
       (3) Between November 27, 1995, and mid-1998 the President has       
   established three deadlines, since elapsed, for the termination of      
   United States military-related operations throughout Bosnia and         
   Herzegovina.                                                            
       (4) On December 17, 1997, the President announced that United States
   ground combat forces would remain in Bosnia and Herzegovina for an      
   unknown period of time.                                                 
       (5) Approximately 47,880 United States military personnel (excluding
   personnel serving in units assigned to the Republic of Korea) have      
   participated in 14 international contingency operations between fiscal  
   years 1991 and 1998.                                                    
       (6) The 1998 posture statements of the Navy and Air Force included  
   declarations that the pace of military operations over fiscal year 1997 
   adversely affected the readiness of non-deployed forces, personnel      
   retention rates, and spare parts inventories of the Navy and Air Force. 
     (b) Information To Be Reported With Funding Requests.--Section 113 of
  title 10, United States Code, is amended by adding after subsection (l),
  as added by section 915, the following new subsection:                  
     ``(m) Information To Accompany Funding Request for Contingency       
  Operation.--Whenever the President submits to Congress a request for    
  appropriations for costs associated with a contingency operation that   
  involves, or likely will involve, the deployment of more than 500       
  members of the armed forces, the Secretary of Defense shall submit to   
  Congress                                                                

                    a report on the objectives of the operation. The report shall 
          include a discussion of the following:                                  
       ``(1) What clear and distinct objectives guide the activities of    
   United States forces in the operation.                                  
       ``(2) What the President has identified on the basis of those       
   objectives as the date, or the set of conditions, that defines the      
   endpoint of the operation.''.                                           

                       SUBTITLE C--MATTERS RELATING TO NATO AND EUROPE            


          SEC. 1221. LIMITATION ON UNITED STATES SHARE OF COSTS OF NATO EXPANSION.

     (a) Limitation.--The United States share of defined NATO expansion   
  costs may not exceed the lesser of--                                    
     (1) the amount equal to 25 percent of those costs; or                 

     (2) $2,000,000,000.                                                   

     (b) Defined NATO Expansion Costs.--For purposes of subsection (a),   
  the term ``defined NATO expansion costs'' means the commonly funded     
  costs of the North Atlantic Treaty Organization (NATO) during fiscal    
  years 1999 through 2011 for enlargement of NATO due to the admission to 
  NATO of Poland, Hungary, and the Czech Republic.                        

          SEC. 1222. REPORT ON MILITARY CAPABILITIES OF AN EXPANDED NATO ALLIANCE.

     (a) Report.--The Secretary of Defense shall prepare a report, in both
  classified and unclassified form, on the planned future military        
  capabilities of the North Atlantic Treaty Organization (NATO) with the  
  anticipated accession of Poland, the Czech Republic, and Hungary to the 
  NATO alliance. The report shall set forth the following:                
       (1) An assessment of the tactical, operational, and strategic       
   military requirements, including interoperability, reinforcement, and   
   force modernization issues, as well as strategic and territorial issues,
   that are raised by the inclusion of Poland, the Czech Republic, and     
   Hungary in the NATO alliance.                                           
       (2) The minimum military requirements to be satisfied by those      
   countries before accession to the NATO alliance in April 1999.          
       (3) The improvements to common alliance military assets that are    
   necessary as a result of expanding the NATO alliance to include those   
   nations.                                                                
       (4) The improvements to national capabilities of current NATO       
   members that would be necessitated by the inclusion of those nations in 
   the alliance.                                                           
       (5) The necessary improvements to national capabilities of the      
   military forces of those new member nations.                            
       (6) Any additional necessary improvements to common alliance        
   military assets of the military forces of those new members for which   
   funds are not planned to be included in the NATO budget.                
       (7) The additional requirements, related to NATO expansion, that the
   United States would agree to assist each new member nation to meet on a 
   bilateral basis.                                                        
    (b)  Matters To Be Included.--The report shall include the following: 

       (1) An assessment of the tactical and operational capabilities of   
   the military forces of Poland, the Czech Republic, and Hungary.         

       (2) An assessment of the ability of each such new member nation to  
   meet the minimum military requirements upon accession to the NATO       
   alliance in April 1999, and the ability of that nation to provide       
   logistical, command and control, and other vital infrastructure required
   for alliance defense (as specified in Article V of the NATO Charter),   
   including a description in general terms of alliance plans for          
   reinforcing each new NATO member nation during a crisis or war and      
   detailing means for deploying both United States and other NATO forces  
   from current member states and from the continental United States or    
   other United States bases worldwide and, in particular, describing plans
   for ground reinforcement of Hungary.                                    
       (3) An assessment of the ability of the current and new alliance    
   members to deploy and sustain combat forces in alliance defense missions
   conducted in the territory of any of the new member nations, as         
   specified in Article V of the NATO Charter.                             
       (4) A description of projected defense programs through 2009 (shown 
   on an annual basis and cumulatively) of each current and new alliance   
   member nation--                                                         
       (A) including planned investments in capabilities pursuant to       
   Article V to ensure that--                                              
       (i) the nation's military force structure, defense planning, command
   structures, and force goals promote NATO's capacity to project power    
   when the security of a NATO member is threatened; and                   
       (ii) NATO members possess national military capabilities to rapidly 
   deploy forces over long distances, sustain operations for extended      
   periods, and operate jointly with the United States in high intensity   
   conflicts as well as potential alliance contingency operations;         
       (B) showing both planned national efforts as well as planned        
   alliance common efforts; and                                            
       (C) describing any deficiencies in investments by current or new    
   alliance member nations.                                                
       (5) A detailed comparison and description of the differences in     
   scope, methodology, and assessments of common alliance or national      
   responsibilities, or any other factor related to alliance capabilities  
   between (A) the report on alliance expansion costs prepared by the      
   Department of Defense (in the report submitted to Congress in February  
   1998 entitled ``Report to the Congress on the Military Requirements and 
   Costs of NATO Enlargement''), and (B) the report on alliance expansion  
   costs prepared by NATO collectively and referred to as the ``NATO       
   estimate'', issued at Brussels in November 1997.                        
       (6) Any other factor that, in the judgment of the Secretary of      
   Defense, bears upon the strategic, operational, or tactical military    
   capabilities of an expanded NATO alliance.                              
     (c) Submission of Report.--The report shall be submitted to Congress 
  not later than March 15, 1999.                                          

                    SEC. 1223. REPORTS ON THE DEVELOPMENT OF THE EUROPEAN SECURITY
          AND DEFENSE IDENTITY.                                                   
     (a) Requirement for Reports.--The Secretary of Defense shall submit  
  to the Committee on Armed Services of the Senate and the Committee on   
  National Security of the House of Representatives in accordance with    
  this section reports on the development of the European Security and    
  Defense Identity (ESDI) within the NATO Alliance that would enable the  
  Western European Union (WEU), with the consent of the NATO Alliance, to 
  assume the political control and strategic direction of NATO assets and 
  capabilities made available by the Alliance.                            
     (b) Reports To Be Submitted.--The reports required to be submitted   
  under subsection (a) are as follows:                                    
       (1) An initial report, submitted not later than December 15, 1998,  
   that contains a discussion of the actions taken, and the plans for      
   future actions, to build the European Security and Defense Identity,    
   together with the matters required under subsection (c).                
       (2) A semiannual report on the progress made toward establishing the
   European Security and Defense Identity, submitted not later than June 15
   and December 15 of each year after 1998.                                
     (c) Content of Reports.--The Secretary shall include in each report  
  under this section the following:                                       
       (1) A discussion of the arrangements between NATO and the Western   
   European Union for the release, transfer, monitoring, return, and recall
   of NATO assets and capabilities.                                        
       (2) A discussion of the development of such planning and other      
   capabilities by the Western European Union that are necessary to provide
   political control and strategic direction of NATO assets and            
   capabilities.                                                           

       (3) A discussion of the development of terms of reference for the   
   Deputy Supreme Allied Commander, Europe, with respect to the European   
   Security and Defense Identity.                                          
       (4) A discussion of the arrangements for the assignment or          
   appointment of NATO officers to serve in two positions concurrently     
   (commonly referred to as ``dual-hatting'').                             
       (5) A discussion of the development of the Combined Joint Task Force
   (CJTF) concept, including lessons-learned from the NATO-led             
   Stabilization Force in Bosnia.                                          
       (6) Identification within the NATO Alliance of the types of         
   separable but not separate capabilities, assets, and support assets for 
   Western European Union-led operations.                                  
       (7) Identification of separable but not separate headquarters,      
   headquarters elements, and command positions for command and conduct of 
   Western European Union-led operations.                                  
       (8) The conduct by NATO, at the request of and in coordination with 
   the Western European Union, of military planning and exercises for      
   illustrative missions.                                                  
       (9) A discussion of the arrangements between NATO and the Western   
   European Union for the sharing of information, including intelligence.  
       (10) Such other information as the Secretary considers useful for a 
   complete understanding of the establishment of the European Security and
   Defense Identity within the NATO Alliance.                              
     (d) Termination of Reporting Requirement.--The requirement to submit 
  reports under subsection (b)(2) terminates upon the submission by the   
  Secretary under that subsection of a report in which the Secretary      
  states that the European Security and Defense Identity has been fully   
  established.                                                            

                                  SUBTITLE D--OTHER MATTERS                       


                    SEC. 1231. LIMITATION ON ASSIGNMENT OF UNITED STATES FORCES   
          FOR CERTAIN UNITED NATIONS PURPOSES.                                    
     (a) Limitation on Participation in United Nations Rapidly Deployable 
  Mission Headquarters.--If members of the Armed Forces are assigned      
  during fiscal year 1999 to the United Nations Rapidly Deployable Mission
  Headquarters, the number of members so assigned may not exceed eight at 
  any time during that year.                                              
     (b) Prohibition.--No funds available to the Department of Defense may
  be used--                                                               
       (1) for a monetary contribution to the United Nations for the       
   establishment of a standing international force under the United        
   Nations; or                                                             
       (2) to assign or detail any member of the Armed Forces to duty with 
   a United Nations Stand By Force.                                        

                    SEC. 1232. PROHIBITION ON RESTRICTION OF ARMED FORCES UNDER   
          KYOTO PROTOCOL TO THE UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE    
          CHANGE.                                                                 
     (a) In General.--Notwithstanding any other provision of law, no      
  provision of the Kyoto Protocol to the United Nations Framework         
  Convention on Climate Change, or any regulation issued pursuant to such 
  protocol, shall restrict the training or operations of the United States
  Armed Forces or limit the military equipment procured by the United     
  States Armed Forces.                                                    
     (b) Waiver.--A provision of law may not be construed as modifying or 
  superseding the provisions of subsection (a) unless that provision of   
  law--                                                                   
     (1) specifically refers to this section; and                          

       (2) specifically states that such provision of law modifies or      
   supersedes the provisions of this section.                              
     (c) Matters Not Affected.--Nothing in this section shall be construed
  to preclude the Department of Defense from implementing any measure to  
  achieve efficiencies or for any other reason independent of the Kyoto   
  Protocol.                                                               

          SEC. 1233. DEFENSE BURDENSHARING.                                       

     (a) Revised Goals for Efforts To Increase Allied                     
  Burdensharing.--Effective October 1, 1998, subsection (a) of section    
  1221 of the National Defense Authorization Act for Fiscal Year 1998     
  (Public Law 105 85; 111 Stat. 1935; 22 U.S.C. 1928 note) is amended--   
       (1) in paragraph (2), by striking out ``September 30, 1998'' and    
   inserting in lieu thereof ``September 30, 1999'';                       
     (2) in paragraph (3)--                                                

       (A) by striking out ``economic'' and all that follows through       
   ``rights'' and inserting in lieu thereof ``governmental accountability  
   and transparency, economic stabilization and development, defense       
   economic conversion, respect for the rule of law and internationally    
   recognized human rights, and humanitarian relief efforts)''; and        
       (B) by striking out ``at least to a level commensurate to that of   
   the United States by September 30, 1998'' and inserting in lieu thereof 
   ``to provide such foreign assistance at an annual rate that is not less 
   than one percent of its gross domestic product, by September 30, 1999'';
   and                                                                     
     (3) in paragraph (4)--                                                

     (A) by striking out ``amount of'';                                    

       (B) by striking out ``, or would be prepared to contribute,'' and   
   inserting in lieu thereof ``or has pledged to contribute''; and         
       (C) by inserting before the period at the end the following: ``by 10
   percent by September 30, 1999''.                                        
     (b) Revised Requirement for Report on Progress in Increasing Allied  
  Burdensharing.--Subsection (c) of such section is amended--             
       (1) by striking out ``March 1, 1998'' in the matter preceding       
   paragraph (1) and inserting in lieu thereof ``March 1, 1999''; and      
       (2) in paragraph (3), by striking out ``March 1, 1996'' and all that
   follows through the semicolon and inserting in lieu thereof ``October 1,
   1996, and ending on September 30, 1997, and during the period beginning 
   on October 1, 1997, and ending on September 30, 1998, or, in the case of
   any nation for which the data for such periods is inadequate, the       
   difference between the amounts for the latest periods for which adequate
   data is available;''.                                                   
     (c) Extension of Deadline for Report Regarding National Security     
  Bases for Forward Deployment and Burdensharing                          
  Relationships.--Subsection (d)(2) of such section is amended by striking
  out ``March 1, 1998'' and inserting in lieu thereof ``March 1, 1999''.  

                    SEC. 1234. TRANSFER OF EXCESS UH 1 HUEY AND AH 1 COBRA        
          HELICOPTERS TO FOREIGN COUNTRIES.                                       
     (a) In General.--Chapter 153 of title 10, United States Code, is     
  amended by adding at the end the following new section:                 

                    ``2581. Excess UH 1 Huey and AH 1 Cobra helicopters:          
          requirements for transfer to foreign countries                          
     ``(a) Requirements.--(1) Before an excess UH 1 Huey helicopter or AH 
  1 Cobra helicopter is transferred on a grant or sales basis to a foreign
  country for the purpose of flight operations by that country, the       
  Secretary of Defense shall make all reasonable efforts to ensure that   
  the helicopter receives, to the extent necessary, maintenance and repair
  equivalent to the depot-level maintenance and repair (as defined in     
  section 2460 of this title) that the helicopter would need were the     
  helicopter to remain in operational use with the armed forces. Any such 
  maintenance and repair work shall be performed at no cost to the        
  Department of Defense.                                                  
     ``(2) The Secretary shall make all reasonable efforts to ensure that 
  maintenance and repair work described in paragraph (1) is performed in  
  the United States.                                                      
     ``(b) Exception.--Subsection (a) does not apply with respect to      
  salvage helicopters provided to the foreign country solely as a source  
  for spare parts.''.                                                     

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

            ``2581. Excess UH 1 Huey and AH 1 Cobra helicopters: requirements 
      for transfer to foreign countries.''.                                   

          SEC. 1235. TRANSFERS OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.     

     (a) Transfers by Grant.--The Secretary of the Navy is authorized to  
  transfer vessels to foreign countries on a grant basis under section 516
  of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:     
       (1) To the Government of Argentina, the NEWPORT class tank landing  
   ship NEWPORT (LST 1179).                                                
     (2) To the Government of Greece--                                     

     (A) the KNOX class frigate HEPBURN (FF 1055); and                     

       (B) the ADAMS class guided missile destroyers STRAUSS (DDG 16),     
   SEMMS (DDG 18), and WADDELL (DDG 24).                                   
       (3) To the Government of Portugal, the STALWART class ocean         
   surveillance ship ASSURANCE (T-AGOS 5).                                 
       (4) To the Government of Turkey, the KNOX class frigates PAUL (FF   
   1080), MILLER (FF 1091), and W.S. SIMMS (FF 1059).                      
     (b) Transfers by Sale.--The Secretary of the Navy is authorized to   
  transfer vessels to foreign countries on a sales basis under section 21 
  of the Arms Export Control Act (22 U.S.C. 2761) as follows:             
       (1) To the Government of Brazil, the NEWPORT class tank landing     
   ships CAYUGA (LST 1186) and PEORIA (LST 1183).                          
     (2) To the Government of Chile--                                      

     (A) the NEWPORT class tank landing ship SAN BERNARDINO (LST 1189); and

     (B) the auxiliary repair dry dock WATERFORD (ARD 5).                  

     (3) To the Government of Greece--                                     

     (A) the OAK RIDGE class medium dry dock ALAMAGORDO (ARDM 2); and      

     (B) the KNOX class frigates VREELAND (FF 1068) and TRIPPE (FF 1075).  

     (4) To the Government of Mexico--                                     

     (A) the auxiliary repair dock SAN ONOFRE (ARD 30); and                

     (B) the KNOX class frigate PHARRIS (FF 1094).                         

       (5) To the Government of the Philippines, the STALWART class ocean  
   surveillance ship TRIUMPH (T-AGOS 4).                                   
       (6) To the Government of Spain, the NEWPORT class tank landing ships
   HARLAN COUNTY (LST 1196) and BARNSTABLE COUNTY (LST 1197).              
       (7) To the Taipai Economic and Cultural Representative Office in the
   United States (the Taiwan instrumentality that is designated pursuant to
   section 10(a) of the Taiwan Relations Act)--                            
       (A) the KNOX class frigates PEARY (FF 1073), JOSEPH HEWES (FF 1078),
   COOK (FF 1083), BREWTON (FF 1086), KIRK (FF 1987), and BARBEY (FF 1088);
       (B) the NEWPORT class tank landing ships MANITOWOC (LST 1180) and   
   SUMTER (LST 1181);                                                      
     (C) the floating dry dock COMPETENT (AFDM 6); and                     

     (D) the ANCHORAGE class dock landing ship PENSACOLA (LSD 38).         

     (8) To the Government of Turkey--                                     

       (A) the OLIVER HAZARD PERRY class guided missile frigates MAHLON S. 
   TISDALE (FFG 27), REID (FFG 30), and DUNCAN (FFG 10); and               
       (B) the KNOX class frigates REASONER (FF 1063), FANNING (FF 1076),  
   BOWEN (FF 1079), MCCANDLESS (FF 1084), DONALD BEARY (FF                 

                    1085), AINSWORTH (FF 1090), THOMAS C. HART (FF 1092), and     
          CAPODANNO (FF 1093).                                                    
       (9) To the Government of Venezuela, the medium auxiliary floating   
   dry dock bearing hull number AFDM 2.                                    
     (c) Transfers on a Combined Lease-Sale Basis.--The Secretary of the  
  Navy is authorized to transfer vessels to foreign countries on a        
  combined lease-sale basis under sections 61 and 21 of the Arms Export   
  Control Act (22 U.S.C. 2796, 2761) and in accordance with subsection (d)
  as follows:                                                             
       (1) To the Government of Brazil, the CIMARRON class oiler MERRIMACK 
   (AO 179).                                                               
       (2) To the Government of Greece, the KIDD class guided missile      
   destroyers KIDD (DDG 993), CALLAGHAN (DDG 994), SCOTT (DDG 995), and    
   CHANDLER (DDG 996).                                                     
     (d) Conditions Relating To Combined Lease-Sale Transfers.--A transfer
  of a vessel on a combined lease-sale basis authorized by subsection (c) 
  shall be made in accordance with the following requirements:            
       (1) The Secretary may initially transfer the vessel by lease, with  
   lease payments suspended for the term of the lease, if the country      
   entering into the lease for the vessel simultaneously enters into a     
   foreign military sales agreement for the transfer of title to the       
   vessel.                                                                 
       (2) The Secretary may not deliver to the purchasing country title to
   the vessel until the purchase price of the vessel under such a foreign  
   military sales agreement is paid in full.                               
       (3) Upon payment of the purchase price in full under such a sales   
   agreement and delivery of title to the recipient country, the Secretary 
   shall terminate the lease.                                              
       (4) If the purchasing country fails to make full payment of the     
   purchase price in accordance with the sales agreement by the date       
   required under the sales agreement--                                    
     (A) the sales agreement shall be immediately terminated;              

       (B) the suspension of lease payments under the lease shall be       
   vacated; and                                                            
       (C) the United States shall be entitled to retain all funds received
   on or before the date of the termination under the sales agreement, up  
   to the amount of the lease payments due and payable under the lease and 
   all other costs required by the lease to be paid to that date.          
       (5) If a sales agreement is terminated pursuant to paragraph (4),   
   the United States shall not be required to pay any interest to the      
   recipient country on any amount paid to the United States by the        
   recipient country under the sales agreement and not retained by the     
   United States under the lease.                                          
     (e) Requirement for Provision in Advance in an Appropriations        
  Act.--Authority to transfer vessels on a sale basis under subsection (b)
  or a combined lease-sale basis under subsection (c) is effective only to
  the extent that authority to effectuate such transfers, together with   
  appropriations to cover the associated cost (as defined in section 502  
  of the Congressional Budget of 1974 (2 U.S.C. 661a)), are provided in   
  advance in an appropriations Act.                                       
     (f) Authorization of Appropriations for Certain Costs of             
  Transfers.--There is established in the Treasury of the United States a 
  special account to be known as the Defense Vessels Transfer Program     
  Account. There is hereby authorized to be appropriated into that account
  such sums as may be necessary for the costs (as defined in section 502  
  of the Congressional Budget Act of 1974 (2 U.S.C. 661a)) of the         
  lease-sale transfers authorized by subsection (c). Funds in that account
  are available only for the purpose of covering those costs.             
     (g) Notification of Congress.--Not later than 30 days after the date 
  of the enactment of this Act, the Secretary of the Navy shall submit to 
  Congress, for each naval vessel that is to be transferred under this    
  section before January 1, 1999, the notifications required under section
  516 of the Foreign Assistance                                           

                    Act of 1961 (22 U.S.C. 2321j) and section 525 of the Foreign  
          Operations, Export Financing, and Related Programs Appropriations Act,  
          1998 (Public Law 105 118; 111 Stat. 2413).                              
     (h) Grants not Counted in Annual Total of Transferred Excess Defense 
  Articles.--The value of a vessel transferred to another country on a    
  grant basis under section 516 of the Foreign Assistance Act of 1961 (22 
  U.S.C. 2321j) pursuant to authority provided by subsection (a) shall not
  be counted for the purposes of subsection (g) of that section in the    
  aggregate value of excess defense articles transferred to countries     
  under that section in any fiscal year.                                  
     (i) Costs of Transfers.--Any expense incurred by the United States in
  connection with a transfer authorized by this section shall be charged  
  to the recipient (notwithstanding section 516(e)(1) of the Foreign      
  Assistance Act of 1961 (22 U.S.C. 2321j(e)(1)) in the case of a transfer
  authorized to be made on a grant basis under subsection (a)).           
     (j) Repair and Refurbishment in United States Shipyards.--To the     
  maximum extent practicable, the Secretary of the Navy shall require, as 
  a condition of the transfer of a vessel under this section, that the    
  country to which the vessel is transferred have such repair or          
  refurbishment of the vessel as is needed, before the vessel joins the   
  naval forces of that country, performed at a shipyard located in the    
  United States, including a United States Navy shipyard.                 
     (k) Expiration of Authority.--The authority to transfer a vessel     
  under this section shall expire at the end of the two-year period       
  beginning on the date of the enactment of this Act.                     
          SEC. 1236. REPEAL OF LANDMINE MORATORIUM.                               

     Section 580 of the Foreign Operations Appropriations Act, 1996       
  (Public Law 104 107; 110 Sat 751), is repealed.                         

                    SEC. 1237. APPLICATION OF AUTHORITIES UNDER THE INTERNATIONAL 
          EMERGENCY ECONOMIC POWERS ACT TO COMMUNIST CHINESE MILITARY COMPANIES.  
    (a)  Presidential Authority.--                                        

       (1) In general.--The President may exercise IEEPA authorities (other
   than authorities relating to importation) without regard to section 202 
   of the International Emergency Economic Powers Act (50 U.S.C. 1701) in  
   the case of any commercial activity in the United States by a person    
   that is on the list published under subsection (b).                     
       (2) Penalties.--The penalties set forth in section 206 of the       
   International Emergency Economic Powers Act (50 U.S.C. 1705) apply to   
   violations of any license, order, or regulation issued under paragraph  
   (1).                                                                    
       (3) Ieepa authorities.--For purposes of paragraph (1), the term     
   ``IEEPA authorities'' means the authorities set forth in section 203(a) 
   of the International Emergency Economic Powers Act (50 U.S.C. 1702(a)). 
     (b) Determination and Publication of Communist Chinese Military      
  Companies Operating in United States.--                                 
       (1) Initial determination and publication.--Not later than 90 days  
   after the date of the enactment of this Act, the Secretary of Defense   
   shall make a determination of those persons operating directly or       
   indirectly in the United States or any of its territories and           
   possessions that are Communist Chinese military companies and shall     
   publish a list of those persons in the Federal Register.                
       (2) Revisions to list.--The Secretary of Defense shall make         
   additions or deletions to the list published under paragraph (1) on an  
   ongoing basis based on the latest information available.                
       (3) Consultation.--The Secretary of Defense shall consult with the  
   following officers in carrying out paragraphs (1) and (2):              
     (A) The Attorney General.                                             


     (B) The Director of Central Intelligence.                             

     (C) The Director of the Federal Bureau of Investigation.              

       (4) Communist chinese military company.--For purposes of making the 
   determination required by paragraph (1) and of carrying out paragraph   
   (2), the term ``Communist Chinese military company'' means--            
       (A) any person identified in the Defense Intelligence Agency        
   publication numbered VP 1920 271 90, dated September 1990, or PC 1921 57
   95, dated October 1995, and any update of those publications for the    
   purposes of this section; and                                           
     (B) any other person that--                                           

     (i) is owned or controlled by the People's Liberation Army; and       

       (ii) is engaged in providing commercial services, manufacturing,    
   producing, or exporting.                                                
     (c) People's Liberation Army.--For purposes of this section, the term
  ``People's Liberation Army'' means the land, naval, and air military    
  services, the police, and the intelligence services of the Communist    
  Government of the People's Republic of China, and any member of any such
  service or of such police.                                              

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

            Sec. 1301. Specification of Cooperative Threat Reduction Programs 
      and funds.                                                              
      Sec. 1302. Funding allocations.                                         

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

            Sec. 1304. Limitation on use of funds for chemical weapons        
      destruction activities in Russia.                                       
            Sec. 1305. Limitation on use of funds for biological weapons      
      proliferation prevention activities in Russia.                          
      Sec. 1306. Cooperative counter proliferation program.                   

            Sec. 1307. Requirement to submit summary of amounts requested by  
      project category.                                                       
      Sec. 1308. Report on biological weapons programs in Russia.             

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

                    SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION      
          PROGRAMS AND FUNDS.                                                     
     (a) Specification of CTR Programs.--(1) For purposes of section 301  
  and other provisions of this Act, Cooperative Threat Reduction programs 
  are the programs specified in section 1501(b) of the National Defense   
  Authorization Act for Fiscal Year 1997 (Public Law 104 201; 110 Stat.   
  2731; 50 U.S.C. 2362 note) (as amended by paragraph (2)).               
     (2) Section 1501(b)(3) of such Act is amended by inserting           
  ``materials,'' after ``components,''.                                   
     (b) Fiscal Year 1999 Cooperative Threat Reduction Funds Defined.--As 
  used in this title, the term ``fiscal year 1999 Cooperative Threat      
  Reduction funds'' means the funds appropriated pursuant to the          
  authorization of appropriations in section 301 for Cooperative Threat   
  Reduction programs.                                                     
     (c) Availability of Funds.--Funds appropriated pursuant to the       
  authorization of appropriations in section 301 for Cooperative Threat   
  Reduction programs shall be available for obligation for three fiscal   
  years.                                                                  

          SEC. 1302. FUNDING ALLOCATIONS.                                         

     (a) Funding for Specific Purposes.--Of the amounts authorized to be  
  appropriated to the Department of Defense for fiscal year 1999 in       
  section 301(23), $440,400,000 shall be                                  

                    available to carry out Cooperative Threat Reduction programs, 
          of which not more than the following amounts may be obligated for the   
          purposes specified:                                                     
     (1) For strategic offensive arms elimination in Russia, $142,400,000. 

     (2) For strategic nuclear arms elimination in Ukraine, $47,500,000.   

       (3) For activities to support warhead dismantlement processing in   
   Russia, $9,400,000.                                                     
       (4) For activities associated with chemical weapons destruction in  
   Russia, $88,400,000.                                                    
     (5) For weapons transportation security in Russia, $10,300,000.       

       (6) For planning, design, and construction of a storage facility for
   Russian fissile material, $60,900,000.                                  
     (7) For weapons storage security in Russia, $41,700,000.              

       (8) For development of a cooperative program with the Government of 
   Russia to eliminate the production of weapons grade plutonium at Russian
   reactors, $29,800,000.                                                  
       (9) For biological weapons proliferation prevention activities in   
   Russia, $2,000,000.                                                     
       (10) For activities designated as Other Assessments/Administrative  
   Support $8,000,000.                                                     
     (b) Limited Authority To Vary Individual Amounts.--(1) If the        
  Secretary of Defense determines that it is necessary to do so in the    
  national interest, the Secretary may, subject to paragraphs (2) and (3),
  obligate amounts for the purposes stated in any of the paragraphs of    
  subsection (a) in excess of the amount specified for those purposes in  
  that paragraph. However, the total amount obligated for the purposes    
  stated in the paragraphs in subsection (a) may not by reason of the use 
  of the authority provided in the preceding sentence exceed the sum of   
  the amounts specified in those paragraphs.                              
     (2) An obligation for the purposes stated in any of the paragraphs in
  subsection (a) in excess of the amount specified in that paragraph may  
  be made using the authority provided in paragraph (1) only after--      
       (A) the Secretary submits to Congress notification of the intent to 
   do so together with a complete discussion of the justification for doing
   so; and                                                                 
     (B) 15 days have elapsed following the date of the notification.      

     (3) The Secretary may not, under the authority provided in paragraph 
  (1), obligate amounts appropriated for the purposes stated in any of    
  paragraphs (3) through (10) of subsection (a) in excess of 115 percent  
  of the amount stated in those paragraphs.                               

          SEC. 1303. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.          

     (a) In General.--No fiscal year 1999 Cooperative Threat Reduction    
  funds, and no funds appropriated for Cooperative Threat Reduction       
  programs for any prior fiscal year and remaining available for          
  obligation, may be obligated or expended for any of the following       
  purposes:                                                               
       (1) Conducting with Russia any peacekeeping exercise or other       
   peacekeeping-related activity.                                          
     (2) Provision of housing.                                             

     (3) Provision of assistance to promote environmental restoration.     

     (4) Provision of assistance to promote job retraining.                

     (b) Limitation With Respect to Defense Conversion Assistance.--None  
  of the funds appropriated pursuant to this Act may be obligated or      
  expended for the provision of assistance to Russia or any other state of
  the former Soviet Union to promote defense conversion.                  

                    SEC. 1304. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS    
          DESTRUCTION ACTIVITIES IN RUSSIA.                                       
     (a) Limitation.--Subject to the limitation in section 1405(b) of the 
  National Defense Authorization Act for Fiscal Year 1998 (Public Law 105 
  85; 111 Stat. 1961), no funds authorized to be appropriated for         
  Cooperative Threat Reduction                                            

                    programs under this Act or any other Act may be obligated or  
          expended for chemical weapons destruction activities in Russia          
          (including activities for the planning, design, or construction of a    
          chemical weapons destruction facility or for the dismantlement of an    
          existing chemical weapons production facility) until the President      
          submits to Congress a written certification described in subsection (b).
     (b) Presidential Certification.--A certification under this          
  subsection is either of the following certifications by the President:  
     (1) A certification that--                                            

       (A) Russia is making reasonable progress toward the implementation  
   of the Bilateral Destruction Agreement;                                 
       (B) the United States and Russia have made substantial progress     
   toward the resolution, to the satisfaction of the United States, of     
   outstanding compliance issues under the Wyoming Memorandum of           
   Understanding and the Bilateral Destruction Agreement; and              
       (C) Russia has fully and accurately declared all information        
   regarding its unitary and binary chemical weapons, chemical weapons     
   facilities, and other facilities associated with chemical weapons.      
       (2) A certification that the national security interests of the     
   United States could be undermined by a policy of the United States not  
   to carry out chemical weapons destruction activities under Cooperative  
   Threat Reduction programs for which funds are authorized to be          
   appropriated under this Act or any other Act for fiscal year 1999.      
    (b)  Definitions.--In this section:                                   

       (1) The term ``Bilateral Destruction Agreement'' means the Agreement
   Between the United States of America and the Union of Soviet Socialist  
   Republics on Destruction and Non-production of Chemical Weapons and on  
   Measures to Facilitate the Multilateral Convention on Banning Chemical  
   Weapons signed on June 1, 1990.                                         
       (2) The term ``Wyoming Memorandum of Understanding'' means the      
   Memorandum of Understanding Between the Government of the United States 
   of America and the Government of the Union of Soviet Socialist Republics
   Regarding a Bilateral Verification Experiment and Data Exchange Related 
   to Prohibition on Chemical Weapons, signed at Jackson Hole, Wyoming, on 
   September 23, 1989.                                                     

                    SEC. 1305. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL WEAPONS  
          PROLIFERATION PREVENTION ACTIVITIES IN RUSSIA.                          
     No fiscal year 1999 Cooperative Threat Reduction funds may be        
  obligated or expended for biological weapons proliferation prevention   
  activities in Russia until 15 days after the date on which the Secretary
  submits to the congressional defense committees a report on--           
       (1) whether Cooperative Threat Reduction funds provided for         
   cooperative research activities at biological research institutes in    
   Russia have been used--                                                 
     (A) to support activities to develop new strains of anthrax; or       

       (B) for any purpose inconsistent with the objectives of providing   
   such funds; and                                                         
       (2) the new strains of anthrax alleged to have been developed at a  
   biological research institute in Russia and any efforts by the United   
   States to examine such strains.                                         
          SEC. 1306. COOPERATIVE COUNTER PROLIFERATION PROGRAM.                   

     (a) In General.--Of the amount authorized to be appropriated in      
  section 1302 (other than the amounts authorized to be appropriated in   
  subsections (a)(1) and (a)(2) of that section) and subject to the       
  limitations in that section and subsection (b), the Secretary of Defense
  may provide a country of the former Soviet Union with emergency         
  assistance for removing or obtaining from that country--                
     (1) weapons of mass destruction; or                                   

       (2) materials, equipment, or technology related to the development  
   or delivery of weapons of mass destruction.                             

     (b) Certification Required.--(1) The Secretary may not provide       
  assistance under subsection (a) until 15 days after the date that the   
  Secretary submits to the congressional defense committees a             
  certification in writing that the weapons, materials, equipment, or     
  technology described in that subsection meet each of the following      
  requirements:                                                           
       (A) The weapons, materials, equipment, or technology are at risk of 
   being sold or otherwise transferred to a restricted foreign state or    
   entity.                                                                 
       (B) The transfer of the weapons, materials, equipment, or technology
   would pose a significant near-term threat to the national security      
   interests of the United States or would significantly advance a foreign 
   country's weapon program that threatens the national security interests 
   of the United States.                                                   
       (C) Other options for securing or otherwise preventing the transfer 
   of the weapons, materials, equipment, or technology have been considered
   and rejected as ineffective or inadequate.                              
     (2) The 15-day notice requirement in paragraph (1) may be waived if  
  the Secretary determines that compliance with the requirement would     
  compromise the national security interests of the United States. In such
  case, the Secretary shall promptly notify the congressional defense     
  committees of the circumstances regarding such determination in advance 
  of providing assistance under subsection (a) and shall submit the       
  certification required not later than 30 days after providing such      
  assistance.                                                             
     (c) Content of Certifications.--Each certification required under    
  subsection (b) shall contain information on the following with respect  
  to the assistance being provided:                                       
       (1) The specific assistance provided and the purposes for which the 
   assistance is being provided.                                           
     (2) The sources of funds for the assistance.                          

       (3) Whether any assistance is being provided by any other Federal   
   department or agency.                                                   
     (4) The options considered and rejected for preventing the transfer  
  of the weapons, materials, equipment, or technology, as described in    
  subsection (b)(1)(C).                                                   
     (5) Whether funding was requested by the Secretary from other Federal
  departments or agencies.                                                
     (6) Any additional information that the Secretary determines is      
  relevant to the assistance being provided.                              
     (d) Additional Sources of Funding.--The Secretary may request        
  assistance and accept funds from other Federal departments or agencies  
  in carrying out this section.                                           
    (e)  Definitions.--In this section:                                   

       (1) The term ``restricted foreign state or entity'', with respect to
   weapons, materials, equipment, or technology covered by a certification 
   or notification of the Secretary of Defense under subsection (b),       
   means--                                                                 
       (A) any foreign country the government of which has repeatedly      
   provided support for acts of international terrorism, as determined by  
   the Secretary of State under section 620A of the Foreign Assistance Act 
   of 1961 (22 U.S.C. 2371); or                                            
       (B) any foreign state or entity that the Secretary of Defense       
   determines would constitute a military threat to the United States, its 
   allies, or interests, if that foreign state or entity were to possess   
   the weapons, materials, equipment, or technology.                       
       (2) The term ``weapon of mass destruction'' has the meaning given   
   that term in section 1403(1) of the Defense Against Weapons of Mass     
   Destruction Act of 1996 (title XIV of Public Law 104 201; 50 U.S.C.     
   2302(1)).                                                               

                    SEC. 1307. REQUIREMENT TO SUBMIT SUMMARY OF AMOUNTS REQUESTED 
          BY PROJECT CATEGORY.                                                    
     (a) Summary Required.--The Secretary of Defense shall submit to      
  Congress as part of the Secretary's annual budget request to Congress-- 
       (1) a descriptive summary, with respect to the appropriations       
   requested for Cooperative Threat Reduction programs                     

                    for the fiscal year after the fiscal year in which the summary
          is submitted, of the amounts requested for each project category under  
          each Cooperative Threat Reduction program element; and                  
       (2) a descriptive summary, with respect to appropriations for       
   Cooperative Threat Reduction programs for the fiscal year in which the  
   list is submitted and the previous fiscal year, of the amounts obligated
   or expended, or planned to be obligated or expended, for each project   
   category under each Cooperative Threat Reduction program element.       
     (b) Description of Purpose and Intent.--The descriptive summary      
  required under subsection (a) shall include a narrative description of  
  each program and project category under each Cooperative Threat         
  Reduction program element that explains the purpose and intent of the   
  funds requested.                                                        

          SEC. 1308. REPORT ON BIOLOGICAL WEAPONS PROGRAMS IN RUSSIA.             

     (a) Report.--Not later than March 1, 1999, the Secretary of Defense  
  shall submit to the congressional defense committees a report, in       
  classified and unclassified forms, containing--                         
       (1) an assessment of the extent of compliance by Russia with        
   international agreements relating to the control of biological weapons; 
   and                                                                     
       (2) a detailed evaluation of the potential political and military   
   costs and benefits of collaborative biological pathogen research efforts
   by the United States and Russia.                                        
     (b) Content of Report.--The report required under subsection (a)     
  shall include the following:                                            
       (1) An evaluation of the extent of the control and oversight by the 
   Government of Russia over the military and civilian-military biological 
   warfare programs formerly controlled or overseen by states of the former
   Soviet Union.                                                           
       (2) The extent and scope of continued biological warfare research,  
   development, testing, and production in Russia, including the sites     
   where such activity is occurring and the types of activity being        
   conducted.                                                              
       (3) An assessment of compliance by Russia with the terms of the     
   Biological Weapons Convention.                                          
       (4) An identification and assessment of the measures taken by Russia
   to comply with the obligations assumed under the Joint Statement on     
   Biological Weapons, agreed to by the United States, the United Kingdom, 
   and Russia on September 14, 1992.                                       
       (5) A description of the extent to which Russia has permitted       
   individuals from the United States or other countries to visit military 
   and nonmilitary biological research, development, testing, and          
   production sites in order to resolve ambiguities regarding activities at
   such sites.                                                             
       (6) A description of the information provided by Russia about its   
   biological weapons dismantlement efforts to date.                       
       (7) An assessment of the accuracy and comprehensiveness of          
   declarations by Russia regarding its biological weapons activities.     
       (8) An identification of collaborative biological research projects 
   carried out by the United States and Russia for which Cooperative Threat
   Reduction funds have been used.                                         
       (9) An evaluation of the political and military utility of prior,   
   existing, and prospective cooperative biological pathogen research      
   programs carried out between the United States and Russia, and an       
   assessment of the impact of such programs on increasing Russian military
   transparency with respect to biological weapons activities.             
       (10) An assessment of the political and military utility of the     
   long-term collaborative program advocated by the National Academy of    
   Sciences in its October 27, 1997 report, ``Controlling Dangerous        
   Pathogens: A Blueprint for U.S.-Russian Cooperation''.                  

                    SEC. 1309. REPORT ON INDIVIDUALS WITH EXPERTISE IN FORMER     
          SOVIET WEAPONS OF MASS DESTRUCTION PROGRAMS.                            
     Not later than January 31, 1999, the Secretary of Defense, in        
  consultation with the Secretary of State, the Secretary of Energy, and  
  any other appropriate officials, shall submit to the congressional      
  defense committees a report on the number of individuals in the former  
  Soviet Union who have significant expertise in the research,            
  development, production, testing, and operational employment of         
  ballistic missiles and weapons of mass destruction. The report shall    
  contain the following:                                                  
       (1) A listing of the specific expertise of the individuals, by      
   category and discipline.                                                
       (2) An assessment of which categories of expertise would pose the   
   greatest risks to the security of the United States if that expertise   
   were transferred to potentially hostile states.                         
       (3) An estimate, by category, of the number of the individuals in   
   paragraph (1) who are fully or partly employed at the time the report is
   submitted by the military-industrial complex of the former Soviet Union,
   the number of such individuals who are fully employed at the time the   
   report is submitted by commercial ventures outside the                  
   military-industrial complex of the former Soviet Union, and the number  
   of such individuals who are unemployed and underemployed at the time the
   report is submitted.                                                    
       (4) An identification of the nature, scope, and cost of activities  
   conducted by the United States and other countries to assist in the     
   employment in nonproliferation and nonmilitary-related endeavors and    
   enterprises of individuals involved in the weapons complex of the former
   Soviet Union, and which categories of individuals are being targeted in 
   these efforts.                                                          
       (5) An assessment of whether the activities identified under        
   paragraph (4) should be reduced, maintained, or expanded.               

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

      Sec. 1401. Short title.                                                 

            Sec. 1402. Domestic preparedness for response to threats of       
      terrorist use of weapons of mass destruction.                           
      Sec. 1403. Report on domestic emergency preparedness.                   

      Sec. 1404. Threat and risk assessments.                                 

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

          SEC. 1401. SHORT TITLE.                                                 

     This title may be cited as the ``Defense Against Weapons of Mass     
  Destruction Act of 1998''.                                              
                    SEC. 1402. DOMESTIC PREPAREDNESS FOR RESPONSE TO THREATS OF   
          TERRORIST USE OF WEAPONS OF MASS DESTRUCTION.                           
     (a) Enhanced Response Capability.--In light of the continuing        
  potential for terrorist use of weapons of mass destruction against the  
  United States and the need to develop a more fully coordinated response 
  to that threat on the part of Federal, State, and local agencies, the   
  President shall act to increase the effectiveness at the Federal, State,
  and local level of the domestic emergency preparedness program for      
  response to terrorist incidents involving weapons of mass destruction by
  utilizing the President's existing authorities to develop an integrated 
  program that builds upon the program established under the Defense      
  Against Weapons of Mass Destruction Act of 1996 (title XIV of Public Law
  104 201; 110 Stat. 2714; 50 U.S.C. 2301 et seq.).                       
     (b) Report.--Not later than January 31, 1999, the President shall    
  submit to Congress a report containing information on the actions taken 
  at the Federal, State, and local level to develop an integrated program 
  to prevent and respond to terrorist incidents involving weapons of mass 
  destruction.                                                            
          SEC. 1403. REPORT ON DOMESTIC EMERGENCY PREPAREDNESS.                   

     Section 1051 of the National Defense Authorization Act for Fiscal    
  Year 1998 (Public Law 105 85; 111 Stat. 1889; 31                        

                    U.S.C. 1113 note) is amended by adding at the end the         
          following new subsection:                                               
     ``(c) Annex on Domestic Emergency Preparedness Program.--As part of  
  the annual report submitted to Congress under subsection (b), the       
  President shall include an annex which provides the following           
  information on the domestic emergency preparedness program for response 
  to terrorist incidents involving weapons of mass destruction (as        
  established under section 1402 of the Defense Against Weapons of Mass   
  Destruction Act of 1998):                                               
       ``(1) Information on program responsibilities for each participating
   Federal department, agency, and bureau.                                 
       ``(2) A summary of program activities performed during the preceding
   fiscal year for each participating Federal department, agency, and      
   bureau.                                                                 
       ``(3) A summary of program obligations and expenditures during the  
   preceding fiscal year for each participating Federal department, agency,
   and bureau.                                                             
       ``(4) A summary of the program plan and budget for the current      
   fiscal year for each participating Federal department, agency, and      
   bureau.                                                                 
       ``(5) The program budget request for the following fiscal year for  
   each participating Federal department, agency, and bureau.              
       ``(6) Recommendations for improving Federal, State, and local       
   domestic emergency preparedness to respond to incidents involving       
   weapons of mass destruction that have been made by the advisory panel to
   assess the capabilities of domestic response to terrorism involving     
   weapons of mass destruction (as established under section 1405 of the   
   Defense Against Weapons of Mass Destruction Act of 1998), and actions   
   taken as a result of such recommendations.                              
       ``(7) Additional program measures and legislative authority for     
   which congressional action may be required.''.                          
          SEC. 1404. THREAT AND RISK ASSESSMENTS.                                 

     (a) Requirement To Develop Methodologies.-- The Attorney General, in 
  consultation with the Director of the Federal Bureau of Investigation   
  and representatives of appropriate Federal, State, and local agencies,  
  shall develop and test methodologies for assessing the threat and risk  
  of terrorist employment of weapons of mass destruction against cities   
  and other local areas. The results of the tests may be used to determine
  the training and equipment requirements under the program developed     
  under section 1402. The methodologies required by this subsection shall 
  be developed using cities or local areas selected by the Attorney       
  General, acting in consultation with the Director of the Federal Bureau 
  of Investigation and appropriate representatives of Federal, State, and 
  local agencies.                                                         
     (b) Required Completion Date.--The requirements in subsection (a)    
  shall be completed not later than one year after the date of the        
  enactment of this Act.                                                  
                    SEC. 1405. ADVISORY PANEL TO ASSESS DOMESTIC RESPONSE         
          CAPABILITIES FOR TERRORISM INVOLVING WEAPONS OF MASS DESTRUCTION.       
     (a) Requirement for Panel.--The Secretary of Defense, in consultation
  with the Attorney General, the Secretary of Energy, the Secretary of    
  Health and Human Services, and the Director of the Federal Emergency    
  Management Agency, shall enter into a contract with a federally funded  
  research and development center to establish a panel to assess the      
  capabilities for domestic response to terrorism involving weapons of    
  mass destruction.                                                       
     (b) Composition of Panel; Selection.--(1) The panel shall be composed
  of members who shall be private citizens of the United States with      
  knowledge and expertise in emergency response matters.                  
     (2) Members of the panel shall be selected by the federally funded   
  research and development center in accordance with the terms of the     
  contract established pursuant to subsection (a).                        
     (c) Procedures For Panel.--The federally funded research and         
  development center shall be responsible for establishing                

                    appropriate procedures for the panel, including procedures for
          selection of a panel chairman.                                          
    (d)  Duties of Panel.-- The panel shall--                             

       (1) assess Federal agency efforts to enhance domestic preparedness  
   for incidents involving weapons of mass destruction;                    
       (2) assess the progress of Federal training programs for local      
   emergency responses to incidents involving weapons of mass destruction; 
       (3) assess deficiencies in programs for response to incidents       
   involving weapons of mass destruction, including a review of unfunded   
   communications, equipment, and planning requirements, and the needs of  
   maritime regions;                                                       
       (4) recommend strategies for ensuring effective coordination with   
   respect to Federal agency weapons of mass destruction response efforts, 
   and for ensuring fully effective local response capabilities for weapons
   of mass destruction incidents; and                                      
       (5) assess the appropriate roles of State and local government in   
   funding effective local response capabilities.                          
     (e) Deadline to Enter Into Contract.--The Secretary of Defense shall 
  enter into the contract required under subsection (a) not later than 60 
  days after the date of the enactment of this Act.                       
     (f) Deadline for Selection of Panel Members.--Selection of panel     
  members shall be made not later than 30 days after the date on which the
  Secretary enters into the contract required by subsection (a).          
     (g) Initial Meeting of the Panel.-- The panel shall conduct its first
  meeting not later than 30 days after the date that all the selections to
  the panel have been made.                                               
     (h) Reports.--(1) Not later than 6 months after the date of the first
  meeting of the panel, the panel shall submit to the President and to    
  Congress an initial report setting forth its findings, conclusions, and 
  recommendations for improving Federal, State, and local domestic        
  emergency preparedness to respond to incidents involving weapons of mass
  destruction.                                                            
     (2) Not later than December 15 of each year, beginning in 1999 and   
  ending in 2001, the panel shall submit to the President and to the      
  Congress a report setting forth its findings, conclusions, and          
  recommendations for improving Federal, State, and local domestic        
  emergency preparedness to respond to incidents involving weapons of mass
  destruction.                                                            
     (i) Cooperation of Other Agencies.--(1) The panel may secure directly
  from the Department of Defense, the Department of Energy, the Department
  of Health and Human Services, the Department of Justice, and the Federal
  Emergency Management Agency, or any other Federal department or agency  
  information that the panel considers necessary for the panel to carry   
  out its duties.                                                         
     (2) The Attorney General, the Secretary of Defense, the Secretary of 
  Energy, the Secretary of Health and Human Services, the Director of the 
  Federal Emergency Management Agency, and any other official of the      
  United States shall provide the panel with full and timely cooperation  
  in carrying out its duties under this section.                          
     (j) Funding.--The Secretary of Defense shall provide the funds       
  necessary for the panel to carry out its duties from the funds available
  to the Department of Defense for weapons of mass destruction            
  preparedness initiatives.                                               
     (k) Compensation of Panel Members.--(1) Members of the panel shall   
  serve without pay by reason of their work on the panel.                 
     (2) Members of the panel shall be allowed travel expenses, including 
  per diem in lieu of subsistence, at rates authorized for employees of   
  agencies under subchapter 57 of title 5, United States Code, while away 
  from their homes or regular place of business in performance of services
  for the panel.                                                          
     (l) Termination of the Panel.--The panel shall terminate three years 
  after the date of the appointment of the member selected as chairman of 
  the panel.                                                              
     (m) Definition.--In this section, the term ``weapon of mass          
  destruction'' has the meaning given that term in section 1403(1) of the 
  Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C.      
  2302(1)).                                                               

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

                              SUBTITLE A--ARMS CONTROL MATTERS                    

            Sec. 1501. One-year extension of limitation on retirement or      
      dismantlement of strategic nuclear delivery systems.                    
            Sec. 1502. Transmission of executive branch reports providing     
      Congress with classified summaries of arms control developments.        
            Sec. 1503. Report on adequacy of emergency communications         
      capabilities between United States and Russia.                          
      Sec. 1504. Russian nonstrategic nuclear weapons.                        

                            SUBTITLE B--SATELLITE EXPORT CONTROLS                 

      Sec. 1511. Sense of Congress.                                           

            Sec. 1512. Certification of exports of missile equipment or       
      technology to China.                                                    
      Sec. 1513. Satellite controls under the United States Munitions List.   

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

            Sec. 1515. Report on export of satellites for launch by People's  
      Republic of China.                                                      
      Sec. 1516. Related items defined.                                       

                          SUBTITLE C--OTHER EXPORT CONTROL MATTERS                

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

            Sec. 1524. Execution of objection authority within the Department 
      of Defense.                                                             
                          SUBTITLE D--COUNTERPROLIFERATION MATTERS                

            Sec. 1531. One-year extension of counterproliferation authorities 
      for support of United Nations Special Commission on Iraq.               
      Sec. 1532. Sense of Congress on nuclear tests in South Asia.            

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

                              SUBTITLE A--ARMS CONTROL MATTERS                    


                    SEC. 1501. ONE-YEAR EXTENSION OF LIMITATION ON RETIREMENT OR  
          DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY SYSTEMS.                    
     Section 1302 of the National Defense Authorization Act for Fiscal    
  Year 1998 (Public Law 105 85; 111 Stat. 1948) is amended--              
       (1) in subsections (a), (b), and (c)(2), by striking out ``during   
   fiscal year 1998'' and inserting in lieu thereof ``during the strategic 
   delivery systems retirement limitation period'' ;                       
     (2) in subsection (c)(1), by striking out ``during fiscal year 1998'';

     (3) in subsection (d)(1)--                                            

     (A) by striking out ``for fiscal year 1998''; and                     

     (B) by striking out ``during fiscal year 1998''; and                  

     (4) by adding at the end the following new subsection:                

     ``(g) Strategic Delivery Systems Retirement Limitation Period.--For  
  purposes of this section, the term ``strategic delivery systems         
  retirement limitation period'' means the period of fiscal years 1998 and
  1999.''.                                                                

                    SEC. 1502. TRANSMISSION OF EXECUTIVE BRANCH REPORTS PROVIDING 
          CONGRESS WITH CLASSIFIED SUMMARIES OF ARMS CONTROL DEVELOPMENTS.        
     (a) Reporting Requirement.--The Director of the Arms Control and     
  Disarmament Agency (or the Secretary of State, if the Arms Control and  
  Disarmament Agency becomes an element of the Department of State) shall 
  transmit to the Committee on National Security of the House of          
  Representatives on a periodic basis reports containing classified       
  summaries of arms control developments.                                 
     (b) Contents of Reports.--The reports required by subsection (a)     
  shall include information reflecting the activities of forums           
  established to consider issues relating to treaty implementation and    
  treaty compliance.                                                      

                    SEC. 1503. REPORT ON ADEQUACY OF EMERGENCY COMMUNICATIONS     
          CAPABILITIES BETWEEN UNITED STATES AND RUSSIA.                          
     Not later than three months after the date of the enactment of this  
  Act, the Secretary of Defense shall submit to the Committee on Armed    
  Services of the Senate and the Committee on National Security of the    
  House of Representatives a report on the status and adequacy of current 
  direct communications capabilities between the governments of the United
  States and Russia. The report shall identify each existing direct       
  communications link between those governments and each such link        

                    that is designed to be used, or is available to be used, in an
          emergency situation. The Secretary shall describe in the report any     
          shortcomings with the existing communications capabilities and shall    
          include such proposals as the Secretary considers appropriate to improve
          those capabilities. In considering improvements to propose, the         
          Secretary shall assess the feasibility and desirability of establishing 
          a direct communications link between the commanders of appropriate      
          United States unified and specified commands, including the United      
          States Space Command and the United States Strategic Command, and their 
          Russian counterparts.                                                   

          SEC. 1504. RUSSIAN NONSTRATEGIC NUCLEAR WEAPONS.                        

    (a)  Findings.--The Congress makes the following findings:            

       (1) The 7,000 to 12,000 or more nonstrategic (or ``tactical'')      
   nuclear weapons estimated by the United States Strategic Command to be  
   in the Russian arsenal may present the greatest threat of sale or theft 
   of a nuclear warhead in the world today.                                
       (2) As the number of deployed strategic warheads in the Russian and 
   United States arsenals declines to just a few thousand under the START  
   accords, Russia's vast superiority in tactical nuclear warheads--many of
   which have yields equivalent to strategic nuclear weapons--could become 
   strategically destabilizing.                                            
       (3) While the United States has unilaterally reduced its inventory  
   of tactical nuclear weapons by nearly 90 percent since the end of the   
   Cold War, Russia is behind schedule in implementing the steep tactical  
   nuclear arms reductions pledged by former Soviet President Gorbachev in 
   1991 and Russian President Yeltsin in 1992, perpetuating the dangers    
   from Russia's tactical nuclear stockpile.                               
     (b) Sense of Congress.--It is the sense of Congress that the         
  President should call on Russia to expedite reduction of its tactical   
  nuclear arsenal in accordance with the promises made in 1991 and 1992.  
     (c) Report.--Not later than March 15, 1999, the Secretary of Defense 
  shall submit to Congress a report on the nonstrategic nuclear weapons of
  Russia. The report shall include--                                      
       (1) estimates regarding the current numbers, types, yields,         
   viability, and locations of those weapons;                              
       (2) an assessment of the strategic implications of Russia's         
   nonstrategic arsenal, including the potential use of those weapons in a 
   strategic role or the use of their components in strategic nuclear      
   systems and the potential of Russian superiority in tactical nuclear    
   weapons to destabilize the overall nuclear balance as strategic nuclear 
   weapons are sharply reduced under the START accords;                    
       (3) an assessment of the extent of the current threat of theft,     
   sale, or unauthorized use of the warheads of those weapons, including an
   analysis of Russian command and control as it concerns the use of       
   tactical nuclear weapons;                                               
       (4) a summary of past, current, and planned efforts to work         
   cooperatively with Russia to account for, secure, and reduce Russia's   
   stockpile of tactical nuclear weapons and associated fissile material;  
       (5) a summary of how the United States would prevent, or plans to   
   cope militarily with, scenarios in which a deterioration in relations   
   with Moscow causes Russia to redeploy tactical nuclear weapons or in    
   which Russia threatens to employ, or actually employs, tactical nuclear 
   weapons in a local or regional conflict involving the United States or  
   allies of the United States; and                                        
       (6) an assessment of the steps that could be taken by the United    
   States to enhance military preparedness in order (A) to deter any       
   potential attempt by Russia to possibly exploit its advantage in        
   tactical nuclear weapons through coercive ``nuclear diplomacy'' or on   
   the battlefield, or (B) to counter Russia if Russia should make such an 
   attempt to exploit its advantage in tactical nuclear weapons.           
     (d) Views.--The Secretary of Defense shall include in the report     
  under subsection (c) the views of the Director of Central               

                    Intelligence and of the commander of the United States        
          Strategic Command.                                                      
                            SUBTITLE B--SATELLITE EXPORT CONTROLS                 

          SEC. 1511. SENSE OF CONGRESS.                                           

    It is the sense of Congress that--                                    

       (1) United States business interests must not be placed above United
   States national security interests;                                     
       (2) United States foreign policy and the policies of the United     
   States regarding commercial relations with other countries should affirm
   the importance of observing and adhering to the Missile Technology      
   Control Regime (MTCR);                                                  
       (3) the United States should encourage universal observance of the  
   Guidelines to the Missile Technology Control Regime;                    
       (4) the exportation or transfer of advanced communication satellites
   and related technologies from United States sources to foreign          
   recipients should not increase the risks to the national security of the
   United States;                                                          
       (5) due to the military sensitivity of the technologies involved, it
   is in the national security interests of the United States that United  
   States satellites and related items be subject to the same export       
   controls that apply under United States law and practices to munitions; 
       (6) the United States should not issue any blanket waiver of the    
   suspensions contained in section 902 of the Foreign Relations           
   Authorization Act, Fiscal Years 1990 and 1991 (Public Law 101-246),     
   regarding the export of satellites of United States origin intended for 
   launch from a launch vehicle owned by the People's Republic of China;   
       (7) the United States should pursue policies that protect and       
   enhance the United States space launch industry; and                    
       (8) the United States should not export to the People's Republic of 
   China missile equipment or technology that would improve the missile or 
   space launch capabilities of the People's Republic of China.            

                    SEC. 1512. CERTIFICATION OF EXPORTS OF MISSILE EQUIPMENT OR   
          TECHNOLOGY TO CHINA.                                                    
     The President shall certify to the Congress at least 15 days in      
  advance of any export to the People's Republic of China of missile      
  equipment or technology (as defined in section 74 of the Arms Export    
  Control Act (22 U.S.C. 2797c)) that--                                   
       (1) such export is not detrimental to the United States space launch
   industry; and                                                           
       (2) the missile equipment or technology, including any indirect     
   technical benefit that could be derived from such export, will not      
   measurably improve the missile or space launch capabilities of the      
   People's Republic of China.                                             

          SEC. 1513. SATELLITE CONTROLS UNDER THE UNITED STATES MUNITIONS LIST.   

     (a) Control of Satellites on the United States Munitions             
  List.--Notwithstanding any other provision of law, all satellites and   
  related items that are on the Commerce Control List of dual-use items in
  the Export Administration Regulations (15 C.F.R. Part 730 et seq.) on   
  the date of the enactment of this Act shall be transferred to the United
  States Munitions List and controlled under section 38 of the Arms Export
  Control Act (22 U.S.C. 2778).                                           
     (b) Defense Trade Controls Registration Fees.--Section 45 of the     
  State Department Basic Authorities Act of 1956 (22 U.S.C. 2717) is      
  amended--                                                               
     (1) in subsection (a)--                                               

       (A) by striking out ``$700,000'' and inserting in lieu thereof ``100
   percent''; and                                                          
       (B) by striking out ``(a) Defense Trade Controls Registration       
   Fees.--''; and                                                          
     (2) by striking out subsection (b).                                   

     (c) Effective Date.--(1) Subsection (a) shall take effect on March   
  15, 1999, and shall not apply to any export license issued before such  
  effective date or to any export license                                 

                    application made under the Export Administration Regulations  
          before such effective date.                                             
     (2) The amendments made by subsection (b) shall be effective as of   
  October 1, 1998.                                                        
     (d) Report.--Not later than January 1, 1999, the Secretary of State, 
  in consultation with the Secretary of Defense and the Secretary of      
  Commerce, shall submit to Congress a report containing--                
       (1) a detailed description of the plans of the Department of State  
   to implement the requirements of this section, including any            
   organizational changes that are required and any Executive orders or    
   regulations that may be required;                                       
       (2) an identification and explanation of any steps that should be   
   taken to improve the license review process for exports of the          
   satellites and related items described in subsection (a), including     
   measures to shorten the timelines for license application reviews, and  
   any measures relating to the transparency of the license review process 
   and dispute resolution procedures;                                      
       (3) an evaluation of the adequacy of resources available to the     
   Department of State, including fiscal and personnel resources, to carry 
   out the additional activities required by this section; and             
       (4) any recommendations for additional actions, including possible  
   legislation, to improve the export licensing process under the Arms     
   Export Control Act for the satellites and related items described in    
   subsection (a).                                                         
          SEC. 1514. NATIONAL SECURITY CONTROLS ON SATELLITE EXPORT LICENSING.    

     (a) Actions by the President.--Notwithstanding any other provision of
  law, the President shall take such actions as are necessary to implement
  the following requirements for improving national security controls in  
  the export licensing of satellites and related items:                   
       (1) Mandatory technology control plans.--All export licenses shall  
   require a technology transfer control plan approved by the Secretary of 
   Defense and an encryption technology transfer control plan approved by  
   the Director of the National Security Agency.                           
     (2)  Mandatory monitors and reimbursement.--                          

       (A) Monitoring of Proposed Foreign Launch of Satellites.--In any    
   case in which a license is approved for the export of a satellite or    
   related items for launch in a foreign country, the Secretary of Defense 
   shall monitor all aspects of the launch in order to ensure that no      
   unauthorized transfer of technology occurs, including technical         
   assistance and technical data. The costs of such monitoring services    
   shall be fully reimbursed to the Department of Defense by the person or 
   entity receiving such services. All reimbursements received under this  
   subparagraph shall be credited to current appropriations available for  
   the payment of the costs incurred in providing such services.           
       (B) Contents of monitoring.--The monitoring under subparagraph (A)  
   shall cover, but not be limited to--                                    
       (i) technical discussions and activities, including the design,     
   development, operation, maintenance, modification, and repair of        
   satellites, satellite components, missiles, other equipment, launch     
   facilities, and launch vehicles;                                        
       (ii) satellite processing and launch activities, including launch   
   preparation, satellite transportation, integration of the satellite with
   the launch vehicle, testing and checkout prior to launch, satellite     
   launch, and return of equipment to the United States;                   
       (iii) activities relating to launch failure, delay, or cancellation,
   including post-launch failure investigations; and                       
     (iv) all other aspects of the launch.                                 


       (3) Mandatory licenses for crash-investigations.--In the event of   
   the failure of a launch from a foreign country of a satellite of United 
   States origin--                                                         
       (A) the activities of United States persons or entities in          
   connection with any subsequent investigation of the failure are subject 
   to the controls established under section 38 of the Arms Export Control 
   Act, including requirements for licenses issued by the Secretary of     
   State for participation in that investigation;                          
       (B) officials of the Department of Defense shall monitor all        
   activities associated with the investigation to insure against          
   unauthorized transfer of technical data or services; and                
       (C) the Secretary of Defense shall establish and implement a        
   technology transfer control plan for the conduct of the investigation to
   prevent the transfer of information that could be used by the foreign   
   country to improve its missile or space launch capabilities.            
       (4) Mandatory notification and certification.--All technology       
   transfer control plans for satellites or related items shall require any
   United States person or entity involved in the export of a satellite of 
   United States origin or related items to notify the Department of       
   Defense in advance of all meetings and interactions with any foreign    
   person or entity providing launch services and require the United States
   person or entity to certify after the launch that it has complied with  
   this notification requirement.                                          
       (5) Mandatory intelligence community review.--The Secretary of      
   Commerce and the Secretary of State shall provide to the Secretary of   
   Defense and the Director of Central Intelligence copies of all export   
   license applications and technical assistance agreements submitted for  
   approval in connection with launches in foreign countries of satellites 
   to verify the legitimacy of the stated end-user or end-users.           
       (6) Mandatory sharing of approved licenses and agreements.--The     
   Secretary of State shall provide copies of all approved export licenses 
   and technical assistance agreements associated with launches in foreign 
   countries of satellites to the Secretaries of Defense and Energy, the   
   Director of Central Intelligence, and the Director of the Arms Control  
   and Disarmament Agency.                                                 
       (7) Mandatory notification to congress on licenses.--Upon issuing a 
   license for the export of a satellite or related items for launch in a  
   foreign country, the head of the department or agency issuing the       
   license shall so notify Congress.                                       
       (8) Mandatory reporting on monitoring activities.--The Secretary of 
   Defense shall provide to Congress an annual report on the monitoring of 
   all launches in foreign countries of satellites of United States origin.
       (9) Establishing safeguards program.--The Secretary of Defense shall
   establish a program for recruiting, training, and maintaining a staff   
   dedicated to monitoring launches in foreign countries of satellites and 
   related items of United States origin.                                  
     (b) Exception.--This section shall not apply to the export of a      
  satellite or related items for launch in, or by nationals of, a country 
  that is a member of the North Atlantic Treaty Organization or that is a 
  major non-NATO ally of the United States.                               
     (c) Effective Date.--The President shall take the actions required by
  subsection (a) not later than 45 days after the date of the enactment of
  this Act.                                                               
                    SEC. 1515. REPORT ON EXPORT OF SATELLITES FOR LAUNCH BY       
          PEOPLE'S REPUBLIC OF CHINA.                                             
     (a) Requirement for Report.--Each report to Congress submitted       
  pursuant to subsection (b) of section 902 of the Foreign Relations      
  Authorization Act, Fiscal Years 1990 and 1991 (22 U.S.C. 2151 note;     
  Public Law 101 246) to waive the restrictions contained in subsection   
  (a) of that section on the export to the People's Republic of China of  
  any satellite of United States origin or related items shall be         
  accompanied by a detailed justification setting forth the following:    

       (1) A detailed description of all militarily sensitive              
   characteristics integrated within, or associated with, the satellite.   
       (2) An estimate of the number of United States civilian contract    
   personnel expected to be needed in country to carry out the proposed    
   satellite launch.                                                       
       (3)(A) A detailed description of the United States Government's plan
   to monitor the proposed satellite launch to ensure that no unauthorized 
   transfer of technology occurs, together with an estimate of the number  
   of officers and employees of the United States that are expected to be  
   needed in country to carry out monitoring of the proposed satellite     
   launch; and                                                             
       (B) the estimated cost to the Department of Defense of monitoring   
   the proposed satellite launch and the amount of such cost that is to be 
   reimbursed to the department.                                           
       (4) The reasons why the proposed satellite launch is in the national
   security interest of the United States.                                 
       (5) The impact of the proposed export on employment in the United   
   States, including the number of new jobs created in the United States,  
   on a State-by-State basis, as a direct result of the proposed export.   
       (6) The number of existing jobs in the United States that would be  
   lost, on a State-by-State basis, as a direct result of the proposed     
   export not being licensed.                                              
       (7) The impact of the proposed export on the balance of trade       
   between the United States and the People's Republic of China and on     
   reducing the current United States trade deficit with the People's      
   Republic of China.                                                      
       (8) The impact of the proposed export on the transition of the      
   People's Republic of China from a nonmarket economy to a market economy 
   and the long-term economic benefit to the United States.                
       (9) The impact of the proposed export on opening new markets to     
   United States-made products through the purchase by the People's        
   Republic of China of United States-made goods and services not directly 
   related to the proposed export.                                         
       (10) The impact of the proposed export on reducing acts, policies,  
   and practices that constitute significant trade barriers to United      
   States exports or foreign direct investment in the People's Republic of 
   China by United States nationals.                                       
       (11) The increase that will result from the proposed export in the  
   overall market share of the United States for goods and services in     
   comparison to Japan, France, Germany, the United Kingdom, and Russia.   
       (12) The impact of the proposed export on the willingness of the    
   People's Republic of China to modify its commercial and trade laws,     
   practices, and regulations to make United States-made goods and services
   more accessible to that market.                                         
       (13) The impact of the proposed export on the willingness of the    
   People's Republic of China to reduce formal and informal trade barriers 
   and tariffs, duties, and other fees on United States-made goods and     
   services entering that country.                                         
     (b) Militarily Sensitive Characteristics Defined.--In this section,  
  the term ``militarily sensitive characteristics'' includes antijamming  
  capability, antennas, crosslinks, baseband processing, encryption       
  devices, radiation-hardened devices, propulsion systems, pointing       
  accuracy, kick motors, and other such characteristics as are specified  
  by the Secretary of Defense.                                            
          SEC. 1516. RELATED ITEMS DEFINED.                                       

     In this subtitle, the term ``related items'' means the satellite     
  fuel, ground support equipment, test equipment, payload adapter or      
  interface hardware, replacement parts, and non-embedded solid propellant
  orbit transfer engines described in the report submitted to Congress by 
  the Department of State on February 6, 1998, pursuant to section 38(f)  
  of the Arms Export Control Act (22 U.S.C. 2778(f)).                     

                          SUBTITLE C--OTHER EXPORT CONTROL MATTERS                

                    SEC. 1521. AUTHORITY FOR EXPORT CONTROL ACTIVITIES OF THE     
          DEPARTMENT OF DEFENSE.                                                  
     (a) Functions of the Under Secretary for Policy.--Section 134(b) of  
  title 10, United States Code, is amended by adding at the end the       
  following new paragraph:                                                
     ``(3) Subject to the authority, direction, and control of the        
  Secretary of Defense, the Under Secretary shall have responsibility for 
  supervising and directing activities of the Department of Defense       
  relating to export controls.''.                                         
     (b) Establishment of Deputy Under Secretary for Technology Security  
  Policy.--(1) Chapter 4 of title 10, United States Code, is amended by   
  inserting after section 134a the following new section:                 

          ``134b. Deputy Under Secretary of Defense for Technology Security Policy

     ``(a) There is in the Office of the Under Secretary of Defense for   
  Policy a Deputy Under Secretary of Defense for Technology Security      
  Policy.                                                                 
     ``(b) The Deputy Under Secretary serves as the Director of the       
  Defense Technology Security Administration (or any successor            
  organization charged with similar responsibilities).                    
    ``(c) The principal duties of the Deputy Under Secretary are--        

       ``(1) assisting the Under Secretary of Defense for Policy in        
   supervising and directing the activities of the Department of Defense   
   relating to export controls; and                                        
       ``(2) assisting the Under Secretary of Defense for Policy in        
   developing policies and positions regarding the appropriate export      
   control policies and procedures that are necessary to protect the       
   national security interests of the United States.                       
     ``(d) The Deputy Under Secretary shall perform such additional duties
  and exercise such authority as the Secretary of Defense may             
  prescribe.''.                                                           

     (2) The table of sections at the beginning of such chapter is amended
  by inserting after the item relating to section 134a the following new  
  item:                                                                   


            ``134b. Deputy Under Secretary of Defense for Technology Security 
      Policy.''.                                                              

     (c) Time for Implementation.--The Secretary of Defense shall complete
  the actions necessary to implement the amendment made by subsection (a) 
  and to establish the office of Deputy Under Secretary of Defense for    
  Technology Security Policy in accordance with section 134b of title 10, 
  United States Code, as added by subsection (b), not later than 60 days  
  after the date of the enactment of this Act.                            
     (d) Report.--Not later than 90 days after the date of the enactment  
  of this Act, the Secretary of Defense shall submit to the Committee on  
  Armed Services of the Senate and the Committee on National Security of  
  the House of Representatives a report on the plans of the Secretary for 
  implementing the amendments made by subsections (a) and (b). The report 
  shall include the following:                                            
       (1) A description of any organizational changes that are to be made 
   within the Department of Defense to implement those amendments.         
       (2) A description of the role of the Chairman of the Joint Chiefs of
   Staff in the export control activities of the Department of Defense     
   after those subsections are implemented, together with a discussion of  
   how that role compares to the Chairman's role in those activities before
   the implementation of those subsections.                                

                    SEC. 1522. RELEASE OF EXPORT INFORMATION BY DEPARTMENT OF     
          COMMERCE TO OTHER AGENCIES FOR PURPOSE OF NATIONAL SECURITY ASSESSMENT. 
     (a) Release of Export Information.--The Secretary of Commerce shall, 
  upon the written request of an official specified in subsection (c),    
  transmit to that official any information relating to exports that is   
  held by the Department of Commerce and is requested by that official for
  the purpose of assessing                                                

                    national security risks. The Secretary shall transmit such    
          information within 10 business days after receiving such a request.     
     (b) Nature of Information.--The information referred to in subsection
  (a) includes information concerning--                                   
     (1) export licenses issued by the Department of Commerce;             

       (2) exports that were carried out under an export license issued by 
   the Department of Commerce; and                                         
       (3) exports from the United States that were carried out without an 
   export license.                                                         
     (c) Requesting Officials.--The officials referred to in subsection   
  (a) are the Secretary of State, the Secretary of Defense, the Secretary 
  of Energy, and the Director of Central Intelligence. Each of those      
  officials may delegate to any other official within their respective    
  departments and agency the authority to request information under       
  subsection (a).                                                         

          SEC. 1523. NUCLEAR EXPORT REPORTING REQUIREMENT.                        

     (a) Notification of Congress.--The President shall notify Congress   
  upon the granting of a license by the Nuclear Regulatory Commission for 
  the export or reexport of any nuclear-related technology or equipment,  
  including source material, special nuclear material, or equipment or    
  material especially designed or prepared for the processing, use, or    
  production of special nuclear material.                                 
     (b) Applicability.--The requirements of this section shall apply only
  to an export or reexport to a country that--                            
       (1) the President has determined is a country that has detonated a  
   nuclear explosive device; and                                           
     (2) is not a member of the North Atlantic Treaty Organization.        


                    SEC. 1524. EXECUTION OF OBJECTION AUTHORITY WITHIN THE        
          DEPARTMENT OF DEFENSE.                                                  
     Section 1211 of the National Defense Authorization Act for Fiscal    
  Year 1998 (Public Law 105 85; 111 Stat. 1932) is amended by adding at   
  the end the following new subsection:                                   
     ``(g) Delegation of Objection Authority Within the Department of     
  Defense.--For the purposes of the Department of Defense, the authority  
  to issue an objection referred to in subsection (a) shall be executed   
  for the Secretary of Defense by an official at the Assistant Secretary  
  level within the office of the Under Secretary of Defense for Policy. In
  implementing subsection (a), the Secretary of Defense shall ensure that 
  Department of Defense procedures maximize the ability of the Department 
  of Defense to be able to issue an objection within the 10 day period    
  specified in subsection (c).''.                                         
                          SUBTITLE D--COUNTERPROLIFERATION MATTERS                


                    SEC. 1531. ONE-YEAR EXTENSION OF COUNTERPROLIFERATION         
          AUTHORITIES FOR SUPPORT OF UNITED NATIONS SPECIAL COMMISSION ON IRAQ.   
     (a) Amount Authorized for Fiscal Year 1999.--The total amount of     
  assistance for fiscal year 1999 provided by the Secretary of Defense    
  under section 1505 of the Weapons of Mass Destruction Control Act of    
  1992 (22 U.S.C. 5859a) that is provided for activities of the Department
  of Defense in support of the United Nations Special Commission on Iraq, 
  may not exceed $15,000,000.                                             
     (b) Extension of Authority To Provide Assistance.--Subsection (f) of 
  section 1505 of the Weapons of Mass Destruction Control Act of 1992 (22 
  U.S.C. 5859a) is amended by striking out ``1998'' and inserting in lieu 
  thereof ``1999''.                                                       

          SEC. 1532. SENSE OF CONGRESS ON NUCLEAR TESTS IN SOUTH ASIA.            

    The Congress--                                                        

       (1) strongly condemns the decisions by the Governments of India and 
   Pakistan to conduct nuclear tests in May 1998;                          
       (2) calls for the Governments of India and Pakistan to commit not to
   conduct any additional nuclear tests;                                   

       (3) urges the Governments of India and Pakistan to take immediate   
   steps to reduce tensions between the two countries;                     
       (4) urges India and Pakistan to engage in high-level dialogue aimed 
   at reducing the likelihood of armed conflict, enacting confidence and   
   security building measures, and resolving areas of dispute;             
       (5) commends all nations to take steps which will reduce tensions in
   South Asia, including appropriate measures to prevent the transfer of   
   technology that could further exacerbate the arms race in South Asia,   
   and thus avoid further deterioration of security there;                 
       (6) calls upon the President, leaders of all nations, and the United
   Nations to encourage a diplomatic, negotiated solution between the      
   governments of India and Pakistan to promote peace and stability in     
   South Asia and resolve the current impasse;                             
       (7) encourages United States diplomatic leadership in assisting the 
   governments of India and Pakistan to seek a negotiated resolution of    
   their 50-year conflict over the disputed territory in Kashmir;          
       (8) urges India and Pakistan to take immediate, binding, and        
   verifiable steps to roll back their nuclear programs and come into      
   compliance with internationally accepted norms regarding the            
   proliferation of weapons of mass destruction; and                       
       (9) urges the United States to reevaluate its bilateral relationship
   with India and Pakistan, in light of the new regional security realities
   in South Asia, with the goal of preventing further nuclear and ballistic
   missile proliferation, diffusing long-standing regional rivalries       
   between India and Pakistan, and securing commitments from India and     
   Pakistan which, if carried out, could result in a calibrated lifting of 
   United States sanctions imposed under the Arms Export Control Act and   
   the Nuclear Proliferation Prevention Act of 1994.                       

                    SEC. 1533. REPORT ON REQUIREMENTS FOR RESPONSE TO INCREASED   
          MISSILE THREAT IN ASIA-PACIFIC REGION.                                  
     (a) Study.--The Secretary of Defense shall carry out a study of the  
  architecture requirements for the establishment and operation of a      
  theater ballistic missile defense system in the Asia-Pacific region that
  would have the capability to protect key regional allies of the United  
  States.                                                                 
     (b) Report.--(1) Not later than January 1, 1999, the Secretary shall 
  submit to the Committee on National Security of the House of            
  Representatives and the Committee on Armed Services of the Senate a     
  report containing--                                                     
     (A) the results of the study conducted under subsection (a);          

     (B) the factors used to obtain such results; and                      

       (C) a description of any United States missile defense system       
   currently deployed or under development that could be transferred to key
   allies of the United States in the Asia-Pacific region to provide for   
   their self-defense against limited ballistic missile attacks.           
     (2) The report shall be submitted in both classified and unclassified
  form.                                                                   

                      DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS            

          SEC. 2001. SHORT TITLE.                                                 

     This division may be cited as the ``Military Construction            
  Authorization Act for Fiscal Year 1999''.                               

                                       TITLE XXI--ARMY                            


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

      Sec. 2102. Family housing.                                              

      Sec. 2103. Improvements to military family housing units.               

      Sec. 2104. Authorization of appropriations, Army.                       

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

          SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.  

     (a) Inside the United States.--Using amounts appropriated pursuant to
  the authorization of appropriations in section 2104(a)(1), the Secretary
  of the Army may acquire real property and carry out military            
  construction projects for the installations and locations inside the    
  United States, and in the amounts, set forth in the following table:    
                                                                                 


                              Army: Inside the United States                            

 State               Installation or location                                        Amount  

Alabama             Anniston Army Depot                                          $3,550,000  
                       Fort Rucker                                                 $14,300,000  
                       Redstone Arsenal                                             $1,550,000  
Alaska              Fort Wainwright                                             $22,600,000  
California          Fort Irwin                                                  $14,800,000  
Georgia             Fort Benning                                                $28,600,000  
Hawaii              Schofield Barracks                                          $71,000,000  
Illinois            Rock Island Arsenal                                          $5,300,000  
Indiana             lCrane Army Ammunition Activity                              $7,100,000  
Kansas              Fort Riley                                                  $41,000,000  
Kentucky            Blue Grass Army Depot                                        $5,300,000  
                       Fort Campbell                                               $75,000,000  
                       Fort Knox                                                   $23,000,000  
Louisiana           Fort Polk                                                    $8,300,000  
Maryland            Fort Detrick                                                 $3,550,000  
                       Fort Meade                                                   $5,300,000  
Missouri            Fort Leonard Wood                                           $28,200,000  
New Jersey          Fort Monmouth                                                $7,600,000  
                       Picatinny Arsenal                                            $8,400,000  
New York            Fort Drum                                                    $4,650,000  
                       lUnited States Military Academy, West Point                 $85,000,000  
North Carolina      Fort Bragg                                                  $95,900,000  
Oklahoma            Fort Sill                                                   $13,800,000  
                       lMcAlester Army Ammunition Plant                            $10,800,000  
Texas               Fort Bliss                                                   $4,100,000  
                       Fort Hood                                                   $32,500,000  
                       Fort Sam Houston                                            $27,300,000  
Utah                Tooele Army Depot                                            $3,900,000  
Virginia            lNational Ground Intelligence Center, Charlottesville       $46,200,000  
                       Fort Eustis                                                 $41,181,000  
                       Fort Myer                                                    $6,200,000  
Washington          Fort Lewis                                                  $18,200,000  
CONUS Classified    Classified Location                                          $4,600,000  
                                                                             --------------  
xl                    Total                                                    $768,781,000  

     (b) Outside the United States.--Using amounts appropriated pursuant  
  to the authorization of appropriations in section 2104(a)(2), the       
  Secretary of the Army may acquire real property and carry out military  
  construction projects for the locations outside the United States, and  
  in the amounts, set forth in the following table:                       
                                                                                 


                         Army: Outside the United States                       

 Country      Installation or location            Amount  

Belgium      80th Area Support Group          $6,300,000  
Germany      Schweinfurt                     $18,000,000  
                Wurzburg                         $4,250,000  
Korea        Camp Casey                      $21,400,000  
                Camp Castle                     $18,226,000  
                Camp Humphreys                   $8,500,000  
                Camp Stanley                     $5,800,000  
Kwajalein    Kwajalein Atoll                 $48,600,000  
                                          --------------  
xl             Total                        $131,076,000  

          SEC. 2102. FAMILY HOUSING.                                              

     (a) Construction and Acquisition.--Using amounts appropriated        
  pursuant to the authorization of appropriations in section              
  2104(a)(5)(A), the Secretary of the Army may construct or acquire family
  housing units (including land acquisition) at the installations, for the
  purposes, and in the amounts set forth in the following table:          
                                                                                 


                              Army: Family Housing                             

 State             Installation or location     Purpose            Amount  

Alabama           Redstone Arsenal             118 Units      $14,000,000  
Hawaii            Schofield Barracks           64 Units       $14,700,000  
North Carolina    Fort Bragg                   170 Units      $19,800,000  
Texas             Fort Hood                    154 Units      $21,600,000  
Virginia          Fort Lee                     80 Units       $13,000,000  
                                                            -------------  
xl                xl                            Total         $83,100,000  


     (b) Planning and Design.--Using amounts appropriated pursuant to the 
  authorization of appropriations in section 2104(a)(5)(A), the Secretary 
  of the Army may carry out architectural and engineering services and    
  construction design activities with respect to the construction or      
  improvement of family housing units in an amount not to exceed          
  $6,350,000.                                                             
          SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.               

     Subject to section 2825 of title 10, United States Code, and using   
  amounts appropriated pursuant to the authorization of appropriations in 
  section 2104(a)(5)(A), the Secretary of the Army may improve existing   
  military family housing units in an amount not to exceed $48,479,000.   
          SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.                       

     (a) In General.--Funds are hereby authorized to be appropriated for  
  fiscal years beginning after September 30, 1998, for military           
  construction, land acquisition, and military family housing functions of
  the Department of the Army in the total amount of $2,098,713,000 as     
  follows:                                                                
       (1) For military construction projects inside the United States     
   authorized by section 2101(a), $609,781,000.                            
       (2) For military construction projects outside the United States    
   authorized by section 2101(b), $95,076,000.                             
       (3) For unspecified minor construction projects authorized by       
   section 2805 of title 10, United States Code, $12,500,000.              
       (4) For architectural and engineering services and construction     
   design under section 2807 of title 10, United States Code, $64,269,000. 
     (5) For military family housing functions:                            

       (A) For construction and acquisition, planning and design, and      
   improvement of military family housing and facilities, $137,929,000.    
       (B) For support of military family housing (including the functions 
   described in section 2833 of title 10, United States Code),             
   $1,097,697,000.                                                         
       (6) For the construction of the missile software engineering annex, 
   phase II, Redstone Arsenal, Alabama, authorized by section 2101(a) of   
   the Military Construction Authorization Act for Fiscal Year 1998        
   (division B of Public Law 105 85; 111 Stat. 1966), $13,600,000.         
       (7) For the construction of a disciplinary barracks, phase II, Fort 
   Leavenworth, Kansas, authorized by section 2101(a) of the Military      
   Construction Authorization Act for Fiscal Year 1998, $29,000,000.       
       (8) For the construction of the whole barracks complex renewal, Fort
   Sill, Oklahoma, authorized by section 2101(a) of the Military           
   Construction Authorization Act for Fiscal Year 1998, $20,500,000.       
       (9) For rail yard expansion at Fort Carson, Colorado, authorized by 
   section 2101(a) of the Military Construction Authorization Act for      
   Fiscal Year 1998, $23,000,000.                                          
       (10) For the construction of an aerial gunnery range at Fort Drum,  
   New York, authorized by section 2101(a) of the Military Construction    
   Authorization Act for Fiscal Year 1998, $9,000,000.                     
     (b) Limitation on Total Cost of Construction                         
  Projects.--Notwithstanding the cost variations authorized by section    
  2853 of title 10, United States Code, and any other cost variation      
  authorized by law, the total cost of all projects carried out under     
  section 2101 of this Act may not exceed--                               
       (1) the total amount authorized to be appropriated under paragraphs 
   (1) and (2) of subsection (a);                                          
       (2) $16,000,000 (the balance of the amount authorized under section 
   2101(a) for the construction of a multipurpose digital training range at
   Fort Knox, Kentucky);                                                   
       (3) $15,000,000 (the balance of the amount authorized under section 
   2101(a) for the construction of a railhead facility at Fort Hood,       
   Texas);                                                                 

       (4) $73,000,000 (the balance of the amount authorized under section 
   2101(a) for the construction of a cadet development center at the United
   States Military Academy, West Point, New York);                         
       (5) $36,000,000 (the balance of the amount authorized under section 
   2101(b) for the construction of a powerplant on Roi Namur Island at     
   Kwajalein Atoll, Kwajalein);                                            
       (6) $3,500,000 (the balance of the amount authorized under section  
   2101(a) for the construction of the whole barracks complex renewal at   
   Fort Wainwright, Alaska);                                               
       (7) $24,500,000 (the balance of the amount authorized under section 
   2101(a) for the construction of the whole barracks complex renewal at   
   Fort Riley, Kansas); and                                                
       (8) $27,000,000 (the balance of the amount authorized under section 
   2101(a) for the construction of the whole barracks complex renewal at   
   Fort Campbell, Kentucky).                                               
     (c) Adjustments.--The total amount authorized to be appropriated     
  pursuant to paragraphs (1) through (10) of subsection (a) is the sum of 
  the amounts authorized to be appropriated in such paragraphs, reduced   
  by--                                                                    
       (1) $2,639,000, which represents the combination of project savings 
   in military family housing construction resulting from favorable bids,  
   reduced overhead costs, and cancellations due to force structure        
   changes;                                                                
       (2) $3,000,000, which represents the combination of savings in      
   military family housing support resulting from favorable bids, reduced  
   overhead costs, and cancellations due to force structure changes; and   
       (3) $8,000,000, which represents the combination of project savings 
   in military construction resulting from favorable bids, reduced overhead
   costs, and cancellations due to force structure changes.                
                    SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
          1998 PROJECTS.                                                          
     (a) Modification.--The table in section 2101(a) of the Military      
  Construction Authorization Act for Fiscal Year 1998 (division B of      
  Public Law 105 85; 111 Stat. 1967) is amended--                         
       (1) in the item relating to Fort Drum, New York, by striking out    
   ``$24,400,000'' in the amount column and inserting in lieu thereof      
   ``$24,900,000'';                                                        
       (2) in the item relating to Fort Sill, Oklahoma, by striking out    
   ``$25,000,000'' in the amount column and inserting in lieu thereof      
   ``$28,500,000''; and                                                    
       (3) by striking out the amount identified as the total in the amount
   column and inserting in lieu thereof ``$602,750,000''.                  
     (b) Conforming Amendments.--Section 2104 of that Act (111 Stat. 1968)
  is amended--                                                            
     (1) in subsection (a)--                                               

       (A) in the matter preceding paragraph (1), by striking out          
   ``$2,010,466,000'' and inserting in lieu thereof ``$2,013,966,000''; and
       (B) in paragraph (1), by striking out ``$435,350,000'' and inserting
   in lieu thereof ``$438,850,000''; and                                   
       (2) in subsection (b)(8), by striking out ``$8,500,000'' and        
   inserting in lieu thereof ``$9,000,000''.                               

                                      TITLE XXII--NAVY                            


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

      Sec. 2202. Family housing.                                              

      Sec. 2203. Improvements to military family housing units.               

      Sec. 2204. Authorization of appropriations, Navy.                       

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

          SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.  

     (a) Inside the United States.--Using amounts appropriated pursuant to
  the authorization of appropriations in section 2204(a)(1), the Secretary
  of the Navy may acquire real property and carry out military            
  construction projects for the installations and locations inside the    
  United States, and in the amounts, set forth in the following table:    
                                                                                 


                                                 Navy: Inside the United States                                               

 State                   Installation or location                                                                          Amount  

Arizona                 Marine Corps Air Station, Yuma                                                                $11,010,000  
                           lNaval Observatory Detachment, Flagstaff                                                         $990,000  
California              lMarine Corps Air Station, Miramar                                                            $29,570,000  
                           lMarine Corps Base, Camp Pendleton                                                            $40,430,000  
                           Naval Air Station, Lemoore                                                                    $20,640,000  
                           Naval Air Warfare Center Weapons Division, China Lake                                         $10,140,000  
                           lNaval Facility, San Clemente Island                                                           $8,350,000  
                           Naval Submarine Base, San Diego                                                               $11,400,000  
Connecticut             lNaval Submarine Base, New London                                                             $11,330,000  
District of Columbia    Naval District, Washington                                                                       $790,000  
Florida                 Naval Air Station, Key West                                                                    $3,730,000  
                           Naval Air Station, Jacksonville                                                                $1,500,000  
                           Naval Air Station, Whiting Field                                                               $1,400,000  
                           Naval Station, Mayport                                                                         $6,163,000  
Georgia                 lMarine Corps Logistics Base, Albany                                                           $2,800,000  
                           lNaval Submarine Base, Kings Bay                                                               $2,550,000  
Hawaii                  lFleet and Industrial Supply Center, Pearl Harbor                                              $9,730,000  
                           lMarine Corps Air Station, Kaneohe Bay                                                        $46,410,000  
                           lNaval Communications & Telecommunications Area Master Station Eastern Pacific, Wahiawa        $1,970,000  
                           Naval Shipyard, Pearl Harbor                                                                  $11,400,000  
                           Naval Station, Pearl Harbor                                                                   $18,180,000  
                           lNaval Submarine Base, Pearl Harbor                                                            $8,060,000  
                           lNavy Public Works Center, Pearl Harbor                                                       $28,967,000  
Illinois                lNaval Training Center, Great Lakes                                                           $19,950,000  
Indiana                 lNaval Surface Warfare Center, Crane                                                          $11,110,000  
Maryland                lNaval Surface Warfare Center, Indian Head Division, Indian Head                              $13,270,000  
                           lUnited States Naval Academy                                                                   $4,300,000  
Mississippi             Naval Air Station, Meridian                                                                    $3,280,000  
                           lNaval Construction Battalion Center, Gulfport                                                $10,670,000  
North Carolina          lMarine Corps Air Station, Cherry Point                                                        $6,040,000  
                           lMarine Corps Base, Camp LeJeune                                                              $14,600,000  
Pennsylvania            lNaval Surface Warfare Center Ship Systems Engineering Station, Philadelphia                   $2,410,000  
                           lNaval Inventory Control Point, Mechanicsburg                                                  $1,600,000  
                           lNaval Inventory Control Point, Philadelphia                                                   $1,550,000  
Rhode Island            lNaval Education and Training Center, Newport                                                  $5,630,000  
                           lNaval Undersea Warfare Center Division, Newport                                               $9,140,000  
South Carolina          lMarine Corps Air Station, Beaufort                                                            $1,770,000  
                           lMarine Corps Reserve Detachment, Parris Island                                               $15,990,000  
                           lNaval Weapons Station, Charleston                                                             $9,737,000  
Texas                   Naval Station, Ingleside                                                                      $12,200,000  
Virginia                lFleet and Industrial Supply Center, Norfolk (Craney Island)                                   $1,770,000  
                           Fleet Training Center, Norfolk                                                                 $5,700,000  
                           Naval Air Station, Oceana                                                                      $6,400,000  
                           lNaval Shipyard, Norfolk, Portsmouth                                                           $6,180,000  
                           Naval Station, Norfolk                                                                        $45,530,000  
                           lNaval Surface Warfare Center, Dahlgren                                                       $15,680,000  
                           lTactical Training Group Atlantic, Dam Neck                                                    $2,430,000  
Washington              Naval Shipyard, Puget Sound                                                                    $4,300,000  
                           lStrategic Weapons Facility Pacific, Bremerton                                                 $2,750,000  
                                                                                                                   --------------  
xl                        Total                                                                                      $521,497,000  

     (b) Outside the United States.--Using amounts appropriated pursuant  
  to the authorization of appropriations in section 2204(a)(2), the       
  Secretary of the Navy may acquire real property and carry out military  
  construction projects for the installations and locations outside the   
  United States, and in the amounts, set forth in the following table:    
                                                                                 


                          Navy: Outside the United States                         

 Country           Installation or location                                    Amount  

Greece            lNaval Support Activity, Souda Bay                       $5,260,000  
Guam              Naval Activities, Guam                                  $10,310,000  
Italy             Naval Support Activity, Naples                          $18,270,000  
United Kingdom    lJoint Maritime Communications Center, St. Mawgan        $2,010,000  
                                                                       --------------  
xl                  Total                                                 $35,850,000  


          SEC. 2202. FAMILY HOUSING.                                              

     (a) Construction and Acquisition.--Using amounts appropriated        
  pursuant to the authorization of appropriations in section              
  2204(a)(5)(A), the Secretary of the Navy may construct or acquire family
  housing units (including land acquisition) at the installations, for the
  purposes, and in the amounts set forth in the following table:          
                                                                                 


                              Navy: Family Housing                             

 State         Installation or location                   Purpose            Amount  

California    lNaval Air Station, Lemoore                162 Units      $30,379,000  
Hawaii        lNavy Public Works Center, Pearl Harbor    150 Units      $29,125,000  
                                                                      -------------  
xl            xl                                          Total         $59,504,000  

     (b) Planning and Design.--Using amounts appropriated pursuant to the 
  authorization of appropriations in section 2204(a)(5)(A), the Secretary 
  of the Navy may carry out architectural and engineering services and    
  construction design activities with respect to the construction or      
  improvement of military family housing units in an amount not to exceed 
  $15,618,000.                                                            
          SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.               

     Subject to section 2825 of title 10, United States Code, and using   
  amounts appropriated pursuant to the authorization of appropriations in 
  section 2204(a)(5)(A), the Secretary of the Navy may improve existing   
  military family housing units in an amount not to exceed $227,791,000.  
          SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.                       

     (a) In General.--Funds are hereby authorized to be appropriated for  
  fiscal years beginning after September 30, 1998, for military           
  construction, land acquisition, and military family housing functions of
  the Department of the Navy in the total amount of $1,812,476,000 as     
  follows:                                                                
       (1) For military construction projects inside the United States     
   authorized by section 2201(a), $503,997,000.                            
       (2) For military construction projects outside the United States    
   authorized by section 2201(b), $35,850,000.                             
       (3) For unspecified minor construction projects authorized by       
   section 2805 of title 10, United States Code, $9,900,000.               
       (4) For architectural and engineering services and construction     
   design under section 2807 of title 10, United States Code, $60,846,000. 
     (5) For military family housing functions:                            

       (A) For construction and acquisition, planning and design, and      
   improvement of military family housing and facilities, $302,913,000.    
       (B) For support of military housing (including functions described  
   in section 2833 of title 10, United States Code), $915,293,000.         
     (b) Limitation on Total Cost of Construction                         
  Projects.--Notwithstanding the cost variations authorized by section    
  2853 of title 10, United States Code, and any other cost variation      
  authorized by law, the total cost of all projects carried out under     
  section 2201 of this Act may not exceed--                               
       (1) the total amount authorized to be appropriated under paragraphs 
   (1) and (2) of subsection (a);                                          
       (2) $13,500,000 (the balance of the amount authorized under section 
   2202(a) for the construction of a berthing pier at Naval Station,       
   Norfolk, Virginia); and                                                 
       (3) $4,000,000 (the balance of the amount authorized under section  
   2201(a) for the construction of a bachelor enlisted quarters at Marine  
   Corps Air Station, Kaneohe Bay, Hawaii).                                
     (c) Adjustment.--The total amount authorized to be appropriated      
  pursuant to paragraphs (1) through (5) of subsection (a) is the sum of  
  the amounts authorized to be appropriated in such paragraphs, reduced   
  by--                                                                    
       (1) $7,323,000, which represents the combination of project savings 
   in military family housing construction resulting from favorable bids,  
   reduced overhead costs, and cancellations due to force structure        
   changes;                                                                
       (2) $3,000,000, which represents the combination of savings in      
   military family housing support resulting from favorable bids, reduced  
   overhead costs, and cancellations due to force structure changes; and   
       (3) $6,000,000, which represents the combination of project savings 
   in military construction resulting from favorable bids, reduced overhead
   costs, and cancellations due to force structure changes.                

                    SEC. 2205. AUTHORIZATION TO ACCEPT ROAD CONSTRUCTION PROJECT, 
          MARINE CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA.                        
     The Secretary of the Navy may accept from the State of North Carolina
  a road construction project valued at approximately $2,000,000, which is
  to be constructed at Marine Corps Base, Camp Lejeune, North Carolina, in
  accordance with plans and specifications acceptable to the Secretary.   

                                   TITLE XXIII--AIR FORCE                         


            Sec. 2301. Authorized Air Force construction and land acquisition 
      projects.                                                               
      Sec. 2302. Family housing.                                              

      Sec. 2303. Improvements to military family housing units.               

      Sec. 2304. Authorization of appropriations, Air Force.                  


                    SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND         
          ACQUISITION PROJECTS.                                                   
     (a) Inside the United States.--Using amounts appropriated pursuant to
  the authorization of appropriations in section 2304(a)(1), the Secretary
  of the Air Force may acquire real property and carry out military       
  construction projects for the installations and locations inside the    
  United States, and in the amounts, set forth in the following table:    
                                                                                 


                         Air Force: Inside the United States                        

 State                   Installation or location                                Amount  

Alabama                 Maxwell Air Force Base                              $19,398,000  
Alaska                  Eielson Air Force Base                               $4,352,000  
Arizona                 Luke Air Force Base                                  $3,400,000  
Arkansas                Little Rock Air Force Base                           $1,500,000  
California              Edwards Air Force Base                              $10,361,000  
                           Travis Air Force Base                                $4,250,000  
                           Vandenberg Air Force Base                           $18,709,000  
Colorado                Falcon Air Force Station                             $9,601,000  
                           lUnited States Air Force Academy                     $4,413,000  
District of Columbia    Bolling Air Force Base                               $2,948,000  
Florida                 Eglin Air Force Base                                $20,437,000  
                           Eglin Auxiliary Field 9                              $3,837,000  
                           MacDill Air Force Base                               $9,808,000  
                           Tyndall Air Force Base                               $3,600,000  
Georgia                 Robins Air Force Base                               $11,894,000  
Hawaii                  Hickam Air Force Base                                $5,890,000  
Idaho                   lMountain Home Air Force Base                       $17,897,000  
Kansas                  McConnell Air Force Base                             $4,450,000  
Louisiana               Barksdale Air Force Base                             $9,300,000  
Maryland                Andrews Air Force Base                               $4,448,000  
Massachusetts           Hanscom Air Force Base                              $10,000,000  
Mississippi             Columbus Air Force Base                              $5,700,000  
                           Keesler Air Force Base                              $35,526,000  
Montana                 Malmstrom Air Force Base                             $7,900,000  
Nevada                  lIndian Springs Air Force Auxiliary Air Field       $15,013,000  
                           Nellis Air Force Base                                $6,378,000  
New Jersey              McGuire Air Force Base                               $6,044,000  
New Mexico              Holloman Air Force Base                             $11,100,000  
                           Kirtland Air Force Base                              $8,574,000  
North Carolina          lSeymour Johnson Air Force Base                      $6,100,000  
North Dakota            Grand Forks Air Force Base                          $11,486,000  
                           Minot Air Force Base                                 $8,500,000  
Ohio                    lWright-Patterson Air Force Base                    $22,000,000  
Oklahoma                Altus Air Force Base                                 $9,300,000  
                           Tinker Air Force Base                               $24,985,000  
                           Vance Air Force Base                                 $6,223,000  
South Carolina          Charleston Air Force Base                           $24,330,000  
South Dakota            Ellsworth Air Force Base                             $6,500,000  
Tennessee               Arnold Air Force Base                               $11,600,000  
Texas                   Dyess Air Force Base                                 $4,750,000  
                           Goodfellow Air Force Base                            $7,300,000  
                           Lackland Air Force Base                             $14,930,000  
                           Laughlin Air Force Base                              $7,315,000  
                           Randolph Air Force Base                              $3,166,000  
Utah                    Hill Air Force Base                                  $2,600,000  
Washington              Fairchild Air Force Base                            $15,220,000  
                           McChord Air Force Base                              $51,847,000  
                                                                         --------------  
xl                        Total                                            $514,880,000  

     (b) Outside the United States.--Using amounts appropriated pursuant  
  to the authorization of appropriations in section 2304(a)(2), the       
  Secretary of the Air Force may acquire real property and carry out      
  military construction projects for the installations and locations      
  outside the United States, and in the amounts, set forth in the         
  following table:                                                        
                                                                                 


                      Air Force: Outside the United States                     

 Country           Installation or location             Amount  

Germany           Spangdahlem Air Base              $9,501,000  
Korea             Kunsan Air Base                   $5,958,000  
                     Osan Air Base                     $7,496,000  
Turkey            Incirlik Air Base                 $2,949,000  
United Kingdom    Royal Air Force, Lakenheath      $15,838,000  
                     Royal Air Force, Mildenhall      $24,960,000  
                                                 -------------  
xl                  Total                          $66,702,000  

          SEC. 2302. FAMILY HOUSING.                                              

     (a) Construction and Acquisition.--Using amounts appropriated        
  pursuant to the authorization of appropriations in section              
  2304(a)(5)(A), the Secretary of the Air Force may construct or acquire  
  family housing units (including land acquisition) at the installations, 
  for the purposes, and in the amounts set forth in the following table:  
                                                                                 


                              Air Force: Family Housing                            

 State          Installation or location            Purpose                       Amount  

Alabama        lMaxwell Air Force Base             143 Units                 $16,300,000  
Alaska         lEielson Air Force Base             46 Units                  $12,932,000  
California     lEdwards Air Force Base             48 Units                  $12,580,000  
                  lVandenberg Air Force Base          95 Units                  $18,499,000  
Delaware       Dover Air Force Base                55 Units                   $8,998,000  
Florida        MacDill Air Force Base              48 Units                   $7,609,000  
                  Patrick Air Force Base              46 Units                   $9,692,000  
                  Tyndall Air Force Base              122 Units                 $14,500,000  
Mississippi    Columbus Air Force Base             52 Units                   $6,800,000  
                  Keesler Air Force Base              52 Units                   $6,800,000  
Montana        Malmstrom Air Force Base            50 Units                  $10,000,000  
Nebraska       lOffutt Air Force Base              lAncillary Facility          $870,000  
                  lOffutt Air Force Base              lAncillary Facility          $900,000  
                  lOffutt Air Force Base              90 Units                  $12,212,000  
Nevada         lNellis Air Force Base              28 Units                   $5,000,000  
New Mexico     lKirtland Air Force Base            37 Units                   $6,400,000  
Ohio           lWright-Patterson Air Force Base    40 Units                   $5,600,000  
Texas          Dyess Air Force Base                64 Units                   $9,415,000  
                  lSheppard Air Force Base            65 Units                   $7,000,000  
Washington     lFairchild Air Force Base           lAncillary Facility        $1,692,000  
                  lFairchild Air Force Base           14 Units                   $2,300,000  
                                                                          --------------  
xl             xl                                   Total                   $176,099,000  

     (b) Planning and Design.--Using amounts appropriated pursuant to the 
  authorization of appropriations in section 2304(a)(5)(A), the Secretary 
  of the Air Force may carry out architectural and engineering services   
  and construction design activities with respect to the construction or  
  improvement of military family housing units in an amount not to exceed 
  $11,342,000.                                                            
          SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.               

     Subject to section 2825 of title 10, United States Code, and using   
  amounts appropriated pursuant to the authorization of appropriations in 
  section 2304(a)(5)(A), the Secretary of the Air Force may improve       
  existing military family housing units in an amount not to exceed       
  $104,108,000.                                                           
          SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.                  

     (a) In General.--Funds are hereby authorized to be appropriated for  
  fiscal years beginning after September 30, 1998, for military           
  construction, land acquisition, and military family housing functions of
  the Department of the Air Force in the total amount of $1,679,978,000 as
  follows:                                                                
       (1) For military construction projects inside the United States     
   authorized by section 2301(a), $514,880,000.                            

       (2) For military construction projects outside the United States    
   authorized by section 2301(b), $66,702,000.                             
       (3) For unspecified minor construction projects authorized by       
   section 2805 of title 10, United States Code, $8,135,000.               
       (4) For architectural and engineering services and construction     
   design under section 2807 of title 10, United States Code, $38,092,000. 
     (5) For military housing functions:                                   

       (A) For construction and acquisition, planning and design, and      
   improvement of military family housing and facilities, $291,549,000.    
       (B) For support of military family housing (including the functions 
   described in section 2833 of title 10, United States Code),             
   $785,204,000.                                                           
     (b) Limitation on Total Cost of Construction                         
  Projects.--Notwithstanding the cost variations authorized by section    
  2853 of title 10, United States Code, and any other cost variation      
  authorized by law, the total cost of all projects carried out under     
  section 2301 of this Act may not exceed the total amount authorized to  
  be appropriated under paragraphs (1) and (2) of subsection (a).         
     (c) Adjustment.--The total amount authorized to be appropriated      
  pursuant to paragraphs (1) through (5) of subsection (a) is the sum of  
  the amounts authorized to be appropriated in such paragraphs, reduced   
  by--                                                                    
       (1) $10,584,000, which represents the combination of project savings
   in military family housing construction resulting from favorable bids,  
   reduced overhead costs, and cancellations due to force structure        
   changes;                                                                
       (2) $2,000,000,000, which represents the combination of savings in  
   military family housing support resulting from favorable bids, reduced  
   overhead costs, and cancellations due to force structure changes; and   
       (3) $12,000,000, which represents the combination of project savings
   in military construction resulting from favorable bids, reduced overhead
   costs, and cancellations due to force structure changes.                

                                TITLE XXIV--DEFENSE AGENCIES                      


            Sec. 2401. Authorized Defense Agencies construction and land      
      acquisition projects.                                                   
      Sec. 2402. Improvements to military family housing units.               

      Sec. 2403. Energy conservation projects.                                

      Sec. 2404. Authorization of appropriations, Defense Agencies.           

            Sec. 2405. Repeal of fiscal year 1997 authorization of            
      appropriations for certain military housing improvement program.        
            Sec. 2406. Modification of authority to carry out certain fiscal  
      year 1995 projects.                                                     
            Sec. 2407. Modification of authority to carry out fiscal year 1990
      project.                                                                

                    SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND  
          ACQUISITION PROJECTS.                                                   
     (a) Inside the United States.--Using amounts appropriated pursuant to
  the authorization of appropriations in section 2404(a)(1), the Secretary
  of Defense may acquire real property and carry out military construction
  projects for the installations and locations inside the United States,  
  and in the amounts, set forth in the following table:                   
                                                                                 


                                       Defense Agencies: Inside the United States                                     

 Agency                                Installation or location                                                    Amount  

lChemical Demilitarization            lAberdeen Proving Ground, Maryland                                     $186,350,000  
                                         lNewport Army Depot, Indiana                                           $191,550,000  
lDefense Logistics Agency             lDefense Fuel Support Point, Fort Sill, Oklahoma                         $3,500,000  
                                         lDefense Fuel Support Point, Jacksonville Annex, Mayport, Florida       $11,020,000  
                                         lDefense Fuel Support Point, Jacksonville, Florida                      $11,000,000  
                                         lDefense General Supply Center, Richmond (DLA), Virginia                $10,500,000  
                                         lDefense Fuel Supply Center, Camp Shelby, Mississippi                    $5,300,000  
                                         lDefense Fuel Supply Center, Elmendorf Air Force Base, Alaska           $19,500,000  
                                         lDefense Fuel Supply Center, Pope Air Force Base, North Carolina         $4,100,000  
                                         Various Locations                                                        $1,300,000  
lDefense Medical Facilities Office    lBarksdale Air Force Base, Louisiana                                     $3,450,000  
                                         lBeale Air Force Base, California                                        $3,500,000  
                                         lCarlisle Barracks, Pennsylvania                                         $4,678,000  
                                         Cheatham Annex, Virginia                                                $11,300,000  
                                         lEdwards Air Force Base, California                                      $6,000,000  
                                         Eglin Air Force Base, Florida                                            $9,200,000  
                                         Fort Bragg, North Carolina                                               $6,500,000  
                                         Fort Hood, Texas                                                        $14,100,000  
                                         lFort Stewart/Hunter Army Air Field, Georgia                            $10,400,000  
                                         lGrand Forks Air Force Base, North Dakota                                $5,600,000  
                                         lHolloman Air Force Base, New Mexico                                     $1,300,000  
                                         lKeesler Air Force Base, Mississippi                                       $700,000  
                                         lMarine Corps Air Station, Camp Pendleton, California..                  $6,300,000  
                                         lMcChord Air Force Base, Washington                                     $20,000,000  
                                         lMoody Air Force Base, Georgia                                          $11,000,000  
                                         lNaval Air Station, Pensacola, Florida                                  $25,400,000  
                                         lNaval Hospital, Bremerton, Washington                                  $28,000,000  
                                         lNaval Hospital, Great Lakes, Illinois                                   $7,100,000  
                                         lNaval Station, San Diego, California                                    $1,350,000  
                                         lNaval Submarine Base, Bangor, Washington                                $5,700,000  
                                         lTravis Air Force Base, California                                       $1,700,000  
lDefense Education Activity           lMarine Corps Base, Camp LeJeune, North Carolina                        $16,900,000  
                                         lUnited States Military Academy, West Point, New York                    $2,840,000  
lNational Security Agency             Fort Meade, Maryland                                                       $668,000  
lSpecial Operations Command           lEglin Auxiliary Field 3, Florida                                        $7,310,000  
                                         lElgin Auxiliary Field 9, Florida                                        $2,400,000  
                                         Fort Campbell, Kentucky                                                 $15,000,000  
                                         lMacDill Air Force Base, Florida                                         $8,400,000  
                                         lNaval Amphibious Base, Coronado, California                             $3,600,000  
                                         lStennis Space Center, Mississippi                                       $5,500,000  
                                                                                                           --------------  
xl                                      Total                                                                $690,016,000  

     (b) Outside the United States.--Using amounts appropriated pursuant  
  to the authorization of appropriations in section 2404(a)(2), the       
  Secretary of Defense may acquire real property and carry out military   
  construction projects for the installations and locations outside the   
  United States, and in the amounts, set forth in the following table:    
                                                                                 


                           Defense Agencies: Outside the United States                          

 Agency                                Installation or location                              Amount  

lDefense Logistics Agency             lLajes Field, Azores, Portugal                     $7,700,000  
lDefense Medical Facilities Office    lNaval Air Station, Sigonella, Italy               $5,300,000  
                                         lRoyal Air Force, Lakenheath, United Kingdom      $10,800,000  
lDefense Education Activity           Fort Buchanan, Puerto Rico                         $8,805,000  
                                         Naval Activities, Guam                            $13,100,000  
lSpecial Operations Command           lNaval Station, Roosevelt Roads, Puerto Rico       $9,600,000  
                                                                                      -------------  
xl                                      Total                                           $55,305,000  


          SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.               

     Subject to section 2825 of title 10, United States Code, and using   
  amounts appropriated pursuant to the authorization of appropriation in  
  section 2404(a)(11)(A), the Secretary of Defense may improve existing   
  military family housing units in an amount not to exceed $345,000.      
          SEC. 2403. ENERGY CONSERVATION PROJECTS.                                

     Using amounts appropriated pursuant to the authorization of          
  appropriations in section 2404(a)(9), the Secretary of Defense may carry
  out energy conservation projects under section 2865 of title 10, United 
  States Code.                                                            
          SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.           

     (a) In General.--Funds are hereby authorized to be appropriated for  
  fiscal years beginning after September 30, 1998, for military           
  construction, land acquisition, and military family housing functions of
  the Department of Defense (other than the military departments) in the  
  total amount of $2,223,260,000 as follows:                              
       (1) For military construction projects inside the United States     
   authorized by section 2401(a), $369,966,000.                            
       (2) For military construction projects outside the United States    
   authorized by section 2401(a), $55,305,000.                             
       (3) For construction of the Ammunition Demilitarization Facility,   
   Pine Bluff Arsenal, Arkansas authorized by section 2401 of the Military 
   Construction Authorization Act for Fiscal Year 1995 (division B of      
   Public Law 103 337; 108 Stat. 3040), as amended by section 2407 of the  
   Military Construction Authorization Act for Fiscal Year                 

                    1996 (division B of Public Law 104 106; 110 Stat. 539),       
          section 2408 of the Military Construction Authorization Act for Fiscal  
          Year 1998 (division B of Public Law 105 85; 111 Stat. 1982), and section
          2406 of this Act, $16,500,000.                                          
       (4) For construction of the Ammunition Demilitarization Facility,   
   Umatilla Army Depot, Oregon, authorized by section 2401 of the Military 
   Construction Authorization Act for Fiscal Year 1995, as amended by      
   section 2407 of the Military Construction Authorization Act for Fiscal  
   Year 1996, section 2408 of the Military Construction Authorization Act  
   for Fiscal Year 1998, and section 2406 of this Act, $50,950,000.        
       (5) For military construction projects at Portsmouth Naval Hospital,
   Virginia, hospital replacement, authorized by section 2401(a) of the    
   Military Construction Authorization Act for Fiscal Years 1990 and 1991  
   (division B of Public Law 101 189; 106 Stat. 1640), as amended by       
   section 2407 of this Act, $17,954,000.                                  
       (6) For unspecified minor construction projects under section 2805  
   of title 10, United States Code, $13,394,000.                           
       (7) For contingency construction projects of the Secretary of       
   Defense under section 2804 of title 10, United States Code, $4,890,000. 
       (8) For architectural and engineering services and construction     
   design under section 2807 of title 10, United States Code, $41,005,000. 
       (9) For energy conservation projects authorized by section 2403,    
   $46,950,000.                                                            
       (10) For base closure and realignment activities as authorized by   
   the Defense Base Closure and Realignment Act of 1990 (part A of title   
   XXIX of Public Law 101 510; 10 U.S.C. 2687 note), $1,630,902,000.       
     (11) For military family housing functions:                           

       (A) For improvement of military family housing and facilities,      
   $345,000.                                                               
       (B) For support of military housing (including functions described  
   in section 2833 of title 10, United States Code), $36,899,000 of which  
   not more than $31,139,000 may be obligated or expended for the leasing  
   of military family housing units worldwide.                             
       (C) For credit to the Department of Defense Family Housing          
   Improvement Fund established by section 2883(a)(1) of title 10, United  
   States Code, $2,000,000.                                                
     (b) Limitation of Total Cost of Construction                         
  Projects.--Notwithstanding the cost variation authorized by section 2853
  of title 10, United States Code, and any other cost variation authorized
  by law, the total cost of all projects carried out under section 2401 of
  this Act may not exceed--                                               
       (1) the total amount authorized to be appropriated under paragraphs 
   (1) and (2) of subsection (a);                                          
       (2) $162,050,000 (the balance of the amount authorized under section
   2401(a) for the construction of the Ammunition Demilitarization Facility
   at Newport Army Depot, Indiana); and                                    
       (3) $158,000,000 (the balance of the amount authorized under section
   2401(a) for the construction of the Ammunition Demilitarization Facility
   at Aberdeen Proving Ground, Maryland).                                  
     (c) Adjustment.--The total amount authorized to be appropriated      
  pursuant to paragraphs (1) through (11) of subsection (a) is the sum of 
  the amounts authorized to be appropriated in such paragraphs, reduced by
  $63,800,000 (of which $50,500,000 represents savings from military      
  construction for chemical demilitarization), which represents the       
  combination of project savings in military construction resulting from  
  favorable bids, reduced overhead costs, and cancellations due to force  
  structure changes.                                                      

                    SEC. 2405. REPEAL OF FISCAL YEAR 1997 AUTHORIZATION OF        
          APPROPRIATIONS FOR CERTAIN MILITARY HOUSING IMPROVEMENT PROGRAM.        
     (a) Authorization of Appropriations.--Section 2406(a) of the Military
  Construction Authorization Act for Fiscal Year 1997 (division B of      
  Public Law 104 201; 110 Stat. 2778) is amended--                        
       (1) by striking out ``$3,379,703,000'' and inserting in lieu thereof
   ``$3,374,703,000''; and                                                 
     (2) in paragraph (14), by striking out subparagraph (D).              

     (b) Credit and Use of Funds.--Section 2404 of that Act (110 Stat.    
  2777) is amended--                                                      
     (1) in subsection (a)--                                               

     (A) by striking out ``(1)'' before ``Of''; and                        

     (B) by striking out paragraph (2); and                                

     (2) in subsection (b)--                                               

     (A) by striking out ``(1)'' before ``The'';                           

       (B) by striking out ``subsection (a)(1)'' and inserting in lieu     
   thereof ``subsection (a)''; and                                         
     (C) by striking out paragraph (2).                                    


                    SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN     
          FISCAL YEAR 1995 PROJECTS.                                              
     The table in section 2401 of the Military Construction Authorization 
  Act for Fiscal Year 1995 (division B of Public Law 103 337; 108 Stat.   
  3040), as amended by section 2407 of the Military Construction          
  Authorization Act for Fiscal Year 1996 (division B of Public Law 104    
  106; 110 Stat. 539) and section 2408 of the Military Construction       
  Authorization Act for Fiscal Year 1998 (division B of Public Law 105 85;
  111 Stat. 1982), under the agency heading relating to Chemical Weapons  
  and Munitions Destruction, is amended--                                 
       (1) in the item relating to Pine Bluff Arsenal, Arkansas, by        
   striking out $134,000,000'' in the amount column and inserting in lieu  
   thereof ``$154,400,000''; and                                           
       (2) in the item relating to Umatilla Army Depot, Oregon, by striking
   out ``$187,000,000'' in the amount column and inserting in lieu thereof 
   ``$193,377,000''.                                                       

                    SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
          1990 PROJECT.                                                           
     (a) Increase.--The table in section 2401(a) of the Military          
  Construction Authorization Act for Fiscal Years 1990 and 1991 (division 
  B of Public Law 100 189; 103 Stat. 1640) is amended in the item relating
  to Portsmouth Naval Hospital, Virginia, by striking out ``$330,000,000''
  and inserting in lieu thereof ``$351,354,000''.                         
     (b) Conforming Amendment.--Section 2405(b)(2) of that Act (103 Stat. 
  1642) is amended by striking out ``$321,500,000'' and inserting in lieu 
  thereof ``$342,854,000''.                                               

             TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT    
                                     PROGRAM                                      

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

      Sec. 2502. Authorization of appropriations, NATO.                       


          SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.  

     The Secretary of Defense may make contributions for the North        
  Atlantic Treaty Organization Security Investment program as provided in 
  section 2806 of title 10, United States Code, in an amount not to exceed
  the sum of the amount authorized to be appropriated for this purpose in 
  section 2502 and the amount collected from the North Atlantic Treaty    
  Organization as a result of construction previously financed by the     
  United States.                                                          
          SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.                       

     Funds are hereby authorized to be appropriated for fiscal years      
  beginning after September 30, 1998, for contributions by the Secretary  
  of Defense under section 2806 of title 10, United States Code, for the  
  share of the United States of the cost of projects for the North        
  Atlantic Treaty Organization Security Investment program authorized by  
  section 2501, in the amount of $154,000,000.                            

                       TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES            


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

                    SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
          ACQUISITION PROJECTS.                                                   
     (a) Authorization of Appropriations.--There are authorized to be     
  appropriated for fiscal years beginning after September 30, 1998, for   
  the costs of acquisition, architectural and engineering services, and   
  construction of facilities for the Guard and Reserve Forces, and for    
  contributions therefor, under chapter 1803 of title 10, United States   
  Code (including the cost of acquisition of land for those facilities),  
  the following amounts:                                                  
     (1) For the Department of the Army--                                  

       (A) for the Army National Guard of the United States, $142,403,000; 
   and                                                                     
     (B) for the Army Reserve, $102,119,000.                               

       (2) For the Department of the Navy, for the Naval and Marine Corps  
   Reserve, $31,621,000.                                                   
     (3) For the Department of the Air Force--                             

     (A) for the Air National Guard of the United States, $169,801,000; and

     (B) for the Air Force Reserve, $34,371,000.                           

     (b) Adjustment.--(1) The amount authorized to be appropriated        
  pursuant to subsection (a)(1)(A) is reduced by $2,000,000, which        
  represents the combination of project savings in military construction  
  resulting from favorable bids, reduced overhead costs, and cancellations
  due to force structure changes.                                         
     (2) The amount authorized to be appropriated pursuant to subsection  
  (a)(3)(A) is reduced by $4,000,000, which represents the combination of 
  project savings in military construction resulting from favorable bids, 
  reduced overhead costs, and cancellations due to force structure        
  changes.                                                                

                    SEC. 2602. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
          1998 PROJECT.                                                           
     Section 2603 of the Military Construction Authorization Act for      
  Fiscal Year 1998 (division B of Public Law 105 85; 111 Stat. 1983) is   
  amended to read as follows:                                             
          ``SEC. 2603. ARMY RESERVE CONSTRUCTION PROJECT, SALT LAKE CITY, UTAH.   

     ``With regard to the military construction project for the Army      
  Reserve concerning construction of a reserve center and organizational  
  maintenance shop at an appropriate site in, or in the vicinity of, Salt 
  Lake City, Utah, to be carried out using funds appropriated pursuant to 
  the authorization of appropriations in section 2601(a)(1)(B), the       
  Secretary of the Army shall enter into an agreement with the State of   
  Utah under which the State agrees to provide financial or in-kind       
  contributions in connection with the project.''.                        

                   TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS        


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

      Sec. 2704. Effective date.                                              


                    SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED  
          TO BE SPECIFIED BY LAW.                                                 
     (a) Expiration of Authorizations After Three Years.--Except as       
  provided in subsection (b), all authorizations contained in titles XXI  
  through XXVI for military construction projects, land acquisition,      
  family housing projects and facilities, and contributions to the North  
  Atlantic Treaty Organization Security Investment program (and           
  authorizations of appropriations therefor) shall expire on the later    
  of--                                                                    
     (1) October 1, 2001; or                                               

       (2) the date of enactment of an Act authorizing funds for military  
   construction for fiscal year 2002.                                      
     (b) Exception.--Subsection (a) shall not apply to authorizations for 
  military construction projects, land acquisition, family housing        
  projects and facilities, and contributions to the North Atlantic Treaty 
  Organization Security Investment program (and authorizations of         
  appropriations therefor), for which appropriated funds have been        
  obligated before the later of--                                         
     (1) October 1, 2001; or                                               

       (2) the date of enactment of an Act authorizing funds for fiscal    
   year 2002 for military construction projects, land acquisition, family  
   housing projects and facilities, or contributions to the North Atlantic 
   Treaty Organization Security Investment program.                        
                    SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
          1996 PROJECTS.                                                          
     (a) Extensions.--Notwithstanding section 2701 of the Military        
  Construction Authorization Act for Fiscal Year 1996 (division B of      
  Public Law 104 106; 110 Stat. 541), authorizations                      

                    for the projects set forth in the tables in subsection (b), as
          provided in section 2201, 2202, 2302, or 2601 of that Act, shall remain 
          in effect until October 1, 1999, or the date of enactment of an Act     
          authorizing funds for military construction for fiscal year 2000,       
          whichever is later.                                                     
    (b)  Tables.--The tables referred to in subsection (a) are as follows:

                                                                                 


                              Navy: Extension of 1996 Project Authorizations                            

 State           Installation or location           Project                                            Amount  

Puerto Rico     lNaval Station Roosevelt Roads     Housing Office                                    $710,000  
California      Camp Pendleton                     lFamily Housing Construction (138 units)       $20,000,000  


               Air Force: Extension of 1996 Project Authorization              

 State     Installation or location     Project                             Amount  

Texas     lLackland Air Force Base     lFamily Housing (67 units)       $6,200,000  


                            Army National Guard: Extension of 1996 Project Authorizations                          

 State           Installation or location                          Project                                        Amount  

Mississippi     Camp Shelby                                       lMultipurpose Range Complex (Phase I)       $5,000,000  
Missouri        lNational Guard Training Site, Jefferson City     lMultipurpose Range                         $2,236,000  


          SEC. 2703. EXTENSION OF AUTHORIZATION OF FISCAL YEAR 1995 PROJECT.      

     (a) Extension.--Notwithstanding section 2701 of the Military         
  Construction Authorization Act for Fiscal Year 1995 (division B of      
  Public Law 103 337; 108 Stat. 3046), the authorization for the project  
  set forth in the table in subsection (b), as provided in section 2201 of
  that Act and extended by section 2702 of the Military Construction      
  Authorization Act for Fiscal Year 1998 (division B of Public Law 105 85;
  111 Stat. 1985), shall remain in effect until October 1, 1999, or the   
  date of enactment of an Act authorizing funds for military construction 
  for fiscal year 2000, whichever is later.                               
    (b)  Table.--The table referred to in subsection (a) is as follows:   

                                                                                 


                                Navy: Extension of 1995 Project Authorization                               

 State        Installation or location                      Project                                        Amount  

Maryland     lIndian Head Naval Surface Warfare Center     lDenitrification/Acid Mixing Facility       $6,400,000  


          SEC. 2704. EFFECTIVE DATE.                                              

     Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on the
  later of--                                                              
     (1) October 1, 1998; or                                               

     (2) the date of the enactment of this Act.                            


                              TITLE XXVIII--GENERAL PROVISIONS                    


           SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING  
                                     CHANGES                                      
            Sec. 2801. Architectural and engineering services and construction
      design.                                                                 
      Sec. 2802. Expansion of Army overseas family housing lease authority.   

            Sec. 2803. Definition of ancillary supporting facilities under    
      alternative authority for acquisition and improvement of military       
      housing.                                                                
            Sec. 2804. Purchase of build-to-lease family housing at Eielson   
      Air Force Base, Alaska.                                                 
            Sec. 2805. Report relating to improvement of housing for          
      unaccompanied members.                                                  
                   SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION        

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

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

                                  PART I--ARMY CONVEYANCES                        

            Sec. 2831. Modification of land conveyance, Army Reserve Center,  
      Youngstown, Ohio.                                                       
            Sec. 2832. Release of interests in real property, former Kennebec 
      Arsenal, Augusta, Maine.                                                
            Sec. 2833. Release, waiver, or conveyance of interests in real    
      property, former Redstone Army Arsenal property, Alabama.               
            Sec. 2834. Conveyance of utility systems, Lone Star Army          
      Ammunition Plant, Texas.                                                
            Sec. 2835. Conveyance of water rights and related interests, Rocky
      Mountain Arsenal, Colorado, for purposes of acquisition of perpetual    
      contracts for water.                                                    
      Sec. 2836. Land conveyance, Army Reserve Center, Massena, New York.     

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

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

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

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

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

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

            Sec. 2843. Land conveyance, Indiana Army Ammunition Plant,        
      Charlestown, Indiana.                                                   
            Sec. 2844. Land conveyance, Volunteer Army Ammunition Plant,      
      Chattanooga, Tennessee.                                                 
            Sec. 2845. Land conveyance, Stewart Army Sub-Post, New Windsor,   
      New York.                                                               
                                 PART II--NAVY CONVEYANCES                        

            Sec. 2851. Conveyance of easement, Marine Corps Base, Camp        
      Pendleton, California.                                                  
            Sec. 2852. Land exchange, Naval Reserve Readiness Center,         
      Portland, Maine.                                                        
            Sec. 2853. Land conveyance, Naval and Marine Corps Reserve        
      facility, Youngstown, Ohio.                                             
            Sec. 2854. Land conveyance, Naval Air Reserve Center, Minneapolis,
      Minnesota.                                                              
                              PART III--AIR FORCE CONVEYANCES                     

            Sec. 2861. Modification of land conveyance, Eglin Air Force Base, 
      Florida.                                                                
            Sec. 2862. Modification of land conveyance, Finley Air Force      
      Station, North Dakota.                                                  
      Sec. 2863. Land conveyance, Lake Charles Air Force Station, Louisiana.  

            Sec. 2864. Land conveyance, Air Force Housing Facility, La Junta, 
      Colorado.                                                               
                                  SUBTITLE E--OTHER MATTERS                       

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

           SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING  
                                     CHANGES                                      
                    SEC. 2801. ARCHITECTURAL AND ENGINEERING SERVICES AND         
          CONSTRUCTION DESIGN.                                                    
     (a) Increase in Threshold for Notice to Congress.--Subsection (b) of 
  section 2807 of title 10, United States Code, is amended by striking out
  ``$300,000'' and inserting in lieu thereof ``$500,000''.                
     (b) Availability of Appropriations.--Subsection (d) of that section  
  is amended by striking out ``study, planning, design, architectural, and
  engineering services'' and inserting in                                 

                    lieu thereof ``architectural and engineering services and     
          construction design''.                                                  
          SEC. 2802. EXPANSION OF ARMY OVERSEAS FAMILY HOUSING LEASE AUTHORITY.   

     (a) Alternative Maximum Unit Amounts.--Section 2828(e) of title 10,  
  United States Code, is amended--                                        
       (1) in paragraph (2), by inserting, ``, and the Secretary of the    
   Army may lease not more than 500 units of family housing in Italy,''    
   after ``family housing in Italy'';                                      
       (2) by redesignating paragraphs (3) and (4) as paragraphs (4) and   
   (5), respectively; and                                                  
     (3) by inserting after paragraph (2) the following new paragraph (3): 

     ``(3) In addition to the 450 units of family housing referred to in  
  paragraph (1) for which the maximum lease amount is $25,000 per unit per
  year, the Secretary of the Army may lease not more than 800 units of    
  family housing in Korea subject to that maximum lease amount.''.        
     (b) Conforming Amendment.--Paragraph (4) of that section, as         
  redesignated by subsection (a)(2) of this section, is amended by        
  striking out ``and (2)'' and inserting in lieu thereof ``, (2), and     
  (3)''.                                                                  
                    SEC. 2803. DEFINITION OF ANCILLARY SUPPORTING FACILITIES UNDER
          ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF MILITARY       
          HOUSING.                                                                
     Section 2871(1) of title 10, United States Code, is amended by       
  inserting after ``including'' the following: ``facilities to provide or 
  support elementary or secondary education,''.                           

                    SEC. 2804. PURCHASE OF BUILD-TO-LEASE FAMILY HOUSING AT       
          EIELSON AIR FORCE BASE, ALASKA.                                         
     (a) Authority To Purchase.--The Secretary of the Air Force may       
  purchase the entire interest of the developer in the military family    
  housing project at Eielson Air Force Base, Alaska, described in         
  subsection (b) if the Secretary determines that the purchase is in the  
  best economic interests of the Air Force.                               
     (b) Description of Project.--The military family housing project     
  referred to in this section is the 366-unit military family housing     
  project at Eielson Air Force Base that was constructed by the developer 
  and is being leased by the Secretary under the authority of former      
  subsection (g) of section 2828 of title 10, United States Code (now     
  section 2835 of such title), as added by section 801 of the Military    
  Construction Authorization Act, 1984 (Public Law 98 115; 97 Stat. 782). 
     (c) Purchase Price.--The purchase price to be paid by the Secretary  
  under this section for the interest of the developer in the military    
  family housing project may not exceed an amount equal to the amount of  
  the outstanding indebtedness of the developer to the lender for the     
  project that would have remained at the time of the purchase under this 
  section if the developer had paid down its indebtedness to the lender   
  for the project in accordance with the original debt instruments for the
  project.                                                                
     (d) Time for Purchase.--(1) Subject to paragraph (2), the Secretary  
  may elect to make the purchase authorized by subsection (a) at any time 
  during or after the term of the lease for the military family housing   
  project.                                                                
     (2) The Secretary may not make the purchase until 30 days after the  
  date on which the Secretary notifies the congressional defense          
  committees of the Secretary's election to make the purchase under       
  paragraph (1).                                                          

                    SEC. 2805. REPORT RELATING TO IMPROVEMENT OF HOUSING FOR      
          UNACCOMPANIED MEMBERS.                                                  
     (a) Report Required.--(1) Not later than April 1, 1999, the Secretary
  of Defense shall submit to Congress a report on--                       
       (A) the plans of each of the military departments to improve the    
   condition, suitability, and availability of housing for members of the  
   Armed Forces who are unaccompanied by dependents; and                   
     (B) the costs associated with the implementation of the plans.        


     (2) The Secretary of Defense shall prepare the report in consultation
  with the Secretaries of the military departments.                       
     (b) Elements.--The report under subsection (a) shall include the     
  following:                                                              
       (1) The plans and programs of each of the military departments to   
   improve housing on military installations for unaccompanied members of  
   the Armed Forces, including an assessment of the requirement, a schedule
   to implement such plans and programs, and an explanation of the         
   standards used to determine the adequacy, suitability, and availability 
   of housing outside of military installations.                           
       (2) A justification for the initiative to build single occupancy    
   rooms with a shared bath (commonly known as the ``1 Plus 1              
   Initiative''), including--                                              
       (A) a description of the manner in which the initiative is designed 
   to enhance the quality of life for enlisted members and the retention of
   such members in adequate numbers; and                                   
       (B) an assessment of the analysis and data used in the justification
   to implement the initiative.                                            
       (3) The cost for each military department of implementing the       
   initiative, including the amount of funds, by fiscal year, authorized   
   and appropriated for military construction and real property maintenance
   obligated or expended on the improvement of military housing for        
   unaccompanied members beginning on October 1, 1996, and the amount of   
   funds required to be expended to ensure the suitability of such housing 
   for unaccompanied members.                                              
     (4) An explanation of the difference in cost between--                

       (A) upgrading existing military housing to the standard proposed in 
   the initiative; and                                                     
     (B) rehabilitating such housing within existing standards.            

       (5) An assessment of the viability and utility of the authorities   
   provided by subchapter IV of chapter 169 of title 10, United States     
   Code, to contribute to the improvement of the condition, suitability,   
   and availability of housing for unaccompanied members, especially       
   members in junior grades.                                               
       (6) The views of the Chief of Staff of the Army, the Chief of Naval 
   Operations, the Chief of Staff of the Air Force, the Commandant of the  
   Marine Corps, the Commandant of the Coast Guard, and each of the senior 
   enlisted members of the Armed Forces regarding the initiative referred  
   to in paragraph (2) and regarding any alternatives to the initiative    
   having the potential of enhancing the quality of life for unaccompanied 
   members, improving the readiness of the Armed Forces, and improving the 
   retention of enlisted members in adequate numbers.                      

                   SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION        


                    SEC. 2811. EXCEPTIONS TO REAL PROPERTY TRANSACTION REPORTING  
          REQUIREMENTS FOR WAR AND CERTAIN EMERGENCY AND OTHER OPERATIONS.        
     (a) Exceptions.--Section 2662 of title 10, United States Code, is    
  amended by adding at the end the following new subsection:              
     ``(g) Exceptions for Transactions for War and Certain Emergency and  
  Other Operations.--(1) The reporting requirement set forth in subsection
  (a) shall not apply with respect to a real property transaction         
  otherwise covered by that subsection, and the reporting requirement set 
  forth in subsection (e) shall not apply with respect to a real property 
  transaction otherwise covered by that subsection, if the Secretary      
  concerned determines that the transaction is made as a result of any of 
  the following:                                                          
     ``(A) A declaration of war.                                           

       ``(B) A declaration of a national emergency by the President        
   pursuant to the National Emergencies Act (50 U.S.C. 1601 et seq.).      
       ``(C) A declaration of an emergency or major disaster pursuant to   
   the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
   U.S.C. 5121 et seq.).                                                   

       ``(D) The use of the militia or the armed forces after a            
   proclamation to disperse under section 334 of this title.               
     ``(E) A contingency operation.                                        

     ``(2) The reporting requirement set forth in subsection (a) shall not
  apply with respect to a real property transaction otherwise covered by  
  that subsection if the Secretary concerned determines that--            
     ``(A) an event listed in paragraph (1) is imminent; and               

       ``(B) the transaction is necessary for purposes of preparation for  
   such event.                                                             
     ``(3) Not later than 30 days after entering into a real property     
  transaction covered by paragraph (1) or (2), the Secretary concerned    
  shall submit to the committees named in subsection (a) a report on the  
  transaction. The report shall set forth any facts or information which  
  would otherwise have been submitted in a report on the transaction under
  subsection (a) or (e), as the case may be, but for the operation of     
  paragraph (1) or (2).''.                                                
    (b)  Stylistic Amendments.--That section is further amended--         

       (1) in subsection (a), by inserting `` General Notice and Wait      
   Requirements.--'' after ``(a)'';                                        
       (2) in subsection (b), by inserting `` Annual Reports on Certain    
   Minor Transactions.--'' after ``(b)'';                                  
       (3) in subsection (c), by inserting `` Geographic Scope; Excepted   
   Projects.--'' after ``(c)'';                                            
       (4) in subsection (d), by inserting `` Statements of Compliance in  
   Transaction Instruments.--'' after ``(d)'';                             
       (5) in subsection (e), by inserting `` Notice and Wait Regarding    
   Leases of Space for DoD by GSA.--'' after ``(e)''; and                  
       (6) in subsection (f), by inserting `` Reports on Transactions      
   Involving Intelligence Components.--'' after ``(f)''.                   

                    SEC. 2812. RESTORATION OF DEPARTMENT OF DEFENSE LANDS USED BY 
          ANOTHER FEDERAL AGENCY.                                                 
     (a) Restoration as Term of Agreement.--Section 2691 of title 10,     
  United States Code, is amended by adding at the end the following new   
  subsection:                                                             
     ``(c)(1) As a condition of any lease, permit, license, or other grant
  of access entered into by the Secretary of a military department with   
  another Federal agency authorizing the agency to use lands under the    
  control of the Secretary, the Secretary may require the agency to agree 
  to remove any improvements and to take any other action necessary in the
  judgment of the Secretary to restore the land used by the agency to its 
  condition before its use by the agency.                                 
     ``(2) In lieu of performing any removal or restoration work under    
  paragraph (1), a Federal agency may elect, with the consent of the      
  Secretary, to reimburse the Secretary for the costs incurred by the     
  military department in performing such removal or restoration work.''.  
     (b) Clerical Amendments.--(1) The heading of such section is amended 
  to read as follows:                                                     
          ``2691. Restoration of land used by permit or lease''.                  

     (2) The table of sections at the beginning of chapter 159 of title   
  10, United States Code, is amended by striking the item relating to     
  section 2691 and inserting in lieu thereof the following new item:      


      ``2691. Restoration of land used by permit or lease.''.                 


                    SEC. 2813. OUTDOOR RECREATION DEVELOPMENT ON MILITARY         
          INSTALLATIONS FOR DISABLED VETERANS, MILITARY DEPENDENTS WITH           
          DISABILITIES, AND OTHER PERSONS WITH DISABILITIES.                      
     (a) Access Enhancement.--Section 103 of the Sikes Act (16 U.S.C.     
  670c) is amended by adding at the end the following new subsections:    
    ``(b)  Access for Disabled Veterans, Military Dependents With         


                     Disabilities, and Other Persons With Disabilities.--(1) In   
          developing facilities and conducting programs for public outdoor        
          recreation at military installations, consistent with the primary       
          military mission of the installations, the Secretary of Defense shall   
          ensure, to the extent reasonably practicable, that outdoor recreation   
          opportunities (including fishing, hunting, trapping, wildlife viewing,  
          boating, and camping) made available to the public also provide access  
          for persons described in paragraph (2) when topographic, vegetative, and
          water resources allow access for such persons without substantial       
          modification to the natural environment.                                
    ``(2) Persons referred to in paragraph (1) are the following:         

     ``(A) Disabled veterans.                                              

     ``(B) Military dependents with disabilities.                          

       ``(C) Other persons with disabilities, when access to a military    
   installation for such persons and other civilians is not otherwise      
   restricted.                                                             
     ``(3) The Secretary of Defense shall carry out this subsection in    
  consultation with the Secretary of Veterans Affairs, national service,  
  military, and veterans organizations, and sporting organizations in the 
  private sector that participate in outdoor recreation projects for      
  persons described in paragraph (2).                                     
     ``(c) Acceptance of Donations.--In connection with the facilities and
  programs for public outdoor recreation at military installations, in    
  particular the requirement under subsection (b) to provide access for   
  persons described in paragraph (2) of such subsection, the Secretary of 
  Defense may accept--                                                    
     ``(1) the voluntary services of individuals and organizations; and    

     ``(2) donations of property, whether real or personal.                

     ``(d) Treatment of Volunteers.--A volunteer under subsection (c)     
  shall not be considered to be a Federal employee and shall not be       
  subject to the provisions of law relating to Federal employment,        
  including those relating to hours of work, rates of compensation, leave,
  unemployment compensation, and Federal employee benefits, except that-- 
       ``(1) for the purposes of the tort claims provisions of chapter 171 
   of title 28, United States Code, the volunteer shall be considered to be
   a Federal employee; and                                                 
       ``(2) for the purposes of subchapter I of chapter 81 of title 5,    
   United States Code, relating to compensation to Federal employees for   
   work injuries, the volunteer shall be considered to be an employee, as  
   defined in section 8101(1)(B) of title 5, United States Code, and the   
   provisions of such subchapter shall apply.''.                           
     (b) Conforming Amendment.--Such section is further amended by        
  striking out `` Sec. 103.'' and inserting in lieu thereof the following:
          ``SEC. 103. PROGRAM FOR PUBLIC OUTDOOR RECREATION.                      

    ``(a)  Program Authorized.--''.                                       


                    SEC. 2814. REPORT ON LEASING AND OTHER ALTERNATIVE USES OF    
          NON-EXCESS MILITARY PROPERTY.                                           
     (a) Report Required.--Not later than March 15, 1999, the Secretary of
  Defense shall submit to the Committee on Armed Services of the Senate   
  and the Committee on National Security of the House of Representatives a
  report regarding the authority of the military departments and Defense  
  Agencies to lease to the private sector non-excess real and personal    
  property. The Secretary shall prepare the report in consultation with   
  the Secretaries of the military departments and the Director of the     
  Office of Management and Budget.                                        
     (b) Required Elements of Report.--The report shall set forth the     
  following:                                                              
       (1) The number and purpose of all leases entered into under sections
   2667 and 2667a of title 10, United States Code, other than leases under 
   section 2667(f) of that title, during the five-year period ending on the
   date of the enactment of this Act.                                      
       (2) The types and amounts of payments received under the leases     
   specified in paragraph (1) and the costs, if any, foregone as a result  
   of the leases.                                                          

       (3) An assessment of the positive and negative aspects of leasing   
   real property and surplus capacity at military installations to the     
   private sector, including the potential effect of the use of the leases 
   on force protection and the military functions of the installations.    
       (4) An assessment of the current efforts of the Department of       
   Defense to identify for the private sector any surplus capacity at      
   military installations that could be leased or otherwise used by the    
   private sector.                                                         
       (5) An assessment of the proposal of the Secretary of the Air Force 
   to reduce infrastructure costs at Brooks Air Force Base, Texas, using   
   the authority provided in section 2667 of title 10, United States Code, 
   and the proposal of the Secretary of the Navy regarding the potential   
   for development of Ford Island as part of Naval Complex, Pearl Harbor,  
   Hawaii.                                                                 
       (6) An assessment (including an economic analysis) of the ability of
   the military departments and Defense Agencies to reduce the quantity of 
   real property leased by them through the relocation of activities       
   located in such leased space to property of a military installation, or 
   another Federal agency, that is unutilized or underutilized, while also 
   lowering operational and maintenance costs and minimizing the need for  
   new construction.                                                       
     (c) Additional Elements of Report.--In the event that the Secretary  
  of Defense considers the authority under section 2667 or 2667a of title 
  10, United States Code, to be insufficient, the Secretary shall also    
  include in the report--                                                 
       (1) a proposal for authority to conduct a pilot project based on the
   assessment made under subsection (b)(5) or for such general legislative 
   authority as the Secretary considers appropriate to enhance the ability 
   of the Department of Defense to utilize surplus capacity at military    
   installations in order to improve military readiness, achieve cost      
   savings with respect to such installations, or decrease the cost of     
   operating such installations;                                           
       (2) an estimate of the income that could accrue to the Department of
   Defense as a result of the implementation of enhanced authority proposed
   under paragraph (1) during the five-year period beginning on the date of
   such implementation; and                                                
       (3) an assessment of the extent to which any such income should be  
   reserved for the use of the installations exercising such authority and 
   of the extent to which installations would be likely to enter into such 
   leases if they cannot retain such income.                               
                    SEC. 2815. REPORT ON IMPLEMENTATION OF UTILITY SYSTEM         
          CONVEYANCE AUTHORITY.                                                   
     Not later than March 1, 1999, the Secretary of Defense, in           
  consultation with the Secretaries of the military departments, shall    
  submit to Congress a report containing--                                
       (1) the criteria to be used by the Secretary of a military          
   department to select utility systems, and related improvements,         
   easements, and rights-of-way, under the jurisdiction of the Secretary,  
   for conveyance to a municipal, private, regional, district, or          
   cooperative utility company or other entity under the authority of      
   section 2688 of title 10, United States Code;                           
       (2) an assessment of the need to include, as part of the conveyance 
   authority under such section, authority for the Secretary to convey real
   property associated with a utility system conveyed under such section;  
   and                                                                     
       (3) a description of the manner in which the Secretary will ensure  
   that any conveyance under such section does not adversely affect the    
   national security of the United States.                                 

                      SUBTITLE C--DEFENSE BASE CLOSURE AND REALIGNMENT            

                    SEC. 2821. APPLICABILITY OF PROPERTY DISPOSAL LAWS TO LEASES  
          AT INSTALLATIONS TO BE CLOSED OR REALIGNED UNDER BASE CLOSURE LAWS.     
     Section 2667(f)(1) of title 10, United States Code, is amended by    
  inserting after ``subsection (a)(3)'' the following: ``or the Federal   
  Property and Administrative Services Act of 1949 (to the extent such Act
  is inconsistent with this subsection)''.                                
                    SEC. 2822. ELIMINATION OF WAIVER AUTHORITY REGARDING          
          PROHIBITION AGAINST CERTAIN CONVEYANCES OF PROPERTY AT NAVAL STATION,   
          LONG BEACH, CALIFORNIA.                                                 
     Section 2826 of the Military Construction Authorization Act for      
  Fiscal Year 1998 (division B of Public Law 105 85; 111 Stat. 2001) is   
  amended by striking out subsection (e).                                 
                    SEC. 2823. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER     
          CERCLA IN CONNECTION WITH MCCLELLAN AIR FORCE BASE, CALIFORNIA.         
     (a) Source of Payment.--Notwithstanding subsection (b) of section    
  2906 of the Defense Base Closure and Realignment Act of 1990 (part A of 
  title XXIX of Public Law 101 510; 10 U.S.C. 2687 note), the Secretary of
  Defense may use amounts in the Department of Defense Base Closure       
  Account 1990 established under subsection (a) of such section to pay    
  stipulated penalties assessed under the Comprehensive Environmental     
  Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et    
  seq.) against McClellan Air Force Base, California.                     
     (b) Amount of Payment.--The amount expended under the authority of   
  subsection (a) may not exceed $15,000.                                  

                                SUBTITLE D--LAND CONVEYANCES                      

           PART I--ARMY CONVEYANCES                                               

                    SEC. 2831. MODIFICATION OF LAND CONVEYANCE, ARMY RESERVE      
          CENTER, YOUNGSTOWN, OHIO.                                               
     Section 2861(b) of the Military Construction Authorization Act for   
  Fiscal Year 1996 (division B of Public Law 104 106; 110 Stat. 573) is   
  amended by striking out ``retain'' and all that follows through the     
  period at the end and inserting in lieu thereof ``develop the parcel for
  educational purposes.''.                                                
                    SEC. 2832. RELEASE OF INTERESTS IN REAL PROPERTY, FORMER      
          KENNEBEC ARSENAL, AUGUSTA, MAINE.                                       
     (a) Authority To Release.--The Secretary of the Army may release,    
  without consideration, all right, title, and interest of the United     
  States in and to the real property described in subsection (b).         
     (b) Covered Property.--The real property referred to in subsection   
  (a) is the parcel of real property consisting of approximately 40 acres 
  located in Augusta, Maine, and formerly known as the Kennebec Arsenal,  
  which parcel was conveyed by the Secretary of War to the State of Maine 
  under the provisions of the Act entitled ``An Act Authorizing the       
  Secretary of War to convey the Kennebec Arsenal property, situated in   
  Augusta, Maine, to the State of Maine for public purposes'', approved   
  March 3, 1905 (33 Stat. 1270), as amended by section 771 of the         
  Department of Defense Appropriations Act, 1981 (Public Law 96 527; 94   
  Stat. 3093).                                                            
     (c) Instrument of Release.--The Secretary of the Army shall execute  
  and file in the appropriate office a deed of release, amended deed, or  
  other appropriate instrument effectuating the release of interests      
  authorized by this section.                                             

                    SEC. 2833. RELEASE, WAIVER, OR CONVEYANCE OF INTERESTS IN REAL
          PROPERTY, FORMER REDSTONE ARMY ARSENAL PROPERTY, ALABAMA.               
     (a) Release Authorized.--The Secretary of the Army may release,      
  without consideration and to such extent as the Secretary considers     
  appropriate to protect the interests of the                             

                    United States, the reversionary interests of the United States
          in the real property described in subsection (b), which were retained by
          the United States when the property was conveyed to the Alabama Space   
          Science Exhibit Commission, an agency of the State of Alabama. The      
          release shall be executed in the manner provided in this section.       
     (b) Description of Property.--The real property referred to in this  
  section is the real property conveyed to the Alabama Space Science      
  Exhibit Commission under the authority of the following provisions of   
  law:                                                                    
     (1) The first section of Public Law 90 276 (82 Stat. 68).             

       (2) Section 813 of the Military Construction Authorization Act, 1980
   (Public Law 96 125; 93 Stat. 952).                                      
       (3) Section 813 of the Military Construction Authorization Act, 1984
   (Public Law 98 115; 97 Stat. 790).                                      
     (c) Release, Waiver, or Conveyance of Other Rights, Terms, and       
  Conditions.--As part of the release under subsection (a), the Secretary 
  may release, waive, or convey, without consideration and to such extent 
  as the Secretary considers appropriate to protect the interests of the  
  United States--                                                         
       (1) any and all other rights retained by the United States in and to
   the real property described in subsection (b) when the property was     
   conveyed to the Alabama Space Science Exhibit Commission; and           
       (2) any and all terms and conditions and restrictions on the use of 
   the real property imposed as part of the conveyances described in       
   subsection (b).                                                         
     (d) Conditions on Release, Waiver, or Conveyance.--(1) The Secretary 
  may execute the release under subsection (a) or a release, waiver, or   
  conveyance under subsection (c) only after--                            
       (A) the Secretary approves of the master plan prepared by the       
   Alabama Space Science Exhibit Commission, as such plan may exist or be  
   revised from time to time, for development of the real property         
   described in subsection (b); and                                        
       (B) the installation commander at Redstone Arsenal, Alabama,        
   certifies to the Secretary that the release, waiver, or conveyance is   
   consistent with the master plan.                                        
     (2) A new facility or structure may not be constructed on the real   
  property described in subsection (b) unless the facility or structure is
  included in the master plan, which has been approved and certified as   
  provided in paragraph (1).                                              
     (e) Instrument of Release, Waiver, or Conveyance.--In making a       
  release, waiver, or conveyance authorized by this section, the Secretary
  shall execute and file in the appropriate office or offices a deed of   
  release, amended deed, or other appropriate instrument effectuating the 
  release, waiver, or conveyance.                                         
     (f) Effect of Release.--Except as provided in subsection (g), upon   
  release of any reversionary interest under this section, the right,     
  title and interest of the Alabama Space Science Exhibit Commission in   
  and to the real property described in subsection (b) shall, to the      
  extent of the release, no longer be subject to the conditions prescribed
  in the provisions of law specified in such subsection. Except as        
  provided in subsection (g), the Alabama Space Science Exhibit Commission
  may use the real property for any such purpose or purposes as it        
  considers appropriate consistent with the master plan approved and      
  certified as provided in subsection (d), and the real property may be   
  conveyed by the Alabama Space Science Exhibit Commission without        
  restriction and unencumbered by any claims or rights of the United      
  States with respect to the property, subject to such rights, terms, and 
  conditions of the United States previously imposed on the real property 
  and not released, waived, or conveyed by the Secretary under subsection 
  (c).                                                                    
     (g) Exceptions.--(1) Conveyance of the drainage and utility easement 
  reserved to the United States pursuant to section 813(b)(3) of the      
  Military Construction Authorization Act,                                

                    1984 (Public Law 98 115; 97 Stat. 791), is not authorized     
          under this section.                                                     
     (2) In no event may title to any portion of the real property        
  described in subsection (b) be conveyed by the Alabama Space Science    
  Exhibit Commission or any future deed holder of the real property to any
  person other than an agency, instrumentality, political subdivision,    
  municipal corporation, or public corporation of the State of Alabama.   
  Any deed conveying title to any portion of the real property described  
  in subsection (b) shall restrict the further use of the conveyed        
  property to purposes and uses consistent with the master plan approved  
  and certified as provided in subsection (d), unless otherwise approved  
  by the Secretary.                                                       
     (3) Paragraph (2) does not prevent the Alabama Space Science Exhibit 
  Commission or any future deed holder of the real property described in  
  subsection (b) from giving a mortgage with respect to any portion of the
  real property to any person, except that any such mortgage shall provide
  that the further use of the real property shall be restricted to        
  purposes and uses consistent with the master plan approved and certified
  as provided in subsection (d), unless otherwise approved by the         
  Secretary.                                                              
                    SEC. 2834. CONVEYANCE OF UTILITY SYSTEMS, LONE STAR ARMY      
          AMMUNITION PLANT, TEXAS.                                                
     (a) Conveyance Authorized.--The Secretary of the Army may convey all 
  right, title, and interest of the United States in and to any utility   
  system, or part thereof, including any real property associated with    
  such system, at the Lone Star Army Ammunition Plant, Texas, to the      
  redevelopment authority for the Red River Army Depot, Texas, in         
  conjunction with the disposal of property at the Depot under the Defense
  Base Closure and Realignment Act of 1990 (part A of title XXIX of Public
  Law 101 510; 10 U.S.C. 2687 note).                                      
     (b) Consideration.--As consideration for the conveyance under        
  subsection (a), the redevelopment authority shall pay to the United     
  States an amount equal to the fair market value of the conveyed utility 
  system and any real property conveyed as part of the conveyance, as     
  determined by an independent appraisal satisfactory to the Secretary and
  paid for by the redevelopment authority.                                
     (c) Rule of Construction.--Nothing in subsection (a) may be construed
  to prohibit or otherwise limit the Secretary from conveying any utility 
  system referred to in that subsection under any other provision of law, 
  including section 2688 of title 10, United States Code.                 
     (d) Utility System Defined.--In this section, the term ``utility     
  system'' has the meaning given that term in section 2688(g) of title 10,
  United States Code.                                                     
                    SEC. 2835. CONVEYANCE OF WATER RIGHTS AND RELATED INTERESTS,  
          ROCKY MOUNTAIN ARSENAL, COLORADO, FOR PURPOSES OF ACQUISITION OF        
          PERPETUAL CONTRACTS FOR WATER.                                          
     (a) Conveyance Authorized.--Subject to subsection (c), the Secretary 
  of the Army may convey any and all interest of the United States in the 
  water rights and related rights at Rocky Mountain Arsenal, Colorado,    
  described in subsection (b) to the City and County of Denver, Colorado, 
  acting through its Board of Water Commissioners.                        
     (b) Covered Water Rights and Related Rights.--The water rights and   
  related rights authorized to be conveyed under subsection (a) are the   
  following:                                                              
       (1) Any and all interest in 300 acre rights to water from Antero    
   Reservoir as set forth in Antero Reservoir Contract No. 382 dated August
   22, 1923, for 160 acre rights; Antero Reservoir Contract No. 383 dated  
   August 22, 1923, for 50 acre rights; Antero Reservoir Contract No. 384  
   dated October 30, 1923, for 40 acre rights; Antero Reservoir Contract   
   No. 387 dated March 3, 1923, for 50 acre rights; and Supplemental       
   Contract No. 382 383 384 387 dated July 24, 1932, defining the amount of
   water to be delivered under the 300 acre rights in the prior contracts  
   as 220 acre feet.                                                       
       (2) Any and all interest in the 305 acre rights of water from the   
   High Line Canal, diverted at its headgate                               

                    on the South Platte River and delivered to the Fitzsimons Army
          Medical Center and currently subject to cost assessments pursuant to    
          Denver Water Department contract #001990.                               
       (3) Any and all interest in the 2,603.55 acre rights of water from  
   the High Line Canal, diverted at its headgate on the South Platte River 
   and delivered to the Rocky Mountain Arsenal in Adams County, Colorado,  
   and currently subject to cost assessments by the Denver Water           
   Department, including 680 acre rights transferred from Lowry Field to   
   the Rocky Mountain Arsenal by the October 5, 1943, agreement between the
   City and County of Denver, acting by and through its Board of Water     
   Commissioners, and the United States of America.                        
       (4) Any and all interest in 4,058.34 acre rights of water not       
   currently subject to cost assessments by the Denver Water Department.   
       (5) A new easement for the placement of water lines approximately 50
   feet wide inside the Southern boundary of Rocky Mountain Arsenal and    
   across the Reserve Center along the northern side of 56th Avenue.       
       (6) A permanent easement for utilities where Denver has an existing 
   temporary easement near the southern and western boundaries of Rocky    
   Mountain Arsenal.                                                       
     (c) Consideration.--(1) The Secretary of the Army may make the       
  conveyance under subsection (a) only if the Board of Water              
  Commissioners, on behalf of the City and County of Denver, Colorado--   
       (A) enters into a permanent contract with the Secretary of the Army 
   for purposes of ensuring the delivery of nonpotable water and potable   
   water to Rocky Mountain Arsenal; and                                    
       (B) enters into a permanent contract with the Secretary of the      
   Interior for purposes of ensuring the delivery of nonpotable water and  
   potable water to Rocky Mountain Arsenal National Wildlife Refuge,       
   Colorado.                                                               
     (2) Section 2809(e) of title 10, United States Code, shall not       
  operate to limit the term of the contract entered into under paragraph  
  (1)(A).                                                                 
     (d) Requirement Relating to Conveyance.--The Secretary of the Army   
  may not make the conveyance authorized by subsection (a) until the      
  execution of the proposed agreement provided for under subsection (c)   
  between the City and County of Denver, Colorado, acting through its     
  Board of Water Commissioners, the South Adams County Water and          
  Sanitation District, the United States Fish and Wildlife Service, and   
  the Army.                                                               
     (e) Additional Terms and Conditions.--The Secretary of the Army may  
  require such additional terms and conditions in connection with the     
  conveyance under subsection (a) as the Secretary considers appropriate  
  to protect the interests of the United States.                          

          SEC. 2836. LAND CONVEYANCE, ARMY RESERVE CENTER, MASSENA, NEW YORK.     

     (a) Conveyance Authorized.--The Secretary of the Army may convey,    
  without consideration, to the Village of Massena, New York (in this     
  section referred to as the ``Village''), all right, title, and interest 
  of the United States in and to a parcel of real property, including     
  improvements thereon, consisting of the Army Reserve Center in Massena, 
  New York, for the purpose of permitting the Village to develop the      
  parcel for public benefit, including the development of municipal office
  space.                                                                  
     (b) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the Village.                                   
     (c) Reversionary Interest.--During the five-year period beginning on 
  the date the Secretary makes the conveyance authorized under subsection 
  (a), if the Secretary determines that the conveyed real property is not 
  being used in accordance with the purpose of the conveyance specified in
  such subsection, all right, title, and interest in and to the property, 
  including                                                               

                    any improvements thereon, shall revert to the United States,  
          and the United States shall have the right of immediate entry onto the  
          property. Any determination of the Secretary under this subsection shall
          be made on the record after an opportunity for a hearing.               
     (d) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
          SEC. 2837. LAND CONVEYANCE, ARMY RESERVE CENTER, OGDENSBURG, NEW YORK.  

     (a) Conveyance Authorized.--The Secretary of the Army may convey,    
  without consideration, to the City of Ogdensburg, New York (in this     
  section referred to as the ``City''), all right, title, and interest of 
  the United States in and to a parcel of real property, including        
  improvements thereon, consisting of the Army Reserve Center in          
  Ogdensburg, New York, for the purpose of permitting the City to develop 
  the parcel for public benefit, including the development of municipal   
  office space.                                                           
     (b) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the City.                                      
     (c) Reversionary Interest.--During the five-year period beginning on 
  the date the Secretary makes the conveyance authorized under subsection 
  (a), if the Secretary determines that the conveyed real property is not 
  being used in accordance with the purpose of the conveyance specified in
  such subsection, all right, title, and interest in and to the property, 
  including any improvements thereon, shall revert to the United States,  
  and the United States shall have the right of immediate entry onto the  
  property. Any determination of the Secretary under this subsection shall
  be made on the record after an opportunity for a hearing.               
     (d) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
          SEC. 2838. LAND CONVEYANCE, ARMY RESERVE CENTER, JAMESTOWN, OHIO.       

     (a) Conveyance Authorized.--The Secretary of the Army may convey,    
  without consideration, to the Greeneview Local School District of       
  Jamestown, Ohio, all right, title, and interest of the United States in 
  and to a parcel of real property, including improvements thereon, that  
  is located at 5693 Plymouth Road in Jamestown, Ohio, and contains an    
  Army Reserve Center, for the purpose of permitting the Greeneview Local 
  School District to retain and use the conveyed property for educational 
  purposes.                                                               
     (b) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the Greeneview Local School District.          
     (c) Reversionary Interest.--During the five-year period beginning on 
  the date the Secretary makes the conveyance authorized under subsection 
  (a), if the Secretary determines that the conveyed real property is not 
  being used in accordance with the purpose of the conveyance specified in
  such subsection, all right, title, and interest in and to the property, 
  including any improvements thereon, shall revert to the United States,  
  and the United States shall have the right of immediate entry onto the  
  property. Any determination of the Secretary under this subsection shall
  be made on the record after an opportunity for a hearing.               
     (d) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         

          SEC. 2839. LAND CONVEYANCE, ARMY RESERVE CENTER, PEORIA, ILLINOIS.      

     (a) Conveyance Authorized.--The Secretary of the Army may convey,    
  without consideration, to the Peoria School District #150 of Peoria,    
  Illinois (in this section referred to as the ``School District''), all  
  right, title, and interest of the United States in and to a parcel of   
  real property, including improvements thereon, consisting of the Army   
  Reserve Center located at 1429 Northmoor Road in Peoria, Illinois, for  
  the purpose of permitting the School District to develop the parcel for 
  educational and transportation purposes.                                
     (b) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the School District.                           
     (c) Reversionary Interest.--During the five-year period beginning on 
  the date the Secretary makes the conveyance authorized under subsection 
  (a), if the Secretary determines that the conveyed real property is not 
  being used in accordance with the purpose of the conveyance specified in
  such subsection, all right, title, and interest in and to the property, 
  including any improvements thereon, shall revert to the United States,  
  and the United States shall have the right of immediate entry onto the  
  property. Any determination of the Secretary under this subsection shall
  be made on the record after an opportunity for a hearing.               
     (d) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
          SEC. 2840. LAND CONVEYANCE, ARMY RESERVE CENTER, BRIDGTON, MAINE.       

     (a) Conveyance Authorized.--The Secretary of the Army may convey,    
  without consideration, to the Town of Bridgton, Maine (in this section  
  referred to as the ``Town''), all right, title, and interest of the     
  United States in and to a parcel of real property, including            
  improvements thereon, consisting of approximately 3.65 acres and        
  containing the Army Reserve Center in Bridgton, Maine, for the purpose  
  of permitting the Town to develop the parcel for public benefit,        
  including the development of municipal office space.                    
     (b) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the Town.                                      
     (c) Reversionary Interest.--During the five-year period beginning on 
  the date the Secretary makes the conveyance authorized under subsection 
  (a), if the Secretary determines that the conveyed real property is not 
  being used in accordance with the purpose of the conveyance specified in
  such subsection, all right, title, and interest in and to the property, 
  including any improvements thereon, shall revert to the United States,  
  and the United States shall have the right of immediate entry onto the  
  property. Any determination of the Secretary under this subsection shall
  be made on the record after an opportunity for a hearing.               
     (d) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
          SEC. 2841. LAND CONVEYANCE, FORT SHERIDAN, ILLINOIS.                    

     (a) Conveyance Authorized.--The Secretary of the Army may convey to  
  the City of Lake Forest, Illinois (in this section referred to as the   
  ``City''), all right, title, and interest, of the United States in and  
  to all or some portion of the parcel of real property, including        
  improvements thereon, at the former Fort Sheridan, Illinois, consisting 
  of approximately 14 acres and known as the northern Army Reserve enclave
  area.                                                                   
     (b) Consideration.--As consideration for the conveyance under        
  subsection (a), the City shall pay to the United States                 

                    an amount equal to not less than the fair market value of the 
          real property to be conveyed, as determined by the Secretary.           
     (c) Use of Proceeds.--In such amounts as are provided in advance in  
  appropriations Acts, the Secretary may use the funds paid by the City   
  under subsection (b) to provide for the construction of replacement     
  facilities and for the relocation costs for Reserve units and activities
  affected by the conveyance.                                             
     (d) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the City.                                      
     (e) Notice and Wait.--The Secretary may not make the conveyance      
  authorized by subsection (a) until 21 days after the date on which the  
  Secretary submits to the congressional defense committees a             
  certification that the relocation of the Reserve units and activities   
  affected by the conveyance is consistent with an approved master plan   
  for the consolidation of Reserve activities in, or in the vicinity of,  
  Chicago, Illinois.                                                      
     (f) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         

          SEC. 2842. LAND CONVEYANCE, SKANEATELES, NEW YORK.                      

     (a) Conveyance Authorized.--The Secretary of the Army may convey,    
  without consideration, to the Town of Skaneateles, New York (in this    
  section referred to as the ``Town''), all right, title, and interest of 
  the United States in and to a parcel of real property, including        
  improvements thereon, consisting of approximately 147.10 acres in       
  Skaneateles, New York, and commonly known as the ``Federal Farm'', for  
  the purpose of permitting the Town to develop the parcel for public     
  benefit, including for recreational purposes.                           
     (b) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the Town.                                      
     (c) Reversionary Interest.--During the five-year period beginning on 
  the date the Secretary makes the conveyance authorized under subsection 
  (a), if the Secretary determines that the conveyed real property is not 
  being used in accordance with the purpose of the conveyance specified in
  such subsection, all right, title, and interest in and to the property, 
  including any improvements thereon, shall revert to the United States,  
  and the United States shall have the right of immediate entry onto the  
  property. Any determination of the Secretary under this subsection shall
  be made on the record after an opportunity for a hearing.               
     (d) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interest of the United States.                                          
                    SEC. 2843. LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT,    
          CHARLESTOWN, INDIANA.                                                   
     (a) Conveyance Authorized.--The Secretary of the Army may convey to  
  the Indiana Army Ammunition Plant Reuse Authority (in this section      
  referred to as the ``Reuse Authority'') all right, title, and interest  
  of the United States in and to a parcel of real property, including     
  improvements thereon, consisting of approximately 4660 acres located at 
  the Indiana Army Ammunition Plant, Charlestown, Indiana, for the purpose
  of developing the parcel as an industrial park to replace all or part of
  the economic activity lost at the inactivated plant.                    
     (b) Consideration.--Except as provided in subsection (d), as         
  consideration for the conveyance under subsection (a), the Reuse        
  Authority shall pay to the Secretary an amount equal to the fair market 
  value of the conveyed property as of the time of the conveyance,        
  determined by the Secretary in accordance with Federal appraisal        
  standards and procedures.                                               

     (c) Time for Payment.--The consideration required under subsection   
  (b) shall be paid by the Reuse Authority at the end of the 10-year      
  period beginning on the date on which the conveyance under subsection   
  (a) is completed.                                                       
     (d) Effect of Reconveyance or Lease.--(1) If, during the 10-year     
  period specified in subsection (c), the Reuse Authority reconveys all or
  any part of the property conveyed under subsection (a), the Reuse       
  Authority shall pay to the United States an amount equal to the fair    
  market value of the reconveyed property as of the time of the           
  reconveyance, excluding the value of any improvements made to the       
  property by the Reuse Authority, determined by the Secretary in         
  accordance with Federal appraisal standards and procedures.             
     (2) The Secretary may treat a lease of the property within such      
  10-year period as a reconveyance if the Secretary determines that the   
  lease is being used to avoid application of paragraph (1).              
     (e) Deposit of Proceeds.--The Secretary shall deposit any proceeds   
  received under subsection (b) or (d) in the special account established 
  pursuant to section 204(h)(2) of the Federal Property and Administrative
  Services Act of 1949 (40 U.S.C. 485(h)(2)).                             
     (f) Administrative Expenses.--In connection with the conveyance under
  subsection (a), the Secretary may accept amounts provided by the Reuse  
  Authority or other persons to cover administrative expenses incurred by 
  the Secretary in making the conveyance. Amounts received under this     
  subsection for administrative expenses shall be credited to the         
  appropriation, fund, or account from which the expenses were paid.      
  Amounts so credited shall be merged with funds in such appropriation,   
  fund, or account and shall be available for the same purposes and       
  subject to the same limitations as the funds with which merged.         
     (g) Description of Property.--The property to be conveyed under      
  subsection (a) includes the administrative area of the Indiana Army     
  Ammunition Plant as well as open space in the southern end of the plant.
  The exact acreage and legal description of the property to be conveyed  
  shall be determined by a survey satisfactory to the Secretary. The cost 
  of the survey shall be borne by the Reuse Authority.                    
     (h) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
     (i) Additional Conveyance for Recreational Purposes.--Section 2858(a)
  of the Military Construction Authorization Act for Fiscal Year 1996     
  (division B of Public Law 104 106; 110 Stat. 571), as amended by section
  2838 of the Military Construction Authorization Act for Fiscal Year 1998
  (division B of Public Law 105 85; 111 Stat. 2006), is further amended by
  adding at the end the following new paragraph:                          
     ``(3) The Secretary may also convey to the State, without            
  consideration, another parcel of real property at the Indiana Army      
  Ammunition Plant consisting of approximately 2,000 acres of additional  
  riverfront property in order to connect the parcel conveyed under       
  paragraph (2) with the parcels of Charlestown State Park conveyed to the
  State under paragraph (1) and title II of the Defense Authorization     
  Amendments and Base Closure and Realignment Act (Public Law 100 526; 10 
  U.S.C. 2687 note).''.                                                   
                    SEC. 2844. LAND CONVEYANCE, VOLUNTEER ARMY AMMUNITION PLANT,  
          CHATTANOOGA, TENNESSEE.                                                 
     (a) Conveyance Authorized.--The Secretary of the Army may convey to  
  Hamilton County, Tennessee (in this section referred to as the          
  ``County''), all right, title, and interest of the United States in and 
  to a parcel of real property, including improvements thereon, consisting
  of approximately 1033 acres located at the Volunteer Army Ammunition    
  Plant, Chattanooga, Tennessee, for the purpose of developing the parcel 
  as an industrial park to replace all or part of the economic activity   
  lost at the inactivated plant.                                          

     (b) Consideration.--Except as provided in subsection (d), as         
  consideration for the conveyance under subsection (a), the County shall 
  pay to the Secretary an amount equal to the fair market value of the    
  conveyed property as of the time of the conveyance, determined by the   
  Secretary in accordance with Federal appraisal standards and procedures.
     (c) Time for Payment.--The consideration required under subsection   
  (b) shall be paid by the County at the end of the 10-year period        
  beginning on the date on which the conveyance under subsection (a) is   
  completed.                                                              
     (d) Effect of Reconveyance or Lease.--(1) If the County reconveys all
  or any part of the conveyed property during the 10-year period specified
  in subsection (c), the County shall pay to the United States an amount  
  equal to the fair market value of the reconveyed property as of the time
  of the reconveyance, excluding the value of any improvements made to the
  property by the County, determined by the Secretary in accordance with  
  Federal appraisal standards and procedures.                             
     (2) The Secretary may treat a lease of the property within such      
  10-year period as a reconveyance if the Secretary determines that the   
  lease is being used to avoid application of paragraph (1).              
     (e) Deposit of Proceeds.--The Secretary shall deposit any proceeds   
  received under subsection (b) or (d) in the special account established 
  pursuant to section 204(h)(2) of the Federal Property and Administrative
  Services Act of 1949 (40 U.S.C. 485(h)(2)).                             
     (f) Effect on Existing Leases.--The conveyance of the real property  
  under subsection (a) shall not affect the terms or length of any        
  contract entered into by the Secretary before the date of the enactment 
  of this Act with regard to the property to be conveyed.                 
     (g) Administrative Expenses.--In connection with the conveyance under
  subsection (a), the Secretary may accept amounts provided by the County 
  or other persons to cover administrative expenses incurred by the       
  Secretary in making the conveyance. Amounts received under this         
  subsection for administrative expenses shall be credited to the         
  appropriation, fund, or account from which the expenses were paid.      
  Amounts so credited shall be merged with funds in such appropriation,   
  fund, or account and shall be available for the same purposes and       
  subject to the same limitations as the funds with which merged.         
     (h) Description of Property.--The exact acreage and legal description
  of the property to be conveyed under subsection (a) shall be determined 
  by a survey satisfactory to the Secretary. The cost of the survey shall 
  be borne by the County.                                                 
     (i) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
                    SEC. 2845. LAND CONVEYANCE, STEWART ARMY SUB-POST, NEW        
          WINDSOR, NEW YORK.                                                      
     (a) Conveyance Authorized.--The Secretary of the Army may convey,    
  without consideration, to the Town of New Windsor, New York (in this    
  section referred to as the ``Town''), all right, title, and interest of 
  the United States in and to a parcel of real property, including        
  improvements thereon, consisting of approximately 291 acres at the      
  Stewart Army Sub-Post in New Windsor, New York, for the purpose of      
  permitting the Town to develop the parcel for economic purposes.        
     (b) Exclusion.--The real property to be conveyed under subsection (a)
  does not include any portion of the approximately 89.2-acre parcel at   
  Stewart Army Sub-Post that is proposed for transfer to the jurisdiction 
  and control of the Marine Corps or the approximately 22-acre parcel at  
  Stewart Army Sub-Post that is proposed for transfer to the jurisdiction 
  and control of the Army Reserve.                                        
     (c) Conditions of Conveyance.--The conveyance authorized by          
  subsection (a) may only be made subject to the following conditions:    
       (1) The Town must agree to provide connections to the local         
   wastewater and sewage treatment system for all                          

                    existing and future improvements to the parcels of real       
          property referred to in subsection (b).                                 
       (2) The Town must agree to provide wastewater and sewage treatment  
   service to such parcels at a rate established by the appropriate Federal
   or State regulatory authority.                                          
     (d) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the Town.                                      
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
          PART II--NAVY CONVEYANCES                                               

                    SEC. 2851. CONVEYANCE OF EASEMENT, MARINE CORPS BASE, CAMP    
          PENDLETON, CALIFORNIA.                                                  
     (a) Easement Authorized.--The Secretary of the Navy may grant an     
  easement, in perpetuity, to the Foothill/Eastern Transportation Corridor
  Agency (in this section referred to as the ``Agency'') over a parcel of 
  real property at Marine Corps Base, Camp Pendleton, California,         
  consisting of approximately 340 acres to permit the recipient of the    
  easement to construct, operate, and maintain a restricted access        
  highway. The area covered by the easement shall include slopes and all  
  necessary incidents thereto.                                            
     (b) Consideration.--As consideration for the grant of an easement    
  under subsection (a), the Agency shall pay to the United States an      
  amount equal to the fair market value of the easement, as determined by 
  an independent appraisal satisfactory to the Secretary and paid for by  
  the Agency.                                                             
     (c) Use of Proceeds.--In such amounts as are provided in advance in  
  appropriation Acts, the Secretary shall use the funds paid by the Agency
  under subsection (b) to carry out one or more of the following programs 
  at Camp Pendleton:                                                      
       (1) Enhancement of access from Red, White, and Green Beaches under  
   Interstate Route 5 and railroad crossings to inland areas.              
       (2) Improvement of roads and bridge structures in the range and     
   training area.                                                          
     (3) Realignment of Basilone Road.                                     

     (d) Description of Property.--The exact acreage and legal description
  of the easement to be granted under subsection (a) shall be determined  
  by a survey satisfactory to the Secretary. The cost of the survey shall 
  be borne by the Agency.                                                 
     (e) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the grant of an      
  easement under subsection (a) as the Secretary considers appropriate to 
  protect the interests of the United States.                             

                    SEC. 2852. LAND EXCHANGE, NAVAL RESERVE READINESS CENTER,     
          PORTLAND, MAINE.                                                        
     (a) Conveyance Authorized.--(1) The Secretary of the Navy may convey 
  to the Gulf of Maine Aquarium Development Corporation, Portland, Maine  
  (in this section referred to as the ``Corporation''), all right, title, 
  and interest of the United States in and to a parcel of real property,  
  including improvements thereon, consisting of approximately 3.72 acres  
  in Portland, Maine, and containing the Naval Reserve Readiness Center,  
  Portland, Maine, for the purpose of permitting the Corporation to use   
  the parcel for economic development and as the site for an aquarium and 
  marine research facility.                                               
     (2) As part of the conveyance under paragraph (1), the Secretary     
  shall also convey to the Corporation any interest of the United States  
  in the submerged lands adjacent to the real property conveyed under that
  paragraph that is appurtenant to the real property conveyed under that  
  paragraph.                                                              
     (b) Provision of Replacement Facilities.--As consideration for the   
  conveyance authorized by subsection (a), the Corporation shall design   
  and construct such facilities as the Secretary determines appropriate   
  for the Naval Reserve to replace the facilities conveyed under that     
  subsection.                                                             

     (c) Location of Replacement Facilities.--(1) To provide a location   
  for the replacement facilities required under subsection (b), the       
  Corporation shall--                                                     
       (A) convey to the United States all right, title, and interest in   
   and to a parcel of real property determined by the Secretary to be an   
   appropriate location for such facilities; or                            
       (B) design and construct such facilities on such parcel of real     
   property under the jurisdiction of the Secretary as the Secretary shall 
   specify.                                                                
     (2) The Secretary shall select the alternative provided under        
  paragraph (1) to be used by the Corporation.                            
     (d) Notice and Wait.--The Secretary may not make the conveyance      
  authorized by subsection (a) until 21 days after the date on which the  
  Secretary submits to the congressional defense committees a report      
  specifying the terms and conditions under which the conveyance will     
  occur.                                                                  
     (e) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a)(1), of any     
  interest to be conveyed under subsection (a)(2), and of the real        
  property, if any, to be conveyed under subsection (c)(1)(A) shall be    
  determined by surveys satisfactory to the Secretary. The cost of the    
  surveys shall be borne by the Corporation.                              
     (f) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
                    SEC. 2853. LAND CONVEYANCE, NAVAL AND MARINE CORPS RESERVE    
          FACILITY, YOUNGSTOWN, OHIO.                                             
     (a) Conveyance Authorized.--The Secretary of the Navy may convey,    
  without consideration, to the City of Youngstown, Ohio (in this section 
  referred to as the ``City''), all right, title, and interest of the     
  United States in and to a parcel of real property, including            
  improvements thereon, that is located at 315 East Laclede Avenue in     
  Youngstown, Ohio, and is the location of a Naval and Marine Corps       
  Reserve facility, for the purpose of permitting the City to use the     
  parcel for educational purposes.                                        
     (b) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the City.                                      
     (c) Reversionary Interest.--During the five-year period beginning on 
  the date the Secretary makes the conveyance authorized under subsection 
  (a), if the Secretary determines that the conveyed real property is not 
  being used in accordance with the purpose of the conveyance specified in
  such subsection, all right, title, and interest in and to the property, 
  including any improvements thereon, shall revert to the United States,  
  and the United States shall have the right of immediate entry onto the  
  property. Any determination of the Secretary under this subsection shall
  be made on the record after an opportunity for a hearing.               
     (d) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
                    SEC. 2854. LAND CONVEYANCE, NAVAL AIR RESERVE CENTER,         
          MINNEAPOLIS, MINNESOTA.                                                 
     (a) Conveyance Authorized.--The Secretary of the Navy may convey to  
  the Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota (in
  this section referred to as the ``Commission''), all right, title, and  
  interest of the United States in and to a parcel of real property,      
  including improvements thereon, consisting of approximately 32 acres    
  located in Minneapolis, Minnesota, and comprising the Naval Air Reserve 
  Center, Minneapolis, Minnesota, for the purpose of facilitating the     
  expansion of the Minneapolis-St. Paul International Airport.            
     (b) Alternative Lease Authority.--In lieu of the conveyance          
  authorized by subsection (a), the Secretary may elect                   

                    to lease the property referred to in that subsection to the   
          Commission if the Secretary determines that a lease of the property     
          would better serve the interests of the United States.                  
     (c) Provision of Replacement Facilities.--As consideration for the   
  conveyance under subsection (a), or the lease under subsection (b), the 
  Commission shall--                                                      
       (1) provide for such facilities as the Secretary considers          
   appropriate for the Naval Reserve to replace the facilities conveyed or 
   leased under this section;                                              
       (2) assume the costs of designing and constructing such replacement 
   facilities, as may be acceptable to the Secretary; and                  
       (3) assume any costs incurred by the Secretary in relocating the    
   operations of the Naval Air Reserve Center to such replacement          
   facilities.                                                             
     (d) Location of Replacement Facilities.--To provide a location for   
  the replacement facilities required under subsection (c), the Commission
  may--                                                                   
       (1) convey to the United States all right, title, and interest in   
   and to a parcel of real property determined by the Secretary to be an   
   appropriate location for such facilities, if the Secretary elects to    
   make the conveyance authorized by subsection (a); or                    
       (2) lease to the United States a parcel of real property determined 
   by the Secretary to be an appropriate location for such facilities, if  
   the Secretary elects to make the lease authorized by subsection (b).    
     (e) Availability of Replacement Facilities.--The Secretary may not   
  make the conveyance authorized by subsection (a), or enter into the     
  lease authorized by subsection (b), until the replacement facilities    
  required by subsection (c) are available for the relocation of the      
  operations of the Naval Air Reserve Center.                             
     (f) Agreement Relating to Conveyance.--(1) If the Secretary          
  determines to proceed with the conveyance authorized by subsection (a), 
  or the lease authorized by subsection (b), the Secretary and the        
  Commission shall enter into an agreement specifying the terms and       
  conditions under which the conveyance or lease will occur.              
     (2) The Secretary may not enter into the agreement under paragraph   
  (1) until 21 days after the date on which the Secretary submits to the  
  congressional defense committees a report specifying the terms and      
  conditions under which the conveyance or lease will occur.              
     (g) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed to the Commission under subsection  
  (a), or leased to the Commission under subsection (b), and the exact    
  acreage and legal description of the real property to be conveyed or    
  leased under subsection (d) to the United States, shall be determined by
  surveys satisfactory to the Secretary. The cost of the surveys shall be 
  borne by the Commission.                                                
     (h) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a), or the lease under subsection (b), as the Secretary     
  considers appropriate to protect the interests of the United States.    

          PART III--AIR FORCE CONVEYANCES                                         

                    SEC. 2861. MODIFICATION OF LAND CONVEYANCE, EGLIN AIR FORCE   
          BASE, FLORIDA.                                                          
     Section 809(c) of the Military Construction Authorization Act, 1979  
  (Public Law 95 356; 92 Stat. 587), as amended by section 2826 of the    
  Military Construction Authorization Act, 1989 (division B of Public Law 
  100 456; 102 Stat. 2123), is further amended by striking out ``and a    
  third parcel containing forty-two acres'' and inserting in lieu thereof 
  ``, a third parcel containing forty-two acres, a fourth parcel          
  containing approximately 3.43 acres, and a fifth parcel containing      
  approximately 0.56 acres''.                                             
                    SEC. 2862. MODIFICATION OF LAND CONVEYANCE, FINLEY AIR FORCE  
          STATION, NORTH DAKOTA.                                                  
     Section 2835 of the Military Construction Authorization Act for      
  Fiscal Year 1995 (division B of Public Law 103 337; 108 Stat. 3063) is  
  amended--                                                               

       (1) by striking out subsections (a), (b), and (c) and inserting in  
   lieu thereof the following new subsections:                             
     ``(a) Conveyance Authorized.--The Secretary of the Air Force may     
  convey, without consideration, to the City of Finley, North Dakota (in  
  this section referred to as the `City'), all right, title, and interest 
  of the United States in and to the parcels of real property, including  
  improvements thereon, in the vicinity of Finley, North Dakota, described
  in subsection (b), for the purpose of permitting the City to use the    
  parcels for economic development.                                       
     ``(b) Covered Parcels.--The parcels of real property authorized for  
  conveyance under subsection (a) are as follows:                         
       ``(1) A parcel of approximately 14 acres that served as the support 
   complex of the Finley Air Force Station and Radar Site.                 
       ``(2) A parcel of approximately 57 acres known as the Finley Air    
   Force Station Complex.                                                  
       ``(3) A parcel of approximately 6 acres that includes a well site   
   and wastewater treatment system.                                        
     ``(c) Reversionary Interest.--During the five-year period beginning  
  on the date the Secretary makes the conveyance authorized under         
  subsection (a), if the Secretary determines that the conveyed real      
  property is not being used in accordance with the purpose of the        
  conveyance specified in such subsection, all right, title, and interest 
  in and to the property, including any improvements thereon, shall revert
  to the United States, and the United States shall have the right of     
  immediate entry onto the property. Any determination of the Secretary   
  under this subsection shall be made on the record after an opportunity  
  for a hearing.''; and                                                   
       (2) in subsections (d) and (e), by striking out ``subsection        
   (a)(1)'' and inserting in lieu thereof ``subsection (a)''.              
          SEC. 2863. LAND CONVEYANCE, LAKE CHARLES AIR FORCE STATION, LOUISIANA.  

     (a) Conveyance Authorized.--The Secretary of the Air Force may       
  convey, without consideration, to McNeese State University of Louisiana 
  (in this section referred to as the ``University''), all right, title,  
  and interest of the United States in and to a parcel of real property,  
  including improvements thereon, consisting of approximately 4.38 acres  
  at Lake Charles Air Force Station, Louisiana, for the purpose of        
  permitting the University to use the parcel for educational purposes and
  agricultural research.                                                  
     (b) Description of Property.--The exact acreage and legal description
  of the real property to be conveyed under subsection (a) shall be       
  determined by a survey satisfactory to the Secretary. The cost of the   
  survey shall be borne by the University.                                
     (c) Reversionary Interest.--During the five-year period beginning on 
  the date the Secretary makes the conveyance authorized under subsection 
  (a), if the Secretary determines that the conveyed real property is not 
  being used in accordance with the purpose of the conveyance specified in
  such subsection, all right, title, and interest in and to the property, 
  including any improvements thereon, shall revert to the United States,  
  and the United States shall have the right of immediate entry onto the  
  property. Any determination of the Secretary under this subsection shall
  be made on the record after an opportunity for a hearing.               
     (d) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
                    SEC. 2864. LAND CONVEYANCE, AIR FORCE HOUSING FACILITY, LA    
          JUNTA, COLORADO.                                                        
     (a) Conveyance Authorized.--The Secretary of the Air Force may       
  convey, without consideration, to the City of La Junta, Colorado (in    
  this section referred to as the ``City''), all right, title, and        
  interest of the United States in and to the unused Air Force housing    
  facility, consisting of approximately 28 acres and improvements thereon,
  located within the southern-most boundary of the City, for the purpose  
  of permitting the                                                       

                    City to develop the conveyed property for housing and         
          educational purposes.                                                   
     (b) Description of Property.--The exact acreage and legal description
  of the property to be conveyed under subsection (a) shall be determined 
  by a survey satisfactory to the Secretary. The cost of the survey shall 
  be borne by the City.                                                   
     (c) Reversionary Interest.--During the five-year period beginning on 
  the date the Secretary makes the conveyance authorized under subsection 
  (a), if the Secretary determines that the conveyed real property is not 
  being used in accordance with the purpose of the conveyance specified in
  such subsection, all right, title, and interest in and to the property, 
  including any improvements thereon, shall revert to the United States,  
  and the United States shall have the right of immediate entry onto the  
  property. Any determination of the Secretary under this subsection shall
  be made on the record after an opportunity for a hearing.               
     (d) Additional Terms and Conditions.--The Secretary may require such 
  additional terms and conditions in connection with the conveyance under 
  subsection (a) as the Secretary considers appropriate to protect the    
  interests of the United States.                                         
                                  SUBTITLE E--OTHER MATTERS                       

                    SEC. 2871. MODIFICATION OF AUTHORITY RELATING TO DEPARTMENT OF
          DEFENSE LABORATORY REVITALIZATION DEMONSTRATION PROGRAM.                
     (a) Program Requirements.--Subsection (c) of section 2892 of the     
  Military Construction Authorization Act for Fiscal Year 1996 (division B
  of Public Law 104 106; 110 Stat. 590; 10 U.S.C. 2805 note) is amended to
  read as follows:                                                        
     ``(c) Program Requirements.--(1) Not later than 30 days before       
  commencing the program, the Secretary shall establish procedures for the
  review and approval of requests from Department of Defense laboratories 
  for construction under the program.                                     
     ``(2) The laboratories at which construction may be carried out under
  the program may not include Department of Defense laboratories that are 
  contractor-owned.''.                                                    
     (b) Report.--Subsection (d) of that section is amended to read as    
  follows:                                                                
     ``(d) Report.--Not later than February 1, 2003, the Secretary shall  
  submit to Congress a report on the program. The report shall include the
  Secretary's conclusions and recommendation regarding the desirability of
  making the authority set forth under subsection (b) permanent.''.       
     (c) Extension.--Subsection (g) of that section is amended by striking
  out ``September 30, 1998'' and inserting in lieu thereof ``September 30,
  2003''.                                                                 
                    SEC. 2872. REPEAL OF PROHIBITION ON JOINT USE OF GRAY ARMY    
          AIRFIELD, FORT HOOD, TEXAS, WITH CIVIL AVIATION.                        
     Section 319 of the National Defense Authorization Act for Fiscal Year
  1987 (Public Law 99 661; 100 Stat. 3855) is repealed.                   
                    SEC. 2873. MODIFICATION OF DEMONSTRATION PROJECT FOR PURCHASE 
          OF FIRE, SECURITY, POLICE, PUBLIC WORKS, AND UTILITY SERVICES FROM LOCAL
          GOVERNMENT AGENCIES.                                                    
     Section 816 of the National Defense Authorization Act for Fiscal Year
  1995 (Public Law 103 337; 108 Stat. 2820), as amended by section 352 of 
  the National Defense Authorization Act for Fiscal Year 1997 (Public Law 
  104 201; 110 Stat. 2491), is further amended--                          
       (1) in subsection (a), by striking out ``, beginning October 1,     
   1994,'';                                                                
       (2) in subsection (b), by striking out ``and 1998'' and inserting in
   lieu thereof ``through 2000''; and                                      
     (3) by adding at the end the following new subsection:                

     ``(c) Duration of Project.--The authority to purchase or receive     
  services under the demonstration project shall expire on September 30,  
  2000.''.                                                                
                    SEC. 2874. DESIGNATION OF BUILDING CONTAINING NAVY AND MARINE 
          CORPS RESERVE CENTER, AUGUSTA, GEORGIA.                                 
     The building containing the Navy and Marine Corps Reserve Center     
  located at 2869 Central Avenue in Augusta, Georgia, shall be known and  
  designated as the ``A. James Dyess Building''.                          

                         TITLE XXIX--JUNIPER BUTTE RANGE WITHDRAWAL               

      Sec. 2901. Short title.                                                 

      Sec. 2902. Withdrawal and reservation.                                  

      Sec. 2903. Map and legal description.                                   

      Sec. 2904. Agency agreement.                                            

      Sec. 2905. Right-of-way grants.                                         

      Sec. 2906. Indian sacred sites.                                         

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

      Sec. 2908. Management of withdrawn and reserved lands.                  

      Sec. 2909. Integrated natural resource management plan.                 

      Sec. 2910. Memorandum of understanding.                                 

      Sec. 2911. Maintenance of roads.                                        

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

      Sec. 2913. Hunting, fishing, and trapping.                              

      Sec. 2914. Water rights.                                                

      Sec. 2915. Duration of withdrawal.                                      

            Sec. 2916. Environmental remediation of relinquished withdrawn    
      lands or upon termination of withdrawal.                                
      Sec. 2917. Delegation of authority.                                     

      Sec. 2918. Hold harmless.                                               

      Sec. 2919. Authorization of appropriations.                             


          SEC. 2901. SHORT TITLE.                                                 

    This title may be cited as the ``Juniper Butte Range Withdrawal Act''.

          SEC. 2902. WITHDRAWAL AND RESERVATION.                                  

     (a) Withdrawal.--Subject to valid existing rights and except as      
  otherwise provided in this title, the lands at the Juniper Butte Range, 
  Idaho, referred to in subsection (c), are withdrawn from all forms of   
  appropriation under the public land laws, including the mining laws and 
  the mineral and geothermal leasing laws but not the Act of July 31, 1947
  (commonly known as the Materials Act of 1947; 30 U.S.C. 601 et seq.).   
     (b) Reserved Uses.--The lands withdrawn under subsection (a) are     
  reserved for use by the Secretary of the Air Force for--                
     (1) a high hazard training area;                                      

     (2) dropping non-explosive training ordnance with spotting charges;   

     (3) electronic warfare and tactical maneuvering and air support; and  

       (4) other defense-related purposes consistent with the purposes     
   specified in paragraphs (1), (2), and (3), including continued natural  
   resource management and environmental remediation in accordance with    
   section 2916.                                                           
     (c) Site Development Plans.--(1) Site development plans shall be     
  prepared before construction.                                           
     (2) Site development plans shall be incorporated in the integrated   
  natural resource management plan developed under section 2909.          
     (3) Except in the case of any minimal improvements, development on   
  the withdrawn lands of any facilities beyond those proposed and analyzed
  in the Environmental Impact Statement concerning Enhanced Training in   
  Idaho, prepared by the Secretary of the Air Force, the Record of        
  Decision dated March 10, 1998, concerning Enhanced Training in Idaho,   
  prepared by the Secretary of the Air Force, and the site development    
  plans shall be contingent upon review and approval of the Idaho State   
  Director of the Bureau of Land Management.                              
     (d) General Description.--(1) The public lands withdrawn and reserved
  by this section comprise approximately 11,300 acres of public land in   
  Owhyee County, Idaho, as generally depicted on the map entitled         
  ``Juniper Butte Range Withdrawal--Proposed'', dated June 1998, that will
  be filed in accordance with section 2903.                               
     (2) The withdrawal is for an approximately 10,600-acre tactical      
  training range, a 640-acre no-drop target site, four 5-acre no-drop     
  target sites and nine 1-acre electronic threat emitter sites.           
          SEC. 2903. MAP AND LEGAL DESCRIPTION.                                   

     (a) In General.--As soon as practicable after the date of the        
  enactment of this Act, the Secretary of the Interior shall--            
       (1) publish in the Federal Register a notice containing the legal   
   description of the lands withdrawn and reserved by this title; and      

       (2) file a map or maps and the legal description of the lands       
   withdrawn and reserved by this title with the Committee on Energy and   
   Natural Resources of the Senate and with the Committee on Resources of  
   the House of Representatives.                                           
     (b) Incorporation by Reference.--Such maps and legal description     
  shall have the same force and effect as if included in this title.      
     (c) Correction of Errors.--The Secretary of the Interior may correct 
  clerical and typographical errors in such map or maps and legal         
  description.                                                            
     (d) Availability.--Copies of such map or maps and the legal          
  description shall be available for public inspection in the following   
  offices:                                                                
       (1) The office of the Idaho State Director of the Bureau of Land    
   Management.                                                             
       (2) The offices of the managers of the Lower Snake River District,  
   Bureau Field Office and Jarbidge Field Office of the Bureau of Land     
   Management.                                                             
       (3) The Office of the commander of Mountain Home Air Force Base,    
   Idaho.                                                                  
     (e) Utilization of Air Force Descriptions and Maps.--To the extent   
  practicable, the Secretary of the Interior shall adopt the legal        
  description and maps prepared by the Secretary of the Air Force in      
  support of this title.                                                  
     (f) Reimbursement of Costs.--The Secretary of the Air Force shall    
  reimburse the Secretary of the Interior for the costs incurred by the   
  Department of the Interior in implementing this section.                
          SEC. 2904. AGENCY AGREEMENT.                                            

    (a)  Findings.--Congress makes the following findings:                

       (1) The Bureau of Land Management and the Air Force have agreed upon
   additional mitigation measures associated with this land withdrawal as  
   specified in the ``ENHANCED TRAINING IN IDAHO Memorandum of             
   Understanding Between The Bureau of Land Management and The United      
   States Air Force'' dated June 11, 1998.                                 
       (2) This agreement specifies that these mitigation measures will be 
   adopted as part of the Air Force's Record of Decision for Enhanced      
   Training in Idaho.                                                      
       (3) Congress endorses this collaborative effort between the agencies
   and directs that the agreement be implemented.                          
     (b) Modification.--The parties may, in accordance with the National  
  Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), mutually     
  agree to modify the mitigation measures specified in the agreement in   
  light of experience gained through the actions called for in the        
  agreement or as a result of changed military circumstances.             
     (c) Construction.--Neither the agreement, any modification thereof,  
  nor this section creates any right, benefit, or trust responsibility,   
  substantive or procedural, enforceable at law or equity by a party      
  against the United States, its agencies, its officers, or any person.   
          SEC. 2905. RIGHT-OF-WAY GRANTS.                                         

     In addition to the withdrawal under section 2902 and in accordance   
  with all applicable laws, the Secretary of the Interior shall process   
  and grant the Secretary of the Air Force rights-of-way using the        
  Department of the Interior regulations and policies in effect at the    
  time of filing applications for the one-quarter acre electronic warfare 
  threat emitter sites, roads, powerlines, and other ancillary facilities 
  as described and analyzed in the Enhanced Training in Idaho Final       
  Environmental Impact Statement, dated January 1998.                     
          SEC. 2906. INDIAN SACRED SITES.                                         

     (a) Management.--(1) In the management of the Federal lands withdrawn
  and reserved by this title, the Air Force shall, to the extent          
  practicable and not clearly inconsistent with essential agency          
  functions--                                                             
       (A) accommodate access to and ceremonial use of Indian sacred sites 
   by Indian religious practitioners; and                                  
     (B) avoid adversely affecting the integrity of such sacred sites.     


     (2) The Secretary of the Air Force shall maintain the confidentiality
  of such sites where appropriate.                                        
     (b) Consultation.--The commander of Mountain Home Air Force Base,    
  Idaho, shall regularly consult with the Tribal Chairman of the          
  Shoshone-Paiute Tribes of the Duck Valley Reservation to assure that    
  tribal government rights and concerns are fully considered during the   
  development of the Juniper Butte Range.                                 
    (c)  Definitions.--In this section:                                   

       (1) The term ``sacred site'' shall mean any specific, discrete,     
   narrowly delineated location on Federal land that is identified by an   
   Indian tribe, or Indian individual determined to be an appropriately    
   authoritative representative of an Indian religion, as sacred by virtue 
   of its established religious significance to, or ceremonial use by, an  
   Indian religion but only to the extent that the tribe or appropriately  
   authoritative representative of an Indian religion has informed the Air 
   Force of the existence of such a site.                                  
       (2) The term ``Indian tribe'' means an Indian or Alaska Native      
   tribe, band, nation, pueblo, village, or community that the Secretary of
   the Interior acknowledges to exist as an Indian tribe pursuant to the   
   Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a 1).  
     (3) The term ``Indian'' refers to a member of an Indian tribe.        

          SEC. 2907. ACTIONS CONCERNING RANCHING OPERATIONS IN WITHDRAWN AREA.    

     (a) Authority To Conclude and Implement Agreements.--The Secretary of
  the Air Force is authorized and directed to, upon such terms and        
  conditions as the Secretary of the Air Force considers just and in the  
  national interest, conclude and implement agreements with the grazing   
  permittees to provide appropriate consideration, including future       
  grazing arrangements.                                                   
     (b) Implementation.--(1) Upon the conclusion of these agreements, the
  Assistant Secretary of the Interior for Land and Minerals Management    
  shall grant rights-of-way and approvals and take such actions as are    
  necessary to implement promptly this title and the agreements with the  
  grazing permittees.                                                     
     (2) The Secretary of the Air Force and the Secretary of the Interior 
  shall allow the grazing permittees for lands withdrawn and reserved by  
  this title to continue their activities on the lands in accordance with 
  the permits and their applicable regulations until the Secretary of the 
  Air Force has fully implemented the agreement with the grazing          
  permittees under this section.                                          
     (3) Upon the implementation of these agreements, the Bureau of Land  
  Management is authorized and directed, subject to the limitations       
  included in this section, to terminate grazing on the lands withdrawn.  
          SEC. 2908. MANAGEMENT OF WITHDRAWN AND RESERVED LANDS.                  

     (a) In General.--Except as provided in section 2916(d), during the   
  withdrawal and reservation of any lands under this title, the Secretary 
  of the Air Force shall manage such lands for purposes relating to the   
  uses set forth in section 2902(b).                                      
     (b) Management According To Plan.--The lands withdrawn and reserved  
  by this title shall be managed in accordance with the provisions of this
  title under the integrated natural resources management plan prepared   
  under section 2909.                                                     
     (c) Authority To Close Land.--(1) If the Secretary of the Air Force  
  determines that military operations, public safety, or the interests of 
  national security require the closure to public use of any road, trail, 
  or other portion of the lands withdrawn by this title that are commonly 
  in public use, the Secretary of the Air Force may take such action.     
     (2) Closures under paragraph (1) shall be limited to the minimum     
  areas and periods required for the purposes specified in this           
  subsection.                                                             
     (3) During closures, the Secretary of the Air Force shall keep       
  appropriate warning notices posted and take appropriate steps to notify 
  the public about the closures.                                          

     (d) Lease Authority.--The Secretary of the Air Force may enter into  
  leases for State lands with the State of Idaho in support of the Juniper
  Butte Range and operations at the Juniper Butte Range.                  
     (e) Prevention and Suppression of Fire.--(1) The Secretary of the Air
  Force shall take appropriate precautions to prevent and suppress brush  
  fires and range fires that occur within the boundaries of the Juniper   
  Butte Range, as well as brush and range fires occurring outside the     
  boundaries of the Range resulting from military activities.             
     (2) Notwithstanding section 2465 of title 10, United States Code, the
  Secretary of the Air Force may obligate funds appropriated or otherwise 
  available to the Secretary to enter into contracts for fire-fighting.   
     (3)(A) The memorandum of understanding under section 2910 shall      
  provide for the Bureau of Land Management to assist the Secretary of the
  Air Force in the suppression of the fires described in paragraph (1).   
     (B) The memorandum of understanding shall provide that the Secretary 
  of the Air Force reimburse the Bureau of Land Management for any costs  
  incurred by the Bureau of Land Management under this paragraph.         
     (f) Use of Mineral Materials.--Notwithstanding any other provision of
  this title or the Act of July 31, 1947 (commonly known as the Materials 
  Act of 1947; 30 U.S.C. 601 et seq.), the Secretary of the Air Force may 
  use, from the lands withdrawn and reserved by this title, sand, gravel, 
  or similar mineral material resources of the type subject to disposition
  under the Act of July 31, 1947, when the use of such resources is       
  required for construction needs of the Juniper Butte Range.             
          SEC. 2909. INTEGRATED NATURAL RESOURCE MANAGEMENT PLAN.                 

     (a) Requirement.--(1)(A) Not later than 2 years after the date of the
  enactment of this Act, the Secretary of the Air Force shall, in         
  cooperation with the Secretary of the Interior, the State of Idaho, and 
  Owyhee County, Idaho, develop an integrated natural resources management
  plan to address the management of the resources of the lands withdrawn  
  and reserved by this title during their withdrawal and reservation under
  this title.                                                             
     (B) Additionally, the integrated natural resource management plan    
  shall address mitigation and monitoring activities by the Air Force for 
  State and Federal lands affected by military training activities        
  associated with the Juniper Butte Range.                                
     (C) The foregoing will be done cooperatively between the Air Force,  
  the Bureau of Land Management, the State of Idaho, and Owyhee County,   
  Idaho.                                                                  
     (2) Except as otherwise provided under this title, the integrated    
  natural resources management plan under this section shall be developed 
  in accordance with, and meet the requirements of, section 101 of the    
  Sikes Act (16 U.S.C. 670a).                                             
     (3)(A) Site development plans shall be prepared before construction  
  of facilities.                                                          
     (B) Such plans shall be reviewed by the Bureau of Land Management,   
  for Federal lands, and the State of Idaho, for State lands, for         
  consistency with the proposal assessed in the Enhanced Training in Idaho
  Environmental Impact Statement.                                         
     (C) The portion of such development plans describing reconfigurable  
  or replacement targets may be conceptual.                               
     (b) Elements.--The integrated natural resources management plan under
  subsection (a) shall--                                                  
       (1) include provisions for the proper management and protection of  
   the natural, cultural, and other resources and values of the lands      
   withdrawn and reserved by this title and for the use of such resources  
   in a manner consistent with the uses set forth in section 2902(b);      
       (2) permit livestock grazing at the discretion of the Secretary of  
   the Air Force in accordance with section 2907 or any other authorities  
   relating to livestock grazing that are available to that Secretary;     
       (3) permit fencing, water pipeline modifications and extensions, and
   the construction of aboveground water reservoirs, and the maintenance   
   and repair of these items on the lands withdrawn and reserved by this   
   title, and on                                                           

          other lands under the jurisdiction of the Bureau of Land Management; and

       (4) otherwise provide for the management by the Secretary of the Air
   Force of any lands withdrawn and reserved by this title while retained  
   under the jurisdiction of that Secretary under this title.              
     (c) Periodic Review.--The Secretary of the Air Force shall, in       
  cooperation with the Secretary of the Interior and the State of Idaho,  
  review the adequacy of the provisions of the integrated natural         
  resources management plan developed under this section at least once    
  every 5 years after the effective date of the plan.                     
          SEC. 2910. MEMORANDUM OF UNDERSTANDING.                                 

     (a) Requirement.--The Secretary of the Air Force, the Secretary of   
  the Interior, and the Governor of the State of Idaho shall jointly enter
  into a memorandum of understanding to implement the integrated natural  
  resources management plan required under section 2909.                  
     (b) Term.--The memorandum of understanding under subsection (a) shall
  apply to any lands withdrawn and reserved by this title until their     
  relinquishment by the Secretary of the Air Force under this title.      
     (c) Modification.--The memorandum of understanding under subsection  
  (a) may be modified by agreement of all the parties specified in that   
  subsection.                                                             
          SEC. 2911. MAINTENANCE OF ROADS.                                        

     The Secretary of the Air Force shall enter into agreements with the  
  Owyhee County Highway District, Idaho, and the Three Creek Good Roads   
  Highway District, Idaho, under which the Secretary of the Air Force     
  shall pay the costs of road maintenance incurred by such districts that 
  are attributable to operations of the Department of the Air Force       
  associated with the Juniper Butte Range.                                
          SEC. 2912. MANAGEMENT OF WITHDRAWN AND ACQUIRED MINERAL RESOURCES.      

     Except as provided in subsection 2908(f), the Secretary of the       
  Interior shall manage all withdrawn and acquired mineral resources      
  within the boundaries of the Juniper Butte Range in accordance with the 
  Act of February 28, 1958 (commonly known as the Engle Act; 43 U.S.C. 155
  et seq.).                                                               
          SEC. 2913. HUNTING, FISHING, AND TRAPPING.                              

     All hunting, fishing, and trapping on the lands withdrawn and        
  reserved by this title shall be conducted in accordance with section    
  2671 of title 10, United States Code.                                   
          SEC. 2914. WATER RIGHTS.                                                

     (a) Limitation.--The Secretary of the Air Force shall not seek or    
  obtain any water rights associated with any water pipeline modified or  
  extended, or aboveground water reservoir constructed, for purposes of   
  consideration under section 2907.                                       
     (b) New Rights.--(1) Nothing in this title shall be construed to     
  establish a reservation in favor of the United States with respect to   
  any water or water right on the lands withdrawn and reserved by this    
  title.                                                                  
     (2) Nothing in this title shall be construed to authorize the        
  appropriation of water on the lands withdrawn and reserved by this title
  by the United States after the date of the enactment of this Act unless 
  such appropriation is carried out in accordance with the laws of the    
  State of Idaho.                                                         
     (c) Applicability.--This section may not be construed to affect any  
  water rights acquired by the United States before the date of the       
  enactment of this Act.                                                  
          SEC. 2915. DURATION OF WITHDRAWAL.                                      

     (a) Termination --(1) Except as otherwise provided in this section   
  and section 2916, the withdrawal and reservation made by this title     
  shall terminate 25 years after the date of the enactment of this Act.   
     (2) At the time of termination, the previously withdrawn lands shall 
  not be open to the general land laws, including the mining laws and the 
  mineral and geothermal leasing laws, until the Secretary of the Interior
  publishes in the Federal Register an appropriate order which shall state
  the date upon which such lands shall be opened.                         
     (b) Relinquishment.--(1) If the Secretary of the Air Force determines
  under subsection (c) that the Air Force has                             

                    no continuing military need for any lands withdrawn and       
          reserved by this title, the Secretary of the Air Force shall submit to  
          the Secretary of the Interior a notice of intent to relinquish          
          jurisdiction over such lands to the Secretary of the Interior.          
     (2) The Secretary of the Interior may accept jurisdiction over any   
  lands covered by a notice of intent to relinquish jurisdiction under    
  paragraph (1) if the Secretary of the Interior determines that the      
  Secretary of the Air Force has completed the environmental review       
  required under section 2916(a) and the conditions under section 2916(c) 
  have been met.                                                          
     (3) If the Secretary of the Interior decides to accept jurisdiction  
  over lands under paragraph (2) before the date of termination, as       
  provided for in subsection (a)(1), the Secretary of the Interior shall  
  publish in the Federal Register an appropriate order which shall--      
       (A) revoke the withdrawal and reservation of such lands under this  
   title;                                                                  
       (B) constitute official acceptance of administrative jurisdiction   
   over the lands by the Secretary of the Interior; and                    
       (C) state the date upon which such lands shall be opened to the     
   operation of the general land laws, including the mining laws and the   
   mineral and geothermal leasing laws, if appropriate.                    
     (4) The Secretary of the Interior shall manage any lands relinquished
  under this subsection as multiple use status lands.                     
     (5) If the Secretary of the Interior declines pursuant to subsection 
  (b)(2) to accept jurisdiction of any parcel of land proposed for        
  relinquishment, that parcel shall remain under the continued            
  administration of the Secretary of the Air Force pursuant to section    
  2916(d).                                                                
     (c) Extension.--(1) In the case of any lands withdrawn and reserved  
  by this title that the Air Force proposes to include in a notice of     
  extension because of continued military need under paragraph (2), the   
  Secretary of the Air Force shall, before issuing the notice under       
  paragraph (2)--                                                         
       (A) evaluate the environmental effects of the extension of the      
   withdrawal and reservation of such lands in accordance with all         
   applicable laws and regulations; and                                    
       (B) hold at least one public meeting in the State of Idaho regarding
   that evaluation.                                                        
     (2)(A) Not later than 2 years before the termination of the          
  withdrawal and reservation of lands by this title under subsection (a), 
  the Secretary of the Air Force shall notify Congress and the Secretary  
  of the Interior as to whether or not the Air Force has a continuing     
  military need for any of the lands withdrawn and reserved by this title,
  and not previously relinquished under this section, after the           
  termination date as specified in subsection (a).                        
     (B)(i) The Secretary of the Air force shall specify in the notice    
  under subparagraph (A) the duration of any extension or further         
  extension of withdrawal and reservation of such lands under this title. 
     (ii) The duration of each extension or further extension under clause
  (i) shall not exceed 25 years.                                          
     (C) The notice under subparagraph (A) shall be published in the      
  Federal Register and a newspaper of local distribution with the         
  opportunity for comments, within a 60-day period, which shall be        
  provided to the Secretary of the Air Force and the Secretary of the     
  Interior.                                                               
     (3)(A) Subject to subparagraph (B), in the case of any lands         
  withdrawn and reserved by this title that are covered by a notice of    
  extension under subsection (c)(2), the withdrawal and reservation of    
  such lands shall extend under the provisions of this title after the    
  termination date otherwise provided for under subsection (a) for such   
  period as is specified in the notice under subsection (c)(2).           
     (B) Subparagraph (A) shall not apply with respect to any lands       
  covered by a notice referred to in that paragraph until 90 legislative  
  days after the date on which the notice with respect to such lands is   
  submitted to Congress under paragraph (2).                              

                    SEC. 2916. ENVIRONMENTAL REMEDIATION OF RELINQUISHED WITHDRAWN
          LANDS OR UPON TERMINATION OF WITHDRAWAL.                                
     (a) Environmental Review.--(1) Before submitting under section 2915 a
  notice of an intent to relinquish jurisdiction over lands withdrawn and 
  reserved by this title, and in all cases not later than 2 years before  
  the date of termination of withdrawal and reservation, the Secretary of 
  the Air Force shall, in consultation with the Secretary of the Interior,
  complete a review that fully characterizes the environmental conditions 
  of such lands (including any water and air associated with such lands)  
  in order to identify any contamination on such lands.                   
     (2) The Secretary of the Air Force shall submit to the Secretary of  
  the Interior a copy of the review prepared with respect to any lands    
  under paragraph (1). The Secretary of the Air Force shall also submit at
  the same time any notice of intent to relinquish jurisdiction over such 
  lands under section 2915.                                               
     (3) The Secretary of the Air Force shall submit a copy of any such   
  review to Congress.                                                     
     (b) Environmental Remediation of Lands.--The Secretary of the Air    
  Force shall, in accordance with applicable State and Federal law, carry 
  out and complete environmental remediation--                            
       (1) before relinquishing jurisdiction to the Secretary of the       
   Interior over any lands identified in a notice of intent to relinquish  
   under section 2915(b); or                                               
       (2) before the date of termination of the withdrawal and            
   reservation, except as provided under subsection (d).                   
     (c) Postponement of Relinquishment.--The Secretary of the Interior   
  shall not accept jurisdiction over any lands that are the subject of    
  activities under subsection (b) until the Secretary of the Interior     
  determines that environmental conditions on the lands are such that--   
       (1) all necessary environmental remediation has been completed by   
   the Secretary of the Air Force;                                         
     (2) the lands are safe for nonmilitary uses; and                      

       (3) the lands could be opened consistent with the Secretary of the  
   Interior's public land management responsibilities.                     
     (d) Jurisdiction When Withdrawal Terminates.--If the determination   
  required by section (c) cannot be achieved for any parcel of land       
  subject to the withdrawal and reservation before the termination date of
  the withdrawal and reservation, the Secretary of the Air Force shall    
  retain administrative jurisdiction over such parcels of land            
  notwithstanding the termination date for the limited purposes of--      
     (1) environmental remediation activities under subsection (b); and    

       (2) any activities relating to the management of such lands after   
   the termination of the withdrawal reservation for military purposes that
   are provided for in the integrated natural resources management plan    
   under section 2909.                                                     
     (e) Effect on Other Laws.--Nothing in this title shall affect, or be 
  construed to affect, the obligations, if any, of the Secretary of the   
  Air Force to decontaminate lands withdrawn by this title pursuant to    
  applicable law, including the Comprehensive Environmental Response,     
  Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) and the
  Solid Waste Disposal Act (42 U.S.C. 6901 et seq.).                      
          SEC. 2917. DELEGATION OF AUTHORITY.                                     

     (a) Department of the Air Force Functions.--Except for executing the 
  agreement referred to in section 2907, the Secretary of the Air Force   
  may delegate that Secretary's functions under this title.               
     (b) Department of the Interior Functions.--(1) Except as provided in 
  paragraph (2), the Secretary of the Interior may delegate that          
  Secretary's functions under this title.                                 
     (2) The order referred to in section 2915(b)(3) may be approved and  
  signed only by the Secretary of the Interior, the Deputy Secretary of   
  the Interior, or an Assistant Secretary of the Interior.                
     (3) The approvals granted by the Bureau of Land Management shall be  
  pursuant to the decisions of the Secretary of the Interior, or the      
  Assistant Secretary for Land and Minerals Management.                   
          SEC. 2918. HOLD HARMLESS.                                               

     Any party conducting any mining, mineral, or geothermal leasing      
  activity on lands withdrawn and reserved by this title shall indemnify  
  the United States against any costs, fees, damages, or other liabilities
  (including costs of litigation) incurred by the United States and       
  arising from or relating to such mining activities, including costs of  
  mineral materials disposal, whether arising under the Comprehensive     
  Environmental Response, Compensation, and Liability Act of 1980 (42     
  U.S.C. 9601 et seq.), the Solid Waste Disposal Act (42 U.S.C. 6901 et   
  seq.), or otherwise.                                                    
          SEC. 2919. AUTHORIZATION OF APPROPRIATIONS.                             

     There are authorized to be appropriated such sums as may be necessary
  to carry out this title.                                                

           DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND  
                              OTHER AUTHORIZATIONS                                
                 TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS      


                    SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS         

      Sec. 3101. Weapons activities.                                          

      Sec. 3102. Defense environmental restoration and waste management.      

      Sec. 3103. Other defense activities.                                    

      Sec. 3104. Defense nuclear waste disposal.                              

      Sec. 3105. Defense environmental management privatization.              

                          SUBTITLE B--RECURRING GENERAL PROVISIONS                

      Sec. 3121. Reprogramming.                                               

      Sec. 3122. Limits on general plant projects.                            

      Sec. 3123. Limits on construction projects.                             

      Sec. 3124. Fund transfer authority.                                     

      Sec. 3125. Authority for conceptual and construction design.            

            Sec. 3126. Authority for emergency planning, design, and          
      construction activities.                                                
            Sec. 3127. Funds available for all national security programs of  
      the Department of Energy.                                               
      Sec. 3128. Availability of funds.                                       

      Sec. 3129. Transfers of defense environmental management funds.         

              SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS   

            Sec. 3131. Permanent extension of funding prohibition relating to 
      international cooperative stockpile stewardship.                        
            Sec. 3132. Support of ballistic missile defense activities of the 
      Department of Defense.                                                  
      Sec. 3133. Nonproliferation activities.                                 

            Sec. 3134. Licensing of certain mixed oxide fuel fabrication and  
      irradiation facilities.                                                 
            Sec. 3135. Continuation of processing, treatment, and disposition 
      of legacy nuclear materials.                                            
            Sec. 3136. Authority for Department of Energy federally funded    
      research and development centers to participate in merit-based          
      technology research and development programs.                           
      Sec. 3137. Activities of Department of Energy facilities.               

      Sec. 3138. Hanford overhead and service center costs.                   

      Sec. 3139. Hanford waste tank cleanup program reforms.                  

      Sec. 3140. Hanford Health Information Network.                          

            Sec. 3141. Hazardous materials management and emergency response  
      training program.                                                       
            Sec. 3142. Support for public education in the vicinity of Los    
      Alamos National Laboratory, New Mexico.                                 
            Sec. 3143. Relocation of National Atomic Museum, Albuquerque, New 
      Mexico.                                                                 
      Sec. 3144. Tritium production.                                          

                                  SUBTITLE D--OTHER MATTERS                       

            Sec. 3151. Study and plan relating to worker and community        
      transition assistance.                                                  
            Sec. 3152. Extension of authority for appointment of certain      
      scientific, engineering, and technical personnel.                       
            Sec. 3153. Requirement for plan to modify employment system used  
      by Department of Energy in defense environmental management programs.   
      Sec. 3154. Department of Energy nuclear materials couriers.             

            Sec. 3155. Increase in maximum rate of pay for scientific,        
      engineering, and technical personnel responsible for safety at defense  
      nuclear facilities.                                                     
            Sec. 3156. Extension of authority of Department of Energy to pay  
      voluntary separation incentive payments.                                
            Sec. 3157. Repeal of fiscal year 1998 statement of policy on      
      stockpile stewardship program.                                          
      Sec. 3158. Report on stockpile stewardship criteria.                    

            Sec. 3159. Panel to assess the reliability, safety, and security  
      of the United States nuclear stockpile.                                 
      Sec. 3160. International cooperative information exchange.              

            Sec. 3161. Protection against inadvertent release of Restricted   
      Data and Formerly Restricted Data.                                      
            Sec. 3162. Sense of Congress regarding treatment of Formerly      
      Utilized Sites Remedial Action Program under a nondefense discretionary 
      budget function.                                                        
      Sec. 3163. Reports relating to tritium production.                      


                    SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS         

          SEC. 3101. WEAPONS ACTIVITIES.                                          

     (a) In General.--Funds are hereby authorized to be appropriated to   
  the Department of Energy for fiscal year 1999 for weapons activities in 
  carrying out programs necessary for national security in the amount of  
  $4,511,600,000, to be allocated as follows:                             

       (1) Stockpile stewardship.--Funds are hereby authorized to be       
   appropriated to the Department of Energy for fiscal year 1999 for       
   stockpile stewardship in carrying out weapons activities necessary for  
   national security programs in the amount of $2,148,375,000, to be       
   allocated as follows:                                                   
       (A) For core stockpile stewardship, $1,591,375,000, to be allocated 
   as follows:                                                             
     (i) For operation and maintenance, $1,475,832,000.                    

       (ii) For plant projects (including maintenance, restoration,        
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $115,543,000, to be allocated as follows:             
         Project 99 D 102, rehabilitation of maintenance facility, Lawrence 
    Livermore National Laboratory, Livermore, California, $6,500,000.       
         Project 99 D 103, isotope sciences facilities, Lawrence Livermore  
    National Laboratory, Livermore, California, $4,000,000.                 
         Project 99 D 104, protection of real property (roof reconstruction,
    Phase II), Lawrence Livermore National Laboratory, Livermore,           
    California, $7,300,000.                                                 
         Project 99 D 105, central health physics calibration facility, Los 
    Alamos National Laboratory, Los Alamos, New Mexico, $3,900,000.         
         Project 99 D 106, model validation and system certification test   
    center, Sandia National Laboratories, Albuquerque, New Mexico,          
    $1,600,000.                                                             
         Project 99 D 107, joint computational engineering laboratory,      
    Sandia National Laboratories, Albuquerque, New Mexico, $1,800,000.      
         Project 99 D 108, renovate existing roadways, Nevada Test Site,    
    Nevada, $2,000,000.                                                     
         Project 97 D 102, dual-axis radiographic hydrotest facility, Los   
    Alamos National Laboratory, Los Alamos, New Mexico, $36,000,000.        
         Project 96 D 102, stockpile stewardship facilities revitalization, 
    Phase VI, various locations, $20,423,000.                               
         Project 96 D 103, ATLAS, Los Alamos National Laboratory, Los       
    Alamos, New Mexico, $6,400,000.                                         
         Project 96 D 104, processing and environmental technology          
    laboratory, Sandia National Laboratories, Albuquerque, New Mexico,      
    $18,920,000.                                                            
         Project 96 D 105, contained firing facility addition, Lawrence     
    Livermore National Laboratory, Livermore, California, $6,700,000.       
     (B) For inertial fusion, $498,000,000, to be allocated as follows:    

     (i) For operation and maintenance, $213,800,000.                      

       (ii) For the following plant project (including maintenance,        
   restoration, planning, construction, acquisition, and modification of   
   facilities, and land acquisition related thereto), $284,200,000, to be  
   allocated as follows:                                                   
         Project 96 D 111, national ignition facility, Lawrence Livermore   
    National Laboratory, Livermore, California, $284,200,000.               
       (C) For technology partnership and education, $59,000,000, to be    
   allocated as follows:                                                   
     (i) For technology partnership, $50,000,000.                          

     (ii) For education, $9,000,000.                                       

       (2) Stockpile management.--Funds are hereby authorized to be        
   appropriated to the Department of Energy                                

                    for fiscal year 1999 for stockpile management in carrying out 
          weapons activities necessary for national security programs in the      
          amount of $2,113,225,000, to be allocated as follows:                   
     (A) For operation and maintenance, $2,014,303,000.                    

       (B) For plant projects (including maintenance, restoration,         
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $98,922,000, to be allocated as follows:              
     Project 99 D 122, rapid reactivation, various locations, $11,200,000. 

       Project 99 D 123, replace mechanical utility systems, Y 12 Plant,   
   Oak Ridge, Tennessee, $1,900,000.                                       
       Project 99 D 125, replace boilers and controls, Kansas City Plant,  
   Kansas City, Missouri, $1,000,000.                                      
       Project 99 D 127, stockpile management restructuring initiative,    
   Kansas City Plant, Kansas City, Missouri, $13,700,000.                  
       Project 99 D 128, stockpile management restructuring initiative,    
   Pantex Plant consolidation, Amarillo, Texas, $1,108,000.                
       Project 99 D 132, stockpile management restructuring initiative,    
   nuclear material safeguards and security upgrades project, Los Alamos   
   National Laboratory, Los Alamos, New Mexico, $9,700,000.                
       Project 98 D 123, stockpile management restructuring initiative,    
   tritium facility modernization and consolidation, Savannah River Site,  
   Aiken, South Carolina, $27,500,000.                                     
       Project 98 D 124, stockpile management restructuring initiative, Y  
   12 Plant consolidation, Oak Ridge, Tennessee, $10,700,000.              
       Project 97 D 122, nuclear materials storage facility renovation, Los
   Alamos National Laboratory, Los Alamos, New Mexico, $3,764,000.         
       Project 97 D 123, structural upgrades, Kansas City Plant, Kansas    
   City, Missouri, $6,400,000.                                             
       Project 96 D 122, sewage treatment quality upgrade, Pantex Plant,   
   Amarillo, Texas, $3,700,000.                                            
       Project 95 D 102, chemistry and metallurgy research building        
   upgrades, Los Alamos National Laboratory, Los Alamos, New Mexico,       
   $5,000,000.                                                             
       Project 93 D 122, life safety upgrades, Y 12 Plant, Oak Ridge,      
   Tennessee, $3,250,000.                                                  
       (3) Program direction.--Funds are hereby authorized to be           
   appropriated to the Department of Energy for fiscal year 1999 for       
   program direction in carrying out weapons activities necessary for      
   national security programs in the amount of $250,000,000.               
    (b)  Adjustments.--                                                   

       (1) Construction.--The total amount authorized to be appropriated   
   pursuant to paragraphs (1)(A)(ii), (1)(B)(ii), and (2)(B) of subsection 
   (a) is the sum of the amounts authorized to be appropriated in those    
   paragraphs, reduced by $13,600,000.                                     
       (2) Non-construction.--The total amount authorized to be            
   appropriated pursuant to paragraphs (1)(A)(i), (1)(B)(i), (1)(C),       
   (2)(A), and (3) of subsection (a) is the sum of the amounts authorized  
   to be appropriated in those paragraphs, reduced by $178,900,000, to be  
   derived from use of prior year balances.                                
          SEC. 3102. DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.      

     (a) In General.--Funds are hereby authorized to be appropriated to   
  the Department of Energy for fiscal year 1999 for environmental         
  restoration and waste management in carrying out programs necessary for 
  national security in the amount of $5,446,143,000, to be allocated as   
  follows:                                                                

       (1) Closure projects.--For closure projects carried out in          
   accordance with section 3143 of the National Defense Authorization Act  
   for Fiscal Year 1997 (Public Law 104 201; 110 Stat. 2836; 42 U.S.C.     
   7274n) in the amount of $1,038,240,000.                                 
       (2) Site project and completion.--For site project and completion in
   carrying out environmental restoration and waste management activities  
   necessary for national security programs in the amount of               
   $1,067,253,000, to be allocated as follows:                             
     (A) For operation and maintenance, $868,090,000.                      

       (B) For plant projects (including maintenance, restoration,         
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $199,163,000, to be allocated as follows:             
       Project 99 D 402, tank farm support services, F&H areas, Savannah   
   River Site, Aiken, South Carolina, $2,745,000.                          
       Project 99 D 404, health physics instrumentation laboratory, Idaho  
   National Engineering Laboratory, Idaho, $950,000.                       
       Project 98 D 401, H-tank farm storm water systems upgrade, Savannah 
   River Site, Aiken, South Carolina, $3,120,000.                          
       Project 98 D 453, plutonium stabilization and handling system for   
   plutonium finishing plant, Richland, Washington, $26,814,000.           
       Project 98 D 700, road rehabilitation, Idaho National Engineering   
   Laboratory, Idaho, $7,710,000.                                          
       Project 97 D 450, Actinide packaging and storage facility, Savannah 
   River Site, Aiken, South Carolina, $79,184,000.                         
       Project 97 D 470, environmental monitoring laboratory, Savannah     
   River Site, Aiken, South Carolina, $7,000,000.                          
       Project 96 D 406, spent nuclear fuels canister storage and          
   stabilization facility, Richland, Washington, $38,680,000.              
       Project 96 D 408, waste management upgrades, Kansas City Plant,     
   Kansas City, Missouri, and Savannah River Site, Aiken, South Carolina,  
   $4,512,000.                                                             
       Project 96 D 464, electrical and utility systems upgrade, Idaho     
   Chemical Processing Plant, Idaho National Engineering Laboratory, Idaho,
   $11,544,000.                                                            
       Project 96 D 471, chlorofluorocarbon heating, ventilation, and air  
   conditioning and chiller retrofit, Savannah River Site, Aiken, South    
   Carolina, $8,000,000.                                                   
       Project 95 D 456, security facilities consolidation, Idaho Chemical 
   Processing Plant, Idaho National Engineering Laboratory, Idaho,         
   $485,000.                                                               
       Project 92 D 140, F&H canyon exhaust upgrades, Savannah River Site, 
   Aiken, South Carolina, $3,667,000.                                      
       Project 86 D 103, decontamination and waste treatment facility,     
   Lawrence Livermore National Laboratory, Livermore, California,          
   $4,752,000.                                                             
       (3) Post-2006 completion.--For post-2006 project completion in      
   carrying out environmental restoration and waste management activities  
   necessary for national security programs in the amount of               
   $2,744,451,000, to be allocated as follows:                             
     (A) For operation and maintenance, $2,663,195,000.                    

       (B) For plant projects (including maintenance, restoration,         
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects                                                

                    authorized in prior years, and land acquisition related       
          thereto), $81,256,000, to be allocated as follows:                      
       Project 99 D 403, privatization phase I infrastructure support,     
   Richland, Washington, $14,800,000.                                      
       Project 97 D 402, tank farm restoration and safe operations,        
   Richland, Washington, $22,723,000.                                      
       Project 96 D 408, waste management upgrades, Richland, Washington,  
   $171,000.                                                               
       Project 94 D 407, initial tank retrieval systems, Richland,         
   Washington, $32,860,000.                                                
       Project 93 D 187, high-level waste removal from filled waste tanks, 
   Savannah River Site, Aiken, South Carolina, $10,702,000.                
       (4) Science and technology.--For science and technology in carrying 
   out environmental restoration and waste management activities necessary 
   for national security programs in the amount of $250,000,000.           
       (5) Program direction.--For program direction in carrying out       
   environmental restoration and waste management activities necessary for 
   national security programs in the amount of $346,199,000.               
     (b) Adjustment.--The total amount authorized to be appropriated      
  pursuant to paragraphs (1), (2)(A), (3)(A), (4), and (5) of subsection  
  (a) is the sum of the amounts authorized to be appropriated in those    
  paragraphs, reduced by $94,100,000, to be derived from use of prior year
  balances.                                                               

          SEC. 3103. OTHER DEFENSE ACTIVITIES.                                    

     (a) In General.--Funds are hereby authorized to be appropriated to   
  the Department of Energy for fiscal year 1999 for other defense         
  activities in carrying out programs necessary for national security in  
  the amount of $1,716,160,000, to be allocated as follows:               
       (1) Nonproliferation and national security.--For nonproliferation   
   and national security, $699,300,000, to be allocated as follows:        
       (A) For verification and control technology, $503,500,000, to be    
   allocated as follows:                                                   
       (i) For nonproliferation and verification research and development, 
   $210,000,000.                                                           
     (ii) For arms control, $256,900,000.                                  

     (iii) For intelligence, $36,600,000.                                  

     (B) For nuclear safeguards and security, $53,200,000.                 

     (C) For security investigations, $30,000,000.                         

     (D) For emergency management, $23,700,000.                            

     (E) For program direction, $88,900,000.                               

       (2) Worker and community transition assistance.--For worker and     
   community transition assistance, $40,000,000, to be allocated as        
   follows:                                                                
     (A) For worker and community transition, $36,000,000.                 

     (B) For program direction, $4,000,000.                                

       (3) Fissile materials control and disposition.--For fissile         
   materials control and disposition, $168,960,000, to be allocated as     
   follows:                                                                
     (A) For operation and maintenance, $111,372,000.                      

     (B) For program direction, $4,588,000.                                

       (C) For plant projects (including maintenance, restoration,         
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $53,000,000, to be allocated as follows:              
       Project 99 D 141, pit disassembly and conversion facility, various  
   locations, $25,000,000.                                                 
       Project 99 D 143, mixed oxide fuel fabrication facility, various    
   locations, $28,000,000.                                                 
       (4) Environment, safety, and health.--For environment, safety, and  
   health, defense, $89,000,000, to be allocated as follows:               
       (A) For the Office of Environment, Safety, and Health (Defense),    
   $84,231,000.                                                            

     (B) For program direction, $4,769,000.                                

       (5) Office of hearings and appeals.--For the Office of Hearings and 
   Appeals, $2,400,000.                                                    
       (6) International nuclear safety.--For international nuclear safety,
   $35,000,000.                                                            
       (7) Naval reactors.--For naval reactors, $681,500,000, to be        
   allocated as follows:                                                   
       (A) For naval reactors development, $661,400,000, to be allocated as
   follows:                                                                
     (i) For operation and maintenance, $639,600,000.                      

       (ii) For plant projects (including maintenance, restoration,        
   planning, construction, acquisition, modification of facilities, and the
   continuation of projects authorized in prior years, and land acquisition
   related thereto), $21,800,000, to be allocated as follows:              
      GPN 101 general plant projects, various locations, $9,000,000.        

         Project 98 D 200, site laboratory/facility upgrade, various        
    locations, $7,000,000.                                                  
         Project 90 N 102, expended core facility dry cell project, Naval   
    Reactors Facility, Idaho, $5,800,000.                                   
     (B) For program direction, $20,100,000.                               

     (b) Adjustment.--(1) The total amount authorized to be appropriated  
  pursuant to this section is the sum of the amounts authorized to be     
  appropriated in paragraphs (1) through (7) of subsection (a) reduced by 
  $2,000,000.                                                             
     (2) The amount authorized to be appropriated pursuant to             
  subsection(a)(1)(C) is reduced by $20,000,000 to reflect an offset      
  provided by user organizations for security investigations.             
          SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.                              

     Funds are hereby authorized to be appropriated to the Department of  
  Energy for fiscal year 1999 for payment to the Nuclear Waste Fund       
  established in section 302(c) of the Nuclear Waste Policy Act of 1982   
  (42 U.S.C. 10222(c)) in the amount of $190,000,000.                     

          SEC. 3105. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.              

     (a) In General.--Funds are hereby authorized to be appropriated to   
  the Department of Energy for fiscal year 1999 for privatization         
  initiatives in carrying out environmental restoration and waste         
  management activities necessary for national security programs in the   
  amount of $286,857,000, to be allocated as follows:                     
       Project 99 PVT 1, remote handled transuranic waste transportation,  
   Carlsbad, New Mexico, $19,605,000.                                      
       Project 98 PVT 2, spent nuclear fuel dry storage, Idaho Falls,      
   Idaho, $30,000,000.                                                     
     Project 98 PVT 5, waste disposal, Oak Ridge, Tennessee, $50,000,000.  

       Project 97 PVT 1, tank waste remediation system phase I, Hanford,   
   Washington, $100,000,000.                                               
       Project 97 PVT 2, advanced mixed waste treatment facility, Idaho    
   Falls, Idaho, $87,252,000.                                              
     (b) Adjustment.--The amount authorized to be appropriated in         
  subsection (a) is the sum of the amounts authorized to be appropriated  
  for the projects set forth in that subsection, reduced by $32,000,000   
  for use of prior year balances of funds for defense environmental       
  management privatization.                                               
                          SUBTITLE B--RECURRING GENERAL PROVISIONS                


          SEC. 3121. REPROGRAMMING.                                               

     (a) In General.--Until the Secretary of Energy submits to the        
  congressional defense committees the report referred to in subsection   
  (b) and a period of 30 days has elapsed after the date on which such    
  committees receive the report, the Secretary may not use amounts        
  appropriated pursuant to this title for any program--                   
     (1) in amounts that exceed, in a fiscal year--                        

       (A) 110 percent of the amount authorized for that program by this   
   title; or                                                               

       (B) $1,000,000 more than the amount authorized for that program by  
   this title; or                                                          
     (2) which has not been presented to, or requested of, Congress.       

     (b) Report.--(1) The report referred to in subsection (a) is a report
  containing a full and complete statement of the action proposed to be   
  taken and the facts and circumstances relied upon in support of such    
  proposed action.                                                        
     (2) In the computation of the 30-day period under subsection (a),    
  there shall be excluded any day on which either House of Congress is not
  in session because of an adjournment of more than 3 days to a day       
  certain.                                                                
     (c) Limitations.--(1) In no event may the total amount of funds      
  obligated pursuant to this title exceed the total amount authorized to  
  be appropriated by this title.                                          
     (2) Funds appropriated pursuant to this title may not be used for an 
  item for which Congress has specifically denied funds.                  
          SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.                            

     (a) In General.--The Secretary of Energy may carry out any           
  construction project under the general plant projects authorized by this
  title if the total estimated cost of the construction project does not  
  exceed $5,000,000.                                                      
     (b) Report to Congress.--If, at any time during the construction of  
  any general plant project authorized by this title, the estimated cost  
  of the project is revised because of unforeseen cost variations and the 
  revised cost of the project exceeds $5,000,000, the Secretary shall     
  immediately furnish a complete report to the congressional defense      
  committees explaining the reasons for the cost variation.               
          SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.                             

     (a) In General.--(1) Except as provided in paragraph (2),            
  construction on a construction project may not be started or additional 
  obligations incurred in connection with the project above the total     
  estimated cost, whenever the current estimated cost of the construction 
  project, which is authorized by section 3101, 3102, or 3103, or which is
  in support of national security programs of the Department of Energy and
  was authorized by any previous Act, exceeds by more than 25 percent the 
  higher of--                                                             
     (A) the amount authorized for the project; or                         

       (B) the amount of the total estimated cost for the project as shown 
   in the most recent budget justification data submitted to Congress.     
    (2) An action described in paragraph (1) may be taken if--            

       (A) the Secretary of Energy has submitted to the congressional      
   defense committees a report on the actions and the circumstances making 
   such action necessary; and                                              
       (B) a period of 30 days has elapsed after the date on which the     
   report is received by the committees.                                   
     (3) In the computation of the 30-day period under paragraph (2),     
  there shall be excluded any day on which either House of Congress is not
  in session because of an adjournment of more than 3 days to a day       
  certain.                                                                
     (b) Exception.--Subsection (a) shall not apply to any construction   
  project which has a current estimated cost of less than $5,000,000.     
          SEC. 3124. FUND TRANSFER AUTHORITY.                                     

     (a) Transfer to Other Federal Agencies.--The Secretary of Energy may 
  transfer funds authorized to be appropriated to the Department of Energy
  pursuant to this title to other Federal agencies for the performance of 
  work for which the funds were authorized. Funds so transferred may be   
  merged with and be available for the same purposes and for the same     
  period as the authorizations of the Federal agency to which the amounts 
  are transferred.                                                        
     (b) Transfer Within Department of Energy.--(1) Subject to paragraph  
  (2), the Secretary of Energy may transfer funds authorized to be        
  appropriated to the Department of Energy pursuant to this title between 
  any such authorizations. Amounts of authorizations so transferred may be
  merged with and be available for the same purposes and for the same     
  period as the authorization to which the amounts are transferred.       

     (2) Not more than five percent of any such authorization may be      
  transferred between authorizations under paragraph (1). No such         
  authorization may be increased or decreased by more than five percent by
  a transfer under such paragraph.                                        
     (c) Limitation.--The authority provided by this section to transfer  
  authorizations--                                                        
       (1) may only be used to provide funds for items relating to         
   activities necessary for national security programs that have a higher  
   priority than the items from which the funds are transferred; and       
       (2) may not be used to provide funds for an item for which Congress 
   has specifically denied funds.                                          
     (d) Notice to Congress.--The Secretary of Energy shall promptly      
  notify the Committee on Armed Services of the Senate and the Committee  
  on National Security of the House of Representatives of any transfer of 
  funds to or from authorizations under this title.                       
          SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.            

     (a) Requirement for Conceptual Design.--(1) Subject to paragraph (2) 
  and except as provided in paragraph (3), before submitting to Congress a
  request for funds for a construction project that is in support of a    
  national security program of the Department of Energy, the Secretary of 
  Energy shall complete a conceptual design for that project.             
     (2) If the estimated cost of completing a conceptual design for a    
  construction project exceeds $3,000,000, the Secretary shall submit to  
  Congress a request for funds for the conceptual design before submitting
  a request for funds for the construction project.                       
     (3) The requirement in paragraph (1) does not apply to a request for 
  funds--                                                                 
       (A) for a construction project the total estimated cost of which is 
   less than $5,000,000; or                                                
       (B) for emergency planning, design, and construction activities     
   under section 3126.                                                     
     (b) Authority for Construction Design.--(1) Within the amounts       
  authorized by this title, the Secretary of Energy may carry out         
  construction design (including architectural and engineering services)  
  in connection with any proposed construction project if the total       
  estimated cost for such design does not exceed $600,000.                
     (2) If the total estimated cost for construction design in connection
  with any construction project exceeds $600,000, funds for such design   
  must be specifically authorized by law.                                 
                    SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND      
          CONSTRUCTION ACTIVITIES.                                                
     (a) Authority.--The Secretary of Energy may use any funds available  
  to the Department of Energy pursuant to an authorization in this title, 
  including those funds authorized to be appropriated for advance planning
  and construction design under sections 3101, 3102, and 3103, to perform 
  planning, design, and construction activities for any Department of     
  Energy national security program construction project that, as          
  determined by the Secretary, must proceed expeditiously in order to     
  protect public health and safety, to meet the needs of national defense,
  or to protect property.                                                 
     (b) Limitation.--The Secretary may not exercise the authority under  
  subsection (a) in the case of any construction project until the        
  Secretary has submitted to the congressional defense committees a report
  on the activities that the Secretary intends to carry out under this    
  section and the circumstances making such activities necessary.         
     (c) Specific Authority.--The requirement of section 3125(b)(2) does  
  not apply to emergency planning, design, and construction activities    
  conducted under this section.                                           
                    SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS 
          OF THE DEPARTMENT OF ENERGY.                                            
     Subject to the provisions of appropriations Acts and section 3121,   
  amounts appropriated pursuant to this title for management and support  
  activities and for general plant projects are available for use, when   
  necessary, in connection                                                

          with all national security programs of the Department of Energy.        

          SEC. 3128. AVAILABILITY OF FUNDS.                                       

     (a) In General.--Except as provided in subsection (b), when so       
  specified in an appropriations Act, amounts appropriated for operation  
  and maintenance or for plant projects may remain available until        
  expended.                                                               
     (b) Exception for Program Direction Funds.--Amounts appropriated for 
  program direction pursuant to an authorization of appropriations in     
  subtitle A shall remain available to be expended only until the end of  
  fiscal year 2001.                                                       
          SEC. 3129. TRANSFERS OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.         

     (a) Transfer Authority for Defense Environmental Management          
  Funds.--The Secretary of Energy shall provide the manager of each field 
  office of the Department of Energy with the authority to transfer       
  defense environmental management funds from a program or project under  
  the jurisdiction of the office to another such program or project.      
     (b) Limitations.--(1) Only one transfer may be made to or from any   
  program or project under subsection (a) in a fiscal year.               
     (2) The amount transferred to or from a program or project under     
  subsection (a) may not exceed $5,000,000 in a fiscal year.              
     (3) A transfer may not be carried out by a manager of a field office 
  under subsection (a) unless the manager determines that the transfer is 
  necessary to address a risk to health, safety, or the environment or to 
  assure the most efficient use of defense environmental management funds 
  at the field office.                                                    
     (4) Funds transferred pursuant to subsection (a) may not be used for 
  an item for which Congress has specifically denied funds or for a new   
  program or project that has not been authorized by Congress.            
     (c) Exemption From Reprogramming Requirements.--The requirements of  
  section 3121 shall not apply to transfers of funds pursuant to          
  subsection (a).                                                         
     (d) Notification.--The Secretary, acting through the Assistant       
  Secretary of Energy for Environmental Management, shall notify Congress 
  of any transfer of funds pursuant to subsection (a) not later than 30   
  days after such transfer occurs.                                        
    (e)  Definitions.--In this section:                                   

       (1) The term ``program or project'' means, with respect to a field  
   office of the Department of Energy, any of the following:               
       (A) A program referred to or a project listed in paragraph (2) or   
   (3) of section 3102.                                                    
       (B) A program or project not described in subparagraph (A) that is  
   for environmental restoration or waste management activities necessary  
   for national security programs of the Department, that is being carried 
   out by the office, and for which defense environmental management funds 
   have been authorized and appropriated before the date of enactment of   
   this Act.                                                               
       (2) The term ``defense environmental management funds'' means funds 
   appropriated to the Department of Energy pursuant to an authorization   
   for carrying out environmental restoration and waste management         
   activities necessary for national security programs.                    
     (f) Duration of Authority.--The managers of the field offices of the 
  Department may exercise the authority provided under subsection (a)     
  during the period beginning on October 1, 1998, and ending on September 
  30, 1999.                                                               

              SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS   


                    SEC. 3131. PERMANENT EXTENSION OF FUNDING PROHIBITION RELATING
          TO INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP.                     
     Section 3133(a) of the National Defense Authorization Act for Fiscal 
  Year 1998 (Public Law 105 85; 111 Stat. 2036) is amended by striking out
  ``for fiscal year 1998'' and inserting in lieu thereof ``for any fiscal 
  year''.                                                                 

                    SEC. 3132. SUPPORT OF BALLISTIC MISSILE DEFENSE ACTIVITIES OF 
          THE DEPARTMENT OF DEFENSE.                                              
     (a) Funds To Carry Out Certain Ballistic Missile Defense             
  Activities.--Of the amounts authorized to be appropriated to the        
  Department of Energy pursuant to section 3101, $30,000,000 shall be     
  available for research, development, and demonstration activities to    
  support the mission of the Ballistic Missile Defense Organization of the
  Department of Defense, including the following activities:              
       (1) Technology development, concept demonstration, and integrated   
   testing to improve reliability and reduce risk in hit-to-kill           
   interceptors for missile defense.                                       
       (2) Support for science and engineering teams to address technical  
   problems identified by the Director of the Ballistic Missile Defense    
   Organization as critical to acquisition of a theater missile defense    
   capability.                                                             
     (b) Memorandum of Understanding.--The activities referred to in      
  subsection (a) shall be carried out under the memorandum of             
  understanding entered into by the Secretary of Energy and the Secretary 
  of Defense for the use of national laboratories for ballistic missile   
  defense programs, as required by section 3131 of the National Defense   
  Authorization Act for Fiscal Year 1998 (Public Law 105 85; 111 Stat.    
  2034).                                                                  
     (c) Method of Funding.--Funds for activities referred to in          
  subsection (a) may be provided--                                        
       (1) by direct payment from funds available pursuant to subsection   
   (a); or                                                                 
       (2) in the case of such an activity carried out by a national       
   laboratory but paid for by the Ballistic Missile Defense Organization,  
   through a method under which the Secretary of Energy waives any         
   requirement for the Department of Defense to pay any indirect expenses  
   (including overhead and federal administrative charges) of the          
   Department of Energy or its contractors.                                

          SEC. 3133. NONPROLIFERATION ACTIVITIES.                                 

     (a) Initiatives for Proliferation Prevention.--Of the amount         
  authorized to be appropriated by section 3103(a)(1)(A)(ii), up to       
  $20,000,000 may be used for the Initiatives for Proliferation Prevention
  program.                                                                
     (b) Nuclear Cities Initiative.--(1) Funds authorized under this title
  may not be obligated or expended for the purpose of implementing the    
  Nuclear Cities Initiative until--                                       
       (A) the Secretary of Energy submits to the congressional defense    
   committees the report described in paragraph (2); and                   
       (B) a period of 20 legislative days has expired following the date  
   on which the report is submitted to Congress.                           
     (2) The Secretary of Energy shall prepare a report on the Nuclear    
  Cities Initiative. The report shall describe--                          
     (A) the objectives of the initiative;                                 

     (B) methods and processes for the implementation of the initiative;   

     (C) a program timeline for the initiative with milestones; and        

       (D) the funding requirements for the initiative through its         
   completion.                                                             
     (3) For purposes of this section, the term ``Nuclear Cities          
  Initiative'' means the initiative arising pursuant to the March 1998    
  discussion between the Vice President of the United States and the Prime
  Minister of the Russian Federation and between the Secretary of Energy  
  of the United States and the Minister of Atomic Energy of the Russian   
  Federation.                                                             
     (4) For purposes of paragraph (1)(B), a legislative day is a day on  
  which both Houses of Congress are in session.                           

                    SEC. 3134. LICENSING OF CERTAIN MIXED OXIDE FUEL FABRICATION  
          AND IRRADIATION FACILITIES.                                             
     (a) License Requirement.--Section 202 of the Energy Reorganization   
  Act of 1974 (42 U.S.C. 5842) is amended by adding at the end the        
  following new paragraph:                                                

       ``(5) Any facility under a contract with and for the account of the 
   Department of Energy that is utilized for the express purpose of        
   fabricating mixed plutonium-uranium oxide nuclear reactor fuel for use  
   in a commercial nuclear reactor licensed under such Act, other than any 
   such facility that is utilized for research, development, demonstration,
   testing, or analysis purposes.''.                                       
     (b) Availability of Funds for Licensing by NRC.--Section 210 of the  
  Department of Energy National Security and Military Applications of     
  Nuclear Energy Authorization Act of 1981 (42 U.S.C. 7272) shall not     
  apply to any licensing activities required pursuant to section 202(5) of
  the Energy Reorganization Act of 1974 (42 U.S.C. 5842), as added by     
  subsection (a).                                                         
     (c) Applicability of Occupational Safety and Health Requirements to  
  Activities under License.--Any activities carried out under a license   
  required pursuant to section 202(5) of the Energy Reorganization Act of 
  1974 (42 U.S.C. 5842), as added by subsection (a), shall be subject to  
  regulation under the Occupational Safety and Health Act of 1970 (29     
  U.S.C. 651 et seq.).                                                    

                    SEC. 3135. CONTINUATION OF PROCESSING, TREATMENT, AND         
          DISPOSITION OF LEGACY NUCLEAR MATERIALS.                                
     The Secretary of Energy shall continue operations and maintain a high
  state of readiness at the F canyon and H canyon facilities at the       
  Savannah River Site, Aiken, South Carolina, and shall provide technical 
  staff necessary to operate and so maintain such facilities.             

                    SEC. 3136. AUTHORITY FOR DEPARTMENT OF ENERGY FEDERALLY FUNDED
          RESEARCH AND DEVELOPMENT CENTERS TO PARTICIPATE IN MERIT-BASED          
          TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAMS.                           
     (a) Authority.--Section 217(f)(1) of the National Defense            
  Authorization Act for Fiscal Year 1995 (Public Law 103 337; 108 Stat.   
  2695) is amended--                                                      
     (1) by inserting ``(A)'' after ``(1)'';                               

       (2) by inserting ``or of the Department of Energy'' after ``the     
   Department of Defense''; and                                            
     (3) by adding at the end the following new subparagraph:              

     ``(B) A federally funded research and development center of the      
  Department of Energy described in subparagraph (A) may respond to       
  solicitations and announcements described in that subparagraph only for 
  activities conducted by the center under contract with or on behalf of  
  the Department of Defense.''.                                           
     (b) Conforming Amendment.--Section 217(f)(2) of such Act is amended  
  by inserting ``(A)'' after ``(1)''.                                     

          SEC. 3137. ACTIVITIES OF DEPARTMENT OF ENERGY FACILITIES.               

     (a) Research and Activities on Behalf of Non-Department Persons and  
  Entities.--(1) The Secretary of Energy may conduct research and other   
  activities referred to in paragraph (2) at facilities of the Department 
  of Energy on behalf of other departments and agencies of the Government,
  agencies of State and local governments, and private persons and        
  entities.                                                               
     (2) The research and other activities that may be conducted under    
  paragraph (1) are those which the Secretary is authorized to conduct by 
  law, including research and activities authorized under the following   
  provisions of law:                                                      
     (A) The Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).           

     (B) The Energy Reorganization Act of 1974 (42 U.S.C. 5811 et seq.).   

       (C) The Federal Nonnuclear Energy Research and Development Act of   
   1974 (42 U.S.C. 5901 et seq.).                                          
     (b) Charges.--(1) The Secretary shall impose on the department,      
  agency, or person or entity for which research and other activities are 
  carried out under subsection (a) a charge for such research and         
  activities in carrying out such research and activities, which shall    
  include--                                                               

       (A) the direct cost incurred in carrying out such research and      
   activities; and                                                         
       (B) the overhead cost, including site-wide indirect costs,          
   associated with such research and activities.                           
     (2)(A) Subject to subparagraph (B), the Secretary shall also impose  
  on the department, agency, or person or entity concerned a Federal      
  administrative charge (which includes any depreciation and imputed      
  interest charges) in an amount not to exceed 3 percent of the full cost 
  incurred in carrying out the research and activities concerned.         
     (B) The Secretary may waive the imposition of the Federal            
  administrative charge required by subparagraph (A) in the case of       
  research and other activities conducted on behalf of small business     
  concerns, institutions of higher education, non-profit entities, and    
  State and local governments.                                            
     (3) Not later than two years after the date of the enactment of this 
  Act, the Secretary shall terminate any waiver of charges under section  
  33 of the Atomic Energy Act of 1954 (42 U.S.C. 2053) that were made     
  before such date, unless the Secretary determines that such waiver      
  should be continued.                                                    
     (c) Pilot Program of Reduced Facility Overhead Charges.--(1) The     
  Secretary may, with the cooperation of participating contractors of the 
  contractor-operated facilities of the Department, carry out a pilot     
  program under which the Secretary and such contractors reduce the       
  facility overhead charges imposed under this section for research and   
  other activities conducted under this section.                          
     (2) The Secretary shall carry out the pilot program at               
  contractor-operated facilities selected by the Secretary in consultation
  with the contractors concerned.                                         
     (3) The Secretary shall determine the facility overhead charges to be
  imposed under the pilot program at a facility based on a joint review by
  the Secretary and the contractor for the facility of all items included 
  in the overhead costs of the facility in order to determine which items 
  are appropriately incurred as facility overhead charges by the          
  contractor in carrying out research and other activities at such        
  facility under this section.                                            
     (4) The Secretary shall commence carrying out the pilot program under
  this subsection not later than October 1, 1999, and shall terminate the 
  pilot program on September 30, 2003.                                    
     (5) Not later than January 31, 2003, the Secretary shall submit to   
  Congress an interim report on the results of the pilot program under    
  this subsection. The report shall include any recommendations for the   
  extension or expansion of the pilot program, including the establishment
  of multiple rates of overhead charges for various categories of persons 
  and entities seeking research and other activities in                   
  contractor-operated facilities of the Department.                       
     (d) Applicability With Respect to User Fee Practice.--This section   
  does not apply to the practice of the Department of Energy with respect 
  to user fees at Department facilities.                                  

          SEC. 3138. HANFORD OVERHEAD AND SERVICE CENTER COSTS.                   

     (a) Target for Reduction of Costs.--The Secretary of Energy shall    
  establish a target for the overhead and service center costs for the    
  Project Hanford Management Contractor for fiscal year 1999 that is less 
  than the established baseline for such costs for that fiscal year.      
     (b) Use of Funds Resulting from Reduction.--If the actual overhead   
  and service center costs for that contractor for fiscal year 1999 are   
  less than the established baseline for such costs for that fiscal year, 
  the Secretary, to the extent consistent with fiscal year 1999           
  appropriations, shall use an amount equal to the difference between the 
  baseline and such actual costs to perform additional clean-up work at   
  Hanford in order to reduce the most threatening environmental risks at  
  Hanford and to comply with applicable laws and regulations and the      
  Tri-Party Agreement among the Department of Energy, the Environmental   
  Protection Agency, and the State of Washington.                         

     (c) Review.--The Director of the Defense Contract Audit Agency shall 
  review the Project Hanford Management Contract for compliance with cost 
  accounting standards promulgated pursuant to section 26(f) of the Office
  of Federal Procurement Policy Act (42 U.S.C. 422(f)). The review shall  
  include the following:                                                  

       (1) An identification and assessment of methods for calculating     
   overhead costs.                                                         
     (2) A description of activities the costs of which are allocated to-- 

     (A) all accounts at the Hanford site other than overhead accounts; or 

     (B) other contracts under which work is performed at the Hanford site.

     (3) A description of service center costs, including--                

       (A) computer service and information management costs and other     
   support service costs; and                                              
     (B) costs of any activity which is paid for on a per-unit basis.      

       (4) An identification and assessment of all fees, awards, or other  
   profit on overhead or service center costs that are not attributed to   
   performance on a single project or contract.                            
       (5) An identification and assessment of all contracts awarded       
   without competition.                                                    
       (6) An identification and assessment of any other costs that the    
   Director considers necessary or appropriate to present a full and       
   complete review of Hanford costs.                                       
     (d) Report.--Not later than March 1, 1999, the Director of the       
  Defense Contract Audit Agency shall submit to the congressional defense 
  committees a report on the results of the review under subsection (c).  

          SEC. 3139. HANFORD WASTE TANK CLEANUP PROGRAM REFORMS.                  

     (a) Establishment of Office of River Protection.--The Secretary of   
  Energy shall establish an office at the Hanford Reservation, Richland,  
  Washington, to be known as the ``Office of River Protection'' (in this  
  section referred to as the ``Office'').                                 
     (b) Management and Responsibilities of Office.--(1) The Office shall 
  be headed by a senior official of the Department of Energy, who shall   
  report to the Assistant Secretary of Energy for Environmental           
  Management.                                                             
     (2) The head of the Office shall be responsible for managing all     
  aspects of the Tank Waste Remediation System (also referred to as the   
  Hanford Tank Farm operations), including those portions under           
  privatization contracts, of the Department of Energy at Hanford.        

     (c) Department Responsibilities.--The Secretary shall provide the    
  manager of the Office with the resources and personnel necessary to     
  manage the tank waste privatization program at Hanford in an efficient  
  and streamlined manner.                                                 
     (d) Integrated Management Plan.--Not later than 90 days after the    
  date of the enactment of this Act, the Secretary shall submit to the    
  Committee on Armed Services of the Senate and the Committees on Commerce
  and on National Security of the House of Representatives an integrated  
  management plan for all aspects of the Hanford Tank Farm operations,    
  including the roles, responsibilities, and reporting relationships of   
  the Office.                                                             
     (e) Report.--Not later than two years after the commencement of      
  operations of the Office, the Secretary shall submit to the committees  
  referred to in subsection (d) a report describing--                     
       (1) any progress in or resulting from the utilization of the Tank   
   Waste Remediation System; and                                           
       (2) any improvements in the management structure of the Department  
   at Hanford with respect to the Tank Waste Remediation System as a result
   of the Office.                                                          
     (f) Termination.--(1) The Office shall terminate five years after the
  commencement of operations under this section unless the Secretary      
  determines that termination on that date would disrupt effective        
  management of the Hanford Tank Farm operations.                         

     (2) The Secretary shall notify, in writing, the committees referred  
  to in subsection (d) of a determination under paragraph (1).            

          SEC. 3140. HANFORD HEALTH INFORMATION NETWORK.                          

     Of the funds authorized to be appropriated or otherwise made         
  available to the Department of Energy by section 3102, $1,500,000 shall 
  be available for activities relating to the Hanford Health Information  
  Network established pursuant to the authority in section 3138 of the    
  National Defense Authorization Act for Fiscal Year 1991 (Public Law 101 
  510; 104 Stat. 1834), as amended by section 3138(b) of the National     
  Defense Authorization Act for Fiscal Year 1995 (Public Law 103 337; 108 
  Stat. 3087).                                                            

                    SEC. 3141. HAZARDOUS MATERIALS MANAGEMENT AND EMERGENCY       
          RESPONSE TRAINING PROGRAM.                                              
     The Secretary of Energy may enter into partnership arrangements with 
  Federal and non-Federal entities to share the costs of operating the    
  hazardous materials management and hazardous materials emergency        
  response training program authorized under section 3140(a) of the       
  National Defense Authorization Act for Fiscal Year 1995 (Public Law 103 
  337; 108 Stat. 3088). Such arrangements may include the exchange of     
  equipment and services, in lieu of payment for the training program.    

                    SEC. 3142. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS
          ALAMOS NATIONAL LABORATORY, NEW MEXICO.                                 
     (a) Availability of Funds.--Of the funds authorized to be            
  appropriated or otherwise made available to the Department of Energy by 
  this title, up to $5,000,000 shall be made available for payment by the 
  Secretary of Energy to the educational foundation chartered to enhance  
  educational activities in the public schools in the vicinity of Los     
  Alamos National Laboratory, New Mexico (in this section referred to as  
  the ``Foundation'').                                                    
     (b) Use of Funds.--(1) The Foundation shall utilize funds provided   
  under subsection (a) as a contribution to an endowment fund for the     
  Foundation.                                                             
     (2) The Foundation shall use the income generated from investments in
  the endowment fund that are attributable to the payment made under      
  subsection (a) to fund programs to support the educational needs of     
  children in public schools in the vicinity of Los Alamos National       
  Laboratory.                                                             

                    SEC. 3143. RELOCATION OF NATIONAL ATOMIC MUSEUM, ALBUQUERQUE, 
          NEW MEXICO.                                                             
     The Secretary of Energy shall submit to the congressional defense    
  committees a plan for the relocation of the National Atomic Museum in   
  Albuquerque, New Mexico.                                                

          SEC. 3144. TRITIUM PRODUCTION.                                          

     The Secretary of Energy may not obligate or expend any funds         
  authorized to be appropriated or otherwise available to the Department  
  of Energy for fiscal year 1999 to implement a final decision on the     
  technology to be utilized for tritium production, made pursuant to      
  section 3135 of the National Defense Authorization Act for Fiscal Year  
  1998 (Public Law 105 85; 111 Stat. 2037), until October 1, 1999.        
                                  SUBTITLE D--OTHER MATTERS                       


                    SEC. 3151. STUDY AND PLAN RELATING TO WORKER AND COMMUNITY    
          TRANSITION ASSISTANCE.                                                  
    (a)  Study by the General Accounting Office.--                        

       (1) Study requirement.--The Comptroller General shall conduct a     
   study on the effects of workforce restructuring plans for defense       
   nuclear facilities developed pursuant to section 3161 of the National   
   Defense Authorization Act for Fiscal Year 1993 (42 U.S.C. 7274h).       
       (2) Matters covered by study.--The study shall cover the four-year  
   period preceding the date of the enactment of this Act and shall include
   the following:                                                          
       (A) An analysis of the number of jobs created by any employee       
   retraining, education, and reemployment assistance and any community    
   impact assistance provided in each workforce restructuring plan         
   developed                                                               

                    pursuant to section 3161 of the National Defense Authorization
          Act for Fiscal Year 1993.                                               
       (B) An analysis of other benefits provided pursuant to such plans,  
   including any assistance provided to community reuse organizations.     
       (C) A description of the funds expended, and the funds obligated but
   not expended, pursuant to such plans as of the date of the report.      
       (D) A description of the criteria used since October 23, 1992, in   
   providing assistance pursuant to such plans.                            
     (E) A comparison of any similar benefits provided--                   

       (i) pursuant to such a plan to employees whose employment at the    
   defense nuclear facility covered by the plan is terminated; and         
       (ii) to employees whose employment at a facility where more than 50 
   percent of the revenues are derived from contracts with the Department  
   of Defense has been terminated as a result of cancellation, termination,
   or completion of contracts with the Department of Defense and the       
   employees whose employment is terminated constitute more than 15 percent
   of the employees at that facility.                                      
     (F) A comparison of--                                                 

       (i) involuntary separation benefits provided to employees of        
   Department of Energy contractors and subcontractors under such plans;   
   and                                                                     
       (ii) involuntary separation benefits provided to employees of the   
   Federal Government.                                                     
       (G) A comparison of costs to the Federal Government (including costs
   of involuntary separation benefits) for--                               
       (i) involuntary separations of employees of Department of Energy    
   contractors and subcontractors; and                                     
       (ii) involuntary separations of employees of contractors and        
   subcontractors of other Federal Government departments and agencies.    
       (H) A description of the length of service and hiring dates of      
   employees of Department of Energy contractors and subcontractors        
   provided benefits under such plans in the two-year period preceding the 
   date of the enactment of this Act.                                      
       (3) Report on study.--The Comptroller General shall submit a report 
   to Congress on the results of the study not later than March 31, 1999.  
       (4) Definition.--In this section, the term ``defense nuclear        
   facility'' has the meaning provided the term ``Department of Energy     
   defense nuclear facility'' in section 3163 of the National Defense      
   Authorization Act for Fiscal Year 1993 (Public Law 102 484; 42 U.S.C.   
   7274j).                                                                 
     (b) Plan for Termination of Worker and Community Transition          
  Program.--Not later than July 1, 1999, the Secretary of Energy shall    
  submit to the congressional defense committees a plan to terminate the  
  Office of Worker and Community Transition. The plan shall include--     
       (1) a description of how the authority of the Office would be       
   terminated; and                                                         
       (2) a description of how the responsibility to manage downsizing of 
   the contractor workforce of the Department of Energy would be           
   transferred to other offices or programs within the Department.         

                    SEC. 3152. EXTENSION OF AUTHORITY FOR APPOINTMENT OF CERTAIN  
          SCIENTIFIC, ENGINEERING, AND TECHNICAL PERSONNEL.                       
     Section 3161(c)(1) of the National Defense Authorization Act for     
  Fiscal Year 1995 (42 U.S.C. 7231 note) is amended by striking out       
  ``September 30, 1999'' and inserting in lieu thereof ``September 30,    
  2000''.                                                                 

                    SEC. 3153. REQUIREMENT FOR PLAN TO MODIFY EMPLOYMENT SYSTEM   
          USED BY DEPARTMENT OF ENERGY IN DEFENSE ENVIRONMENTAL MANAGEMENT        
          PROGRAMS.                                                               
     (a) Plan Requirement.--Not later than February 1, 1999, the Secretary
  of Energy shall submit to Congress a report containing a plan to modify 
  the Federal employment system used within the defense environmental     
  management programs of the Department of Energy to allow for workforce  
  restructuring in those programs.                                        
     (b) Specified Elements of Plan.--The plan shall address strategies to
  recruit and hire--                                                      
       (1) individuals with a high degree of scientific and technical      
   competence in the areas of nuclear and toxic waste remediation and      
   environmental restoration; and                                          
       (2) individuals with the necessary skills to manage large           
   construction and environmental remediation projects.                    
     (c) Legislative Changes.--The plan shall include an identification of
  the provisions of Federal law that would need to be changed to allow the
  Secretary of Energy to restructure the Department of Energy defense     
  environmental management workforce to hire individuals described in     
  subsection (b), while staying within any numerical limitations required 
  by law (including section 3161 of Public Law 103 337 (42 U.S.C. 7231    
  note)) on employment of such individuals.                               

          SEC. 3154. DEPARTMENT OF ENERGY NUCLEAR MATERIALS COURIERS.             

     (a) Maximum Age for Entry into Nuclear Materials Courier             
  Force.--Section 3307 of title 5, United States Code, is amended--       
       (1) in subsection (a), by striking ``and (d)'' and inserting ``(d), 
   (e), and (f)''; and                                                     
     (2) by adding at the end the following:                               

     ``(f) The Secretary of Energy may determine and fix the maximum age  
  limit for an original appointment to a position as a nuclear materials  
  courier, as defined by section 8331(27) or 8401(33).''.                 
     (b) Definition for Purposes of Civil Service Retirement              
  System.--Section 8331 of title 5, United States Code, is amended--      
     (1) by striking ``and'' at the end of paragraph (25);                 

       (2) by striking the period at the end of paragraph (26) and         
   inserting ``; and''; and                                                
     (3) by adding at the end the following:                               

     ``(27) `Nuclear materials courier'--                                  

       ``(A) means an employee of the Department of Energy, the duties of  
   whose position are primarily to transport, and provide armed escort and 
   protection during transit of, nuclear weapons, nuclear weapon           
   components, strategic quantities of special nuclear materials or other  
   materials related to national security; and                             
       ``(B) includes an employee who is transferred directly to a         
   supervisory or administrative position within the same Department of    
   Energy organization, after performing duties referred to in subparagraph
   (A) for at least 3 years.''.                                            
     (c) Deductions, Contributions, and Deposits Under CSRS.--(1)         
  Subsection (a)(1) of section 8334 of title 5, United States Code, is    
  amended by striking ``or member of the Capitol Police,'' and inserting  
  ``member of the Capitol Police, or nuclear materials courier,''.        
     (2) Subsection (c) of that section is amended by adding after the    
  item for a Member of the Capitol Police the following new item:         


                                                                                                                                                                            

                                                                                                                                                                                 

``Nuclear materials courier    7       October 1, 1977 to the day before the date of enactment of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999.    
                                  7.5     The date of enactment of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 to December 31, 1998.                 
                                  7.75    January 1, 1999 to December 31, 1999.                                                                                                     
                                  7.9     January 1, 2000 to December 31, 2000.                                                                                                     
                                  8       January 1, 2001 to December 31, 2002.                                                                                                     
                                  7.5     After December 31, 2002.''.                                                                                                               


     (3) Notwithstanding subsection (a)(1) or (k)(1) of section 8334 of   
  title 5, United States Code, or section 7001(a) of Public Law 105 33,   
  during the period beginning on the effective date provided for under    
  subsection (n)(1) and ending on September 30, 2002, the Department of   
  Energy shall deposit in the Treasury of the United States to the credit 
  of the Civil Service Retirement and Disability Fund on behalf of each   
  nuclear materials courier from whose basic pay a deduction is made under
  such subsection (a)(1) during that period an amount equal to 9.01       
  percent of such basic pay, in lieu of the agency contributions otherwise
  required under such subsection (a)(1) during that period.               
     (d) Mandatory Separation Under CSRS.--Section 8335(b) of title 5,    
  United States Code, is amended in the second sentence--                 
       (1) by inserting ``or nuclear materials courier'' after ``law       
   enforcement officer''; and                                              
       (2) by inserting ``or courier, as the case may be,'' after ``that   
   officer''.                                                              
     (e) Immediate Retirement Under CSRS.--Section 8336(c)(1) of title 5, 
  United States Code, is amended by striking ``or firefighter'' and       
  inserting ``, firefighter, or nuclear materials courier''.              
     (f) Definition for Purposes of Federal Employees' Retirement         
  System.--Section 8401 of title 5, United States Code, is amended--      
     (1) by striking ``and'' at the end of paragraph (31);                 

       (2) by striking the period at the end of paragraph (32) and         
   inserting ``; and''; and                                                
     (3) by adding at the end the following:                               

       ``(33) `Nuclear materials courier' has the meaning given that term  
   in section 8331(27).''.                                                 

     (g) Immediate Retirement Under FERS.--Section 8412(d) of title 5,    
  United States Code, is amended by striking ``or firefighter'' each place
  it appears in paragraphs (1) and (2) and inserting ``firefighter, or    
  nuclear materials courier''.                                            
     (h) Computation of Basic Annuity Under FERS.--Section 8415(g) of     
  title 5, United States Code, is amended by inserting ``nuclear materials
  courier,'' after ``firefighter,''.                                      
     (i) Deductions and Contributions Under FERS.--(1) Section 8422(a)(3) 
  of title 5, United States Code, is amended by adding after the item     
  relating to a law enforcement officer, firefighter, member of the       
  Capitol Police, or air traffic controller the following new item:       


                                                                                                                                                                            

                                                                                                                                                                                 

``Nuclear materials courier    7       January 1, 1987 to the day before the date of enactment of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999.    
                                  7.5     The date of enactment of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 to December 31, 1998.                 
                                  7.75    January 1, 1999 to December 31, 1999.                                                                                                     
                                  7.9     January 1, 2000 to December 31, 2000.                                                                                                     
                                  8       January 1, 2001 to December 31, 2001.                                                                                                     
                                  7.5     After December 31, 2002.''.                                                                                                               


     (2) Contributions under subsections (a) and (b) of section 8423 of   
  title 5, United States Code, shall not be reduced as a result of that   
  portion of the amendment made by paragraph (1) requiring employee       
  deductions at a rate in excess of 7.5 percent for the period beginning  
  on January 1, 1999, and ending on December 31, 2002.                    
     (j) Agency Contributions Under FERS.--Paragraphs (1)(B)(i) and (3)(A)
  of section 8423(a) of title 5, United States Code, are each amended by  
  inserting ``nuclear materials couriers,'' after ``firefighters,''.      
     (k) Mandatory Separation Under FERS.--Section 8425(b) of title 5,    
  United States Code, is amended by inserting ``or nuclear materials      
  courier'' after ``law enforcement officer'' both places it appears in   
  the second sentence.                                                    
     (l) Payments.--(1) The Department of Energy shall pay into the Civil 
  Service Retirement and Disability Fund an amount determined by the      
  Director of the Office of Personnel Management to be necessary to       
  reimburse the Fund for any estimated increase in the unfunded liability 
  of the Fund resulting from the amendments related to the Civil Service  
  Retirement System under this section, and for any estimated increase in 
  the supplemental liability of the Fund resulting from the amendments    
  related to the Federal Employees Retirement System under this section.  
     (2) The Department shall pay the amount so determined in five equal  
  annual installments with interest computed at the rate used in the most 
  recent valuation of the Federal Employees Retirement System.            
     (3) The Department shall make payments under this subsection from    
  amounts available for weapons activities of the Department.             
     (m) Applicability.--Subsections (b) through (l) shall apply only to  
  an individual who is employed as a nuclear materials courier, as defined
  by section 8331(27) or 8401(33) of title 5, United States Code (as      
  amended by this section), after the later of--                          
     (1) September 30, 1998; or                                            

     (2) the date of the enactment of this Act.                            

     (n) Effective Dates.--(1) Except as provided in paragraph (2), the   
  amendments made by this section shall take effect at the beginning of   
  the first pay period that begins after the later of--                   
     (A) October 1, 1998; or                                               

     (B) the date of the enactment of this Act.                            

     (2)(A) The amendments made by subsection (a) shall take effect on the
  date of the enactment of this Act.                                      
     (B) The amendments made by subsections (d) and (k) shall take effect 
  one year after the date of the enactment of this Act.                   

                    SEC. 3155. INCREASE IN MAXIMUM RATE OF PAY FOR SCIENTIFIC,    
          ENGINEERING, AND TECHNICAL PERSONNEL RESPONSIBLE FOR SAFETY AT DEFENSE  
          NUCLEAR FACILITIES.                                                     
     Section 3161(a)(2) of the National Defense Authorization Act for     
  Fiscal Year 1995 (Public Law 103 337; 42 U.S.C. 7231 note) is amended by
  striking out ``level IV of the Executive Schedule under section 5315''  
  and inserting in lieu thereof ``level III of the Executive Schedule     
  under section 5314''.                                                   

                    SEC. 3156. EXTENSION OF AUTHORITY OF DEPARTMENT OF ENERGY TO  
          PAY VOLUNTARY SEPARATION INCENTIVE PAYMENTS.                            
     (a) Extension.--Notwithstanding subsection (c)(2)(D) of section 663  
  of the Treasury, Postal Service, and General Government Appropriations  
  Act, 1997 (Public Law 104 208; 110 Stat. 3009 383; 5 U.S.C. 5597 note), 
  the Department of Energy may pay voluntary separation incentive payments
  to qualifying employees who voluntarily separate (whether by retirement 
  or resignation) before January 1, 2001.                                 
     (b) Exercise of Authority.--The Department shall pay voluntary       
  separation incentive payments under subsection (a) in accordance with   
  the provisions of such section 663.                                     

                    SEC. 3157. REPEAL OF FISCAL YEAR 1998 STATEMENT OF POLICY ON  
          STOCKPILE STEWARDSHIP PROGRAM.                                          
     Section 3156 of the National Defense Authorization Act for Fiscal    
  Year 1998 (Public Law 105 85; 111 Stat. 2045; 42 U.S.C. 2121 note) is   
  repealed.                                                               

          SEC. 3158. REPORT ON STOCKPILE STEWARDSHIP CRITERIA.                    

     (a) Requirement for Criteria.--The Secretary of Energy shall develop 
  clear and specific criteria for judging whether the science-based tools 
  being used by the Department of Energy for determining the safety and   
  reliability of the nuclear weapons stockpile are performing in a manner 
  that will provide an adequate degree of certainty that the stockpile is 
  safe and reliable.                                                      
     (b) Coordination With Secretary of Defense.--The Secretary of Energy,
  in developing the criteria required by subsection (a), shall coordinate 
  with the Secretary of Defense.                                          
     (c) Report.--Not later than March 1, 2000, the Secretary of Energy   
  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 efforts by the Department of Energy to develop the criteria      
  required by subsection (a). The report shall include--                  
       (1) a description of the information needed to determine that the   
   nuclear weapons stockpile is safe and reliable and the relationship of  
   the science-based tools to the collection of that information; and      
       (2) a description of the criteria required by subsection (a) to the 
   extent they have been developed as of the date of the submission of the 
   report.                                                                 

                    SEC. 3159. PANEL TO ASSESS THE RELIABILITY, SAFETY, AND       
          SECURITY OF THE UNITED STATES NUCLEAR STOCKPILE.                        
     (a) Requirement for Panel.--The Secretary of Defense, in consultation
  with the Secretary of Energy, shall enter into a contract with a        
  federally funded research and development center to establish a panel   
  for the assessment of the certification process for the reliability,    
  safety, and security of the United States nuclear stockpile.            
     (b) Composition and Administration of Panel.--(1) The panel shall    
  consist of private citizens of the United States with knowledge and     
  expertise in the technical aspects of design, manufacture, and          
  maintenance of nuclear weapons.                                         
     (2) The federally funded research and development center shall be    
  responsible for establishing appropriate procedures for the panel,      
  including selection of a panel chairman.                                
     (c) Duties of Panel.--Each year the panel shall review and assess the
  following:                                                              
       (1) The annual certification process, including the conclusions and 
   recommendations resulting from the process, for the safety, security,   
   and reliability of the nuclear weapons                                  

                    stockpile of the United States, as carried out by the         
          directors of the national weapons laboratories.                         
       (2) The long-term adequacy of the process of certifying the safety, 
   security, and reliability of the nuclear weapons stockpile of the United
   States.                                                                 
       (3) The adequacy of the criteria established by the Secretary of    
   Energy pursuant to section 3158 for achieving the purposes for which    
   those criteria are established.                                         
     (d) Report.--Not later than October 1 of each year, beginning with   
  1999, the panel 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 its findings and conclusions     
  resulting from the review and assessment carried out for the year       
  covered by the report. The report shall be submitted in classified and  
  unclassified form.                                                      
     (e) Cooperation of Other Agencies.--(1) The panel may secure directly
  from the Department of Energy, the Department of Defense, or any of the 
  national weapons laboratories or plants or any other Federal department 
  or agency information that the panel considers necessary to carry out   
  its duties.                                                             
     (2) For carrying out its duties, the panel shall be provided full and
  timely cooperation by the Secretary of Energy, the Secretary of Defense,
  the Commander of United States Strategic Command, the Directors of the  
  Los Alamos National Laboratory, the Lawrence Livermore National         
  Laboratory, the Sandia National Laboratories, the Savannah River Site,  
  the Y 12 Plant, the Pantex Facility, and the Kansas City Plant, and any 
  other official of the United States that the chairman of the panel      
  determines as having information described in paragraph (1).            
     (3) The Secretary of Energy and the Secretary of Defense shall each  
  designate at least one officer or employee of the Department of Energy  
  and the Department of Defense, respectively, to serve as a liaison      
  officer between the department and the panel.                           
     (f) Funding.--The Secretary of Defense and the Secretary of Energy   
  shall each contribute 50 percent of the amount of funds that are        
  necessary for the panel to carry out its duties. Funds available for the
  Department of Energy for atomic energy defense activities shall be      
  available for the Department of Energy contribution.                    
     (g) Termination of Panel.--The panel shall terminate three years     
  after the date of the appointment of the member designated as chairman  
  of the panel.                                                           
     (h) Initial Implementation.--The Secretary of Defense shall enter    
  into the contract required under subsection (a) not later than 60 days  
  after the date of the enactment of this Act. The panel shall convene its
  first meeting not later than 30 days after the date as of which all     
  members of the panel have been appointed.                               

          SEC. 3160. INTERNATIONAL COOPERATIVE INFORMATION EXCHANGE.              

    (a)  Findings.--Congress finds the following:                         

       (1) Currently in the post-cold war world, there are new             
   opportunities to facilitate international political and scientific      
   cooperation on cost-effective, advanced, and innovative nuclear         
   management technologies.                                                
       (2) There is increasing public interest in monitoring and           
   remediation of nuclear waste.                                           
       (3) It is in the best interest of the United States to explore and  
   develop options with the international community to facilitate the      
   exchange of evolving advanced nuclear wastes technologies.              
     (b) Sense of Congress.--It is the sense of Congress that the         
  Secretary of Energy, in consultation with the Secretary of State, the   
  Secretary of Defense, the Administrator of the Environmental Protection 
  Agency, and other officials as appropriate, should prepare and 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 following:                                                          

       (1) An assessment of whether the United States should encourage the 
   establishment of an international project to facilitate the             
   international exchange of information (including costs data) relating to
   nuclear waste technologies, including technologies for solid and liquid 
   radioactive wastes and contaminated soils and sediments.                
       (2) An assessment of whether such a project could be funded         
   privately through industry, public interest, and scientific             
   organizations and administered by an international nongovernmental      
   organization, with operations in the United States, Russia, and other   
   countries that have an interest in developing such technologies.        
       (3) A description of the Federal programs that facilitate the       
   exchange of such information and of any added benefit of consolidating  
   such programs into such a project.                                      
       (4) Recommendations for any legislation that the Secretary of Energy
   believes would be required to enable such a project to be undertaken.   

                    SEC. 3161. PROTECTION AGAINST INADVERTENT RELEASE OF          
          RESTRICTED DATA AND FORMERLY RESTRICTED DATA.                           
     (a) Plan for Protection Against Release.--The Secretary of Energy and
  the Archivist of the United States shall, after consultation with the   
  members of the National Security Council and in consultation with the   
  Secretary of Defense and the heads of other appropriate Federal         
  agencies, develop a plan to prevent the inadvertent release of records  
  containing Restricted Data or Formerly Restricted Data during the       
  automatic declassification of records under Executive Order 12958 (50   
  U.S.C. 435 note).                                                       
     (b) Plan Elements.--The plan under subsection (a) shall include the  
  following:                                                              

       (1) The actions to be taken in order to ensure that records subject 
   to Executive Order 12958 are reviewed on a page-by-page basis for       
   Restricted Data and Formerly Restricted Data unless they have been      
   determined to be highly unlikely to contain Restricted Data or Formerly 
   Restricted Data.                                                        
       (2) The criteria and process by which documents are determined to be
   highly unlikely to contain Restricted Data or Formerly Restricted Data. 
       (3) The actions to be taken in order to ensure proper training,     
   supervision, and evaluation of personnel engaged in declassification    
   under that Executive Order so that such personnel recognize Restricted  
   Data and Formerly Restricted Data.                                      
       (4) The extent to which automated declassification technologies will
   be used under that Executive Order to protect Restricted Data and       
   Formerly Restricted Data from inadvertent release.                      
       (5) Procedures for periodic review and evaluation by the Secretary  
   of Energy, in consultation with the Director of the Information Security
   Oversight Office of the National Archives and Records Administration, of
   compliance by Federal agencies with the plan.                           
       (6) Procedures for resolving disagreements among Federal agencies   
   regarding declassification procedures and decisions under the plan.     
       (7) The funding, personnel, and other resources required to carry   
   out the plan.                                                           
     (8) A timetable for implementation of the plan.                       

     (c) Limitation on Declassification of Certain Records.--(1) Effective
  on the date of the enactment of this Act and except as provided in      
  paragraph (3), a record referred to in subsection (a) may not be        
  declassified unless the agency having custody of the record reviews the 
  record on a page-by-page basis to ensure that the record does not       
  contain Restricted Data or Formerly Restricted Data.                    
     (2) Any record determined as a result of a review under paragraph (1)
  to contain Restricted Data or Formerly Restricted Data may not be       
  declassified until the Secretary of Energy, in conjunction with the head
  of the agency having custody                                            

                    of the record, determines that the document is suitable for   
          declassification.                                                       
     (3) After the date occurring 60 days after the submission of the plan
  required by subsection (a) to the committees referred to in paragraphs  
  (1) and (2) of subsection (d), the requirement under paragraph (1) to   
  review a record on a page-by-page basis shall not apply in the case of a
  record determined, under the actions specified in the plan pursuant to  
  subsection (b)(1), to be a record that is highly unlikely to contain    
  Restricted Data or Formerly Restricted Data.                            
     (d) Submission of Plan.--The Secretary of Energy shall submit the    
  plan required under subsection (a) to the following:                    
     (1) The Committee on Armed Services of the Senate.                    

       (2) The Committee on National Security of the House of              
   Representatives.                                                        
     (3) The Assistant to the President for National Security Affairs.     

     (e) Submission of Reviews.--The Secretary of Energy shall, on a      
  periodic basis, submit a summary of the results of the periodic reviews 
  and evaluations specified in the plan pursuant to subsection (b)(4) to  
  the committees and Assistant to the President specified in subsection   
  (d).                                                                    
     (f) Report and Notification Regarding Inadvertent Releases.--(1) The 
  Secretary of Energy shall submit to the committees and Assistant to the 
  President specified in subsection (d) a report on inadvertent releases  
  of Restricted Data or Formerly Restricted Data under Executive Order    
  12958 that occurred before the date of the enactment of this Act.       
     (2) Not later than 30 days after any such inadvertent release        
  occurring after the date of the enactment of this Act, the Secretary of 
  Energy shall notify the committees and Assistant to the President       
  specified in subsection (d) of such releases.                           
     (g) Definition.--In this section, the term ``Restricted Data'' has   
  the meaning given that term in section 11 y. of the Atomic Energy Act of
  1954 (42 U.S.C. 2014(y)).                                               

                    SEC. 3162. SENSE OF CONGRESS REGARDING TREATMENT OF FORMERLY  
          UTILIZED SITES REMEDIAL ACTION PROGRAM UNDER A NONDEFENSE DISCRETIONARY 
          BUDGET FUNCTION.                                                        
     It is the sense of Congress that the Office of Management and Budget 
  should, beginning with fiscal year 2000, transfer the Formerly Utilized 
  Sites Remedial Action Program from the National Defense budget function 
  (budget function 050) to a nondefense discretionary budget function.    

          SEC. 3163. REPORTS RELATING TO TRITIUM PRODUCTION.                      

     (a) Report on Tritium Production Technology Options.--(1) The        
  Secretary of Defense, in consultation with the Secretary of Energy,     
  shall establish a task force of the Defense Science Board to examine    
  tritium production technology options.                                  
    (2) The task force shall examine the following issues:                

       (A) The risk associated with the design, construction, operation,   
   and cost of each option for tritium production under consideration.     
       (B) The implications for nuclear weapons proliferation of each such 
   option.                                                                 
       (C) The extent to which each such option contributes to the         
   capability of the Government to reliably meet the national defense      
   requirements of the United States.                                      
       (D) Any other factors that the Secretary of Defense or the Secretary
   of Energy considers appropriate.                                        
     (3) The task force shall submit to the Secretary of Defense and the  
  Secretary of Energy a report on the results of its examination. The     
  Secretaries shall submit the report to Congress not later than June 30, 
  1999.                                                                   
     (b) Report on Test Program for Tritium Production at Watts Bar.--(1) 
  The Secretary of Energy shall submit to the congressional defense       
  committees a report on the results of the test program at the Watts Bar 
  Nuclear Station, Tennessee, after the test program is completed and the 
  results of the program are evaluated. The report shall include--        
       (A) data on the performance of the test rods, including any leakage 
   of tritium from the test rods;                                          
     (B) the amount of tritium produced during the test;                   

     (C) the performance of the reactor during the test; and               

     (D) any other technical findings resulting from the test.             

     (2) The Secretary of Energy shall submit to the congressional defense
  committees an interim report on the test program not later than 60 days 
  after the test rods are removed from the Watts Bar reactor.             

                    TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD          


      Sec. 3201. Authorization.                                               


          SEC. 3201. AUTHORIZATION.                                               

     There are authorized to be appropriated for fiscal year 1999,        
  $17,500,000 for the operation of the Defense Nuclear Facilities Safety  
  Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 
  et seq.).                                                               

                          TITLE XXXIII--NATIONAL DEFENSE STOCKPILE                


      Sec. 3301. Definitions.                                                 

      Sec. 3302. Authorized uses of stockpile funds.                          

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

          SEC. 3301. DEFINITIONS.                                                 

    In this title:                                                        

       (1) The term ``National Defense Stockpile'' means the stockpile     
   provided for in section 4 of the Strategic and Critical Materials Stock 
   Piling Act (50 U.S.C. 98c).                                             
       (2) The term ``National Defense Stockpile Transaction Fund'' means  
   the fund in the Treasury of the United States established under section 
   9(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C.
   98h(a)).                                                                
          SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.                          

     (a) Obligation of Stockpile Funds.--During fiscal year 1999, the     
  National Defense Stockpile Manager may obligate up to $83,000,000 of the
  funds in the National Defense Stockpile Transaction Fund for the        
  authorized uses of such funds under section 9(b)(2) of the Strategic and
  Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2)), including the
  disposal of hazardous materials that are environmentally sensitive.     
     (b) Additional Obligations.--The National Defense Stockpile Manager  
  may obligate amounts in excess of the amount specified in subsection (a)
  if the National Defense Stockpile Manager notifies Congress that        
  extraordinary or emergency conditions necessitate the additional        
  obligations. The National Defense Stockpile Manager may make the        
  additional obligations described in the notification after the end of   
  the 45-day period beginning on the date on which Congress receives the  
  notification.                                                           
     (c) Limitations.--The authorities provided by this section shall be  
  subject to such limitations as may be provided in appropriations Acts.  

                    SEC. 3303. AUTHORITY TO DISPOSE OF CERTAIN MATERIALS IN       
          NATIONAL DEFENSE STOCKPILE.                                             
     (a) Disposal Required.--Subject to subsection (c), the President     
  shall dispose of materials contained in the National Defense Stockpile  
  and specified in the table in subsection (b) so as to result in receipts
  to the United States in the amount of--                                 
     (1) $105,000,000 by the end of fiscal year 1999;                      

     (2) $460,000,000 by the end of fiscal year 2002;                      

     (3) $555,000,000 by the end of fiscal year 2003; and                  

     (4) $590,000,000 by the end of fiscal year 2005.                      

     (b) Limitation on Disposal Quantity.--The total quantities of        
  materials authorized for disposal by the President under subsection (a) 
  may not exceed the amounts set forth in the following table:            

                           Authorized Stockpile Disposals                         

 Material for disposal                     Quantity                                  

Bauxite Refractory                        29,000 long calcined ton                   
Beryllium Metal                           100 short tons                             
Chromite Chemical                         34,000 short dry tons                      
Chromite Refractory                       159,000 short dry tons                     
Chromium Ferroalloy                       125,000 short tons                         
Columbium Carbide Powder                  21,372 pounds of contained Columbium       
Columbium Concentrates                    1,733,454 pounds of contained Columbium    
Columbium Ferro                           249,396 pounds of contained Columbium      
Columbium Metal--Ingots                   161,123 pounds of contained Columbium      
Diamond, Stones                           3,000,000 carats                           
Germanium Metal                           28,198 kilograms                           
Graphite Natural Ceylon Lump              5,492 short tons                           
Indium                                    14,248 troy ounces                         
Mica Muscovite Block                      301,000 pounds                             
Mica Phlogopite Block                     130,745 pounds                             
Platinum                                  439,887 troy ounces                        
Platinum--Iridium                         4,450 troy ounces                          
Platinum--Palladium                       750,000 troy ounces                        
Tantalum Carbide Powder                   22,688 pounds of contained Tantalum        
Tantalum Metal Ingots                     125,000 pounds of contained Tantalum       
Tantalum Metal Powder                     125,000 pounds of contained Tantalum       
Tantalum Minerals                         1,751,364 pounds contained of Tantalum     
Tantalum Oxide                            122,730 pounds contained of Tantalum       
Tungsten Carbide Powder                   2,032,896 pounds of contained Tungsten     
Tungsten Ferro                            2,024,143 pounds of contained Tungsten     
Tungsten Metal Powder                     1,898,009 pounds of contained Tungsten     
Tungsten Ores & Concentrates              76,358,235 pounds of contained Tungsten    


     (c) Minimization of Disruption and Loss.--The President may not      
  dispose of materials under subsection (a) to the extent that the        
  disposal will result in--                                               
       (1) undue disruption of the usual markets of producers, processors, 
   and consumers of the materials proposed for disposal; or                
     (2) avoidable loss to the United States.                              

     (d) Treatment of Receipts.--Notwithstanding section 9 of the         
  Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), funds
  received as a result of the disposal of materials authorized for        
  disposal under subsection (a) shall be treated as follows:              
       (1) The following amounts shall be transferred to the Secretary of  
   Health and Human Services, to be credited in the manner determined by   
   the Secretary to the Federal Hospital Insurance Trust Fund and the      
   Federal Supplementary Medical Insurance Trust Fund:                     
     (A) $3,000,000 during fiscal year 1999.                               

     (B) $22,000,000 during fiscal year 2000.                              

     (C) $28,000,000 during fiscal year 2001.                              

     (D) $31,000,000 during fiscal year 2002.                              

     (E) $8,000,000 during fiscal year 2003.                               

       (2) The balance of the funds received shall be deposited into the   
   general fund of the Treasury.                                           
     (e) Relationship to Other Disposal Authority.--The disposal authority
  provided in subsection (a) is new disposal authority and is in addition 
  to, and shall not affect, any other disposal authority provided by law  
  regarding the materials specified in such subsection.                   

     (f) Authorization of Sale.--The authority provided by this section to
  dispose of materials contained in the National Defense Stockpile so as  
  to result in receipts of $100,000,000 of the amount specified for fiscal
  year 1999 in subsection (a) by the end of that fiscal year shall be     
  effective only to the extent provided in advance in appropriation Acts. 
                    SEC. 3304. USE OF STOCKPILE FUNDS FOR CERTAIN ENVIRONMENTAL   
          REMEDIATION, RESTORATION, WASTE MANAGEMENT, AND COMPLIANCE ACTIVITIES.  
     Section 9(b)(2) of the Strategic and Critical Materials Stock Piling 
  Act (50 U.S.C. 98h(b)(2)) is amended--                                  
       (1) by redesignating subparagraphs (J) and (K) as subparagraphs (K) 
   and (L), respectively; and                                              
       (2) by inserting after subparagraph (I) the following new           
   subparagraph (J):                                                       
       ``(J) Performance of environmental remediation, restoration, waste  
   management, or compliance activities at locations of the stockpile that 
   are required under a Federal law or are undertaken by the Government    
   under an administrative decision or negotiated agreement.''.            

                            TITLE XXXIV--NAVAL PETROLEUM RESERVES                 


      Sec. 3401. Definitions.                                                 

      Sec. 3402. Authorization of appropriations.                             

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

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

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

      Sec. 3406. Administration.                                              


          SEC. 3401. DEFINITIONS.                                                 

    In this title:                                                        

       (1) The term ``naval petroleum reserves'' has the meaning given the 
   term in section 7420(2) of title 10, United States Code.                
       (2) The term ``Naval Petroleum Reserve Numbered 2'' means the naval 
   petroleum reserve, commonly referred to as the Buena Vista unit, that is
   located in Kern County, California, and was established by Executive    
   order of the President, dated December 13, 1912.                        
       (3) The term ``Naval Petroleum Reserve Numbered 3'' means the naval 
   petroleum reserve, commonly referred to as the Teapot Dome unit, that is
   located in the State of Wyoming and was established by Executive order  
   of the President, dated April 30, 1915.                                 
       (4) The term ``Oil Shale Reserve Numbered 2'' means the naval       
   petroleum reserve that is located in the State of Utah and was          
   established by Executive order of the President, dated December 6, 1916.
       (5) The term ``antitrust laws'' means has the meaning given the term
   in section 1(a) of the Clayton Act (15 U.S.C. 12(a)), except that the   
   term also includes--                                                    
       (A) the Act of June 19, 1936 (15 U.S.C. 13 et seq.; commonly known  
   as the Robinson-Patman Act); and                                        
       (B) section 5 of the Federal Trade Commission Act (15 U.S.C. 45), to
   the extent that such section applies to unfair methods of competition.  

       (6) The term ``petroleum'' has the meaning given the term in section
   7420(3) of title 10, United States Code.                                
          SEC. 3402. AUTHORIZATION OF APPROPRIATIONS.                             

     (a) Amount.--There are hereby authorized to be appropriated to the   
  Secretary of Energy $22,500,000 for fiscal year 1999 for the purpose of 
  carrying out--                                                          
       (1) activities under chapter 641 of title 10, United States Code,   
   relating to the naval petroleum reserves;                               
       (2) closeout activities at Naval Petroleum Reserve Numbered 1 upon  
   the sale of that reserve under subtitle B of title XXXIV of the National
   Defense Authorization Act for fiscal year 1996 (Public Law 104 106; 10  
   U.S.C. 7420 note); and                                                  
       (3) activities under this title relating to the disposition of Naval
   Petroleum Reserve Numbered 2, Naval Petroleum Reserve Numbered 3, and   
   Oil Shale Reserve Numbered 2.                                           
     (b) Period of Availability.--Funds appropriated pursuant to the      
  authorization of appropriations in subsection (a) shall remain available
  until expended.                                                         
          SEC. 3403. DISPOSAL OF NAVAL PETROLEUM RESERVE NUMBERED 2.              

     (a) Disposal of Ford City Lots Authorized.--(1) Subject to section   
  3406, the Secretary of Energy may dispose of the portion of Naval       
  Petroleum Reserve Numbered 2 that is located within the town lots in    
  Ford City, California, which are identified as ``Drill Sites Numbered   
  3A, 4, 6, 9A, 20, 22, 24, and 26'' and described in the document        
  entitled ``Ford City Drill Site Locations--NPR 2,'' and accompanying    
  maps on file in the office of the Deputy Assistant Secretary for Naval  
  Petroleum and Oil Shale Reserves of the Department of Energy.           
     (2) The Secretary of Energy shall carry out the disposal authorized  
  by paragraph (1) by competitive sale or lease consistent with commercial
  practices, by transfer to another Federal agency or a public or private 
  entity, or by such other means as the Secretary considers appropriate.  
  Any competitive sale or lease under this subsection shall provide for   
  the disposal of all right, title, and interest of the United States in  
  the property to be conveyed. The Secretary of Energy may use the        
  authority provided by the Act of June 14, 1926 (43 U.S.C. 869 et seq.;  
  commonly known as the Recreation and Public Purposes Act), in the same  
  manner and to the same extent as the Secretary of the Interior, to      
  dispose of the portion of Naval Petroleum Reserve Numbered 2 described  
  in paragraph (1).                                                       
     (3) Section 2696(a) of title 10, United States Code, regarding the   
  screening of real property for further Federal use before disposal,     
  shall apply to the disposal authorized by paragraph (1).                
     (b) Transfer of Administrative Jurisdiction Authorized.--(1) The     
  Secretary of Energy shall continue to administer Naval Petroleum Reserve
  Numbered 2 (other than the portion of the reserve authorized for        
  disposal under subsection (a)) in accordance with chapter 641 of title  
  10, United States Code, until such time as the Secretary makes a        
  determination to abandon oil and gas operations in Naval Petroleum      
  Reserve Numbered 2 in accordance with commercial operating practices.   
     (2) After oil and gas operations are abandoned in Naval Petroleum    
  Reserve Numbered 2, the Secretary of Energy may transfer to the         
  Secretary of the Interior administrative jurisdiction and control over  
  all public domain lands included within Naval Petroleum Reserve Numbered
  2 (other than the portion of the reserve authorized for disposal under  
  subsection (a)) for management in accordance with the general land laws.
     (c) Relationship to Antitrust Laws.--This section does not modify,   
  impair, or supersede the operation of the antitrust laws.               
          SEC. 3404. DISPOSAL OF NAVAL PETROLEUM RESERVE NUMBERED 3.              

     (a) Administration Pending Termination of Operations.--The Secretary 
  of Energy shall continue to administer Naval Petroleum Reserve Numbered 
  3 in accordance with chapter 641 of title 10, United States Code, until 
  such time as the Secretary makes a determination to abandon oil and gas 
  operations                                                              

                    in Naval Petroleum Reserve Numbered 3 in accordance with      
          commercial operating practices.                                         
     (b) Disposal Authorized.--After oil and gas operations are abandoned 
  in Naval Petroleum Reserve Numbered 3, the Secretary of Energy may      
  dispose of the reserve as provided in this subsection. Subject to       
  section 3406, the Secretary shall carry out any such disposal of the    
  reserve by sale or lease or by transfer to another Federal agency. Any  
  sale or lease shall provide for the disposal of all right, title, and   
  interest of the United States in the property to be conveyed and shall  
  be conducted in accordance with competitive procedures consistent with  
  commercial practices, as established by the Secretary.                  
     (c) Relationship to Antitrust Laws.--This section does not modify,   
  impair, or supersede the operation of the antitrust laws.               
          SEC. 3405. DISPOSAL OF OIL SHALE RESERVE NUMBERED 2.                    

     (a) Transfer of Administrative Jurisdiction Authorized.--Subject to  
  section 3406, the Secretary of Energy may transfer to the Secretary of  
  the Interior administrative jurisdiction and control over all public    
  domain lands included within Oil Shale Reserve Numbered 2 for management
  in accordance with the general land laws.                               
     (b) Relationship to Indian Reservation.--The transfer of             
  administrative jurisdiction under this section does not affect any      
  interest, right, or obligation respecting the Uintah and Ouray Indian   
  Reservation located in Oil Shale Reserve Numbered 2.                    
          SEC. 3406. ADMINISTRATION.                                              

     (a) Protection of Existing Rights.--At the discretion of the         
  Secretary of Energy, the disposal of property under this title shall be 
  subject to any contract related to the United States ownership interest 
  in the property in effect at the time of disposal, including any lease  
  agreement pertaining to the United States interest in Naval Petroleum   
  Reserve Numbered 2.                                                     
     (b) Deposit of Receipts.--Notwithstanding any other law, all monies  
  received by the United States from the disposal of property under this  
  title, including any monies received from a lease entered into under    
  this title, shall be deposited in the general fund of the Treasury.     
     (c) Treatment of Royalties.--Any petroleum accruing to the United    
  States as royalty from any lease of lands transferred under this title  
  shall be delivered to the United States, or shall be paid for in money, 
  as the Secretary of the Interior may elect.                             
     (d) Elements of Lease.--A lease under this title may provide for the 
  exploration for, and development and production of, petroleum, other    
  than petroleum in the form of oil shale.                                
     (e) Waiver of Requirements Regarding Consultation and                
  Approval.--Section 7431 of title 10, United States Code, shall not apply
  to the disposal of property under this title.                           

                             TITLE XXXV--PANAMA CANAL COMMISSION                  


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

      Sec. 3502. Authorization of expenditures.                               

      Sec. 3503. Purchase of vehicles.                                        

      Sec. 3504. Expenditures only in accordance with treaties.               

      Sec. 3505. Donations to the Commission.                                 

            Sec. 3506. Agreements for United States to provide post-transfer  
      administrative services for certain employee benefits.                  
            Sec. 3507. Sunset of United States overseas benefits just before  
      transfer.                                                               
      Sec. 3508. Central examining office.                                    

      Sec. 3509. Liability for vessel accidents.                              

      Sec. 3510. Panama Canal Board of Contract Appeals.                      

            Sec. 3511. Restatement of requirement that Secretary of Defense   
      designee on Panama Canal Commission supervisory board be a current      
      officer of the Department of Defense.                                   
      Sec. 3512. Technical amendments.                                        


          SEC. 3501. SHORT TITLE; REFERENCES TO PANAMA CANAL ACT OF 1979.         

     (a) Short Title.--This title may be cited as the ``Panama Canal      
  Commission Authorization Act for Fiscal Year 1999''.                    
     (b) References to Panama Canal Act of 1979.--Except as otherwise     
  expressly provided, whenever in this title an amendment or repeal is    
  expressed in terms of an amendment to, or repeal of, a section or other 
  provision, the reference shall be considered to be made to a section or 
  other provision of the Panama Canal Act of 1979 (22 U.S.C. 3601 et      
  seq.).                                                                  
          SEC. 3502. AUTHORIZATION OF EXPENDITURES.                               

     (a) In General.--Subject to subsection (b), the Panama Canal         
  Commission is authorized to use amounts in the Panama Canal Revolving   
  Fund to make such expenditures within the limits of funds and borrowing 
  authority available to it in accordance with law, and to make such      
  contracts and commitments, as may be necessary under the Panama Canal   
  Act of 1979 (22 U.S.C. 3601 et seq.) for the operation, maintenance,    
  improvement, and administration of the Panama Canal for fiscal year     
  1999.                                                                   
     (b) Limitations.--For fiscal year 1999, the Panama Canal Commission  
  may expend from funds in the Panama Canal Revolving Fund not more than  
  $100,000 for official reception and representation expenses, of which-- 
       (1) not more than $28,000 may be used for official reception and    
   representation expenses of the Supervisory Board of the Commission;     
       (2) not more than $14,000 may be used for official reception and    
   representation expenses of the Secretary of the Commission; and         
       (3) not more than $58,000 may be used for official reception and    
   representation expenses of the Administrator of the Commission.         
          SEC. 3503. PURCHASE OF VEHICLES.                                        

     Notwithstanding any other provision of law, the funds available to   
  the Commission shall be available for the purchase and transportation to
  the Republic of Panama of passenger motor vehicles, the purchase price  
  of which shall not exceed $23,000 per vehicle.                          
          SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.               

     Expenditures authorized under this title may be made only in         
  accordance with the Panama Canal Treaties of 1977 and any law of the    
  United States implementing those treaties.                              
          SEC. 3505. DONATIONS TO THE COMMISSION.                                 

     Section 1102b (22 U.S.C. 3612b) is amended by adding at the end the  
  following new subsection:                                               
     ``(f)(1) The Commission may seek and accept donations of funds,      
  property, and services from individuals, foundations, corporations, and 
  other private and public entities for the purpose of carrying out its   
  promotional activities.                                                 
     ``(2) The Commission shall establish written guidelines setting forth
  the criteria to be used in determining whether the acceptance of funds, 
  property, or services authorized by paragraph (1) would reflect         
  unfavorably upon the ability of the Commission (or any employee of the  
  Commission) to carry out its responsibilities or official duties in a   
  fair and objective manner or would compromise the integrity or the      
  appearance of the integrity of its programs or of any official in those 
  programs.''.                                                            

                    SEC. 3506. AGREEMENTS FOR UNITED STATES TO PROVIDE            
          POST-TRANSFER ADMINISTRATIVE SERVICES FOR CERTAIN EMPLOYEE BENEFITS.    
     Section 1110 (22 U.S.C. 3620) is amended by adding at the end the    
  following new subsection:                                               
     ``(c)(1) The Secretary of State may enter into one or more agreements
  to provide for the United States to furnish administrative services     
  relating to the benefits described in paragraph (2) after December 31,  
  1999, and to establish appropriate procedures for providing advance     
  funding for the services.                                               
    ``(2) The benefits referred to in paragraph (1) are the following:    

       ``(A) Pension, disability, and medical benefits provided by the     
   Panama Canal Commission pursuant to section 1245.                       
       ``(B) Compensation for work injuries covered by chapter 81 of title 
   5, United States Code.''.                                               
                    SEC. 3507. SUNSET OF UNITED STATES OVERSEAS BENEFITS JUST     
          BEFORE TRANSFER.                                                        
     (a) Repeals.--Effective 11:59 p.m. (Eastern Standard Time), December 
  30, 1999, the following provisions are repealed and any right or        
  condition of employment provided for in, or arising from, those         
  provisions is terminated: sections 1206 (22 U.S.C. 3646), 1207 (22      
  U.S.C. 3647), 1217(a) (22 U.S.C. 3657(a)), and 1224(11) (22 U.S.C.      
  3664(11)), subparagraphs (A), (B), (F), (G), and (H) of section         
  1231(a)(2) (22 U.S.C. 3671(a)(2)) and section 1321(e) (22 U.S.C.        
  3731(e)).                                                               
     (b) Savings Provision for Basic Pay.--Notwithstanding subsection (a),
  benefits based on basic pay, as listed in paragraphs (1), (2), (3), (5),
  and (6) of section 1218 of the Panama Canal Act of 1979, shall be paid  
  as if sections 1217(a) and 1231(a)(2) (A) and (B) of that Act had been  
  repealed effective 12:00 noon, December 31, 1999. The exception under   
  the preceding sentence shall not apply to any pay for hours of work     
  performed on December 31, 1999.                                         
     (c) Nonapplicability to Agencies in Panama Other Than Panama Canal   
  Commission.--Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by    
  striking out ``the Panama Canal Transition Facilitation Act of 1997''   
  and inserting in lieu thereof ``the Panama Canal Transition Facilitation
  Act of 1997 (subtitle B of title XXXV of Public Law 105 85; 110 Stat.   
  2062), or the Panama Canal Commission Authorization Act for Fiscal Year 
  1999''.                                                                 
          SEC. 3508. CENTRAL EXAMINING OFFICE.                                    

    (a)  Repeal.--Section 1223 (22 U.S.C. 3663) is repealed.              

     (b) Clerical Amendment.--The table of contents in section 1 is       
  amended by striking out the item relating to section 1223.              

          SEC. 3509. LIABILITY FOR VESSEL ACCIDENTS.                              

     (a) Commission Liability Subject to Claimant Insurance.--(1) Section 
  1411(a) (22 U.S.C. 3771(a)) is amended by inserting ``to section 1419(b)
  of this Act and'' after ``Subject'' in the first sentence.              
     (2) Section 1412 (22 U.S.C. 3772) is amended by striking out ``The   
  Commission'' in the first sentence and inserting in lieu thereof        
  ``Subject to section 1419(b) of this Act, the Commission''.             
     (3) Section 1416 (22 U.S.C. 3776) is amended by striking out ``A     
  claimant'' in the first sentence and inserting in lieu thereof ``Subject
  to section 1419(b) of this Act, a claimant''.                           
     (b) Authority to Require Claimants To Be Covered by                  
  Insurance.--Section 1419 (22 U.S.C. 3779) is amended--                  
     (1) by inserting ``(a)'' before ``The Commission''; and               

     (2) by adding at the end the following:                               

     ``(b)(1) The Commission may by regulation require as a condition of  
  transit through the Panama Canal or presence in the Panama Canal or     
  waters adjacent thereto that any potential claimant under section 1411  
  or 1412 of this Act be covered by insurance against the types of        
  injuries described in those sections. The amount of insurance so        
  required shall be specified in those regulations, but may not exceed    
  $1,000,000.                                                             
     ``(2) In a claim under section 1411 or 1412 of this Act for which the
  Commission has required insurance under this                            

                    subsection, the Commission's liability shall be limited to the
          amount of damages in excess of the amount of insurance required by the  
          Commission.                                                             
     ``(3) In regulations under this subsection, the Commission may       
  prohibit consideration or payment by it of claims presented by or on    
  behalf of an insurer or subrogee of a claimant in a case for which the  
  Commission has required insurance under this subsection.''.             
          SEC. 3510. PANAMA CANAL BOARD OF CONTRACT APPEALS.                      

     (a) Establishment and Pay of Board.--Section 3102(a) (22 U.S.C.      
  3862(a)) is amended--                                                   
       (1) in paragraph (1), by striking out ``shall'' in the first        
   sentence and inserting in lieu thereof ``may''; and                     
     (2) by adding at the end the following new paragraph:                 

     ``(3) Compensation for members of the Board of Contract Appeals shall
  be established by the Commission's supervisory board. The annual        
  compensation established for members may not exceed the rate of basic   
  pay established for level IV of the Executive Schedule under section    
  5315 of title 5, United States Code. The compensation of a member may   
  not be reduced during the member's term of office from the level        
  established at the time of the appointment of the member.''.            
     (b) Deadline for Commencement of Board.--Section 3102(e) (22 U.S.C.  
  3862(e)) is amended by striking out ``, but not later than January 1,   
  1999''.                                                                 
                    SEC. 3511. RESTATEMENT OF REQUIREMENT THAT SECRETARY OF       
          DEFENSE DESIGNEE ON PANAMA CANAL COMMISSION SUPERVISORY BOARD BE A      
          CURRENT OFFICER OF THE DEPARTMENT OF DEFENSE.                           
    (a)  Authority.--Section 1102(a) (22 U.S.C. 3612(a)) is amended--     

       (1) by striking out the first sentence and inserting in lieu thereof
   the following: ``The Commission shall be supervised by a Board composed 
   of nine members, one of whom shall be an officer of the Department of   
   Defense. The officer of the Department of Defense who shall serve on the
   Board shall be designated by the Secretary of Defense and may continue  
   to serve on the Board only while continuing to serve as an officer of   
   the Department of Defense.''; and                                       
       (2) in the last sentence, by striking out ``Secretary of Defense or 
   a designee of the Secretary of Defense'' and inserting in lieu thereof  
   ``the officer of the Department of Defense designated by the Secretary  
   of Defense to be a member of the Board''.                               
     (b) Repeal of Superseded Provision.--Section 302 of Public Law 105 18
  (111 Stat. 168) is repealed.                                            
          SEC. 3512. TECHNICAL AMENDMENTS.                                        

     (a) Panama Canal Act of 1979.--The Panama Canal Act of 1979 is       
  amended as follows:                                                     
     (1) Section 1202(c) (22 U.S.C. 3642(c)) is amended--                  

       (A) by striking out ``the day before the date of the enactment of   
   the Panama Canal Transition Facilitation Act of 1997'' and inserting in 
   lieu thereof ``November 17, 1997,'';                                    
     (B) by striking out ``on or after that date''; and                    

       (C) by striking out ``the day before the date of enactment'' and    
   inserting in lieu thereof ``that date''.                                
       (2) Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by         
   inserting ``the'' after ``by the head of''.                             
       (3) Section 1313 (22 U.S.C. 3723) is amended by striking out        
   ``subsection (d)'' in each of subsections (a), (b), and (d) and         
   inserting in lieu thereof ``subsection (c)''.                           
       (4) Sections 1411(a) and 1412 (22 U.S.C. 3771(a), 3772) are amended 
   by striking out ``the date of the enactment of the Panama Canal         
   Transition Facilitation Act of 1997'' and inserting in lieu thereof ``by
   November 18, 1998''.                                                    
       (5) Section 1416 (22 U.S.C. 3776) is amended by striking out ``the  
   date of the enactment of the Panama Canal Transition Facilitation Act of
   1997'' and inserting in lieu thereof ``by May 17, 1998''.               
     (b) Public Law 104 201.--Effective as of September 23, 1996, and as  
  if included therein as enacted, section 3548(b)(3) of the Panama Canal  
  Act Amendments of 1996 (subtitle B of title XXXV of Public Law 104 201; 
  110 Stat. 2869) is amended by striking out ``section'' in both items of 
  quoted matter and inserting in lieu thereof ``sections''.               

                            TITLE XXXVI--MARITIME ADMINISTRATION                  


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

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

            Sec. 3603. Authority to convey certain National Defense Reserve   
      Fleet vessels.                                                          
      Sec. 3604. Clearinghouse for maritime information.                      

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


          SEC. 3601. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 1999.        

     Funds are hereby authorized to be appropriated for fiscal year 1999, 
  to be available without fiscal year limitation if so provided in        
  appropriations Act, for the use of the Department of Transportation for 
  the Maritime Administration as follows:                                 
       (1) For expenses necessary for operations and training activities,  
   $70,553,000.                                                            
       (2) For expenses under the loan guarantee program authorized by     
   title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.),
   $20,000,000 of which--                                                  
       (A) $16,000,000 is for the cost (as defined in section 502(5) of the
   Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) of loan guarantees
   under the program; and                                                  
       (B) $4,000,000 is for administrative expenses related to loan       
   guarantee commitments under the program.                                
          SEC. 3602. AUTHORITY TO CONVEY NATIONAL DEFENSE RESERVE FLEET VESSEL.   

     (a) Authority To Convey.--The Secretary of Transportation may convey 
  all right, title, and interest of the United States Government in and to
  the vessel M/V BAYAMON (United States official number 530007) to a      
  purchaser for use as a self-propelled floating trade exposition to      
  showcase United States technology, industrial products, and services.   
    (b)  Terms of Conveyance.--                                           

       (1) Delivery of vessel.--In carrying out subsection (a), the        
   Secretary shall deliver the vessel--                                    
       (A) at the place where the vessel is located on the date of         
   conveyance;                                                             
     (B) in its condition on that date; and                                

     (C) at no cost to the United States Government.                       

       (2) Required conditions.--The Secretary may not convey a vessel     
   under this section unless--                                             
     (A) competitive procedures are used for sales under this section;     

       (B) the vessel is sold for not less than the fair market value of   
   the vessel in the United States, as determined by the Secretary of      
   Transportation;                                                         
       (C) the recipient agrees that any repair, except for emergency      
   repairs, restoration, or reconstruction work for the vessel will be     
   performed in the United States;                                         
       (D) the recipient agrees to hold the Government harmless for any    
   claims arising from exposure to hazardous material, including asbestos  
   and polychlorinated biphenyls, after the conveyance of the vessel,      
   except for claims arising before the date of the conveyance or from use 
   of the vessel by the Government after that date; and                    
       (E) the recipient provides sufficient evidence to the Secretary that
   it has adequate financial resources in the form of cash, liquid assets, 
   or a written loan commitment to complete the reconstruction of the      
   vessel.                                                                 
       (3) Additional terms.--The Secretary may require such additional    
   terms in connection with the conveyance authorized by this section as   
   the Secretary considers appropriate.                                    
     (c) Proceeds.--Any amounts received by the United States as proceeds 
  from the sale of the M/V BAYAMON shall be deposited in the Vessel       
  Operations Revolving Fund established by section 801 of the Act of June 
  2, 1951 (65 Stat. 59; 46 U.S.C. App. 1241a) and shall be available and  
  expended in accordance with section 6(a) of the National Maritime       
  Heritage Act (16 U.S.C. App. 5405(a)).                                  

                    SEC. 3603. AUTHORITY TO CONVEY CERTAIN NATIONAL DEFENSE       
          RESERVE FLEET VESSELS.                                                  
     (a) Authority To Convey.--The Secretary of Transportation may convey 
  all right, title, and interest of the United States Government in and to
  the vessels BENJAMIN ISHERWOOD (TAO 191) and HENRY ECKFORD (TAO 192) to 
  a purchaser for the limited purpose of reconstruction of those vessels  
  for sale or charter to a North Atlantic Treaty Organization country for 
  full use as an oiler.                                                   
    (b)  Terms of Conveyance.--                                           

       (1) Delivery of vessel.--In carrying out subsection (a), the        
   Secretary shall deliver the vessel--                                    

       (A) at the place where the vessel is located on the date of the     
   conveyance;                                                             
     (B) in its condition on that date; and                                

     (C) at no cost to the United States Government.                       

       (2) Required conditions.--The Secretary may not convey a vessel     
   under this section unless--                                             
     (A) competitive procedures are used for sales under this section;     

       (B) the vessel is sold for not less than the fair market value of   
   the vessel in the United States, as determined by the Secretary of      
   Transportation;                                                         
       (C) the recipient agrees that any repair, except for emergency      
   repairs, restoration, or reconstruction work for the vessel will be     
   performed in the United States;                                         
       (D) the recipient agrees to hold the Government harmless for any    
   claims arising from defects in the vessel or from exposure to hazardous 
   material, including asbestos and polychlorinated biphenyls, after the   
   conveyance of the vessel, except for claims arising before the date of  
   the conveyance or from use of the vessel by the Government after that   
   date;                                                                   
       (E) the recipient provides sufficient evidence to the Secretary that
   it has adequate financial resources in the form of cash, liquid assets, 
   or a written loan commitment to complete the reconstruction of the      
   vessel; and                                                             
       (F) with respect to the vessel, the recipient remains subject to all
   laws and regulations governing the export of military items, including  
   the requirements administered by the Department of State regarding      
   export licenses and certification of nontransfer end use.               
       (3) Additional terms.--The Secretary may require such additional    
   terms in connection with a conveyance authorized by this section as the 
   Secretary considers appropriate.                                        
     (c) Proceeds.--Any amounts received by the United States as proceeds 
  from the sale of a vessel under this section shall be deposited in the  
  Vessel Operations Revolving Fund established by section 801 of the Act  
  of June 2, 1951 (65 Stat. 59; 46 U.S.C. App. 1241a) and shall be        
  available and expended in accordance with section 6(a) of the National  
  Maritime Heritage Act (16 U.S.C. App. 5405(a)).                         
          SEC. 3604. CLEARINGHOUSE FOR MARITIME INFORMATION.                      

     Of the amount authorized to be appropriated pursuant to section      
  3601(1) for operations of the Maritime Administration, $75,000 may be   
  available for the establishment at a State Maritime Academy of a        
  clearinghouse for maritime information that makes that information      
  publicly available, including by use of the Internet.                   

          SEC. 3605. CONVEYANCE OF NDRF VESSEL EX-USS LORAIN COUNTY.              

     (a) Authority To Convey.--The Secretary of Transportation may convey 
  all right, title, and interest of the Federal Government in and to the  
  vessel ex-USS LORAIN COUNTY (LST 1177) to the Ohio War Memorial, Inc.,  
  located in Sandusky, Ohio (in this section referred to as the           
  ``recipient''), for use as a memorial to Ohio veterans.                 
    (b)  Terms of Conveyance.--                                           

       (1) Delivery of vessel.--In carrying out subsection (a), the        
   Secretary shall deliver the vessel--                                    
       (A) at the place where the vessel is located on the date of         
   conveyance;                                                             
     (B) in its condition on that date; and                                

     (C) at no cost to the Federal Government.                             

       (2) Required conditions.--The Secretary may not convey a vessel     
   under this section unless--                                             
       (A) the recipient agrees to hold the Government harmless for any    
   claims arising from exposure to hazardous material, including asbestos  
   and polychlorinated biphenyls, after conveyance of the vessel, except   
   for claims arising before the date of the conveyance or from use of the 
   vessel by the Government after that date; and                           
       (B) the recipient has available, for use to restore the vessel, in  
   the form of cash, liquid assets, or a written loan commitment, financial
   resources of at least $100,000.                                         
       (3) Additional terms.--The Secretary may require such additional    
   terms in connection with the conveyance authorized by this section as   
   the Secretary considers appropriate.                                    
     (c) Other Unneeded Equipment.--The Secretary may convey to the       
  recipient of the vessel conveyed under this section any unneeded        
  equipment from other vessels in the National Defense Reserve Fleet, for 
  use to restore the vessel conveyed under this section to museum quality.

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


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


                    SEC. 3701. AUTHORIZATION FOR ADDITIONAL CUSTOMS PERSONNEL TO  
          MONITOR THE IMPORTATION OF PRODUCTS MADE WITH FORCED LABOR.             
     There are authorized to be appropriated for monitoring by the United 
  States Customs Service of the importation into the United States of     
  products made with forced labor, the importation of which violates      
  section 307 of the Tariff Act of 1930 or section 1761 of title 18,      
  United States Code, $2,000,000 for fiscal year 1999.                    
                    SEC. 3702. REPORTING REQUIREMENT ON FORCED LABOR PRODUCTS     
          DESTINED FOR THE UNITED STATES MARKET.                                  
     (a) Report to Congress.--Not later than one year after the date of   
  the enactment of this Act, the Commissioner of Customs shall prepare and
  transmit to the Congress a report on products made with forced labor    
  that are destined for the United States market.                         
     (b) Contents of Report.--The report under subsection (a) shall       
  include information concerning the following:                           
       (1) The extent of the use of forced labor in manufacturing products 
   destined for the United States market.                                  
       (2) The volume of products made with forced labor, destined for the 
   United States market, that is in violation of section 307 of the Tariff 
   Act of 1930 or section 1761 of the title 18, United States Code, and is 
   seized by the United States Customs Service.                            
       (3) The progress of the United States Customs Service in identifying
   and interdicting products made with forced labor that are destined for  
   the United States market.                                               

          SEC. 3703. RENEGOTIATING MEMORANDA OF UNDERSTANDING ON FORCED LABOR.    

     It is the sense of the Congress that the President should determine  
  whether any country with which the United States has a memorandum of    
  understanding with respect to reciprocal trade which involves goods made
  with forced labor is frustrating implementation of the memorandum.      
  Should an affirmative determination be made, the President should       
  immediately commence negotiations to replace the current memorandum of  
  understanding with one providing for effective procedures for the       
  monitoring of forced labor, including improved procedures to request    
  investigations by international monitors of worksites suspected to be in
  violation of any such memorandum.                                       

                        TITLE XXXVIII--FAIR TRADE IN AUTOMOTIVE PARTS             


      Sec. 3801. Short title.                                                 

      Sec. 3802. Definitions.                                                 

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


          SEC. 3801. SHORT TITLE.                                                 

     This title may be cited as the ``Fair Trade in Automotive Parts Act  
  of 1998''.                                                              
          SEC. 3802. DEFINITIONS.                                                 

    In this title:                                                        

       (1) Japanese markets.--The term ``Japanese markets'' refers to      
   markets, including markets in the United States and Japan, where        
   automotive parts and accessories, both original equipment and           
   aftermarket, are purchased for use in the manufacture or repair of      
   Japanese automobiles.                                                   
       (2) Japanese and other asian markets.--The term ``Japanese and other
   Asian markets'' refers to markets, including markets in the United      
   States, Japan, and other Asian countries, where automotive parts and    
   accessories, both original equipment and aftermarket, are purchased for 
   use in the manufacture or repair of Japanese, United States, or other   
   Asian automobiles.                                                      
                    SEC. 3803. RE-ESTABLISHMENT OF INITIATIVE ON AUTOMOTIVE PARTS 
          SALES TO JAPAN.                                                         
     (a) In General.--The Secretary of Commerce shall re-establish the    
  initiative to increase the sale of United States-made automotive parts  
  and accessories to Japanese markets.                                    
    (b)  Functions.--In carrying out this section, the Secretary shall--  

       (1) foster increased access for United States-made automotive parts 
   and accessories to Japanese companies, including specific consultations 
   on access to Japanese markets;                                          

       (2) facilitate the exchange of information between United States    
   automotive parts manufacturers and the Japanese automobile industry;    
       (3) collect data and market information on the Japanese automotive  
   industry regarding needs, trends, and procurement practices, including  
   the types, volume, and frequency of parts sales to Japanese automobile  
   manufacturers;                                                          
       (4) establish contacts with Japanese automobile manufacturers in    
   order to facilitate contact between United States automotive parts      
   manufacturers and Japanese automobile manufacturers;                    
       (5) report on and attempt to resolve disputes, policies, or         
   practices, whether public or private, that result in barriers to        
   increased commerce between United States automotive parts manufacturers 
   and Japanese automobile manufacturers;                                  
       (6) take actions to initiate periodic consultations with officials  
   of the Government of Japan regarding sales of United States-made        
   automotive parts in Japanese markets; and                               
       (7) transmit to Congress the annual report prepared by the Special  
   Advisory Committee under section 3804(c)(5).                            
                    SEC. 3804. ESTABLISHMENT OF SPECIAL ADVISORY COMMITTEE ON     
          AUTOMOTIVE PARTS SALES IN JAPANESE AND OTHER ASIAN MARKETS.             
     (a) In General.--The Secretary of Commerce shall seek the advice of  
  the United States automotive parts industry in carrying out this title. 
     (b) Establishment of Committee.--The Secretary of Commerce shall     
  establish a Special Advisory Committee for purposes of carrying out this
  title.                                                                  
     (c) Functions.--The Special Advisory Committee established under     
  subsection (b) shall--                                                  
       (1) report to the Secretary of Commerce on barriers to sales of     
   United States-made automotive parts and accessories in Japanese and     
   other Asian markets;                                                    
       (2) review and consider data collected on sales of United           
   States-made automotive parts and accessories in Japanese and other Asian
   markets;                                                                
       (3) advise the Secretary of Commerce during consultations with other
   governments on issues concerning sales of United States-made automotive 
   parts in Japanese and other Asian markets;                              
       (4) assist in establishing priorities for the initiative established
   under section 3803, and otherwise provide assistance and direction to   
   the Secretary of Commerce in carrying out the intent of that section;   
   and                                                                     
       (5) assist the Secretary in reporting to Congress by submitting an  
   annual written report to the Secretary on the sale of United States-made
   automotive parts in Japanese and other Asian markets, as well as any    
   other issues with respect to which the Committee provides advice        
   pursuant to this title.                                                 
     (d) Authority.--The Secretary of Commerce shall draw on existing     
  budget authority in carrying out this title.                            
          SEC. 3805. EXPIRATION DATE.                                             

    The authority under this title shall expire on December 31, 2003.     


                                TITLE XXXIX--RADIO FREE ASIA                      


      Sec. 3901. Short title.                                                 

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


          SEC. 3901. SHORT TITLE.                                                 

    This title may be cited as the ``Radio Free Asia Act of 1998''.       

                    SEC. 3902. AUTHORIZATION OF APPROPRIATIONS FOR INCREASED      
          FUNDING FOR RADIO FREE ASIA AND VOICE OF AMERICA BROADCASTING TO CHINA. 
    (a)  Authorization of Appropriations for Radio Free Asia.--           

       (1) Authorization of appropriations.--There are authorized to be    
   appropriated for ``Radio Free Asia'' $22,000,000 for fiscal year 1999.  
       (2) Sense of the congress.--It is the sense of the Congress that a  
   significant amount of the funds under paragraph (1) should be directed  
   toward broadcasting to China and Tibet in the appropriate languages and 
   dialects.                                                               
     (b) Authorization of Appropriations for International Broadcasting to
  China.--In addition to such sums as are otherwise authorized to be      
  appropriated to the United States Information Agency for ``International
  Broadcasting Activities'' for fiscal year 1999, there are authorized to 
  be appropriated for ``International Broadcasting Activities'' $3,000,000
  for fiscal year 1999, which shall be available only for enhanced Voice  
  of America broadcasting to China.                                       
     (c) Authorization of Appropriations for Radio Construction.--In      
  addition to such sums as are otherwise authorized to be appropriated for
  ``Radio Construction'' for fiscal year 1999, there are authorized to be 
  appropriated for ``Radio Construction'' $2,000,000 for fiscal year 1999,
  which shall be available only for construction in support of enhanced   
  broadcasting to China, including the timely augmentation of transmitters
  at Tinian, the Commonwealth of the Northern Mariana Islands.            
          SEC. 3903. REPORTING REQUIREMENT.                                       

     (a) Report.--Not later than 90 days after the date of the enactment  
  of this Act, the Broadcasting Board of Governors shall prepare and      
  submit to the appropriate congressional committees an assessment of the 
  board's efforts to increase broadcasting by Radio Free Asia and Voice of
  America to China and Tibet. This report shall include an analysis of    
  Chinese government control of the media, the ability of independent     
  journalists and news organizations to operate in China, and the results 
  of any research conducted to quantify listenership.                     
     (b) Definition.--As used in this section, the term ``appropriate     
  congressional committees'' means--                                      
       (1) the Committee on Foreign Relations and the Committee on         
   Appropriations of the Senate; and                                       
       (2) the Committee on International Relations and the Committee on   
   Appropriations of the House of Representatives.                         

    And the Senate agree to the same.                                     



      From the Committee on National Security, for consideration of the    
   House bill and the Senate amendment, and modifications committed to     
   conference:                                                             
    Floyd Spence,                                                           

    Bob Stump,                                                              

    Duncan Hunter,                                                          

    John R. Kasich,                                                         

    Herbert H. Bateman,                                                     

    James V. Hansen,                                                        

    Curt Weldon,                                                            

    Joel Hefley,                                                            

    Jim Saxton,                                                             

    Steve Buyer,                                                            

    Tillie K. Fowler,                                                       

    John M. McHugh,                                                         

    J.C. Watts,  Jr.,                                                       

    William M. Thornberry,                                                  

    Saxby Chambliss,                                                        

    Walter B. Jones,                                                        

    Michael Pappas,                                                         

    Bob Riley,                                                              

    Ike Skelton,                                                            

    Norman Sisisky,                                                         

    John M. Spratt,  Jr.,                                                   

    Solomon P. Ortiz,                                                       

    Owen Pickett,                                                           

    Lane Evans,                                                             

    Gene Taylor,                                                            

    Neil Abercrombie,                                                       

    Martin T. Meehan,                                                       

    Jane Harman,                                                            

    Paul McHale,                                                            

    Patrick J. Kennedy,                                                     

    Thomas H. Allen,                                                        

    Vic Snyder,                                                             

    James H. Maloney,                                                       

      As additional conferees from the Permanent Select Committee on       
   Intelligence, for consideration of matters within the jurisdiction of   
   that committee under clause 2 of rule XLVIII:                           
    Porter J. Goss,                                                         

    Jerry Lewis,                                                            

    Norm Dicks,                                                             

      As additional conferees from the Committee on Banking and Financial  
   Services, for consideration of section 1064 of the Senate amendment:    
    Jim Leach,                                                              

    Michael N. Castle,                                                      

    John J. LaFalce,                                                        

      As additional conferees from the Committee on Commerce for           
   consideration of sections 601, 3136, 3151, 3154, 3201, 3401, 3403, 3404,
   3405, 3406, and 3407 of the House bill, and sections 321, 601, 1062,    
   3133, 3140, 3142, 3144, 3201, and title XXXVIII of the Senate amendment,
   and modifications committed to conference:                              
    Thomas J. Bliley,  Jr.,                                                 

    Dan Schaefer,                                                           

    John D. Dingell,                                                        

      Provided that Mr. Oxley is appointed in lieu of Mr. Dan Schaefer for 
   consideration of section 321 of the Senate amendment.                   
    Michael G. Oxley,                                                       


      Provided that Mr. Bilirakis is appointed in lieu of Mr. Dan Schaefer 
   for consideration of section 601 of the House bill, and section 601 of  
   the Senate amendment.                                                   
    Mike Bilirakis,                                                         

      Provided that Mr. Tauzin is appointed in lieu of Mr. Dan Schaefer for
   consideration of section 1062 and Title XXXVIII of the Senate amendment.
    Billy Tauzin,                                                           

       As additional conferees from the Committee on Education and the     
   Workforce, for consideration of sections 361, 364, 551, and 3151 of the 
   House bill, and sections 522, 643, and 1055 of the Senate amendment, and
   modifications committed to conference:                                  
    Tom Petri,                                                              

    Frank Riggs,                                                            

    Tim Roemer,                                                             

       As additional conferees from the Committee on Government Reform and 
   Oversight, for consideration of sections 368, 729, 1025, 1042, and 1101 
   1106 of the House bill, and sections 346, 623, 707, 805, 806, 813, 814, 
   815, 816, 1101 1105, 3142, 3144, 3145, 3162 3172 and 3510 of the Senate 
   amendment, and modifications committed to conference:                   
    Dan Burton,                                                             

    John L. Mica,                                                           

      Provided that Mr. Horn is appointed in lieu of Mr. Mica for          
   consideration of section 368 of the House bill and sections 346, 623,   
   707, 805, 806, 813, 814, 815, and 816 of the Senate amendment.          
    Stephen Horn,                                                           

       As additional conferees from the Committee on International         
   Relations, for consideration of sections 233, 1021, 1043, 1044, 1201,   
   1204, 1205, 1210, 1211, 1213, 1216, and Title XIII of the House bill,   
   and sections 326, 332, 1013, 1041, 1042, 1074, 1084, 3506, 3601, 3602,  
   and 3901 3904 of the Senate amendment, and modifications committed to   
   conference:                                                             
    Benjamin A. Gilman,                                                     

    Doug Bereuter,                                                          

    Lee H. Hamilton,                                                        

      As additional conferees from the Committee on International          
   Relations, for consideration of sections 1207, 1208, 1209, and 1212 of  
   the House bill, and modifications committed to conference:              
    Benjamin A. Gilman,                                                     

    Doug Bereuter,                                                          

    Christopher H. Smith,                                                   

    Dan Burton,                                                             

    Dana Rohrabacher,                                                       

    Lee H. Hamilton,                                                        

    Tom Lantos,                                                             

      As additional conferees from the Committee on the Judiciary for      
   consideration of sections 1045 and 2812 of the House bill and section   
   1077 of the Senate amendment, and modifications committed to conference:
    Henry J. Hyde,                                                          

    Ed Bryant,                                                              

      As additional conferees from the Committee on Resources, for         
   consideration of sections 601, 2812, and 3404 3407 of the House bill,   
   and section 601, 2828, and Title XXIX of the Senate amendment and       
   modifications committed to conference:                                  
    Don Young,                                                              

    Billy Tauzin,                                                           

      As additional conferees from the Committee on Science, for           
   consideration of sections 3135 and 3140 of the Senate amendment, and    
   modifications committed to conference:                                  

    F. James Sensenbrenner,  Jr.,                                           

    Ken Calvert,                                                            

    George E. Brown,  Jr.,                                                  

      As additional conferees from the Committee on Transportation and     
   Infrastructure, for consideration of sections 552, 601, 1411, and 1413  
   of the House bill, and sections 323, 601, 604, and 1080 of the Senate   
   amendment, and modifications committed to conference:                   
    Bud Shuster,                                                            

    Sherwood Boehlert,                                                      

    Bob Clement,                                                            

      As additional conferees from the Committee on Veterans' Affairs for  
   consideration of sections 556 and 1046 of the House bill, and sections  
   618, 619, 644, and 1082 of the Senate amendment, and modifications      
   committed to conference:                                                
    Christopher H. Smith,                                                   

    Mike Bilirakis,                                                         

    Ciro D. Rodriguez,                                                      

      As additional conferees from the Committee on Ways and Means, for    
   consideration of Titles XXXVII and XXXVIII of the Senate amendment, and 
   modifications committed to conference:                                  
    Philip M. Crane,                                                        

    Bill Thomas,                                                            

    Robert T. Matsui,                                                       

        Managers on the Part of the House.                                      


    Strom Thurmond,                                                         

    John Warner,                                                            

    John McCain,                                                            

    Dan Coats,                                                              

    Bob Smith,                                                              

    Dirk Kempthorne,                                                        

    Jim Inhofe,                                                             

    Rick Santorum,                                                          

    Olympia J. Snowe,                                                       

    Pat Roberts,                                                            

    Carl Levin,                                                             

    Edward M. Kennedy,                                                      

    Jeff Bingaman,                                                          

    John Glenn,                                                             

    Robert C. Byrd,                                                         

    Chuck Robb,                                                             

    Joseph I. Lieberman,                                                    

    Max Cleland,                                                            

        Managers on the Part of the Senate.                                     


                 JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE       

       The managers on the part of the House and the Senate at the         
   conference on the disagreeing votes of the two Houses on the amendment  
   of the Senate to the bill (H.R. 3616) to authorize appropriations for   
   fiscal year 1999 for military activities of the Department of Defense,  
   for military construction, and for defense programs of the Department of
   Energy, to prescribe personnel strengths for such fiscal year for the   
   Armed Forces, and for other purposes, submit the following joint        
   statement to the House and the Senate in explanation of the effect of   
   the action agreed upon by the managers and recommended in the           
   accompanying conference report:                                         
       The Senate amendment struck out all of the House bill after the     
   enacting clause and inserted a substitute text.                         
       The House recedes from its disagreement to the amendment of the     
   Senate with an amendment which is a substitute for the House bill and   
   the Senate amendment. The differences between the House bill, the Senate
   amendment, and the substitute agreed to in conference are noted below,  
   except for clerical corrections, conforming changes made necessary by   
   agreements reached by the conferees, and minor drafting and clarifying  
   changes.                                                                
                           SUMMARY STATEMENT OF CONFERENCE ACTION                 

       The conferees recommend authorizations for the Department of Defense
   for procurement, research and development, test and evaluation,         
   operation and maintenance, working capital funds, military construction 
   and family housing, weapons programs of the Department of Energy, and   
   the civil defense that have budget authority implications of $270.5     
   billion.                                                                
                              SUMMARY TABLE OF AUTHORIZATIONS                     

       The defense authorization act provides authorizations for           
   appropriations but does not generally provide budget authority. Budget  
   authority is provided in appropriations acts.                           
       In order to relate the conference recommendations to the Budget     
   Resolution, matter in addition to the dollar authorizations contained in
   this bill must be taken into account. A number of programs in the       
   defense function are authorized permanently or, in certain instances,   
   authorized in other annual legislation. In addition, this authorization 
   bill would establish personnel levels and include a number of           
   legislative provisions affecting military compensation.                 
       The following table summarizes authorizations included in the bill  
   for fiscal year 1999 and, in addition, summarizes the implications of   
   the conference action for the budget totals for national defense (budget
   function 050).                                                          

   Offset Folios 1002 to 1006 insert here                                  



                              CONGRESSIONAL DEFENSE COMMITTEES                    

       The term ``congressional defense committees'' is often used in this 
   statement of the managers. It means the Defense Authorization and       
   Appropriations Committees of the Senate and House of Representatives.   
                      DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS            

                                    TITLE I--PROCUREMENT                          

           Procurement Overview                                                    

       The budget request for fiscal year 1999 contained an authorization  
   of $49,109.6 million for Procurement in the Department of Defense. The  
   House bill would authorize $49,455.3 million. The Senate amendment would
   authorize $49,856.5 million. The conferees recommended an authorization 
   of $49,898.4 million. Unless noted explicitly in the statement of       
   managers, all changes are made without prejudice.                       

   Offset Folios 1008 to 1009 insert here                                  


           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $1,325.9 million for Aircraft Procurement, Army in the Department of 
   Defense. The House bill would authorize $1,420.8 million. The Senate    
   amendment would authorize $1,462.5 million. The conferees recommended an
   authorization of $1,396.0 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          

   Offset Folios 1011 to 1012 insert here                                  



           Airborne reconnaissance low                                             

       The budget request included $13.1 million for airborne              
   reconnaissance low (ARL).                                               
       The House bill would authorize an additional $35.0 million. Of this 
   amount, $30.0 million would be used to procure an additional aircraft,  
   and $5.0 million would be used for a moving target indicator            
   (MTI)/synthetic aperture radar (SAR) to upgrade a previously fielded    
   aircraft.                                                               
    The Senate amendment would authorize the budget request.               

    The House recedes.                                                     

           C XX (medium range) aircraft                                            

    The budget request included no funds for the UC 35 program.            

    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $15.9 million   
   for three additional aircraft.                                          
    The House recedes.                                                     

           UH 60 Blackhawk                                                         

    The budget request included $243.8 million for 22 UH 60s.              

       The House bill would authorize an increase of $66.4 million for     
   eight additional UH 60s.                                                
       The Senate amendment would authorize an increase of $78.5 million   
   for eight additional UH 60s.                                            
       The conferees agree to authorize an increase of $66.4 million for   
   eight additional UH 60 aircraft. The conferees understand that this     
   amount is sufficient to procure these additional aircraft and expect the
   Army to request funding in future budget submissions for advanced       
   procurement requirements associated with future year procurements.      
           AH 64 modifications                                                     

       The budget request included $52.9 million for Apache helicopter     
   modifications.                                                          
    The House bill and Senate amendment would authorize the budget request.

       The conferees agree to authorize an increase of $4.5 million, as    
   follows:                                                                
     (1) $3.0 million for the vibration management enhancement program; and

       (2) $1.5 million for two engine upgrade kits and qualification of   
   those kits.                                                             
           CH 47 cargo helicopter modifications                                    

       The budget request included $101.2 million for CH 47 Chinook        
   helicopter modifications.                                               
       The House bill would authorize a decrease of $12.7 million, as      
   follows:                                                                
     (1) $8.2 million for T55 engine conversion kits; and                  

       (2) $4.5 million for engine conversions to make them consistent with
   the number of engine fielding kits being procured.                      
     The Senate amendment would authorize the budget request.              

       The conferees agree to a $12.7 million decrease for CH 47           
   modifications.                                                          
           C 12 modifications                                                      

    The budget request included $2.7 million for C 12 modifications.       

       The House bill would authorize an increase of $7.0 million for      
   avionics upgrades.                                                      
       The Senate amendment would authorize an increase of $6.0 million for
   avionics upgrades.                                                      
       The conferees agree to an increase of $6.5 million for avionics     
   upgrades.                                                               
           OH 58D Kiowa Warrior                                                    

       The budget request included $40.4 million for OH 58D Kiowa Warrior  
   safety upgrades.                                                        
       The House bill would authorize an increase of $16.0 million to      
   accelerate the aircraft safety upgrade program.                         
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $13.0 million to    
   support acceleration of the safety upgrade program.                     
           Aircraft Survivability Equipment                                        

       The budget request included $5.1 million for aircraft survivability 
   equipment.                                                              
       The House bill would authorize an increase of $7.4 million to       
   upgrade aircraft survivability equipment trainer IV (ASET IV) training  
   systems with infrared surface-to-air missile simulators and night vision
   cameras.                                                                
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $6.4 million to     
   upgrade existing ASET IV equipment and provide for an improved night    
   time training capability.                                               
           Army airborne command and control system                                

       The budget request included $24.4 million for Army airborne command 
   and control system procurement.                                         
    The House bill would authorize a decrease of $11.0 million.            

    The Senate amendment would authorize the budget request.               

    The conferees authorize a decrease of $24.4 million for this program.  

           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $1,205.8 million for Missile Procurement, Army in the Department of  
   Defense. The House bill would authorize $1,232.3 million. The Senate    
   amendment would authorize $1,171.5 million. The conferees recommended an
   authorization of $1,228.2 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          

   Offset Folios 1016 to 1017 insert here                                  



           Enhanced fiber optic guided missile                                     

       The budget request included $13.7 million for enhanced fiber optic  
   guided missile (E FOGM) procurement.                                    
       The House bill would authorize a decrease of $13.2 million and would
   eliminate procurement of E FOGM missiles.                               
       The Senate amendment would authorize a decrease of $13.7 million and
   would eliminate procurement of E FOGM missiles.                         
       The conferees agree to authorize a decrease of $13.7 million and    
   eliminate procurement of E FOGM missiles.                               
           Javelin system                                                          

       The budget request included $320.0 million to procure Javelin       
   anti-tank missiles.                                                     
       The House bill would authorize an increase of $20.0 million to      
   accelerate fielding.                                                    
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $16.0 million for   
   Javelin missile systems.                                                
           Multiple launch rocket system rockets                                   

       The budget request included $16.5 million for the procurement of    
   multiple launch rocket system (MLRS) rockets.                           
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize a decrease of $16.5 million,   
   which would eliminate the procurement of extended range rockets due to  
   excessively high component cost issues.                                 
       The conferees agree to authorize a decrease of $16.5 million and    
   eliminate procurement of MLRS rockets in fiscal year 1999.              
           Multiple launch rocket system launcher                                  

       The budget request included $85.4 million for multiple launch rocket
   system (MLRS) launchers.                                                
       The House bill would authorize a total increase of $40.0 million, as
   follows:                                                                
     (1) a decrease of $10.0 million for engineering    services; and      

       (2) an increase of $50.0 million to procure additional MLRS         
   launchers for Army National Guard (ARNG) units.                         
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $45.0 million to    
   continue modernization of ARNG MLRS battalions, of which $21.0 million  
   is to be used for ASIOE for two MLRS battalions and $24.0 million to    
   procure new launchers. The conferees have learned that the Army has     
   recently announced a change in MLRS force structure which will reduce   
   the size of current MLRS battalions from 27 launchers per battalion to  
   18 launchers. When fully implemented, this action will make available   
   sufficient MLRS launchers to complete the fielding of the remaining 11  
   Corps artillery battalion in the ARNG. The conferees note, however, that
   the ``cascading'' of these MLRS launchers to the ARNG will require      
   associated support items of equipment (ASIOE) for which there is no     
   funding currently available and that seven MLRS battalions of ARNG heavy
   divisions remain unfunded.                                              
           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $1,433.6 million for Weapons and Tracked Combat Vehicles Procurement,
   Army in the Department of Defense. The House bill would authorize       
   $1,507.6 million. The Senate amendment would authorize $1,439.1 million.
   The conferees recommended an authorization of $1,507.6 million. Unless  
   noted explicitly in the statement of managers, all changes are made     
   without prejudice.                                                      

   Offset Folios 1020 to 1021 insert here                                  


           Bradley base sustainment                                                

       The budget request included $285.8 million for Bradley base         
   sustainment.                                                            
       The House bill would authorize an increase of $75.0 million for     
   modification of basic Bradley vehicles to the M2A2 operation desert     
   storm configuration for the Army National Guard.                        
    The Senate amendment would support the budget request.                 

       The conferees agree to authorize an increase of $70.0 million for   
   Bradley A2 ODS modifications for the Army National Guard.               
           M240 machine gun                                                        

       The budget request included $6.5 million for the procurement of M240
   machine guns.                                                           
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $6.5 million to 
   stabilize M240 production and meet warfighting requirements.            
       The conferees agree to authorize an increase of $6.5 million for    
   M240 machine gun requirements necessary to stabilize production rates.  
           MK 19 grenade launcher                                                  

       The budget request included $12.2 million for the MK 19 automatic   
   grenade launcher.                                                       
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $3.0 million for
   launcher mounts.                                                        
       The conferees agree to authorize an increase of $3.0 million to     
   procure 800 launcher mounts for the MK 19.                              
           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $1,008.9 million for Ammunition Procurement, Army in the Department  
   of Defense. The House bill would authorize $1,053.5 million. The Senate 
   amendment would authorize $1,007.2 million. The conferees recommended an
   authorization of $1,016.3 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          

   Offset Folios 1023 to 1025 insert here                                  



           M830A1 120mm tank ammunition                                            

       The budget request included no funds for procurement of M830A1 120mm
   tank ammunition.                                                        
       The House bill would authorize an increase of $10.0 million to      
   procure M830A1 rounds.                                                  
       The Senate bill would authorize an increase of $15.0 million to     
   procure 4,500 M830A1 rounds to replace a like number of war reserve     
   M830A1's which are being converted to the XM908 obstacle demolition     
   configuration.                                                          
       The conferees agree to authorize an increase of $15.0 million to    
   procure 4,500 M830A1 rounds.                                            
       The conferees are aware that the Army has a requirement for more    
   obstacle demolition rounds. The conferees believe that the Army should  
   undertake a thorough review of its requirement for these rounds and     
   include them in its budget request for fiscal year 2000.                
           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $3,198.8 million for Other Procurement, Army in the Department of    
   Defense. The House bill would authorize $3,136.9 million. The Senate    
   amendment would authorize $3,556.9 million. The conferees recommended an
   authorization of $3,344.9 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          

   Offset Folios 1027 to 1034 insert here                                  


           High mobility multipurpose wheeled vehicles                             

       The budget request included $12.1 million for high mobility         
   multipurpose wheeled vehicles (HMMWV).                                  
       The House bill would authorize an increase of $10.0 million for     
   up-armored upgrade requirements.                                        
       The Senate amendment would authorize an increase of $65.7 million to
   maintain production of vehicles necessary to support Army and Marine    
   Corps plans to begin a fleet replacement program.                       
       The conferees agree to authorize an increase of $65.7 million for   
   new HMMWV production.                                                   
           Family of medium tactical vehicles                                      

       The budget request included $332.0 million for family of medium     
   tactical vehicle trucks.                                                
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $88.0 million to
   sustain family of medium tactical vehicles (FMTV) production.           
       The conferees agree to authorize an increase of $42.5 million to    
   support production requirements and field critically needed trucks to   
   replace an aging fleet.                                                 
           Medium truck extended service program                                   

       The budget request included $37.2 million for the medium truck      
   extend service program (ESP).                                           
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $93.9 million.  
   Of this amount, $30.0 million would be made available to meet Army      
   National Guard (ARNG) requirements.                                     
       The conferees agree to authorize an increase of $20.0 million for   
   ARNG medium truck rebuild requirements.                                 
           High mobility multipurpose wheeled vehicle extended service program     

       The budget request included $24.8 million for the high mobility     
   multipurpose wheeled vehicle (HMMWV) extended service program (ESP).    
       The House bill would authorize a decrease of $24.8 million in       
   response to Army plans to field new vehicles.                           
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize no funds for this program and      
   support the Army request for additional funding necessary for new       
   vehicle production.                                                     
           Project management support                                              

       The budget request included $2.4 million for project management     
   support.                                                                

       The House bill and the Senate amendment would authorize a decrease  
   of $1.0 million.                                                        
       The conferees agree to authorize a decrease of $1.0 million for     
   project management support.                                             
           System fielding support                                                 

    The budget request included $4.2 million for system fielding support.  

    The House bill would authorize a decrease of $1.2 million.             

    The Senate amendment would authorize a decrease of $1.0 million.       

       The conferees agree to authorize a decrease of $1.0 million for     
   system fielding support.                                                
           Army data distribution system                                           

       The budget request included $24.0 million for the Army data         
   distribution system.                                                    
    The House bill would authorize an increase of $5.0 million.            

       The Senate amendment would authorize an increase of $28.0 million   
   for both active and reserve component requirements for enhanced position
   location reporting systems (EPLRS) necessary to meet Army digitization  
   requirements.                                                           
       The conferees agree to authorize an increase of $28.0 million for   
   EPLRS requirements.                                                     
           Single channel ground and airborne radio system                         

       The budget request included $13.2 million for the single channel    
   ground and airborne radio system (SINCGARS).                            
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase $61.9 million for  
   Army National Guard (ARNG) enhanced brigade requirements.               
       The conferees agree to authorize an increase of $50.0 million for   
   SINCGARS requirements for the ARNG enhanced brigades.                   
           Area common user system modernization program                           

       The budget request included $97.1 million for area common user      
   system (ACUS) modifications.                                            
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $47.8 million to
   support Army requirements to downsize system shelters.                  
       The conferees agree to authorize an increase of $35.0 million for   
   system downsizing requirements.                                         
           Ground based common sensor                                              

       The budget request included $25.4 million for the ground based      
   common sensor (GBCS).                                                   
    The House bill would authorize a decrease of $11.2 million, as follows:

     (1) A $9.7 million decrease for GBCS-light; and                       

       (2) A $1.5 million decrease because of duplicate entries for the    
   common modules electronic intelligence system in the budget request.    
    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize a decrease of $11.2 million for GBCS. 

           Joint surveillance and target attack radar system common ground system  

       The budget request included $87.2 million for Army joint            
   surveillance and target attack radar system (JSTARS) common ground      
   equipment.                                                              
       The House bill would authorize an increase of $10.0 million for 24  
   JSTARS workstations.                                                    
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $3.0 million for    
   seven additional JSTARS workstations.                                   
           Joint tactical terminal                                                 

       The budget request included $6.5 million in Other Procurement, Army 
   for integrated broadcast terminal modifications, and $5.7 million in    
   Other Procurement, Air Force for intelligence communications equipment. 
       The House bill would authorize an increase of $5.0 million for the  
   Army, and $3.0 million for the Air Force, to reduce delivery delays for 
   intelligence broadcast transceivers caused by contract protests that    
   have since been resolved.                                               
    The Senate amendment would authorize the budget request.               

    The Senate recedes.                                                    

           Shortstop electronic protection system                                  

    The budget request included no funds for the Shortstop system.         

       The House bill would authorize an increase of $15.0 million for     
   Shortstop electronic protection systems.                                
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $13.0 million to    
   procure additional Shortstop electronic protection systems.             
           Night vision                                                            

    The budget request included $29.6 million for night vision equipment.  

       The House bill would authorize an increase of $9.0 million for      
   AN/PEQ 2A infrared target pointers.                                     

       The Senate amendment would authorize an increase of $13.5 million,  
   as follows:                                                             
     (1) $9.0 million for AN/PEQ 2A infrared target     pointers; and      

     (2) $4.5 million for AN/PEQ 4C infrared aiming lights.                

       The conferees agree to authorize an increase of $43.1 million, an   
   increase of $13.5 million, for night vision equipment. Of this amount,  
   $9.0 million is for AN/PEQ 2A infrared target pointers and $4.5 million 
   is for AN/PEQ 4C infrared aiming lights.                                
           Automated data processing equipment                                     

       The budget request included $130.7 million for automated data       
   processing equipment.                                                   
    The House bill would authorize a reduction of $19.1 million.           

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a total decrease of $19.1 million  
   for the joint computer aided logistics system.                          
           Land warrior                                                            

       The budget request included $51.4 million for land warrior equipment
   procurement.                                                            
       The House bill would authorize an increase of $5.0 million for      
   all-torso body armor.                                                   
    The Senate amendment would authorize the budget request.               

       The conferees are aware of a significant number of cost and         
   technical problems associated with this program. The conferees,         
   therefore, agree to authorize no funds for this program for fiscal year 
   1999 and further direct the Secretary of the Army to review program cost
   and technical issues. The conferees further direct the Secretary of the 
   Army provide a report on future requirements and resolution of          
   outstanding technical issues to the congressional defense committees, no
   later than January 31, 1999.                                            
           Small pusher tug                                                        

    The budget request included $4.3 million for one small pusher tug.     

       The House bill would authorize an increase of $4.3 million for two  
   additional small pusher tugs.                                           
    The Senate amendment authorized the budget request.                    

       The conferees agree to authorize an increase of $4.3 million for two
   additional small pusher tugs.                                           
           Training devices, nonsystem                                             

       The budget request included $56.8 million for nonsystem training    
   devices.                                                                
       The House bill would authorize an increase of $4.0 million for four 
   fire fighter trainers.                                                  
       The Senate amendment would authorize a decrease of $16.1 million for
   the MILES 2000 program.                                                 
       The conferees agree to authorize an increase of $4.0 million for    
   fire fighter training devices and an increase of $5.0 million for       
   engagement skills trainers.                                             
           Simulation network/close combat tactical trainer                        

       The budget request included $113.9 million for simulation network   
   (SIMNET) close combat tactical trainer (CCTT).                          
    The House bill would authorize a decrease of $29.4 million, as follows:

     (1) $17.0 million for modules and sight equipment;                    

     (2) $2.4 million for commercial trainers; and                         

     (3) $10.0 million for commercial image generators.                    

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize a decrease of $29.4 million.          

           R2000 engine flush system                                               

    The budget request included no funds for the R2000 engine flush system.

       The House bill would authorize an increase of $5.0 million for this 
   equipment.                                                              
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $5.0 million for the
   R2000 engine flush system.                                              
           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $7,466.7 million for Aircraft Procurement, Navy in the Department of 
   Defense. The House bill would authorize $7,420.8 million. The Senate    
   amendment would authorize $7,477.9 million. The conferees recommended an
   authorization of $7,642.2 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          

   Offset Folios 1040 to 1042 insert here                                  



           AV 8B                                                                   

       The budget request included $300.2 million for the AV 8B            
   remanufacturing program.                                                
    The House bill would authorize a decrease of $3.2 million.             

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize a decrease of $3.2 million.           

           F/A 18E/F                                                               

    The budget request included $2,876.1 million for the F/A 18E/F.        

       The House bill would authorize a decrease of $204.7 million and     
   would reduce the fiscal year 1999 production from 30 aircraft to 27     
   aircraft.                                                               
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize production of 30 aircraft and to a 
   decrease of $14.0 million from the budget request.                      
           V 22                                                                    

       The budget request included $610.8 million to procure seven V 22    
   tilt-rotor aircraft and $54.0 million for advance procurement of 10     
   aircraft in fiscal year 2000.                                           
       The House bill would authorize a net increase of $64.0 million,     
   including an increase of $78.0 million for the procurement of one       
   additional aircraft and a decrease of $14.0 million for particular      
   ground support equipment.                                               
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $78.0 million for   
   the procurement of one additional aircraft.                             
           JPATS                                                                   

    The budget request included no funds for the naval version of the T 6A.

       The House bill would authorize an increase of $12.2 million for four
   aircraft for the Navy.                                                  
    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   

           EA 6 Series modifications                                               

       The budget request included $75.7 million for various EA 6 series   
   modifications.                                                          
       The House bill would authorize an increase of $39.0 million for the 
   band 9/10 transmitter/receiver upgrade.                                 
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $25.0 million for   
   band 9/10 transmitter/receivers and note that the timely authorization  
   for additional band 9/10 transmitters would allow the contractor to     
   modify those transmitters to permit the transmitters to jam in the      
   adjoining frequency range, band 7/8 (called ``modified band 9/10        
   transmitters'').                                                        
            14 Series                                                              

       The budget request included $223.7 million for the F 14 Series      
   aircraft.                                                               
       The House bill would authorize a decrease of $7.3 million due to    
   excessive cost growth related to structural improvements.               
       The Senate amendment would authorize an increase of $8.0 million for
   acceleration of the precision strike upgrade.                           
       The conferees agree to authorize an increase of $0.7 million to     
   accelerate the precision strike upgrade, and believe that the Department
   of Defense can meet requirements for structural improvements within the 
   provided amount.                                                        
           ES 3 Series Modifications                                               

    The budget request included $5.2 million for ES 3 modifications.       

       The House bill would authorize a decrease of $5.2 million for this  
   program based on a Navy decision to retire the ES 3 aircraft.           
    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize a decrease of $5.2 million.           

            18 series modifications                                                

       The budget request included $198.0 million for the F 18 series      
   aircraft.                                                               
    The House bill would authorize a decrease of $3.9 million.             

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize a decrease of $3.9 million.           

           P 3C antisurface warfare improvement program                            

       The budget request included $120.7 million for the procurement of P 
   3C antisurface warfare improvement program (AIP) kits and for associated
   installation, logistics support, engineering change proposals and       
   training.                                                               
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $12.2 million   
   for procurement of P 3C AIP kits.                                       
    The conferees agree to authorize an increase of $12.2 million.         

           Lightweight environmentally sealed parachute assembly                   

       The budget request included no funds for the lightweight            
   environmentally sealed parachute assembly (LESPA).                      
       The House bill would authorize an increase of $22.0 million to      
   procure LESPA, including $15.0 million for the P 3 and $7.0 million for 
   the E 2C.                                                               
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $14.0 million to    
   procure LESPA, including $10.0 million for the P 3 and $4.0 million for 
   the E 2C.                                                               
            6 modifications                                                        

    The budget request included $64.6 million for E 6 modifications.       

       The House bill would authorize a decrease of the budget request by  
   $4.6 million.                                                           
    The Senate amendment would authorize the budget request.               

    The conferees would authorize the budget request.                      

           Common ground equipment                                                 

    The budget request included $330.9 million for common ground equipment.

    The House bill would authorize a decrease of $15.4 million.            

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $11.9 million due to 
   unjustified predicted price increases for consolidated automated support
   systems.                                                                
           Aircraft industrial facilities                                          

       The budget request included $13.7 million for aircraft industrial   
   facilities.                                                             
    The House bill would authorize a decrease of $1.8 million.             

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $1.8 million for     
   aircraft industrial facilities based on an unjustified increase for     
   caretaker maintenance.                                                  
           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $1,327.5 million for Weapons Procurement, Navy in the Department of  
   Defense. The House bill would authorize $1,192.2 million. The Senate    
   amendment would authorize $1,366.0 million. The conferees recommended an
   authorization of $1,223.9 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          

   Offset Folios 1046 to 1048 insert here                                  



           Tactical Tomahawk                                                       

       The budget request included $66.7 million in PE 24229N for Tomahawk 
   operational system development, $129.8 million in Weapons Procurement,  
   Navy (WPN) for the Tomahawk missile remanufacture program, $90.2 million
   in Other Procurement, Navy (OPN) for surface Tomahawk support equipment,
   and $117.1 million in Operation and Maintenance, Navy (O&M, N) for the  
   Tomahawk baseline improvement program (TBIP).                           
       The House bill would authorize an increase of $98.6 million in PE   
   24229N for tactical Tomahawk, an increase of $2.8 million in OPN for    
   TBIP, a decrease of $96.5 million in WPN, and a decrease of $4.9 million
   in O&M,N for TBIP.                                                      
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a $96.5 million decrease for       
   Tomahawk missile WPN, a $98.6 million increase in PE 24229N for tactical
   Tomahawk, and a $4.9 million decrease in O&M, N for TBIP.               
           Advanced medium range air-to-air missile                                

       The budget request included $62.6 million for 115 advanced medium   
   range air-to-air missiles (AMRAAM).                                     
       The House bill and the Senate amendment would authorize the budget  
   in Navy AMRAAM procurement request.                                     
       The conferees understand that the recent merger of the two competing
   prime contractors produced savings of $7.0 million in the production of 
   the AMRAAM for the Navy. The conferees agree to authorize a decrease of 
   $7.0 million.                                                           
           Standard missile                                                        

       The budget request included $225.7 million for 70 Block III and 45  
   Block IV Standard missiles.                                             
       The House bill would authorize a $20.0 million decrease based on a  
   41 percent increase in support costs, despite the fact that the total   
   number of missiles would only increase by 15 percent from the fiscal    
   year 1998 level.                                                        
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $15.0 million for    
   Standard missile support.                                               
           Penguin missile program                                                 

       The budget request included no funds for procurement of Penguin     
   missiles.                                                               
       The Senate amendment would authorize an increase of $7.5 million for
   procurement of Penguin missiles to satisfy outstanding inventory        
   objectives for both the tactical and telemetry variants of the missile. 
    The House bill would authorize the budget request.                     

    The conferees agree to authorize the budget request.                   

           Aerial targets                                                          

    The budget request included $75.5 million for aerial targets.          

    The House bill would authorize a decrease of $2.7 million.             

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize a decrease of $2.7 million.           

           Improved tactical air launched decoy                                    

    The budget request included $300,000 for drones and decoys.            

    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $10.0 million   
   for 70 improved tactical air launched decoys (ITALD).                   
    The conferees agree to authorize an increase of $10.0 million.         

           Weapons industrial facilities                                           

       The budget request included $27.3 million for capital type          
   rehabilitation projects at government-owned contractor operated weapons 
   industrial facilities.                                                  
    The House bill would authorize a decrease of $2.8 million.             

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $2.8 million based on
   unjustified environmental cost increases.                               
           Mk 48 torpedo advanced capability torpedo modifications                 

       The budget request included $52.8 million for procurement and       
   installation of modifications for the Mk 48 advanced capability torpedo.
    The House bill would authorize a decrease of $2.2 million.             

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $2.2 million due to  
   the projected excessive unit cost growth of installation kits.          
           Close-in weapon system surface mode upgrade                             

       The budget request included no funds for procurement of Phalanx     
   surface mode (PSUM) upgrade kits for the close-in weapon system (CIWS). 
       The House bill would authorize an increase of $4.0 million for      
   procurement and installation of the surface mode upgrade kits for       
   amphibious ships.                                                       
       The Senate amendment would authorize an increase of $10.0 million   
   for procurement and installation of the surface mode upgrade.           
       The conferees agree to authorize an increase of $10.0 million for   
   procurement and installation of the surface mode upgrade.               
           Surface ship gun mount rotatable pool                                   

       The budget request included $900,000 for procurement and            
   installation of safety shock ordnance alterations to the 5-inch 54 gun  
   installed on surface combatants.                                        
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $15.0 million   
   for test facility preparation, procurement of long lead materials and   
   establishment of a 5-inch 54 Mod 4 rotatable gun pool as part of the    
   cruiser conversion program which begins in fiscal year 2001.            
       The conferees agree to authorize an increase of $8.0 million for the
   establishment of a 5-inch 54 Mod 4 rotatable gun pool.                  
           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $429.5 million for Ammunition Procurement, Navy and Marine Corps in  
   the Department of Defense. The House bill would authorize $452.0        
   million. The Senate amendment would authorize $475.5 million. The       
   conferees recommended an authorization of $463.3 million. Unless noted  
   explicitly in the statement of managers, all changes are made without   
   prejudice.                                                              

   Offset Folios 1052 to 1053 insert here                                  



           Shoulder launched multi-purpose assault weapon                          

    The budget request included $21.3 million for rockets, all type.       

       The House bill would authorize an increase of $17.0 million, in this
   account, for the shoulder launched multi-purpose assault weapon (SMAW). 
       The Senate amendment would authorize an increase of $18.0 million,  
   in this account, for the SMAW.                                          
       The conferees agree to authorize an increase of $17.0 million for   
   maintaining the program initiated last year to repair SMAW High         
   Explosive Dual Purpose rounds currently restricted from use.            
           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $6,252.7 million for Shipbuilding and Conversion, Navy in the        
   Department of Defense. The House bill would authorize $5,992.4 million. 
   The Senate amendment would authorize $6,049.3 million. The conferees    
   recommended an authorization of $6,033.5 million. Unless noted          
   explicitly in the statement of managers, all changes are made without   
   prejudice.                                                              

   Offset Folios 1055 to 1056 insert here                                  


           LHD 8 advance procurement                                               

    The budget request included no funds for LHD 8 advance procurement.    

       The House bill would authorize an increase of $10.0 million for     
   advance procurement of LHD 8.                                           
       The Senate amendment would authorize an increase of $50.0 million   
   for advance procurement of long lead materials for the construction of  
   LHD 8 in lieu of a future service life extension program for LHA 1.     
       The conferees agreed to authorize an increase of $50.0 million for  
   advanced procurement of long lead materials for the construction of LHD 
   8 in lieu of a future service life extension program for LHA 1.         
           Strategic sealift                                                       

       The budget request included $251.4 million in the Shipbuilding and  
   Conversion, Navy (SCN) account for one large medium-speed               
   roll-on/roll-off (LMSR) strategic sealift ship. Section 2218 of title   
   10, United States Code, establishes the National Defense Sealift Fund   
   (NDSF) to fund construction of sealift vessels.                         
       The House bill and the Senate amendment would authorize the         
   procurement of one LMSR and the $251.4 million requested for that       
   purpose, but would provide that authorization for the NDSF account.     
       The conferees agree to authorize $251.4 million for the NDSF for    
   construction of one LMSR.                                               
           Landing craft air cushion service life extension program                

       The budget request included no funds for landing craft air cushion  
   (LCAC) service life extension program (SLEP).                           
       The House bill and the Senate amendment would authorize an increase 
   of $16.0 million for the service life extension of two LCAC's.          
       The conferees agree to authorize an increase of $16.0 million for   
   LCAC SLEP.                                                              
           Navy shipbuilding outfitting                                            

       The budget request included $95.7 million for outfitting new        
   construction Navy ships with the initial equipment and spare parts      
   required to operate.                                                    
    The House bill would authorize a decrease of $7.7 million.             

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $3.0 million due to  
   ship delivery schedule slippages and the concomitant reduced            
   requirements.                                                           
           Navy shipbuilding post delivery                                         

       The budget request included $123.3 million for new construction     
   ships' post delivery correction of deficiencies.                        
    The House bill would authorize a decrease of $8.3 million.             

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize a decrease of $6.0 million.           

           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $3,937.7 million for Other Procurement, Navy in the Department of    
   Defense. The House bill would authorize $3,969.5 million. The Senate    
   amendment would authorize $4,040.0 million. The conferees recommended an
   authorization of $4,043.0 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          

   Offset Foli9os 1059 to 1067 insert here                                 



           Other generators                                                        

       The budget request included $9.6 million for the procurement and    
   installation of various generators.                                     
       The House bill and the Senate amendment would authorize the budget  
   request.                                                                
       The conferees agree to authorize a decrease of $1.2 million for the 
   generator installation that was requested one fiscal year before the    
   requirement.                                                            
       The conferees note that the generator that was requested for        
   procurement and installation in fiscal year 1999 will not be received   
   for installation until fiscal year 2000.                                
           AN/WSN 7 inertial navigation system and WQN 2 doppler sonar velocity log

       The budget request included $21.8 million for procurement of AN/WSN 
   7 ring laser inertial navigation systems. The budget request included no
   funds for procurement of WQN 2 doppler sonar velocity log.              
       The House bill would authorize an increase of $12.0 million for the 
   procurement and installation of additional AN/WSN 7 navigation sets, an 
   increase of $6.0 million for procurement and installation of WQN 2, and 
   an increase of $2.5 million to test and evaluate a second version for   
   possible future production competition for WQN 2.                       
       The Senate amendment would authorize an increase of $12.0 million   
   for the procurement and installation of additional AN/WSN 7 navigation  
   sets.                                                                   
       The conferees agree to authorize an increase of $12.0 million to the
   budget request for the procurement and installation of additional AN/WSN
   7 navigation sets and an increase of $6.0 million for procurement and   
   installation of WQN 2.                                                  
           Pollution control equipment                                             

       The budget request included $28.0 million for Navy shore based      
   operations to comply with hazardous waste management and disposal       
   requirements, and $149.7 million for Navy shipboard operations to comply
   with certain oily waste and gray water discharge standards and provide  
   for the conversion of chloroflorocarbon refrigerants.                   
       The House bill would authorize a decrease of $5.5 million for shore 
   based operations and $19.4 million for shipboard operations related to  
   Navy hazardous waste compliance activities.                             
       The Senate amendment would authorize the budget request to meet Navy
   shore based and shipboard hazardous waste compliance requirements.      
       The conferees agree to authorize a decrease of $5.5 million for     
   shore based operations and $19.4 million for shipboard operations       
   related to Navy hazardous waste compliance activities. The conferees    
   direct the Navy to provide adequate support and justification for future
   funding requests related to its environmental compliance obligations.   
           Hull, mechanical, and electrical under $2.0 million                     

       The budget request included $58.1 million for procurement and       
   installation of hull, mechanical, and electrical equipment that cost    
   less than $2.0 million.                                                 
    The House bill would authorize a decrease of $3.1 million.             

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $2.1 million based on
   unjustified unit cost growth in air conditioners.                       
           AN/BPS 15H surface search radar                                         

       The budget request included no funds for the procurement of AN/BPS  
   15H submarine radar navigation sets.                                    
       The House bill and the Senate amendment would authorize an increase 
   of $9.0 million for AN/BPS 15(H) software and hardware upgrades to bring
   them into electronic chart display information systems (ECDIS N)        
   compliance.                                                             
       The conferees agree to authorize an increase of $9.0 million for    
   AN/BPS 15(H) software and hardware upgrades for ECDIS N compliance.     
           Submarine acoustic rapid commercial off-the-shelf insertion             

       The budget request included $70.0 million for submarine acoustic    
   rapid commercial off-the-shelf insertion (A RCI).                       
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $25.0 million to
   accelerate the introduction of A RCI to the operating fleet.            
       The conferees agree to authorize an increase of $15.0 million to    
   accelerate the introduction of A RCI to the operating fleet.            
           Cooperative engagement capability                                       

       The budget request included $47.3 million for procurement and       
   installation of four cooperative engagement capability (CEC) systems and
   $131.6 million in PE 63658N for CEC demonstration and validation. Within
   the amount requested in PE 63658N, $38.8 million was included for       
   identification and resolution of interoperability problems in the E 2C  
   aircraft.                                                               
       The House bill would authorize an increase of $35.0 million for     
   procurement and installation of five additional CEC systems to meet     
   training and operational requirements. The House bill would also        
   authorize an increase of $20.0 million to correct deficiencies          
   discovered during the initial operational test and evaluation of the    
   system, and support follow-on testing in                                

                    preparation for the interoperability test that would involve  
          two carrier battle groups. It would also authorize an increase of $6.0  
          million for continued development of the CEC test and evaluation system 
          and linking that system to the military test and training ranges        
          infrastructure.                                                         
    The Senate amendment would authorize the budget request.               

       During congressional review of the fiscal year 1999 budget request, 
   the Navy advised the defense authorization committees of                
   interoperability problems between the Advanced Combat Direction System  
   Block 1 (the new combat direction system for large deck ships such as   
   aircraft carriers) and the AEGIS Baseline 6 software (which includes the
   CEC). These problems occurred during operational test and evaluation of 
   the ACDS Block 1 system, and resulted in the Commander, Operational Test
   and Evaluation Force, declaring that the ACDS Block 1 system was not    
   operationally suitable or effective for deployment with the fleet and   
   that interoperability problems were exacerbated by the CEC. Fleet       
   reports have also indicated similar interoperability problems. In       
   addition, ongoing developmental testing of the AEGIS Baseline 6 Phase I 
   software during early 1998 indicated that the software was immature.    
       The conferees view these and previously identified relay aircraft   
   interoperability problems and their effect on the fleet, the CEC, ship  
   self defense, and Navy theater ballistic missile defense programs with  
   great concern. The conferees recognize that the problems may result in  
   part from efforts to accelerate the CEC program by shortcutting a       
   systematic process for software development, verification, and          
   validation. To resolve these problems, the conferees have been advised  
   that the Navy is developing a program that will focus on                
   interoperability issues to support carrier battle group deployments and 
   for the longer-term, a force level process to coordinate requirements,  
   development, investments, and installation of new system capabilities in
   the fleet. Key to the process will be: (1) development of a single      
   common combat direction system equipment and computing architecture that
   will be able to adapt to technology changes more efficiently; and (2)   
   establishment of an enhanced shore based testing capability that will   
   allow force level interoperability testing ashore, before deployment of 
   new system capabilities to the fleet.                                   
       The conferees believe that the Navy has not yet fully assessed the  
   magnitude of the CEC/combat direction system interoperability problem   
   and its effect on other development programs or on the fleet. Additional
   system development may be required as the Navy assesses and defines the 
   overall magnitude of the system interoperability and software maturity  
   problems. Clear and unambiguous system integration responsibilities and 
   accountability for management of the program to resolve the problems are
   required.                                                               
       The conferees agree to authorize an increase of $26.0 million in PE 
   63658N for research and development and an increase of $35.0 million in 
   Other Procurement, Navy for procurement of CEC systems.                 
       The conferees understand that the Navy may need to realign fiscal   
   year 1999 CEC funding to implement a program to resolve the             
   interoperability problems. Should the Navy's assessment of the program  
   requirements indicate that realignment is necessary, the conferees      
   encourage the Secretary of Defense to submit a reprogramming request    
   promptly to the congressional defense committees.                       
       Given the seriousness of the interoperability problems and the      
   potential effects on numerous other important Navy and Defense programs,
   the conferees direct the Secretary of the Navy to report to the         
   congressional defense committees at least quarterly on CEC/combat       
   direction system interoperability problems and planned solutions.       
           Integration and test facility command and control initiative            

       The budget request included no funds for upgrading capabilities at  
   the Navy's east coast in-service engineering Space Warfare System Center
   (SWSC).                                                                 
       The Senate amendment would authorize an increase of $4.0 million for
   engineering design; hardware and software procurement; and installation,
   testing, and documentation of the additional technical networking       
   infrastructure for continued development of the SWSC's Integrated       
   Products Center. Of this amount, $2.0 million would be for procurement  
   and $2.0 million would be for operation and maintenance.                
    The House bill would authorize the budget request.                     

    The House recedes.                                                     

           Ship communications items                                               

       The budget request included $24.2 million for procurement and       
   installation of ship communications equipment that has a cost less than 
   $2.0 million.                                                           
    The House bill would authorize a decrease of $1.9 million.             

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $1.9 million based on
   unjustified unit cost growth of installation kits.                      
                      AN/USC 42 mini-demand assigned multiple access ultra-high    
           frequency satellite communications terminals                            
       The budget request included $145.2 million for SATCOM ship          
   terminals, but no funds for AN/USC 42 mini-demand assigned multiple     
   access ultra-high frequency satellite communications terminals.         
       The House bill would authorize an increase of $10.0 million to      
   procure mini-DAMA UHF SATCOM terminals and associated spare parts.      
    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize an increase of $10.0                  


          million for mini-DAMA UHF SATCOM terminals and associated spare parts.  

           Joint engineering data management and information control system        

       The budget request included no funds for Joint Engineering Data     
   Management and Information Control System (JEDMICS), the designated     
   Department of Defense standard system for management, control, and      
   storage of engineering drawings.                                        
       The Senate amendment would authorize an increase of $10.0 million   
   for the continued security system procurement, integration and          
   accreditation surveys for the JEDMICS system.                           
    The House bill would authorize the budget request.                     

       The conferees agree to authorize an increase of $8.0 million for    
   JEDMICS security system procurement, integration, and accreditation     
   surveys.                                                                
           Weapons range support equipment                                         

    The budget request included $8.1 million for weapons range support.    

       The House bill would authorize an increase of $10.0 million to      
   procure two mobile remote emitter simulator (MRES) systems for the      
   Pacific Missile Range Facility and an increase of $5.0 million for a    
   deployable rangeless air combat training system (DRACTS).               
    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize an increase of $10.0 million.         

           Aircraft launch and recovery equipment                                  

       The budget request included $39.7 million for aircraft launch and   
   recovery equipment.                                                     
       The House bill and the Senate amendment would authorize the budget  
   request. The conferees note that pricing and quantity changes totaling a
   net decrease of $2.2 million were made after submission of the budget   
   request.                                                                
       The conferees agree to authorize a decrease of $2.2 million related 
   to revised pricing and reductions in quantity of aircraft launch and    
   recovery equipment.                                                     
           Engagement systems support                                              

       The budget request included $307,000 for computer programs and      
   documentation for changes to ship engagement systems not supported      
   elsewhere in the budget request.                                        
    The House bill would authorize a decrease of $307,000.                 

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $307,000 based on the
   availability of prior year funds to meet this requirement.              
           Smart ship equipment                                                    

       The budget request included $12.8 million to procure and install    
   proven smart ship technology in operational Navy ships.                 
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $12.0 million to
   procure and install smart ship equipment in Arleigh Burke class         
   destroyers.                                                             
       The conferees agree to authorize an increase of $10.0 million for   
   Arleigh Burke class destroyer smart ship equipment procurement and      
   installation.                                                           
           Strategic missile systems equipment                                     

       The budget request included $283.6 million for strategic missile    
   systems equipment.                                                      
    The House bill would authorize a decrease of $5.0 million.             

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $5.0 million due to  
   lack of justification for a budget increase.                            
           NULKA assembly qualification                                            

       The budget request included $21.5 million for procurement and       
   installation of the NULKA antiship missile decoy program.               
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $1.0 million to 
   outfit and qualify a NULKA assembly facility in the United States.      
       The conferees agree to authorize an increase of $1.0 million to     
   outfit and qualify a NULKA assembly facility in the United States.      
           Beamhit laser marksmanship training system (LMTS)                       

       The budget request included $2.2 million for training support       
   equipment, but included no funds for the beamhit LMTS.                  
       The House bill would authorize an increase of $5.0 million for the  
   beamhit LMTS and encourages the Secretary of Defense to examine its     
   utility for use throughout the Department.                              
    The Senate amendment would authorize the budget request.               

    The Senate recedes.                                                    

           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $745.9 million for Marine Corps Procurement, Navy in the Department  
   of Defense. The House bill would authorize $691.9 million. The Senate   
   amendment would authorize $908.6 million. The conferees recommended an  
   authorization of $881.9 million. Unless noted explicitly in the         
   statement of managers, all changes are made without prejudice.          

   Offset Folios 1075 to 1077 insert here                                  



           Modification kits--tracked vehicles                                     

       The budget request included $5.7 million to procure modification    
   kits for Marine Corps tracked vehicles.                                 
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $4.6 million to 
   meet Marine Corps requirements to upgrade tanks with muzzle boresight   
   devices (MBD) and nuclear, biological, and chemical (NBBC) protection   
   devices.                                                                
       The conferees agree to authorize an increase of $4.6 million to meet
   Marine Corps requirements for MBD and NBC modifications.                
           155MM lightweight towed howitzer                                        

       The budget request included $10.0 million for Marine Corps 155mm    
   lightweight towed howitzer procurement.                                 
       The House bill and the Senate amendment would authorize the budget  
   request.                                                                
       The conferees agree to authorize no funds for fiscal year 1999. The 
   conferees note recent actions taken by both the Marine Corps and the    
   prime contractor for the lightweight 155mm howitzer program to address  
   significant program deficiencies. The conferees continue to support this
   program and appreciate Marine Corps efforts to keep Congress informed on
   issues associated with the fielding of the lightweight 155mm howitzer.  
   Actions taken to date have resulted in a complete change of contractor  
   management staff and will likely result in a two-year delay for the     
   program. As a result, procurement funding requested for fiscal year 1999
   is no longer required.                                                  
           Pedestal mounted stinger                                                

       The budget request included $0.2 million to provide program support 
   for fielded Marine Corps Avenger systems.                               
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $7.6 million to 
   complete Marine Corps Avenger forward looking infrared upgrades to      
   existing sytems.                                                        
       The conferees agree to authorize an increase of $5.2 million and an 
   increase of $5.0 million, to support Avenger upgrade requirements.      
           Items less than $2.0 million (intelligence)                             

       The budget request included no funds for items less than $2.0       
   million (intelligence).                                                 
       The House bill would authorize an increase of $1.0 million for      
   purchasing and evaluating commercial imagery manipulation tools,        
   state-of-the-art display devices, and high quality large format printers
   for field use.                                                          
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $1.0 million for the
   purpose of evaluating commercial imagery manipulation tools,            
   state-of-the-art display devices, and high quality large format         
   printers.                                                               
           Night vision equipment                                                  

       The budget request included $11.6 million for Marine Corps night    
   vision equipment.                                                       
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $11.1 million   
   for night vision requirements, as follows:                              
       (1) $6.1 million for generation III tubes to retrofit existing night
   vision equipment;                                                       
     (2) $1.4 million for laser aiming modules;                            

     (3) $2.6 million for medium power laser illuminators; and             

     (4) $1.0 million for borelights.                                      


    The Senate amendment would also authorize an increase of $22.6 million
  in the Other Procurement, Navy account for OMNI IV retrofit requirements
  in AN/AVS 6 night vision goggle systems.                                
       The conferees agree to authorize an increase of $33.7 million for   
   night vision equipment, as follows:                                     
       (1) $6.1 million for generation III tubes to retrofit existing night
   vision equipment;                                                       
     (2) $1.4 million for laser aiming modules;                            

     (3) $2.6 million for medium power laser illuminators;                 

     (4) $1.0 million for borelights; and                                  

       (5) $22.6 million for OMNI IV retrofit requirements in AN/AVS 6     
   night vision goggle systems.                                            
           Communications and electronics infrastructure                           

       The budget request included $57.9 million for the procurement of    
   communications and electronics infrastructure upgrades.                 
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $79.1 million   
   for communications and electronics infrastructure requirements. Of this 
   amount, $64.1 would be for infrastructure upgrades and the remaining    
   $15.0 million would be for procurement of computer workstations         
   necessary to address the year 2000 compliance issue.                    
       The conferees agree to authorize an increase of $64.0 million for   
   the completion of Marine Corps infrastructure upgrade requirements.     
           Medium tactical vehicle replacement                                     

       The budget request included $83.7 million to procure Marine Corps   
   trucks.                                                                 
       The House bill would authorize a decrease of $9.8 million to reduce 
   the number of truck operator training devices procured                  

          prior to award of the low rate initial production contract.             

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $9.8 million for     
   truck operator training devices.                                        
           Light tactical vehicle replacement                                      

       The budget request included $39.3 million to procure Marine Corps   
   high mobility multipurpose wheeled vehicles (HMMWVs) to replace an aging
   fleet.                                                                  
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $37.0 million to
   accelerate the replacement process.                                     
       The conferees agree to authorize an increase of $33.5 million to    
   accelerate procurement of replacement HMMWVs.                           
           Power equipment assorted                                                

       The budget request included $5.1 million to procure Marine Corps    
   power generation equipment.                                             
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $9.5 million to 
   procure 1,311 generators necessary to support mobile command, control,  
   and communications power requirements.                                  
       The conferees agree to authorize an increase of $9.5 million for    
   tactically quiet generators necessary to meet Marine Corps requirements.
           Shop equipment contact maintenance                                      

       The budget request included $6.0 million to procure Marine Corps    
   shop equipment contact maintenance (SECM) requirements.                 
    The House bill would authorize a decrease of $3.0 million.             

       The Senate amendment would authorize an increase of $5.4 million to 
   support the procurement and fielding of critically needed shop equipment
   contact maintenance requirements.                                       
       The conferees agree to authorize an increase of $5.4 million for    
   SECM requirements.                                                      
           Material handling equipment                                             

       The budget request included $6.5 million to procure Marine Corps    
   material handling equipment.                                            
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $10.4 million to
   allow the Marine Corps to leverage an existing contract to begin        
   replacement of its existing fleet.                                      
       The conferees agree to authorize an increase of $1.9 million to     
   accelerate procurement of material handling equipment and support Marine
   Corps deployment activities.                                            
           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $7,756.5 million for Aircraft Procurement, Air Force in the          
   Department of Defense. The House bill would authorize $8,219.1 million. 
   The Senate amendment would authorize $8,280.8 million. The conferees    
   recommended an authorization of $8,350.6 million. Unless noted          
   explicitly in the statement of managers, all changes are made without   
   prejudice.                                                              

   Offset Folios 1082 to 1085 insert here                                  


            22 procurement                                                         

       The budget request included $595.1 million to procure the first two 
   F 22 production aircraft.                                               
       The House bill and the Senate amendment would authorize the budget  
   request.                                                                
    The conferees agree to authorize a decrease of $14.0 million.          

            16                                                                     

    The budget request included no funds for F 16 aircraft.                

       The House bill would authorize an increase of $60.0 million to buy  
   two F 16 attrition reserve aircraft.                                    
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $25.0 million for   
   one F 16 attrition reserve aircraft.                                    
           C 130J                                                                  

       The budget request included $63.8 million for the procurement of one
   C 130J aircraft.                                                        
       The House bill would authorize an increase of $461.4 million for an 
   additional seven C 130J aircraft.                                       
       The Senate amendment would authorize an increase of $381.1 million  
   for an additional four C 130J aircraft, logistics support, and a        
   simulator.                                                              
       The conferees agree to authorize a total of $482.6 million for seven
   C 130J aircraft and a simulator, as follows:                            

                                        C 130 PROGRAMS                                       
                                    [dollars in millions]                                    

         Type      Budget request             House bill               Senate bill        Conference agreement     

                  Quantity     Amount     Quantity     Amount     Quantity     Amount     Quantity    Amount  

KC 130J                 --         --            2      112.4           --         --            2     112.4  
WC 130J                 --         --            1       59.7            1       75.4            1      75.4  
EC 130J                 --         --            1       51.5            1       85.0            1      85.0  
C 130J                   1       63.8            1       63.8            1       63.8            1      63.8  
C 130J ANG              --         --            3      174.0            2      157.6            2     146.0  
               -----------  ---------  -----------  ---------  -----------  ---------  -----------  --------  
Total                    1       63.8            8      461.4            5      381.8            7     482.6  

Note.--The $30.0 million simulator is included in the C 130J ANG totals.                    


           C 130H                                                                  

    The budget request included $11.2 million for the C 130H.              

    The House bill would authorize a decrease of $11.2 million.            

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   

           Joint Primary Aircraft Training System                                  

       The budget request included $107.1 million for the Joint Primary    
   Aircraft Training System (JPATS).                                       
       The House bill would authorize a decrease of $27.1 million,         
   including a decrease of $36.2 million for the ground based training     
   system (GBTS), deferring its acquisition for one year, and an increase  
   of $9.1 million for three additional JPATS aircraft.                    
       The Senate amendment would authorize an increase of $9.1 million for
   three additional JPATS aircraft.                                        
       The conferees agree to authorize a decrease of $4.9 million in the  
   JPATS program, including of a decrease of $14.0 million for the training
   integration management system (TIMS) and an increase of $9.1 million for
   three additional JPATS aircraft.                                        
            8C Joint Surveillance and Target Attack Radar System (JSTARS)          

    The budget request included $578.2 million two JSTARS aircraft.        

    The House bill would authorize a decrease of $13.0 million.            

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   

           B 1B                                                                    

       The budget request included $91.6 million for B 1B bomber           
   modifications.                                                          
    The House bill would authorize the budget request.                     

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $9.6 million from the
   budget request for fiscal year 1999.                                    
       The conferees note that the funds authorized to be appropriated for 
   B 1B modifications in fiscal year 1998, $9.6 million has been identified
   as excess to fiscal year 1998 requirements. The conferees direct that   
   these funds be used to satisfy fiscal year 1999 requirements for B 1B   
   modifications.                                                          
           B 52                                                                    

    The budget request included $38.3 million for B 52 modifications.      

    The House bill would authorize the budget request.                     

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $2.6 million and     
   direct that prior year funds be used to fulfill fiscal year 1999        
   requirements for B 52 modifications.                                    
       The conferees note that excess prior year funds remain available for
   obligation for B 52 modifications.                                      
            15 modifications                                                       

    The budget request included $196.6 million for F 15 modifications.     

       The House bill would authorize an increase of $34.8 million, as     
   follows:                                                                
     (1) an increase of $20.0 million for engine upgrade  kits;            

     (2) an increase of $25.0 million for the ALQ 135 Band 1.5 program; and

     (3) a decrease of $10.2 million for excessive cost   growth.          

       The Senate amendment would authorize an increase of $50.0 million,  
   as follows:                                                             
     (1) an increase of $25.0 million for engine upgrade  kits; and        

     (2) an increase of $25.0 million for the ALQ 135 Band 1.5 program.    

       The conferees agree to authorize an increase of $45.0 million, as   
   follows:                                                                
     (1) an increase of $20.0 million for engine upgrade  kits; and        

     (2) an increase of $25.0 million for the ALQ 135 Band 1.5    program. 

            16 modifications                                                       

    The budget request included $229.3 million for F 16 modifications.     

    The House bill would authorize an increase of $5.1 million, as follows:

       (1) an increase of $12.0 million for the digital terrain system     
   (DTS); and                                                              
     (2) a decrease of $6.9 million for poorly justified  modifications.   

       The Senate amendment would authorize an increase of $13.3 million   
   for 15 medium altitude electro-optical sensors.                         
    The conferees agree to authorize an increase of $5.9 million for DTS.  

           C 12 modifications                                                      

    The budget request included $3.8 million for C 12 modifications.       

    The House bill would authorize a decrease of $2.3 million.             

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   

           Defense Airborne Reconnaissance Program procurement                     

       The budget request included $394.2 million for procurement          
   activities of the Defense Airborne Reconnaissance Program (DARP), as    
   shown in the following table:                                           


                                                                               

Procurement item/account    Budget request           Change from request         Conference agreement     

                                           House bill      Senate amendment             

 EP 3:                              5,437                                        8,937  
 RC 135:                          139,242                                      169,242  
 RC 135 Combat Sent:               12,656                                       16,456  
 U 2:                             152,113                                      141,813  
 CIGSS:                                    2,508                                 2,508  
 ARGSS:                             3,419  (3,419)                                      
                          ---------------  ------------  ------------------  ---------  
Total                             398,871  (3,500)                   87,000    425,871  

       Section 905 of the National Defense Authorization Act for Fiscal    
   Year 1998 transferred the program management responsibilities of the    
   Defense Airborne Reconnaissance Office (DARO) to the military services, 
   while retaining Office of the Secretary of Defense (OSD) level oversight
   responsibilities for determining airborne reconnaissance architecture   
   and systems interface requirements.                                     
       The table reflects both transfers and adjustments made by the       
   conferees.                                                              
                                   EP 3                                  

       The budget request included $5.4 million for various modifications  
   for EP 3 aircraft.                                                      
       The House bill would authorize an increase of $3.0 million to       
   replace existing displays in EP 3 aircraft with flat panel displays.    
       The Senate amendment would authorize an increase of $2.0 million for
   spares to support the operational deployment of an EP 3 aircraft to     
   evaluate the high band prototype of the joint signals intelligence      
   avionics family (JSAF).                                                 
       The conferees agree to authorize an increase of $3.5 million for the
   EP 3, $1.5 million for flat panel displays, and $2.0 million for spares 
   support.                                                                
                                  RC 135                                 

       The budget request included $139.2 million for various modifications
   for DARP aircraft in Aircraft Procurement, Air Force (APAF).            
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $68.0 million in
   the DARP, including: $56.0 million for two re-enginings, and $12.0      
   million to transfer the theater airborne warning system (TAWS)          
   medium-wave infrared (MIRA) technology from the Cobra Ball program to   
   Rivet Joint program. The Senate report (S. Rept. 105 189) would require 
   successful completion of Cobra Ball integration testing and submission  
   of a report on the test results to the congressional defense committees 
   before obligation of the additional funds.                              
       The conferees agree to authorize an increase of $30.0 million for   
   DARP, including: $28.0 million to re-engine one RC 135 aircraft, and    
   $2.0 million to complete the TAWS and to upgrade the MIRA sensors. In   
   addition, the conferees understand that $3.3 million authorized in the  
   General Defense Intelligence Program in fiscal year 1998 for the        
   development of a Cobra Ball radar ranging system remains unobligated.   
   The conferees recommend that the unobligated $3.3 million authorized for
   fiscal year 1998 also be used to complete the TAWS development and      
   upgrade the MIRA sensors on the Cobra Ball aircraft.                    
       The conferees do not agree to a transfer of this technology to the  
   Rivet Joint fleet until the Cobra Ball integration is complete and test 
   results clearly show that this transfer will provide a viable           
   augmentation to the Defense Support Program (DSP). Further, the         
   conferees endorse the requirement in the Senate report that the         
   Department submit a report on the test results to the congressional     
   defense committees before obligating the extra TAWS funding authorized  

          in this bill.                                                           

                            RC 135 Combat Sent                           

       The budget request included $12.7 million in Other Procurement, Air 
   Force for RC 135 ground support equipment.                              
       The House bill would authorize an increase of $3.8 million for the  
   RC 135 Combat Sent ground support system improvements.                  
    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize an increase of $3.8 million.          

                             U 2 Procurement                             

       The budget request included $152.1 million in DARP modifications in 
   APAF.                                                                   
       The House bill would authorize a decrease of $10.3 million for U 2  
   procurement, transferring these funds to the Advanced Synthetic Aperture
   Radar System Improvement program (AIP).                                 
       The Senate amendment would authorize an increase of $17 million for 
   U 2 procurement to continue the reliability and maintainability (R&M)   
   conversion of 11 Senior Glass systems for the U 2.                      
       The conferees agree to the AIP transfer and to authorize an increase
   of $7.5 million for R&M conversion of Senior Glass systems for the U 2  
   in the research and development program Manned Reconnaissance Systems   
   (PE 35207F).                                                            
                                  Other                                  

       The budget request included funding for the common imagery          
   ground/surface system (CIGSS) and airborne reconnaissance ground SIGINT 
   system (ARGSS) programs in DARO procurement lines. The conference agree 
   to transfer this funding to the appropriate service or defense agency   
   accounts.                                                               
            8 modifications                                                        

    The budget request included $44.2 million for E 8 modifications.       

    The House bill would authorize a decrease of $11.8 million.            

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   

           Passenger safety modifications                                          

       The budget request included $252.6 million in various Air Force     
   aircraft modification budget lines to support making communications,    
   navigation, and safety improvements to improve safety of passenger and  
   cargo carrying aircraft.                                                
       The House bill would authorize an increase of $50.0 million for     
   passenger safety modifications in specific aircraft modification budget 
   lines for enhanced ground proximity warning systems (EGPWS) and traffic 
   collision avoidance system (TCAS) requirements, as follows:             

                    Passenger Safety Modification Additions                    
                             [Dollars in millions]                             

Aircraft        EGPWS     TCAS      Total  

VC 25             5.8                 5.8  
C 21             15.7      6.5       22.2  
C 130             3.5                 3.5  
C 9                        3.4        3.4  
C 141                      4.2        4.2  
KC 10                     10.9       10.9  
             --------  -------  ---------  

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $50.0 million to    
   procure additional aircraft safety modifications.                       
           Pacer Coin                                                              

       The budget request included $2.4 million for aircraft spares and    
   repair parts for the transfer of mission equipment from retiring Pacer  
   Coin aircraft to the non-dedicated, follow-on C 130 reconnaissance      
   aircraft.                                                               
       The House bill would authorize a decrease of $2.4 million for       
   transfer of mission equipment for Pacer Coin aircraft since the program 
   is being terminated and a fiscal year 1998 Department of Defense        
   reprogramming request stated that all funds necessary for the C 130     
   follow-on program were addressed in the reprogramming request.          
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $2.4 million for     
   transfer of mission equipment for Pacer Coin aircraft.                  
           Common support equipment                                                

       The budget request included $152.1 million for common support       
   equipment.                                                              
    The House bill would authorize a decrease of $4.2 million.             

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   

           A 10 post production support                                            

       The budget request included $11.4 million for A 10 post production  
   support.                                                                
    The House bill would authorize a decrease of $1.9 million.             

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   


           B 2A                                                                    

       The budget request included $189.9 million for post production      
   support for the B 2A bomber fleet.                                      
       The House bill would authorize an increase of $86.0 million to      
   enhance the B 2's operational effectiveness.                            
    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize an increase of $86.0 million.         

       The conferees note that the increase would fund low observability   
   maintainability and situational awareness upgrades key to maximizing the
   effectiveness of the small number of B 2 bombers in the fleet. The      
   conferees also believe that the funding increase would provide the      
   opportunity to coordinate efficiently these efforts with radar cross    
   section improvements.                                                   
           Miscellaneous production charges                                        

       The budget request included $221.5 million for miscellaneous        
   production charges, including $10.1 million for High Speed Anti-        
   Radiation Missile targeting pod modifications.                          
       The House bill would authorize a decrease of $10.1 million,         
   recognizing that $6.1 million was requested for the same purpose in the 
   ``Other aircraft modifications'' account.                               
    The Senate amendment would authorize the budget request.               

       The conferees agree to a decrease of $10.9 million in miscellaneous 
   production charges.                                                     
           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $384.2 million for Ammunition Procurement, Air Force in the          
   Department of Defense. The House bill would authorize $383.6 million.   
   The Senate amendment would authorize $383.2 million. The conferees      
   recommended an authorization of $383.2 million. Unless noted explicitly 
   in the statement of managers, all changes are made without prejudice.   

   Offset Folios 1094 to 1095 insert here                                  


           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $2,359.8 million for Missile Procurement, Air Force in the Department
   of Defense. The House bill would authorize $2,234.7 million. The Senate 
   amendment would authorize $2,347.7 million. The conferees recommended an
   authorization of $2,210.6 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          

   Offset Folios 1097 to 1098 insert here                                  


           Advanced Medium Range Air-to-Air Missile                                

       The budget request included $114.6 million for the procurement of   
   180 Advanced Medium Range Air-to-Air Missiles.                          
    The House bill would authorize a decrease of $4.6 million.             

       The Senate amendment would authorize a decrease of $21.0 million    
   because of cost savings associated with the merger of the system's two  
   prime contractors.                                                      
    The conferees agree to authorize a decrease of $20.9 million.          

           Minuteman III guidance replacement program                              

       The budget request included $90.6 million for Minuteman III         
   modifications.                                                          
       The House bill would authorize an increase of $23.0 million for the 
   Minuteman III guidance replacement program (GRP).                       
       The Senate amendment would authorize an increase of $46.0 million   
   for GRP.                                                                
       The conferees agree to authorize an increase of $23.0 million above 
   the budget request for GRP. Additionally, the conferees are aware that  
   $8.8 million in funds authorized in fiscal year 1998 for GRP are excess 
   to fiscal year 1998 requirements. Therefore, the conferees direct that  
   such fiscal year 1998 funds be obligated in support of GRP during fiscal
   year 1999.                                                              
           AGM 65H Maverick                                                        

    The budget request included no funds for the AGM 65H missile.          

       The House bill would authorize an increase of $3.0 million to ensure
   that the Air Force can accomplish a smooth transition to a service life 
   extension program for these weapons.                                    
    The Senate amendment would authorize the budget request.               

    The Senate recedes.                                                    

           Defense Support Program                                                 

       The budget request included $89.9 million for procurement of Defense
   Support System (DSP) satellites.                                        
       The House bill and the Senate amendment would authorize the budget  
   request.                                                                
    The Senate amendment approved the budget request.                      

       The conferees agree to authorize a decrease of $7.0 million to the  
   budget request.                                                         
       The conferees note that excess prior year funds exist in the DSP    
   program.                                                                
           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $6,974.4 million for Other Procurement, Air Force in the Department  
   of Defense. The House bill would authorize $7,046.4 million. The Senate 
   amendment would authorize $6,774.6 million. The conferees recommended an
   authorization of $6,950.4 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          

   Offset Folios 1001 to 1105 insert here                                  



           60K Loader                                                              

    The budget request included $89.2 million for the 60K loader.          

    The House bill would authorize a decrease of $2.9 million.             

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   

           Combat training ranges                                                  

       The budget request included $13.2 million for combat training       
   ranges, but included no funds for the rangeless air combat training     
   system (RACTS). This system is also known as the Kadena Interim Training
   System (KITS) and was delivered to Kadena Air Base, Japan, in August    
   1997.                                                                   
       For future fixed and deployable training support, the Department of 
   Defense's plan is to shift to the Joint Tactical Combat Training System 
   (JTCTS), a system that will support air, surface, and subsurface        
   training requirements. However, the House report (H. Rept. 105 532)     
   noted that no funds were included in the budget to meet near-term       
   training requirements that had been identified by United States Air     
   Forces Europe (USAFE).                                                  
       The House bill would authorize an increase of $5.0 million for RACTS
   to meet these requirements.                                             
    The Senate amendment would authorize the budget request.               

    The Senate recedes.                                                    

           Automated telecommunications program                                    

       The budget request included $14.9 million for automated             
   telecommunications equipment.                                           
    The House bill would authorize a decrease of $4.0 million.             

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   

           Air Force satellite control network                                     

       The budget request included $26.0 million in Air Force other        
   procurement for the Air Force Satellite Control Network (AFSCN) program.
       The House bill and the Senate amendment would authorize the budget  
   request.                                                                
       The conferees agree to authorize a decrease of $1.4 million from the
   budget request.                                                         
       The conferees note that excess prior year funds exist in the AFSCN  
   program. The conferees direct that these funds be used to satisfy fiscal
   year 1999 AFSCN requirements.                                           
           Communication electronics modifications                                 

       The budget request included $57.7 million for communication         
   electronics modifications.                                              
    The House bill would authorize a decrease of $5.8 million.             

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   

           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $2,041.7 million for Defense-wide Procurement in the Department of   
   Defense. The House bill would authorize $1,962.9 million. The Senate    
   amendment would authorize $2,023.5 million. The conferees recommended an
   authorization of $1,954.8 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          

   Offset Folios 1108 to 1111 insert here                                  


           Automated document conversion system                                    

       The budget request included no funds for automated document         
   conversion system (ADCS).                                               
       The House bill would authorize an increase of $32.0 million for the 
   procurement of ADCS hardware and software.                              
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $25.0 million for   
   the procurement of ADCS hardware and software.                          
           SOF intelligence systems                                                

       The budget request included $19.1 million for special operations    
   forces intelligence systems.                                            
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $5.0 million for
   procurement and installation of Silent Shield real-time situational     
   awareness systems on special operations aircraft.                       
       The conferees agree to authorize an increase of $2.5 million for    
   Silent Shield system procurement.                                       
           Contamination avoidance                                                 

    The budget request included $96.2 million for contamination avoidance. 

       The House bill would authorize a decrease of $6.9 million. This     
   decrease would eliminate funding for National Guard Rapid Assessment and
   Initial Detection equipment.                                            
    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   

           Overview                                                                

       The budget request for fiscal year 1999 contained no authorization  
   for National Guard and Reserve Procurement in the Department of Defense.
   The House bill would authorize $300.0 million. The Senate amendment     
   would authorize $60.0 million. The conferees recommended an             
   authorization of $60.0 million. Unless noted explicitly in the statement
   of managers, all changes are made without prejudice.                    

   Offset Folios 1113 to 1114 insert here                                  



                            NATIONAL GUARD AND RESERVE EQUIPMENT                  

       The budget request included $1.36 billion for National Guard and    
   Reserve equipment, as follows:                                          


                                                                        

Millions                                                                



          Aircraft, Army                 $110.2



          Missiles, Army                 35.3



          Weapons and Tracked Combat Vehicles, Army                12.3



          Ammunition, Army               182.3



          Other Procurement, Army                502.9



          Aircraft, Navy                 41.8



          Ammunition, Navy/USMC                17.3



          Other Procurement, Navy                3.6



          Procurement, USMC              39.9



          Aircraft, USAF                 293.3



          Ammunition, USAF               30.4



          Other Procurement, USAF                85.0



          NG&RE, Other Procurement                9.3

                                                                            



           Department of Defense Total                1,363.6



       This request reflects a net increase of almost $400.0 million above 
   the funding requested for the reserve component modernization in the    
   fiscal year 1998 budget request. The conferees believe that the         
   increased funding requested by the services for reserve component       
   modernization reflects a recognition of the critical role that these    
   forces provide in Department of Defense operations. The conferees agree 
   that reserve component modernization, as an integral component of       
   overall DOD modernization, should rely on a collaborative budget        
   development process within the Department and not on annual             
   congressional supplemental funding, which would have to come at the     
   expense of other programs funded in the budget request. However, the    
   conferees recognize that there are still significant modernization      
   shortfalls in both the active and reserve components and remain         
   concerned about the readiness implications of declining modernization   
   funding requests.                                                       
       Accordingly, the conferees agree to authorize increases to support  
   reserve component modernization, as follows:                            


                                                                        

Millions                                                                

  UH 60 Blackhawk                                                         

 $66.4                                                                   

  Family of Medium Tactical Vehicles                                      

 42.5                                                                    

  Medium Truck Extended Service Program                                   

 20.0                                                                    

  Multiple Launch Rocket System Launchers                                 

 45.0                                                                    

  R2000 Engine Flush System                                               

 5.0                                                                     

  Bradley Upgrades                                                        

 70.0                                                                    

  SINCGARS family                                                         

 50.0                                                                    

  AH 64 Vibration Management Enhancement System                           

 3.0                                                                     

  Engagement Skills Trainers                                              

 5.0                                                                     

  MIUW van upgrades                                                       

 12.0                                                                    

  KC 135 Re-engining                                                      

 46.0                                                                    

   16 IAIS                                                                

 14.0                                                                    

  C 130 (1 WC 130J, 1 EC 130J, 2 C 130J)                                  

 276.4                                                                   

  C 130J Simulator                                                        

 30.0                                                                    

                                                                          

   Total increase                                                         

 685.3                                                                   



       Additionally, the conferees agree to authorize an increase of $60.0 
   million for National Guard and Reserve miscellaneous equipment, as      
   follows:                                                                


                                                                        

Millions                                                                

  Army Reserve                                                           

  Miscellaneous                                                           

 $10.0                                                                   

  Navy Reserve                                                           

  Miscellaneous                                                           

 10.0                                                                    

  Marine Corps Reserve                                                   

  Miscellaneous                                                           

 10.0                                                                    

  Air Force Reserve                                                      

  Miscellaneous                                                           

 10.0                                                                    

  Army National Guard                                                    

  Miscellaneous                                                           

 10.0                                                                    

  Air National Guard                                                     

  Miscellaneous                                                           

 10.0                                                                    



       The conferees direct that the miscellaneous funding be allocated    
   exclusively by the chiefs of the reserve components, in consultation    
   with service chiefs, and give priority consideration to the following   
   items: 2.5-ton and 5-ton truck extended service program; night vision   
   equipment; high mobility multipurpose wheeled vehicles; CH 47           
   crashworthy internal fuel cells; heavy expanded mobility tactical truck 
   bridge transportation kits; M915 truck extended service program upgrade 
   kits; rock crush, screen; AVLB 60 70 ton upgrades; high mobility        
   multipurpose wheeled vehicle contact maintenance trucks; 5 kilowatt     
   tactically quiet generator; M915A3 long haul tractor; F/A-18A+ ECP; CH  
   53e HNVS ``B kits''; electronic calibration facility (AN/TSM 198);      
   electronic test measurement and diagnostic equipment facility; D 7      
   bulldozer; reconfigurable mission simulator; meteorological measuring   
   sets (AN/TMQ41); PATS (F 16); F 16 ALR 56M RWR; F 16 SADL ADP/color; A  
   10 SADL group A; airborne firefighting equipment; mobile backscatter    
   truck inspection system; the advanced radar warning receiver; and the D 
   7 product improvement program.                                          
           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $855.1 million for Chemical Agent and Munitions Destruction, Army.   
   The House bill would authorize no funding for Chemical Agent and        
   Munitions Destruction, Army, but would transfer the authorization of    
   $834.0 million for Chemical Agent and Munitions Destruction, Defense.   
   The Senate amendment would authorize no funding for Chemical Agent and  
   Munitions Destruction, Army but would transfer the authorization of     
   $777.2 million for Chemical Agent and Munitions Destruction, Defense.   
   The conferees agree to authorize $803.0 million for Chemical Agent and  
   Munitions Destruction, Defense. Unless noted explicitly in the          
   conference agreement, all changes are made without prejudice.           

   Offset Folio 1118 insert here                                           



                               LEGISLATIVE PROVISIONS ADOPTED                     

                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

           Authorization of appropriations (secs. 101 109)                         

       The House bill contained provisions (secs. 101 109) that would      
   authorize the recommended fiscal year 1999 funding levels for the Army, 
   Navy and Marine Corps, Air Force, Defense-Wide Activities, Reserve      
   Components, Defense Inspector General, Chemical Demilitarization        
   Program, Defense Health Program, and the Defense Export Loan Guarantee  
   Program.                                                                
    The Senate amendment contained similar provisions.                     

    The conference agreement includes these provisions.                    

           Chemical demilitarization program (sec. 107)                            

       The budget request for the Army included $855.1 million for the     
   chemical agents and munitions destruction program.                      
       The House bill recommended no funding for Chemical Agents and       
   Munitions Destruction, Army, but contained a provision (sec. 107) that  
   would authorize $834.0 million for the Department of Defense for the    
   destruction of lethal chemical agents in accordance with Section 1412 of
   the Department of Defense Authorization Act for Fiscal Year 1986 (Public
   Law 99 145, 50 U.S.C. 1521) and for chemical warfare materiel of the    
   United States not covered by Section 1412 of such Act, a $21.1 million  
   reduction to the budget request.                                        
       The Senate amendment recommended no funding for Chemical Agents and 
   Munitions Destruction, Army, but contained a similar provision (sec.    
   107) that would authorize $780.1 million for destruction of the lethal  
   chemical agents and munitions stockpile pursuant to Section 1412 of the 
   Department of Defense Authorization Act for Fiscal Year 1986 and U.S.   
   chemical warfare materiel not covered by Section 1412 of the Act, a     
   $78.5 million reduction to the budget request. Additionally, the Senate 
   recommended that an additional $3.0 million be made available to        
   accelerate the development and fielding of the Army's mobile munitions  
   assessment system. Additionally, the Senate would recommend the transfer
   of the chemical demilitarization program to the Defense Threat Reduction
   Agency.                                                                 
       The conferees agree to a provision that would authorize $803.0      
   million for the Department of Defense chemical agents and munitions     
   destruction program, to include: $124.7 million for procurement; $172.8 
   for research and development; $508.6 million for operation and          
   maintenance; and a reduction of $3.0 million for revised economic       
   assumptions. Of the amount authorized for research and development, the 
   conferees recommend that an additional $5.0 million be made available to
   accelerate the development and fielding of the Army's mobile munitions  
   assessment system and an additional $6.0 million be made available to   
   demonstrate alternatives to the baseline incineration process for the   
   destruction of assembled chemical munitions and to proceed from a       
   demonstration to the development of a pilot-scale facility.             
       The conferees understand that additional funds above the amount     
   recommended in this Act may be necessary to demonstrate viable          
   alternative technologies, and encourage the Department of Defense to    
   review funds available in the chemical agents and munitions             
   demilitarization program from prior year authorization and              
   appropriations, as well as funds available to the Department that have  
   been identified as sources in the most recent omnibus reprogramming     
   (FY98 16PA) forwarded to the Congress for approval, as possible sources 
   for such additional funds necessary for activities related for the      
   demonstration of alternative technologies to the destruction of         
   assembled chemical munitions.                                           
       Section 1412(f) of the Department of Defense Authorization Act for  
   Fiscal Year 1986 requires that funds for the destruction of the U.S.    
   stockpile of lethal chemical agents and munitions, including funds for  
   military construction projects necessary to carry out the               
   demilitarization program, shall be set forth in the budget of the       
   Department of Defense as a separate program and shall not be included in
   the budget accounts for any military department. In the statement of    
   managers accompanying the National Defense Authorization Act for Fiscal 
   Year 1994 (H. Rept. 103 357), the conferees cited this section in       
   transferring the funds contained in the fiscal year 1994 Army budget    
   requests for the chemical demilitarization program to a separate DOD    
   account. Section 1412(e) of Public Law 99 145 further requires that the 
   management organization for the chemical munitions destruction program  
   shall be established within the Department of the Army.                 
       The conferees agree that the defense chemical demilitarization      
   program should continue to be managed as a major defense acquisition    
   program with the Office of the Secretary of Defense providing policy and
   program oversight, the Secretary of the Army as executive agent for the 
   management and execution of the program, and the project manager for the
   program for the assembled chemical weapons assessment (ACWA) of         
   alternative technologies reporting to the Under Secretary of Defense for
   Acquisition and Technology (until completion of the demonstration phase 
   of the ACWA program).                                                   
                                  SUBTITLE B--ARMY PROGRAMS                       

                      Multiyear procurement authority for Longbow Hellfire missile 
           program (sec. 111)                                                      
       The House bill contained a provision (sec. 111) that would authorize
   the Secretary of the Army to enter into a multiyear procurement contract
   for the Longbow Hellfire missile.                                       
    The Senate amendment contained a similar provision (sec. 111).         

    The Senate recedes.                                                    

       The conferees agree to authorize the Secretary of the Army to enter 
   into a multiyear contract for the Longbow Hellfire missile.             
                      Condition for award of second-source procurement contract for
           the family of medium tactical vehicles (sec. 112)                       

       The Senate amendment contained a provision (sec. 112) that would    
   require certain conditions to be met before the Secretary of the Army   
   could enter into a contract with more than one manufacturer for the     
   procurement of the family of medium tactical vehicles (FMTV). The Senate
   supports Army efforts to qualify a second source for FMTV trucks, if the
   established conditions are met, and would support acceleration of this  
   effort if the Army determines that this action could be accomplished    
   within programmed resource limitations.                                 
    The House bill contained no similar provision.                         

       The House recedes with an amendment. Based on critical shortfalls of
   modernized trucks within the Army, the conferees direct the Secretary of
   the Army to ensure that sufficient funding is programmed for any FMTV   
   prime contractor to maintain minimum economic production levels         
   necessary to sustain steady production and meet FMTV fielding           
   requirements. The conferees note existing funding levels, constrained by
   modernization budget limitations, will result in a break in production, 
   increased costs, and delays in the modernization process.               
           Armored system modernization (sec. 113)                                 

       The Senate amendment contained a provision (sec. 113) that would    
   require the Secretary of the Army to submit to the congressional defense
   committees a report on Army armored system modernization programs.      
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would authorize $14.3      
   million for the M1A1D applique integration program and $6.0 million for 
   an M1A2 risk reduction program. Of the amount authorized for the M1A1D  
   applique integration program, not more than $11.4 million may be        
   obligated before the end of the 30-day period beginning on the date on  
   which the Secretary of the Army submits the armored system modernization
   report.                                                                 
       Congress supports the development and fielding of the M1A1D and     
   authorizes $20.3 million to complete development and testing, and to    
   initiate fielding. The conferees are concerned, however, about the risk 
   inherent in the conversion of the M1A2 to the Force XXI Battle Command  
   Brigade and Below (FBCB2) software and directs that $6.0 million of the 
   $20.3 million be used to develop an M1A2 risk reduction effort. The     
   conferees recognize the Army's goal is to field only the M1A1D and      
   M1A2SEP variants, but want to ensure risk is addressed.                 
       The conferees are also concerned that armor system modernization    
   plans, including the proposal to close the tank plant in Lima, Ohio, do 
   not adequately address future operational requirements for armor        
   systems, modernization and upgrade requirements, and industrial base    
   implications associated with plans to bridge the gap between production 
   of existing armor systems and future combat platforms. The conferees    
   direct the Secretary of the Army to provide a report on armor system    
   modernization programs to the congressional defense committees no later 
   than January 31, 1999.                                                  
           Reactive armor tiles (sec. 114)                                         

       The Senate amendment contained a provision (sec. 114) that would    
   require the Secretary of Defense, with input from the Army and Marine   
   Corps, to conduct a detailed assessment of requirements for reactive    
   armor tiles and provide a cost-benefit analysis of the procurement and  
   installation of tiles on selected armor vehicles. The provision would   
   preclude any expenditure of funds for armor tiles until 30 days after   
   the date on which the Secretary of Defense submits the results of this  
   study to the Congress.                                                  
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

                      Extension of authority to carry out Armament Retooling and   
           Manufacturing Support Initiative (sec. 115)                             
       The Senate amendment contained a provision (sec. 116) that would    
   extend the Armament Retooling and Manufacturing Support Initiative      
   through fiscal year 1999.                                               
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                                  SUBTITLE C--NAVY PROGRAMS                       

           CVN 77 nuclear aircraft carrier program (sec. 121)                      

       The Senate amendment contained a provision (sec. 121) that would    
   authorize $124.5 million for the advance procurement and construction of
   components, including nuclear components, for the CVN 77 aircraft       
   carrier program.                                                        
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Increase in amount authorized to be excluded from cost       
           limitation for Seawolf submarine program (sec. 122)                     
       The Senate amendment contained a provision (sec. 122) that would    
   amend section 123(a) of the National Defense Authorization Act for      
   Fiscal Year 1998 by striking the amount of $272.4 million and replacing 
   it with the amount of $557.6 million as the amount excluded from the    
   Seawolf submarine program cost limitation.                              
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

                      Multiyear procurement authority for the Department of the    
           Navy (sec. 123)                                                         
       The House bill contained a provision (sec. 121) that would authorize
   the Secretary of the Navy to enter into multiyear contracts for the AV  
   8B, E 2C, and T 45 aircraft, and to enter into a multiyear              

                    procurement contract to procure the Marine Corps Medium       
          Tactical Vehicle Replacement.                                           
       The Senate amendment contained separate provisions (secs. 124 123)  
   that would authorize the same multiyear procurements.                   
    The Senate recedes.                                                    

           Annual General Accounting Office review of F/A 18E/F program (sec. 124) 

       The Senate amendment contained a provision (sec. 1034) that would   
   require an annual General Accounting Office review of the F/A 18E/F     
   program.                                                                
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

                               SUBTITLE D--AIR FORCE PROGRAMS                     

            22 aircraft program (sec. 131)                                         

       The Senate amendment contained a provision (sec. 133) that would    
   limit obligation of advance procurement funds for the six Lot II F 22   
   aircraft. The provision would make funds available after the completion 
   of 10 percent of the F 22 flight test program, or alternatively, 30 days
   after the Secretary of Defense submits a certification that:            
       (1) of the number of flight test hours completed, if less than 10   
   percent;                                                                
       (2) that a lesser amount of flight testing would be sufficient for  
   making a production decision, and the basis for that determination; and 
       (3) that it would be financially advantageous to proceed to Lot II  
   production rather than delay production until completion of 10 percent  
   of the flight testing.                                                  
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would remove the 30 day    
   delay period from the provision. The provision would allow the          
   Department to obligate advance procurement funds as soon as the         
   certification is submitted to the congressional defense committees.     
           C 130J aircraft program (sec. 132)                                      

       The Senate amendment contained a provision (sec. 134) that would    
   require a report from the Secretary of Defense on the C 130J aircraft   
   program.                                                                
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                                  SUBTITLE E--OTHER MATTERS                       

           Chemical stockpile emergency preparedness program (sec. 141)            

       The Senate amendment contained a provision (sec. 1080) that would   
   direct the Director of the Federal Emergency Management Agency (FEMA) to
   carry out a program with state and local governments to assist them in  
   developing capabilities to respond to public health or safety           
   emergencies that may arise from the destruction of lethal chemical      
   agents and munitions in the U.S. stockpile.                             
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the Director 
   of FEMA, in accordance with a Memorandum of Understanding (MOU) with the
   Department of the Army, to carry out an emergency preparedness program  
   with state and local governments. The provision would also direct that  
   funds, appropriated in the defense account for this portion of the      
   chemical stockpile emergency preparedness program, be made available to 
   FEMA to implement its responsibilities pursuant to the requirements of  
   this provision. Lastly, the provision would require the Secretary of    
   Defense to include, in the Department's annual report on the defense    
   chemical agents and munitions destruction program, information on       
   actions taken and grants provided to assist state and local governments 
   to develop their off-post emergency preparedness plans for responding to
   chemical accidents or incidents at the eight chemical stockpile storage 
   installations.                                                          
                      Alternative technologies for destruction of assembled        
           chemical weapons (sec. 142)                                             
       The House bill contained a provision (sec. 141) that would authorize
   $12.6 million for identification and demonstration of alternative       
   technologies to the baseline incineration process for destruction of    
   assembled chemical munitions in the U.S. stockpile, and would direct the
   transfer of management oversight responsibility for the program from the
   Under Secretary of Defense for Acquisition and Technology (USD, A&T) to 
   the Secretary of the Army.                                              
       The Senate amendment contained a provision (sec. 117) that would    
   provide authority for the program manager for the Assembled Chemical    
   Weapons Assessment (ACWA) to demonstrate alternative technologies to the
   baseline incineration process and to undertake post-demonstration       
   activities necessary to implement any such alternative technology, if it
   is proven successful, and, would authorize $18.0 million for            
   demonstration of alternative technologies and planning and preparation  
   to proceed from demonstration to pilot-scale testing. Additionally, the 
   provision would require the Under Secretary of Defense for Acquisition  
   and Technology to provide for two evaluations of the cost and schedule  
   of an alternative technology to baseline incineration to be submitted to
   the Under Secretary by September 30, 1999. Lastly, the provision would  
   maintain the current program manager for the Assembled Chemical Weapons 
   Assessment, who would continue to manage the development and testing    
   (including demonstration and pilot-scale testing) of alternative        
   technologies for the destruction of lethal assembled chemical weapons,  
   and would continue to operate independently from the program manager for
   the baseline chemical demilitarization program.                         
    The House recedes with an amendment that would require the             


                    current program manager for the Assembled Chemical Weapons    
          Assessment to continue to manage the development, testing, demonstration
          and pilot-scale testing of alternative technologies for the destruction 
          of assembled chemical munitions and to act independently of the program 
          manager for the Department of Defense baseline incineration program. In 
          addition, the ACWA program manager shall report to the Under Secretary  
          of Defense for Acquisition and Technology.                              
       The provision would also authorize the ACWA program manager to carry
   out post-demonstration activities to ensure that an alternative         
   technology can be implemented immediately following the successful      
   demonstration of an alternative technology, and the submission to       
   Congress of a report on the demonstration and a decision by the Under   
   Secretary of Defense for Acquisition and Technology to proceed with a   
   pilot-scale facility.                                                   
       In order to ensure that an alternative technology may be            
   demonstrated immediately, the conferees provide authority for the       
   program manager to take certain actions during fiscal years 1998 and    
   1999 related to the establishment, preparation, development and         
   identification of activities related to awarding a contract for a       
   potential successful alternative technology for assembled chemical      
   munitions not later than December 30, 1999.                             
       The conferees also direct the Under Secretary of Defense for        
   Acquisition and Technology to provide to Congress an independent,       
   nongovernmental evaluation of the cost and schedule for any potential   
   alternative technology resulting from the ACWA demonstration activities.
       Lastly, if the Secretary of Defense decides to proceed with a pilot 
   program, the conferees direct that a report be submitted to the         
   congressional defense committees on the Department's plan to conduct the
   pilot program, including information on the cost and the schedule for   
   the alternative technology pilot program for destruction of assembled   
   chemical munitions.                                                     
       As noted elsewhere in the statement of managers on the chemical     
   agent and munitions destruction program (sec. 107), the conferees       
   understand that additional funds may be necessary above the amounts     
   recommended in this Act, as well as for fiscal year 1998, to demonstrate
   viable alternative technologies. The conferees encourage the Department 
   of Defense to review funds available in the chemical agents and         
   munitions demilitarization program from prior year authorizations and   
   appropriations, as well as funds available to the Department which have 
   been identified as sources in the most recent omnibus reprogramming     
   (FY98 16PA) forwarded to the Congress for approval, as possible sources 
   for any additional funds necessary for activities related to the        
   demonstration of alternative technologies for the destruction of        
   assembled chemical munitions.                                           
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           M1A2 system enhancement program step one                                

       The House bill contained a provision (sec. 112) that would require  
   the Army to use the $20.3 million included in the budget request for    
   M1A1D upgrade kits to instead procure M1A2 system enhancement program   
   step one communications upgrades.                                       
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

                      Annual reporting of costs associated with travel of members  
           of the chemical demilitarization citizenship advisory commission        
       The Senate amendment contained a provision (sec. 115) that would    
   amend section 1412(g)(2) of the National Defense Authorization Act for  
   Fiscal Year 1986 (Public Law 102 484) to require that information on the
   travel costs of members of the chemical demilitarization citizenship    
   advisory commission be included in the annual report to Congress on the 
   chemical and munitions destruction program.                             
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

           Joint surveillance target attack radar system                           

       The Senate amendment contained a provision (sec. 131) that would    
   authorize $72.0 million for the joint surveillance target attack radar  
   system (JSTARS), as follows:                                            
       (1) advance procurement of long-lead items for two additional E 8C  
   JSTARS aircraft;                                                        
       (2) payment of expenses associated with termination of production of
   JSTARS aircraft; or                                                     
     (3) development of an improved radar for the JSTARS.                  

    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                      Limitation on replacement of engines on military aircraft    
           derived from Boeing 707 aircraft                                        
       The Senate amendment contained a provision (sec. 132) that would    
   prevent the Secretary of Defense from obligating or expending funds for 
   reengining Department of Defense aircraft derived from Boeing 707       
   aircraft until an overdue report was submitted. The report was due in   
   March 1998 and was not received until July 13, 1998.                    
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

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

           Research, Development, Test, and Evaluation Overview                    

       The budget request for fiscal year 1999 contained an authorization  
   of $36,078.6 million for Research and Development in the Department of  
   Defense. The House bill would authorize $36,228.0 million. The Senate   
   amendment would authorize $35,942.2 million. The conferees recommended  
   an authorization of $36,007.9 million. Unless noted explicitly in the   
   statement of managers, all changes are made without prejudice.          

   Offset Folio 1128 insert here                                           



           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $4,780.5 million for Army, Research and Development in the Department
   of Defense. The House bill would authorize $4,793.0 million. The Senate 
   amendment would authorize $4,816.1 million. The conferees recommended an
   authorization of $4,657.0 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          

   Offset Folios 1131 to 1139 insert here                                  


           Additional decreases in technology base funding                         

       The conferees agree to include a number of decreases in recognition 
   of lack of congressional support for funding. Among these are the       
   following:                                                              


                                                                        

In millions                                                             

  PE 61102A--Defense Research Sciences                                    

 -$8.0                                                                   

  PE 61104A--University and Industry Research Centers                     

 -3.3                                                                    

  PE 62308A--Modeling and Simulation Technology                           

 -4.5                                                                    

  PE 64824A--DUAP Commercial Operations and Support Savings               

 -10.0                                                                   

  PE 64805N--Commercial Operations and Support Savings                    

 -10.0                                                                   

  PE 72207N--Depot Maintenance (Non-IF)                                   

 -20.0                                                                   

  PE 64805F--Commercial Operations and Support Savings                    

 -10.0                                                                   

  PE 65122D--Industrial Capabilities Assessments                          

 -2.9                                                                    



    Other similar decreases are noted elsewhere in the report.             

       The conferees also agree to a number of decreases in authorization  
   to fund higher priority programs. Among these decreases are the         
   following:                                                              


                                                                        

In millions                                                             

  PE 62120A--Sensors and Electronic Survivability                         

 -$1.8                                                                   

  PE 62211A--Aviation Technology                                          

 -1.9                                                                    

  PE 65326A--Concepts Experimentation Program                             

 -6.9                                                                    

  PE 65804N--Technical Information Services                               

 -2.5                                                                    

  PE 27424F--Evaluation & Analysis Program                                

 -12.8                                                                   



       Other similar decreases are noted elsewhere in the statement of     
   managers accompanying this Act.                                         
           Materials technology                                                    

       The budget request included $10.1 million in PE 62105A for materials
   technology research.                                                    
       The House bill would authorize an increase of $5.0 million for      
   hardened materials research for land warfare systems applications.      
       The Senate amendment would authorize an increase of $3.0 million for
   continuing hardened materials research in missile composite structures  
   and composite shroud assemblies.                                        
    The House recedes.                                                     

           Missile technology                                                      


       The budget request included $25.2 million in PE 62303A for missile  
   technology.                                                             
       The House bill would authorize the budget request for missile       
   technology in PE 62303A, but would authorize an increase of $8.0 million
   in scramjet technology development in PE 63003A.                        
       The Senate amendment would authorize an increase of $3.0 million for
   scramjet technology in PE 62303A and an increase of $1.5 million for    
   research in acoustic effects in the same program element.               
    The House recedes.                                                     

           Combat vehicle and automotive technology                                

       The budget request included $40.1 million in PE 62601A for combat   
   vehicles and automotive technology.                                     
       The House bill would authorize an increase of $10.0 million for the 
   innovative industry and academia alternative vehicle propulsion         
   technology initiative.                                                  
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $2.5 million for the
   innovative alternative vehicle propulsion technology developed within   
   industry and the academic community, as described in the House report   
   (H. Rept. 105 532). The conferees further agree to a decrease of $5.0   
   million for the future infantry and combat system.                      
           Human factors engineering technology                                    

       The budget request included $13.3 million in PE 62716A for human    
   factors engineering technology including $500,000 for Emergency Team    
   Coordination (MedTeams) program.                                        
       The House bill would authorize an increase of $4.8 million to       
   complete the MedTeams program.                                          
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $4.8 million and    
   note that the authorized funds will allow for the completion of this    
   program in fiscal year 1999, eliminating the need for further funding.  
           Environmental quality technology                                        

       The budget request included $13.8 million for environmental quality 
   technology within PE 62720A.                                            
       The House bill would authorize an increase of $16.0 million, with   
   $4.0 million for the Radford Environmental Development and Management   
   Program (REDMAP), $3.0 million for the Plasma Energy Pyrolysis System   
   (PEPS), $4.0 million for the Computer-Based Land Management Model, and  
   $5.0 million for the Agricultural Based Bioremediation.                 
       The Senate amendment would authorize an increase of $32.5 million,  
   with $24.0 million for pollution prevention research and development    
   initiatives, to be awarded on a competitive basis by the National       
   Defense Center for Environmental Excellence (PE 62720A), $3.5 million   
   for REDMAP, and $5.0 million for PEPS.                                  
       The conferees agree to authorize an increase of $5.0 million for    
   PEPs, $3.5 million for REDMAP, $5.0 million for Agricultural Based      
   Bioremediation, and $3.0 million for the Computer-Based Land Management 
   Model in PE 62720A.                                                     
       The conferees also agree to authorize an increase of $20.0 million  
   for pollution prevention research and development initiatives, and      
   direct the Department of the Army to establish an Environmental Quality 
   Technology (EQT) Budget Activity Four Program Element to manage these   
   additional funds beginning in fiscal year 1999. The conferees direct the
   Department to transfer project DE31, and any related funding, from PE   
   78045A to this new program element, beginning in fiscal year 2000 and   
   continuing through fiscal year 2005. The Department shall ensure that   
   all applicable competitive procedures are used in the award of contracts
   or other agreements related to the obligation and expenditure of these  
   $20.0 million, and that cost-sharing requirements for non-federal       
   participants be utilized where appropriate. The conferees direct that   
   these funds be used to develop new materials and manufacturing processes
   for the purpose of validating technology for installation of pollution  
   abatement and enhancing weapons systems performance and reducing life   
   cycle operations and maintenance costs. The Department shall seek to    
   accomplish this work by exploiting the capabilities of the National     
   Defense Center for Environmental Excellence (NDCEE), where appropriate. 
           Command, control, and communications technology                         

       The budget request included $19.7 million in PE 62782A for command, 
   control, and communications technology.                                 
       The House bill would authorize an increase of $2.8 million for the  
   Army multi-media communications device.                                 
    The Senate amendment would authorize the budget request.               

    The Senate recedes.                                                    

           Military engineering technology                                         

       The budget request included $37.5 million in PE 62784A for military 
   engineering technology including $3.3 million for cold regions research.
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $1.2 million for
   cold regions research.                                                  
    The House recedes.                                                     

           Medical advanced technology                                             

       The budget request included $11.0 million in PE 63002A for medical  
   advanced technology.                                                    
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $2.0 million for
   nutrition research.                                                     
    The House recedes.                                                     

           Aviation advanced technology                                            


       The budget request included $30.0 million in PE 63003A for aviation 
   advanced technology.                                                    
       The House bill would authorize an increase of $2.0 million for the  
   Stinger universal launcher and an increase of $3.0 million to support   
   comparative testing of Starstreak and Stinger missiles for application  
   to the Apache helicopter program. The House bill would also authorize an
   increase of $8.0 million for scramjet technology.                       
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $5.0 million in PE  
   63003A, of which $2.0 million is for the Stinger universal launcher and 
   $3.0 million is to support comparative testing of Starstreak and Stinger
   for application to the Apache helicopter program. Scramjet funding is   
   addressed elsewhere in this statement of managers.                      
           Weapons and munitions advanced technology                               

       The budget request included $24.6 million in PE 63004A for weapons  
   and munitions advanced technology.                                      
       The House bill would authorize an increase of $6.0 million for the  
   precision guided mortar munitions program, an increase of $5.0 million  
   for the future direct support weapon system, and an increase of $6.0    
   million for the trajectory correctible munitions program.               
       The Senate amendment would authorize an increase of $4.5 million for
   the precision guided mortar munitions program.                          
       The conferees agree to authorize an increase of $4.5 million for the
   precision guided mortar munitions program. The conferees regret the     
   inability to authorize an additional $5.0 million for the future direct 
   support weapon system because of limitations on available               
   appropriations. The conferees urge the Army to consider reprogramming up
   to $5.0 million from other available funds to accelerate this program.  
   The authorization of additional funding for the trajectory correctable  
   munitions program is addressed elsewhere in this statement of managers. 
           Combat vehicle and automotive advanced technology                       

       The budget request included $54.4 million in PE 63005A for combat   
   vehicle and automotive advanced technology.                             
       The House bill would authorize an increase of $17.0 million, as     
   follows:                                                                
     (1) $10.0 million for advanced lightweight composite materials; and   

     (2) $7.0 million for innovative engine technology.                    

       The Senate amendment would authorize an increase of $3.0 million for
   aluminum metal matrix development.                                      
       The conferees agree to authorize an increase of $3.0 million for    
   aluminum metal matrix technology development and an increase of $2.0    
   million for innovative engine technology development.                   
           Missile and rocket advanced technology                                  

       The budget request included $86.1 million in PE 63313A for missile  
   and rocket advanced technology.                                         
       The House bill and Senate amendment would authorize a total decrease
   of $29.7 million, as follows:                                           
       (1) a $35.7 million decrease for the enhanced fiber optic guided    
   missile (E FOGM) program; and                                           
       (2) a $6.0 million increase for the future missile technology       
   integration (FMTI) program.                                             
       The conferees agree to authorize a decrease of $29.7 million for    
   missile and rocket advanced technology, including a decrease of $35.7   
   million for E FOGM and an increase of $6.0 million for FMTI.            
           Joint service small arms program                                        

       The budget request included $5.2 million in PE 63607A for joint     
   service small arms program.                                             
       The House bill would authorize an increase of $3.5 million for the  
   objective crew served weapon (OCSW).                                    
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $3.5 million for the
   OCSW program.                                                           
           Tactical high energy laser                                              

       The budget request included no funds for the joint U.S.-Israel      
   Tactical High Energy Laser (THEL) program.                              
       The House bill would authorize an increase of $10.0 million for THEL
   and related advanced technologies.                                      
       The Senate amendment would authorize an increase of $10.0 million to
   continue THEL testing and deployment activities.                        
       The conferees agree to authorize an increase of $10.0 million for   
   the THEL program.                                                       
           Armament enhancement initiative                                         

       The budget request included $26.5 million in PE 63639A for the      
   armament enhancement initiative program.                                
       The House bill would authorize an increase of $10.0 million for the 
   tank extended range munition-kinetic energy (TERM KE) program.          
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $4.0 million for the
   TERM KE program.                                                        
           Comanche                                                                

       The budget request included $367.8 million in PE 64223A for Comanche
   helicopter development.                                                 
       The House bill would authorize an increase of $62.0 million to      
   accelerate testing of the second Comanche prototype and for other risk  
   reduction efforts.                                                      
       The Senate amendment would authorize an increase of $24.0 million to
   accelerate flight testing of the second Comanche prototype.             
       The conferees agree to authorize an increase of $24.0 million to    
   accelerate flight testing of the second Comanche prototype.             

           Electronic warfare development                                          

       The budget request included $86.0 million in PE 64270A for          
   electronic warfare development.                                         
       The House bill would authorize an increase of $5.0 million for the  
   Shortstop electronic protection system.                                 
       The Senate amendment would authorize an increase of $8.6 million for
   advanced threat infrared countermeasures (ATIRCM) development.          
       The conferees agree to authorize an increase of $8.6 million for    
   ATIRCM development.                                                     
           Follow-on to TOW                                                        

       The budget request included $48.1 million in PE 64325A for continued
   development of the follow-on to TOW (FOTT) system.                      
       The House bill and the Senate amendment would authorize the budget  
   request.                                                                
       The conferees agree to a decrease of $35.0 million with the         
   remaining funds made available for restructured research and development
   requirements associated with the TOW missile.                           
       The conferees note a recent Army decision to terminate the FOTT     
   program due largely to affordability concerns.                          
           Combat feeding, clothing, and equipment                                 

       The budget request included $62.2 million to support research and   
   development activities associated with combat feeding, clothing, and    
   equipment development.                                                  
       The House bill and the Senate amendment would authorize the budget  
   request.                                                                
       The conferees agree to authorize a decrease of $4.0 million that is 
   no longer required due to contract modifications and engineering change 
   proposals.                                                              
           Aviation-engineering development                                        

       The budget request included $6.6 million in PE 64801A for aviation  
   engineering development requirements.                                   
       The House bill would authorize an increase of $5.0 million in PE    
   63801A for retinal display technology.                                  
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $5.0 million in PE  
   64801A for retinal display technology development.                      
           Weapons and munitions-engineering development                           

       The budget request included $37.7 million to support requirements   
   for improved weapons and munitions.                                     
       The House bill and the Senate amendment would support the budget    
   request.                                                                
       The conferees agree to a decrease of $2.0 million as contract       
   savings no longer require the level of funding requested.               
       The conferees note that the Army contract for mortar fire control   
   systems did not require the level of funding projected in the budget    
   request.                                                                
           Landmine warfare/barrier-engineering development                        

       The budget request included $46.9 million in PE 64808A for landmine 
   warfare/barrier engineering development activities.                     
       The House bill and the Senate amendment would support the budget    
   request.                                                                
       The conferees agree to authorize a decrease of $5.5 million no      
   longer required for the remote anti-armor mine system program due to a  
   slip in the program and the recent approval of a reprogramming action.  
           Radar development                                                       

       The budget request included $2.8 million to support improvements to 
   existing ground based radar systems.                                    
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $4.0 million in 
   PE 64820A for development of a passive adjunct sensor capability for the
   Sentinel radar.                                                         
       The conferees agree to authorize an increase of $4.0 million to     
   develop a passive adjunct sensor capability for the Sentinel radar.     
           Firefinder                                                              

       The budget request included $19.8 million in PE 64823A for          
   Firefinder radar development activities.                                
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $0.9 million to 
   accelerate new software development for the Firefinder system.          
       The conferees agree to authorize an increase of $0.9 million to     
   accelerate software development.                                        
           Artillery systems-engineering and manufacturing development             

       The budget request included $0.1 million in PE 64854A for artillery 
   systems-engineering and manufacturing development.                      
       The House bill would authorize an increase of $13.0 million, as     
   follows:                                                                
     (1) $8.0 million for digital fire control technology for Crusader; and

       (2) $5.0 million for fire control technology for the lightweight    
   howitzer.                                                               
    The Senate bill would authorize the budget request.                    

       The conferees agree to authorize an increase of $2.5 million for    
   lightweight 155 fire control technology.                                
           Decrease to Research, Development, Test and Evaluation support programs 


       The House bill would authorize a decrease of $9.8 million to address
   insufficiently justified program growth in Research, Development, Test  
   and Evaluation (RDT&E) support programs.                                
       The Senate amendment would authorize a decrease of $27.0 million to 
   address concerns regarding the management, infrastructure and support   
   programs in the RDT&E budget.                                           
    The conferees agree to a total decrease of $42.8 million, as follows:  



                                                                        

In millions                                                             


  Army:                                                                  

  PE 64759A--Major test & evaluation support                              

 -$1.0                                                                   

  PE 65301A--Kwajalien                                                    

 -14.0                                                                   

  Navy:                                                                  

  PE 65152N--Studies & analysis support                                   

 -1.0                                                                    

  PE 65853N--Management, technical & International support                

 -11.0                                                                   

  PE 65863N--RDT&E ship & aircraft support                                

 -2.0                                                                    

  PE 65864N--Test & evaluation support                                    

 -5.8                                                                    

  Air Force:                                                             

  PE 65807F--Test & evaluation support                                    

 -4.0                                                                    

  PE 65808F--Development planning                                         

 -2.0                                                                    

  Defense Agencies:                                                      

  PE 65804D--Developmental test & evaluation                              

 -2.0                                                                    



       The conferees intend that the decrease taken in PE 65853N should not
   affect project X2222, and that this particular project be moved from    
   this program element to a more appropriate place in the budget.         
           Army technical test instrumentation and targets                         

       The budget request included $33.4 million in PE 65602A for Army     
   technical test instrumentation and targets.                             
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $7.0 million for
   instrumentation and targets.                                            
       The conferees agree to authorize an increase of $7.0 million for    
   instrumentation and targets.                                            
           Survivability/lethality analysis                                        

       The budget request included $30.5 million in PE 65604A for          
   survivability/lethality analysis.                                       
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $4.0 million for
   information warfare vulnerability assessments.                          
       The conferees agree to authorize $4.0 million for information       
   warfare vulnerability assessments.                                      
           Department of Defense high energy laser test facilities                 

       The budget request included $15.0 million in PE 65605A for          
   Department of Defense high energy laser test facility.                  
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $8.0 million for
   solid state laser technology, and urged the Army to devote $1.5 million 
   to address issues involving crystal growth manufacturing.               
    The House recedes.                                                     

           Multiple launch rocket system product improvement program               

       The budget request included $20.2 million for the multiple launch   
   rocket system (MLRS) product improvement program.                       
       The House bill would authorize an increase of $6.0 million to       
   accelerate development of high mobility artillery rocket system         
   (HIMARS).                                                               
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a net increase of $4.2 million,    
   including an increase of $6.0 million for HIMARS research and           
   development activities, and a decrease of $1.8 million for contract     
   savings.                                                                
           Advanced field artillery tactical data system                           

       The budget request included $35.1 million in PE 23726A for the      
   advanced field artillery tactical data system (AFATDS).                 
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $12.5 million   
   for airspace deconfliction and technical fire support enhancements.     
       The conferees agree to authorize a net increase of $5.3 million in  
   PE 23726A, including an increase of $12.5 million for airspace          
   deconfliction and technical fire support enhancements and a decrease of 
   $7.2 million for AFATDS 2000 development activities.                    
           Combat vehicle improvement programs                                     

       The budget request included $94.8 million in PE 23735A for combat   
   vehicle improvement programs.                                           
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $7.0 million for
   flat panel display technology development.                              
       The conferees agree to authorize an increase of $7.0 million for    
   flat panel display technology development.                              
           Aircraft engine component improvement program                           

       The budget request included $2.9 million to develop improvements for
   Army aircraft engines.                                                  
       The House bill would authorize an increase of $5.0 million for      
   research and development of improved aircraft fuel pumps and an increase
   of $4.0 million for full authority digital engine control (FADEC)       
   systems.                                                                
    The Senate amendment would authorize the budget request.               


       The conferees agree to authorize an increase of $7.0 million,       
   including $4.0 million for support research and development requirements
   for improved aircraft fuel pumps and $3.0 million for FADEC systems.    
           Force XXI warfighting rapid acquisition program                         

       The budget request included $99.5 million in PE 23761A to support   
   procurements required for Army experimentation.                         
       The House bill and the Senate amendment would authorize the budget  
   request.                                                                
    The conferees agree to a decrease of $30.0 million.                    

           Missile/air defense product improvement program                         

       The budget request included $11.3 million to develop improvements   
   for Army missile and air defense systems.                               
       The House bill would authorize an increase of $12.0 million for     
   further development of the Stinger block II air defense missile.        
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $6.0 million to     
   support research and development requirements for the Stinger block II  
   missile system.                                                         
           Defense information technology test bed                                 

       The budget request included no funding in PE 23726A for the defense 
   information technology test bed (DITT).                                 
       The House bill would authorize an increase of $6.6 million for DITT.
   This effort will establish a fully electronic virtual intelligence      
   archive for use by battlefield commanders.                              
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $5.0 million for the
   development of a DITT program.                                          
           Information systems security program                                    

       The budget request included $7.4 million in PE 303140A to meet      
   information system security requirements.                               
       The House bill would authorize an increase of $5.0 million to       
   continue the demonstration program for military health care information 
   protection.                                                             
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $5.0 million to     
   support continued development and demonstration of military healthcare  
   information protection measures.                                        
           Manufacturing technology                                                

       The budget request included $150.7 million for the Department of    
   Defense manufacturing technology (MANTECH) program including: $14.5     
   million in PE 78045A; $59.0 million in PE 78011N; $51.0 million in PE   
   78011F; and $26.2 million in PE 78011S.                                 
       The House bill would authorize an increase of $43.2 million for     
   MANTECH: $27.2 million in PE 78045A; $8.6 million in PE 78011N; and,    
   $7.4 million in PE 78011F.                                              
       The conferees agree to an increase of $21.8 million: $13.2 million  
   for munitions manufacturing efforts within the Army MANTECH program (PE 
   78045A) and $8.6 million in the Navy MANTECH program (PE 78011N) to     
   address program shortfalls. The conferees expect the additional funds to
   be awarded using competitive procedures based on the technical          
   priorities established by the Army MANTECH technical council and the    
   Navy MANTECH steering committee.                                        
           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $8,108.9 million for Navy, Research and Development in the Department
   of Defense. The House bill would authorize $8,403.6 million. The Senate 
   amendment would authorize $8,188.9 million. The conferees recommended an
   authorization of $8,305.0 million. Unless noted explicitly in the       
   statement of managers, all changes are made without prejudice.          

   Offset Folios 1151 to 1160 insert here                                  



           Marine mammal research                                                  

       The budget request included $347.9 million in PE 61153N for the     
   Navy's defense research and sciences program.                           
       The House bill would authorize the use of $500,000 from funds       
   provided in PE 61153N for continuation of the Navy's cooperative marine 
   mammal research program.                                                
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize the use of $500,000 from funds     
   provided in PE 61153N for continuation of the Navy's cooperative marine 
   mammal research program.                                                
           Pulse detonation engine technology                                      

       The budget request included $37.1 million in PE 62111N for air and  
   surface launched weapons technology.                                    
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $1.0 million for
   pulse detonation engine technology.                                     
       The conferees agree to authorize an increase of $1.0 million for    
   pulse detonation engine technology.                                     
           Stainless steel double hull research                                    

       The budget request included $43.2 million in PE 62121N for ship,    
   submarine and logistics technology.                                     
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $3.0 million for
   stainless steel double hull research.                                   
       The conferees agree to authorize an increase of $3.0 million for    
   stainless steel double hull research.                                   
           Communications, command, control, and intelligence                      

       The budget request included $65.0 million in PE 62232N for          
   communications, command, control, and intelligence.                     
       The House bill would authorize an additional $1.0 million for hybrid
   fiberoptic/wireless communication systems.                              
       The Senate amendment would authorize a decrease of $5.0 million for 
   the strategic sustainment program with the communications, command,     
   control, and intelligence account.                                      
       The conferees agree to authorize a net decrease of $5.0 million in  
   PE 62232N, including an increase of $1.0 million for the hybrid         
   fiberoptic/wireless communications systems and a decrease of $6.0       
   million for the strategic sustainment program.                          
           Materials, electronic and computer technology                           

       The budget request included $77.6 million in PE 62234N for          
   materials, electronic and computer technology.                          
       The House bill would authorize an increase of $12.0 million,        
   including $2.5 million for thermal management materials, $3.0 million   
   for cryoelectronics waveform generator, $3.5 million for silicon carbide
   technology, and $3.0 million for carbon/carbon heatshields.             
       The Senate amendment would authorize an increase of $6.0 million,   
   including $1.5 million for thermal management materials; $2.0 million   
   for electronic propulsion technology, and $2.5 million for carbon/carbon
   heatshields.                                                            
       The conferees agree to authorize a net increase of $13.5 million in 
   PE 62234N, including an increase of $2.5 million for thermal management 
   materials, an increase of $2.5 million for carbon/carbon heat shield, an
   increase of $3.0 million for the cryoelectronics waveform generator, an 
   increase of $3.5 million for silicon carbide technology, and an increase
   of $2.0 million for the development of applied high temperature         
   superconducting technology for synchronous AC electronic propulsion.    
           Autonomous underwater vehicle and sonar development                     

       The budget request included $56.7 million in PE 62435N for          
   oceanographic and atmospheric technology.                               
       The House bill would authorize an increase of $10.0 million for     
   advanced sensors and unmanned underwater vehicle technologies.          
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $10.0 million for   
   advanced sensors and unmanned underwater vehicle technologies.          
           Micro electronic systems technology                                     

       The budget request included $2.0 million in PE 62633N for undersea  
   warfare weaponry technology.                                            
       The House bill would authorize an increase of $2.0 million for micro
   electronic systems technology.                                          
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $2.0 million for    
   micro electronic systems technology.                                    
           Air systems and weapons advanced technology                             

       The budget request included $48.1 million in PE 63217N for air      
   systems and weapons advanced technology.                                
       The House bill would authorize a net decrease of $2.0 million,      
   including a decrease of $7.0 million for the vectoring, extremely short 
   take-off and landing control tailless operation research (VECTOR)       
   project and an increase of $5.0 million for the completion of the DP-2  
   proof of concept demonstration.                                         
    The Senate amendment would authorize the budget request.               

    The Senate recedes.                                                    

           Precision strike and air defense technology                             

       The budget request included $58.3 million in PE 63238N for precision
   strike and air defense technology research.                             
    The House bill would authorize the budget request.                     


       The Senate amendment would authorize an increase of $5.0 million for
   mobile offshore base (MOB) research.                                    
       The conferees agree to authorize a net decrease of $4.9 million to  
   PE 63238N, including an increase of $4.0 million for MOB research and a 
   decrease of $8.9 million to fleet advanced demonstrations.              
           Advanced electric systems studies                                       

       The budget request included $14.8 million in PE 63508N for          
   fabrication, demonstration, development, and concept studies for quiet  
   electric propulsion motor technologies.                                 
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize a decrease of $1.0 million in  
   PE 63508N to eliminate premature studies and reduce intermediate scale  
   development.                                                            
    The House recedes.                                                     

           Power electronic building blocks and power node control centers         

       The budget request included $39.3 million in PE 63508N for surface  
   ship and submarine hull, mechanical, and electrical advanced technology.
   The budget request included funding to continue the development and     
   demonstration of power electronic building blocks and power node control
   centers for shipboard electrical power systems.                         
       The House bill would authorize an increase of $6.0 million in PE    
   63508N to continue the program to accelerate the development of power   
   electronic building block technology and the use of virtual prototyping 
   and a virtual test bed to demonstrate and evaluate advanced shipboard   
   electrical power system concepts. The House bill would also authorize an
   increase of $2.0 million in PE 63508N to continue the development of    
   power node control centers for advanced electrical distribution system  
   fault detection, switching, reconfiguration, and control of shipboard   
   electrical systems.                                                     
    The Senate amendment would authorize the budget request.               

    The Senate recedes.                                                    

           Composite helicopter hangar                                             

       The budget request included no funding for continuation of a program
   to design and fabricate the outer shell of a DDG 51 helicopter hangar   
   structure using composite materials.                                    
       The Senate amendment would authorize an increase of $5.0 million in 
   PE 63508N to continue a developmental effort to design and fabricate the
   outer shell of a DDG 51 helicopter hangar structure using composite     
   materials.                                                              
    The House bill would authorize the budget request.                     

    The House recedes.                                                     

           Marine Corps advanced technology demonstration                          

       The budget request included $41.9 million for the Marine Corps      
   advanced technology demonstration activities associated with the        
   Commandant's warfighting laboratory.                                    
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $10.0 million   
   dollars for acceleration of warfighting experimentation activities,     
   including $5.0 million for the second phase continued evaluation of the 
   broad-area unmanned retail and re-supply operation (BURRO). The Senate  
   amendment would also authorize an increase of $1.0 million for          
   evaluation of the K-band training/test instrumentation system.          
       The conferees agree to authorize an increase of $11.0 million in PE 
   63640M, including $10.0 million for acceleration of warfighting         
   experimentation, to include $5.0 million of this amount for the         
   evaluation of the BURRO concept, and $1.0 million for evaluation of the 
   K-band training/test instrumentation system.                            
       The conferees note that the Senate report (S. Rept. 105 189) would  
   direct the Secretary of the Navy to provide a report on the long-term   
   plan for developing a ``red team'' countermeasures efforts activity to  
   keep pace with the warfighting experiment efforts. The Secretary was    
   directed to provide the report to the congressional defense committees  
   by May 15, 1999. Pending submission of the report, obligation of funds  
   for the warfighting laboratory effort would have been limited to no more
   than 85 percent of the funds available.                                 
       The conferees acknowledge the ongoing work on the ``red team''      
   effort and that the Marine Corps and Navy will be able to submit the    
   required report on schedule. However, the Marine Corps has indicated    
   that limiting obligations of funds until the report is submitted may    
   cause the Department to forego some efforts that are important pieces of
   the Urban Warrior exercise.                                             
       The conferees agree that the Secretary should submit the report as  
   directed in the Senate report. However, the conferees further agree that
   the limitation on obligation is not needed to ensure timely submission  
   of the report and could be counterproductive to this important          
   experimentation effort.                                                 
           Freeze dried blood                                                      

       The budget request included $18.7 million in PE 63706N for medical  
   development.                                                            
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $1.0 million for
   freeze dried blood research.                                            
       The conferees agree to authorize an increase of $1.0 million for    
   freeze dried blood research.                                            
           Advanced lightweight influence sweep system                             

    The budget request included $4.2 million for advanced mine sweeping.   

       The Senate amendment would authorize an increase of $1.0 million to 
   PE 603782N for the advanced lightweight influence sweep system (ALISS)  
   which is focused on developing high temperature superconducting magnets 
   and acoustic transducers to sweep influence mines targeted against      
   specific classes of Navy ships.                                         

    The House bill would authorize the budget request.                     

    The conferees agree to authorize $1.0 million for ALISS.               

           Aviation survivability                                                  

       The budget request included $8.2 million in PE 63216N for aviation  
   survivability equipment.                                                
    The House bill would authorize an increase of $6.0 million as follows: 

    (1) $3.0 million for ejection seats; and                               

    (2) $3.0 million for the Escape System Dynamic Flow  Test Facility.    

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $3.0 million for the
   Escape System Dynamic Flow Facility.                                    
           ASW systems development                                                 

    The budget request included $20.1 million for ASW systems development. 

       The House bill would authorize an increase of $3.0 million for ASW  
   systems development.                                                    
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $3.0 million to     
   continue the development and testing of advanced anti-submarine warfare 
   technologies on the BEARTRAP platform.                                  
           Studies and experiments for combat systems engineering                  

       The budget request included $8.6 million for studies and experiments
   for advanced combat systems engineering that, potentially, could be     
   leveraged into new ship class computer architectures.                   
       The Senate amendment would authorize a decrease of $2.0 million in  
   PE 63382N for studies and experiments not directly connected to         
   correcting warfighting deficiencies in 21st century platforms.          
    The House bill would authorize the budget request.                     

       The conferees agree to authorize a decrease of $2.0 million in PE   
   63382N.                                                                 
           Remote minehunting system                                               

       The budget request included $73.5 million in PE 63502N for surface  
   and shallow water mine countermeasures demonstration and validation,    
   including $11.0 million for the remote minehunting system (RMS). The    
   budget request also included $32.9 million for procurement of           
   minesweeping system replacement equipment.                              
       The House bill would authorize an increase of $7.0 million in PE    
   63502N to continue accelerated development and fielding of the RMS. The 
   House bill would approve the procurement budget request.                
       The Senate amendment would authorize a transfer of $15.9 million    
   included in the budget request for procurement to PE 63502N for RMS     
   research and development. This shift would enable the Navy to develop   
   the modular V4 design to accommodate advanced sensors for RMS.          
       The conferees agree to authorize a decrease of $15.9 million for the
   procurement of RMS and an increase of $7.0 million in PE 63502N for RMS.
           Future aircraft carrier transition technology                           

       The budget request included a total of $190.1 million for future    
   aircraft carrier research and development (R&D) and feasibility studies 
   including $149.5 million in PE 63512N and $40.6 million in PE 63564N.   
   The budget request also included $38.5 million in PE 64567N for CVN 77  
   contract design.                                                        
       The House bill and the Senate amendment would authorize the budget  
   request. The House bill contained a provision (sec. 212) that would     
   authorize $50.0 million of those funds for CVN 77 technologies that     
   would be applicable to both CVN 77 and CV(X). The Senate amendment      
   contained a similar provision (sec. 212) that would direct that the     
   $50.0 million be applied exclusively to CVN 77 technologies.            
       The conferees strongly endorse the need to develop new technologies 
   that will reduce life cycle costs and improve operational effectiveness 
   of future aircraft carriers. The Chief of Naval Operations has advised  
   the conferees that the most pressing need for the CV(X) is the initial  
   development of a next generation propulsion plant of sufficient         
   flexibility to support future technology insertion and performance      
   improvements, while reducing propulsion plant life cycle costs.         
       The conferees note a recent Navy decision to alter the design for   
   the first CV(X). The conferees understand that the Navy's new plan to   
   transition to the next generation aircraft carrier will be an           
   evolutionary development in which carrier design changes will be        
   incremental over several of the first generation of CV(X) carriers.     
       Unfortunately, the congressional defense committees were provided   
   with conflicting information regarding the Navy's purported change in   
   plans regarding CV(X) and the Navy's intentions for near-term and Future
   Years Defense Program funding. These mixed communications are only now  
   being sorted out. In the meantime, this conflicting information has     
   caused some of the congressional defense committees to propose          
   significant reductions to the budget request for fiscal year 1999 CV(X) 
   R&D funding.                                                            
       The conferees agree to authorize a reduction of $80.0 million in PE 
   63512N without prejudice due to the ongoing refinement of the Navy's    
   planning for CV(X). The conferees would be very receptive to a Navy     
   request for additional authorization of CV(X) funding for fiscal year   
   1999 once the Navy makes available the restructured CV(X) plan and      
   supporting documentation. The conferees strongly encourage the Secretary
   of Defense to submit such a request once the restructured CV(X) plan is 
   completed.                                                              
       The conference agreements include a provision on CVN 77 R&D funding 
   (sec. 212) which is addressed elsewhere in this report.                 
           Shipboard systems component development                                 


       The budget request included $27.7 million for surface ship          
   non-propulsion system component development.                            
       The House bill would authorize an increase of $1.0 million in PE    
   63513N for the qualification and testing required to develop a new      
   150-kilowatt static frequency converter.                                
    The Senate amendment would authorize the budget request.               

       It has come to the attention of the conferees that fiscal year 1999 
   test article procurement, installation and implementation programs      
   assume low risk scenarios for research scheduled for fiscal year 1998   
   and early fiscal year 1999. These low risk scenarios are not supported  
   by available documentation. Therefore, the conferees agree to a decrease
   of $2.0 million to PE 63513N.                                           
       The conferees also agree to authorize an increase of $1.0 million in
   PE 63513N for the qualification and testing required to develop a new   
   150-kilowatt static frequency converter.                                
           SSGN study                                                              

       The budget request did not include funding for analyzing            
   alternatives for converting Trident submarines for use in other than    
   strategic missions.                                                     
       The Senate amendment would authorize an increase of $1.0 million to 
   PE 63564N for the Secretary of Defense to conduct an analysis of        
   converting some of the Trident SSBNs to SSGN-configuration and would    
   direct the Secretary to provide a report of the analysis to the         
   congressional defense committees no later than March 1, 1999.           
    The House bill would authorize the budget request.                     

    The House recedes.                                                     

           Intercooled recuperated gas turbine engine                              

       The budget request included $23.5 million in PE 63573N for continued
   development of the inter-cooled recuperated (ICR) gas turbine engine.   
   The budget request would also continue testing of the ICR gas turbine   
   engine under Memoranda of Understanding (MOUs) with the United Kingdom  
   and France.                                                             
       The House bill would authorize the budget request. The House report 
   (H. Rept. 105 532) would direct the Secretary of the Navy to provide an 
   updated report on the resolution of technical, programmatic, and funding
   issues required to insure a stable development program supported by the 
   fiscal year 2000 budget request. The House report would also require    
   consideration of the ICR engine among the alternatives for the prime    
   power plant for the DD 21 land attack destroyer.                        
       The Senate amendment would authorize an increase of $5.0 million in 
   PE 63573N for continued development and testing of the ICR engine.      
    The conferees agree to authorize the budget request.                   

       The conferees are aware that negotiations are underway among MOU    
   signatories to restructure the ICR program. This restructuring would    
   bring the engine to a point where it could be an industry candidate for 
   DD 21 vice a fully government qualified engine. The conferees understand
   that this would involve completing a second 500 hour test and conducting
   a fifth design review. The 3000 hour test and other efforts would be    
   transitioned to other signatories of the MOUs who intend to evaluate the
   ICR as the prime mover for the Common New Generation Frigate program.   
       The conferees believe that this is a reasonable approach to further 
   ICR development and the Navy should consider the ICR engine as a        
   competitor for serving as the prime mover in future Navy ships.         
           Environmentally safe energetic materials                                

       The budget request included $39.8 million in PE 63609N for          
   conventional munitions demonstration and validation.                    
       The House bill would authorize an increase of $3.0 million in PE    
   63609N to accelerate the program for the development of propellants and 
   explosives that utilize environmentally compliant energetic materials   
   for undersea, surface, and other weapons systems.                       
    The Senate would authorize the budget request.                         

       The conferees agree to authorize an increase of $3.0 million in PE  
   63609N to accelerate the program for the development of propellants and 
   explosives that utilize environmentally compliant energetic materials   
   for undersea, surface, and other weapons systems.                       
           Marine Corps assault vehicles                                           

       The budget request included $104.8 million for Marine Corps assault 
   vehicle research and development activities.                            
       The House bill would authorize an increase of $4.0 million for      
   further development of additional propulsion and suspension alternatives
   for the advanced amphibious assault vehicle (AAAV).                     
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $4.0 million for    
   unfunded research and development requirements of the AAAV.             
           Marine Corps ground combat/support system                               

       The budget request included $37.1 million for Marine Corps ground   
   combat/support research and development activities.                     
       The budget request included no funds in either the Army or Marine   
   Corps research and development programs for improving howitzer          
   capability by continuing development of trajectory correctable munitions
   (TCM).                                                                  
       The House bill would authorize an increase of $2.5 million for      
   further development of lightweight 155mm howitzer requirements. The     
   House bill would also authorize an increase of $6.0 million in PE63004A 
   to continue Army development of TCM.                                    
       The Senate amendment would authorize an increase of $4.0 million for
   the Predator missile system to maintain the development and fielding    
   schedule.                                                               
       The conferees agree to authorize an increase of $9.5 million for    
   Marine Corps ground combat and support system research and development  
   requirements. Of this amount, $2.5 million is for research and          
   development requirements of the lightweight 155mm howitzer, $2.0        

                    million is to support Predator system development and fielding
          schedule, and $5.0 million is for development of TCM. The conferees note
          that the Army has demonstrated a lack of commitment to continue TCM     
          development and believe there could be application for TCM technology   
          within the Marine Corps' concept of operations. The conferees direct the
          Marine Corps to provide the congressional defense committees a report,  
          no later than 31 January 1999, on a concept of operations for using TCM 
          in Marine Corps operations and on TCM program development plans and     
          procurement forecast.                                                   
           Aviation depot maintenance                                              

       The budget request included $59.4 million in PE 63721N for          
   environmental protection demonstration and validation, including $3.5   
   million for Naval aviation pollution prevention.                        
       The House bill would authorize an increase of $2.7 million for the  
   development and demonstration of aviation depot maintenance technologies
   that will significantly reduce maintenance and repair costs and reduce  
   or eliminate hazardous waste and pollution products.                    
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $2.7 million in PE  
   63721N for the development and demonstration of aviation depot          
   maintenance technologies to reduce overall costs and enhance pollution  
   prevention measures.                                                    
           Naval surface fire support system integration                           

       The budget request included $21.6 million for a new initiative to   
   develop surface fire support planning and control systems for the 5-inch
   62 gun on DDG 51 ships and the 155mm vertical gun for the future DD 21  
   class of ships.                                                         
       The Senate amendment would authorize a decrease of $7.7 million to  
   PE 63795N to eliminate the possibility of developing a stand-alone      
   system for DD 21.                                                       
    The House bill would authorize the budget request.                     

    The conferees agree to authorize a reduction of $1.6 million.          

           Vertical gun for advanced ships                                         

       The budget request included $25.1 million in PE 63795N for a new    
   initiative to develop a prototype vertical gun for land-based testing.  
       The House bill would authorize a decrease of $20.0 million due to   
   the lack of a thorough analysis of gun system alternatives and          
   sufficient consideration of gun and missile system technical            
   requirements and operational roles.                                     
       The Senate amendment contained a similar provision that would       
   authorize a decrease of $10.0 million.                                  
       The conferees authorize a decrease of $10.0 million in PE 63795N and
   direct the Secretary of the Navy to report to the congressional defense 
   committees the results of an analysis of all advanced gun designs, as   
   well as ammunition availability for those designs, prior to the         
   obligation of funds for a prototype advanced gun system.                
           Joint strike fighter                                                    

       The budget request included $463.4 million in PE 63800N for the     
   joint strike fighter (JSF).                                             
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $15.0 million   
   for the JSF alternate engine program.                                   
       The conferees agree to authorize an increase of $15.0 million for   
   the JSF alternate engine program.                                       
           Nonlethal weapons and technologies of mass protection program           

       The budget request included $22.6 million for the nonlethal weapons 
   (NLW) and technologies program (PE 63851M).                             
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase to the budget      
   request of $13.3 million for the following activities, including $6.3   
   million for the development and fielding of near-term, low-technology   
   NLW technologies and $7.0 million for the development of nonlethal      
   tactical denial systems. The Senate amendment would make available $2.0 
   million for activities of the Human Effects Panel of the Joint NonLethal
   Directorate and $500,000 for complete type classification of nonlethal  
   weapons technology that can be mounted on existing weapons, such as M4  
   carbines and M16 rifles.                                                
    The House recedes.                                                     

       The conferees remain concerned that the Department of Defense and   
   the military services continue to conduct research and development on   
   NLW activities that benefit all services outside the purview of the     
   established defense NLW program, and without oversight by the executive 
   agent, the Marine Corps. The conferees endorse the position expressed in
   the Senate report (S. Rept. 105 189) that ``all'' nonlethal weapons     
   technology research and development be consolidated into a single       
   program element, with management and oversight of the program conducted 
   by the Marine Corps, as executive agent.                                
                      Commercial off-the-shelf insertion just prior to critical    
           design review for helicopter improvement                                
       The budget request included $231.1 million in PE 64212N for         
   antisubmarine warfare and other helicopter development. Of this amount, 
   $25.0 million would continue efforts to incorporate commercial          
   off-the-shelf (COTS) technology during the two fiscal quarters prior to 
   a second critical design review.                                        
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize a decrease of $1.0 million in  
   PE 64212N to insert COTS technology.                                    
       The conferees agree to authorize a decrease of $1.0 million in PE   
   64212N to insert COTS technology.                                       
           Parametric airborne dipping sonar                                       


       The budget request included no funding for the parametric airborne  
   dipping sonar (PADS).                                                   
       The Senate amendment would authorize an increase of $8.0 million in 
   PE 64212N for the continued development of PADS.                        
    The House bill would authorize the budget request.                     

       The conferees agree to authorize an increase of $8.0 million in PE  
   64212N for the continued development of PADS.                           
           Common support aircraft                                                 

       The budget request included $27.1 million in PE 64217N for the      
   Common Support Aircraft (CSA).                                          
       The House bill would authorize a decrease of $27.1 million for the  
   CSA program.                                                            
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $27.1 million for the
   CSA program.                                                            
           Electronic warfare development                                          

       The budget request included $128.6 million in PE 64270N for         
   electronic warfare.                                                     
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $10.0 million   
   for the Integrated Defensive Electronic Countermeasures (IDECM) system. 
       The conferees agree to authorize an increase of $9.3 million in PE  
   64270N to accommodate a restructure of the IDECM program, offset by a   
   decrease of $9.3 million in line 43, Aircraft Procurement Navy.         
           Laboratories and field activities monitoring efforts                    

       The budget request included $132.5 million for surface combatant    
   combat system engineering in PE 64307N, including $19.2 million was     
   requested for laboratory and field activity unspecified scientific      
   services for monitoring baseline efforts.                               
       The Senate amendment authorized a decrease of $3.0 million to       
   unspecified scientific services.                                        
    The House bill would authorize the budget request.                     

       The conferees agree to authorize a decrease of $3.0 million to      
   unspecified scientific services.                                        
           DDG 51 composite director room                                          

       The budget request in PE 64307N did not include funding for design  
   and test of a composite director room for the DDG 51 class of ships.    
       The Senate amendment would authorize an increase of $5.0 million in 
   PE 64307N for continuation of a project to design and test a composite  
   director room for the DDG 51 class of ships. The House bill would       
   authorize the budget request.                                           
       The conferees agree to authorize an increase of $2.5 million in PE  
   64307N for continuation of a project to design and test a composite     
   director room for the DDG 51 class of ships.                            
           Multi-purpose processor                                                 

       The budget request included $37.2 million for submarine sonar       
   improvement. The multi-purpose processor (MPP) is the result of a small 
   business innovative research (SBIR) initiative developed under the      
   sponsorship of the new nuclear attack submarine (NSSN) program.         
       The House bill would authorize an increase of $15.0 million to      
   continue the research and development necessary for the introduction of 
   MPP technology in submarine and other naval sonar systems.              
       The Senate amendment would authorize an increase of $15.0 million in
   PE 64503N for continuation of the SBIR follow-on for advanced           
   development of MPP transportable software technology, technology        
   insertion, advanced processor software builds, and for providing MPP    
   units and training throughout the fleet and the Navy research and       
   development community.                                                  
       The conferees agree to authorize an increase of $15.0 million in PE 
   64503N for continuation of the SBIR follow-on for advanced development  
   of MPP transportable software technology, technology insertion, advanced
   processor software builds, and for providing MPP units and training     
   throughout the fleet and the Navy research and development community.   
           Air control                                                             

       The budget request included $4.2 million in PE 64450N for air       
   control research.                                                       
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $4.0 million for
   the expeditionary common automatic recovery system (ECARS). The ECARS is
   a lightweight, man-portable instrument landing system capable of        
   providing azimuth and glide slope information to manned aircraft and    
   UAVs.                                                                   
       The conferees agree to authorize an increase of $4.0 million to PE  
   64504N for ECARS development.                                           
           Submarine sonar domes                                                   

       The budget request included $218.8 million in PE 64558N for the New 
   Design SSN (NSSN) program.                                              
       The House bill would authorize an increase of $7.0 million in PE    
   64558N to complete fabrication of a full-scale sonar dome using this    
   acoustic sandwich material system for further evaluation and testing.   
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $7.0 million to     
   determine whether an acoustic sandwich material sonar dome system is    
   capable of meeting submarine requirements for sonar domes.              
           NSSN advanced technology insertion                                      


       The budget request included $218.8 million in PE 64558N for the New 
   Attack Submarine (NSSN) program, including $146.4 million for NSSN hull,
   mechanical, and electrical systems development, and $72.5 million for   
   NSSN combat systems development.                                        
       The House bill would authorize an increase of $10.0 million for the 
   development of high priority submarine technologies that are currently  
   unfunded and the insertion of these technologies into the NSSN program. 
   The House bill also encouraged the Navy to reprogram from within        
   available funds the procurement funding (less than $5.0 million)        
   necessary to complete the technology insertion in the appropriate NSSN  
   hulls.                                                                  
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $8.0 million in PE  
   64558N for the development of high priority submarine technologies that 
   are currently unfunded and the insertion of these technologies into the 
   NSSN program.                                                           
           Non-propulsion electronics system                                       

       The budget request included $218.8 million in PE 64558N for New     
   Attack Submarine (NSSN) non-propulsion development.                     
       The Senate amendment would authorize an increase of $12.0 million   
   for integration of 15 non-propulsion electronics system (NPES)          
   subsystems to reduce NSSN life-cycle costs.                             
    The House bill would authorize the budget request.                     

       The conferees agree to authorize an increase of $6.0 million in PE  
   64558N for integration of 15 non-propulsion electronics system          
   subsystems to reduce NSSN life-cycle costs.                             
           System level shock testing                                              

       The budget request included $27.5 million for SSN 21 developments in
   PE 64561N including $5.0 million for Seawolf submarine shock testing.   
       The House bill and the Senate amendment would authorize the budget  
   request.                                                                
       The conferees agree to a decrease of $5.0 million in PE 64561N. The 
   conferees recent indicators that the total cost of a one-half shock     
   factor test would be $47.0 million. The conferees have concluded that   
   the additional information accumulated from conducting a one-half shock 
   factor test would not justify the $47.0 million cost.                   
           DD 21 land attack destroyer                                             

       The budget request included $133.6 million in PE 64567N for ship    
   contract design and live fire test and evaluation including $84.9       
   million was requested for the Navy's DD 21 land attack destroyer program
   and $8.6 million for the second year of DD 21 live fire test and        
   evaluation.                                                             
       The House bill would authorize a decrease of $25.0 million in PE    
   64567N for the DD 21 land attack destroyer.                             
       The Senate amendment would authorize a reduction of $8.6 million,   
   without prejudice, to reflect the re-phasing of the DD 21 program which 
   was not reflected in the DD 21 live fire test and evaluation budget     
   request.                                                                
    The House recedes.                                                     

       The conferees agree that the unique competitive teaming structure   
   agreed upon for the first two phases of DD 21 might lead to either the  
   program office relying on analysis from team members to evaluate options
   or the program office may grow to a size larger than originally         
   intended. The program office has indicated that a smaller office size is
   possible by using Navy laboratory and field activity personnel to       
   evaluate contractor applications of technology, systems engineering, and
   innovative designs. The conferees encourage the Navy to resist creating 
   another level of bureaucracy and growing the program office, and instead
   coordinate evaluation of contractor options using in-place Navy         
   expertise.                                                              
           Smart propulsor product model                                           

       The budget request included $7.0 million for continuation of the    
   development of the smart propulsor product model (SPPM) for future      
   ships.                                                                  
       The Senate amendment would authorize an increase of $4.0 million in 
   PE 64567N for the SPPM.                                                 
    The House bill would authorize the budget request.                     

    The House recedes.                                                     

           NULKA antiship missile decoy system electro-magnetic compatibility      

       The budget request included $2.3 million for continued development  
   and testing of the electro-magnetic compatibility (EMC) upgrade to the  
   NULKA active countermeasures decoy.                                     
       The Senate amendment would authorize an increase of $2.0 million in 
   PE 64755N to complete the development and operational testing of the EMC
   upgrade.                                                                
    The House bill would authorize the budget request.                     

       The conferees agree to authorize an increase of $2.0 million in PE  
   64755N to complete the development and operational testing of the EMC   
   upgrade.                                                                
           Infrared search and track system                                        

       The budget request included $983,000 in PE 64755N to continue       
   engineering and manufacturing development and at sea testing of an      
   infrared search and track (IRST) system.                                
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $6.5 million for
   continued development of the IRST system.                               
       The conferees agree to authorize an increase of $5.0 million in PE  
   64755N for continued development of the IRST system.                    
       The conferees agree that horizon search, for which an IRST system   
   would be optimal, is an area of relative weakness for active radar. In  
   the statement of managers accompanying the National Defense             

                    Authorization Act for Fiscal Year 1996, the conferees noted   
          that the Navy's cost and operational effectiveness analysis supported   
          the conclusion that IRST has the potential to play a very important role
          in defending naval ships against sea skimming anti-ship missiles. The   
          conferees note, however, the Navy's inconsistent support for the IRST   
          program, the reduction of IRST funding in order to support other Navy   
          programs, and the absence of any funds in the Navy's budget projections 
          to complete engineering and manufacturing development of the system and 
          procurement of IRST for the fleet.                                      
       The conferees acknowledge that proposals made within the Department 
   of the Navy staff to establish an international cooperative program with
   the Netherlands and Canada for development of IRST. The conferees       
   believe that such a cooperative program could be one avenue for         
   developing this capability. The conferees direct the Secretary of the   
   Navy to report to the congressional defense committees by March 1, 1999,
   the Navy's plan and funding requirements for optimizing horizon search  
   for defense of surface ships and the potential for application of IRST  
   technology to other platforms.                                          
           Voice instructional devices                                             

       The budget request included $4.3 million in PE 64771N for medical   
   development.                                                            
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $1.0 million for
   voice instructional devices (VID) technology.                           
       The conferees agree to authorize an increase of $1.0 million for    
   voice instructional devices (VID) technology.                           
           Distributed surveillance system                                         

       The budget request included $42.0 million in PE 64784N for advanced 
   deployable system (ADS) engineering and manufacturing development.      
       The House bill would authorize an increase of $6.7 million to       
   continue the planned introduction of automation and data fusion         
   capability for the ADS demonstration system.                            
    The Senate amendment contained no similar provision.                   

       The conferees agree to authorize an increase of $6.7 million to     
   continue the planned introduction of automation and data fusion         
   capability for the ADS demonstration system.                            
           Battle force tactical training                                          

       The budget request included $5.9 million for the surface tactical   
   team trainer (STTT). The STTT is designated to further develop an       
   existing system, the battle force tactical training (BFTT) system, so it
   will be able to provide joint warfare training. A highly successful     
   small business innovative research (SBIR) project, N96 111, leveraged   
   the capabilities of commercial off-the-shelf operating systems and      
   processors.                                                             
       The Senate amendment would authorize an increase of $7.0 million in 
   PE 24571N for the purpose of SBIR phase III follow-on work to continue  
   the BFTT operating system conversion.                                   
    The House bill would authorize the budget request.                     

       The conferees agree to authorize an increase of $5.0 million in PE  
   24571N for the purpose of SBIR phase III follow-on work to continue the 
   BFTT operating system conversion.                                       
           High Speed Anti-Radiation Missile Improvement                           

       The budget request included $18.9 million in PE 25601N for High     
   Speed Anti-Radiation Missile Improvement.                               
       The House bill would authorize an increase of $15.0 million for the 
   Advanced Anti-Radiation Guided Missile (AARGM).                         
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $10.0 million to    
   accelerate AARGM development.                                           
           Marine corps ground combat/supporting arms systems                      

       The budget request included $14.7 million for the Marine Corps      
   ground combat/supporting arms systems.                                  
       The House bill would authorize an increase of $8.0 million,         
   including $5.0 million for research and development requirements        
   associated with the Shortstop electronic protection system and an       
   increase of an additional $3.0 million would be for development of an   
   automatic target tracker for the M1 Abrams tank.                        
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $3.0 million in     
   PE26623M for development of an automatic target tracking system for the 
   M1 tank.                                                                
           Airborne reconnaissance systems                                         

       The budget request included no funding for the Navy in PE 35206N to 
   develop airborne reconnaissance systems. The budget request included    
   $8.4 million in PE 35206D8Z that the Department of Defense asked to be  
   transferred to the Navy program element. These funds included $4.6      
   million for development of framing reconnaissance cameras.              
       The House bill would authorize an increase of $8.0 million in PE    
   35207D8Z to accelerate the development of electro-optical (EO) framing  
   technology. The House Report (H. Rept. 105 532) noted support of EO     
   framing technology with ``on chip forward motion compensation.''        
    The Senate amendment would approve the budget request.                 

       The conferees agree to authorize $16.4 million for PE 35206N,       
   including the transfer of $8.4 million from PR 35206D8Z and an increase 
   of $8.0 million for EO framing technology.                              
       The conferees believe that the Department should select the system  
   and the upgrades for using the EO framing resources that would best meet
   requirements. The conferees understand that the term ``forward motion   
   compensation'' is a proprietary term that could unnecessarily limit the 
   choices of the Department for improving the optical capability of       
   sensors deployed in tactical aircraft and other platforms.              
           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $13,598.1 million for Air Force, Research and Development in the     
   Department of Defense. The House bill would authorize $13,577.2 million.
   The Senate amendment would authorize $13,635.0 million. The conferees   
   recommended an authorization of $13,918.7 million. Unless noted         
   explicitly in the statement of managers, all changes are made without   
   prejudice.                                                              

   Offset Folios 1178 to 1186 insert here                                  



           Friction welding                                                        

       The budget request included $62.6 million in PE 62102F for materials
   research.                                                               
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $1.5 million to 
   develop and optimize friction welding techniques.                       
       The conferees agree to authorize an increase of the $1.5 million to 
   develop and optimize friction welding techniques.                       
           Integrated high performance turbine engine program                      

       The budget request included a total of $15.0 million for the        
   integrated high performance turbine engine program (IPTEP).             
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize a decrease of $9.0 million:    
   $4.0 million in PE 62203F; $3.0 in PE 63202F; and $2.0 in PE 63216F for 
   IPTEP.                                                                  
    The House recedes.                                                     

           Variable displacement vane pump                                         

       The budget request included $69.0 million in PE 62203F for aerospace
   propulsion.                                                             
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize a decrease of $4.0 million, as 
   discussed elsewhere in this statement of managers, and an increase of   
   $2.0 million for the variable displacement vane pump program.           
    The House recedes.                                                     

           High frequency active auroral research program                          

       The budget request included no funding for the high frequency       
   auroral research program (HAARP).                                       
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $14.0 million   
   for HAARP, including: $9.0 million in PE 62601F; $3.0 million in PE     
   63160BR; and $2.0 million in PE 63714D.                                 
       The conferees agree to authorize a total of $14.0 million for HAARP,
   as recommended in the Senate amendment.                                 
       The purpose of HAARP is to explore the use of low-frequency         
   electromagnetic waves for detecting and imaging underground structures  
   and tunnels and to determine the viability and military utility of the  
   HAARP concept. The conferees direct the Secretary of the Air Force to   
   report to the congressional defense committees on the potential         
   applications and use of the HAARP concept to support military and       
   intelligence objectives with the submission of the fiscal year 2000     
   budget request.                                                         
           Protein-based memory                                                    

       The budget request included $65.2 million in PE 62702F for command  
   control and communications research.                                    
       The House bill would authorize an increase of $3.0 million for      
   protein-based memory development.                                       
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $2.5 million in PE  
   62702F for protein-based memory development.                            
           Advanced low observable coatings                                        

       The budget request included $21.0 million in PE 63112F for advanced 
   materials for weapons systems.                                          
       The House bill would authorize an increase of $9.0 million for      
   continued exploration of advanced low observable coatings.              
    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize an increase of $9.0 million.          

           Night vision technology                                                 

       The budget request included $16.6 million in PE 63231F for crew     
   systems and personnel protection technology.                            
       The House bill would authorize an increase of additional $13.0      
   million, including $3.0 million for ejection seat technology, $5.5      
   million for laser aircrew protection, and $4.5 million for panoramic    
   night vision technology.                                                
       The Senate amendment would authorize an increase of $3.0 million for
   panoramic night vision technology.                                      
       The conferees agree to authorize an increase of $11.5 in PE 63231F, 
   including an increase of $3.0 million for panoramic night vision        
   technology; an increase of $3.0 million for ejection seat technology;   
   and an increase of $5.5 million for laser aircrew protection.           
           Electronic combat technology                                            

       The budget request included $25.6 million in PE 63270F for          
   electronic combat technology.                                           
       The House bill would authorize an increase of $9.0 million for the  
   ALR 69 Radar Warning Receiver.                                          
       The Senate amendment would authorize an increase of $14.0 million   
   for the ALR 69 Precision Location and Identification upgrade.           
       The conferees agree to authorize an increase of $14.0 million for   
   the ALR 69 Precision Location and Identification upgrade.               
           Ballistic Missile Technology                                            

       The budget request included no funds in PE 63311F for the Ballistic 
   Missile Technology (BMT) program.                                       
       The House bill would authorize an increase of $16.0 million in PE   
   63311F for advanced ballistic missile technology and the conventional   
   ballistic missile demonstration, as well as transfer $1.3 million from  
   PE 63401F to PE 63311F.                                                 
    The Senate amendment would authorize an increase of $5.0 million       


                    in PE 63311F to support an additional missile technology      
          demonstration (MTD 4).                                                  
       The conferees agree to authorize an increase of $16.0 million in PE 
   63311F for ballistic missile technology and GPS range safety.           
           Micro-satellite technology development program                          

       The budget request did not include funds for the micro-satellite    
   technology program.                                                     
       The House bill would authorize an increase of $4.0 million in PE    
   63401F for the micro-satellite technology program.                      
       The Senate amendment would authorize an increase of $10.0 million in
   PE 63401F for the micro-satellite technology program.                   
       The conferees agree to authorize an increase of $10.0 million in PE 
   63401F for the micro-satellite technology program.                      
       The conferees note that $30.0 million is available in fiscal year   
   1998 funds for the Clementine II program. The conferees agree to        
   authorize the use of these funds for the micro-satellite technology     
   development program established pursuant to section 215 of the National 
   Defense Authorization Act for Fiscal Year 1998 (Public Law 105 85). The 
   conferees support the plan that has been developed by the Air Force and 
   the National Aeronautics and Space Administration to conduct a          
   micro-satellite inspection mission from the space shuttle. In addition, 
   the conferees direct the Secretary of Defense to develop a plan for     
   executing the remaining funds. In developing this plan, the conferees   
   direct the Secretary to evaluate proposals and technologies developed by
   the Air Force Research Laboratory, the Naval Research Laboratory, and   
   the Lawrence Livermore National Laboratory. The Secretary's plan shall  
   be submitted to the congressional defense committees by March 15, 1999. 
           Solar orbital transfer vehicle                                          

       The budget request did not include funds for the Solar Orbital      
   Transfer Vehicle (SOTV).                                                
       The Senate amendment would authorize an increase of $10.0 million in
   PE 63401F for SOTV.                                                     
    The House bill would not authorize additional funds for SOTV.          

       The conferees agree to authorize an increase of $7.5 million in PE  
   63401F for SOTV. The conferees support the solar powered orbital        
   transfer vehicle program, which combines thermionic technology for      
   electricity production and thermal propulsion which can be used to move 
   spacecraft to higher orbits or new orbits.                              
           Low cost launch technology development                                  

       The budget request included no funds for low cost launch technology 
   development.                                                            
       The Senate amendment would authorize the following increases for low
   cost launch technology: (1) an increase of $5.0 million for the Scorpius
   concept in PE 63173C; (2) an increase of $5.0 million for the Excalibur 
   concept in PE 63173C; and (3) an increase of $5.0 million in PE 63401F  
   for the Air Force to utilize in support of low cost launch technology   
   development.                                                            
       The House bill would authorize the budget request for low cost      
   technology development.                                                 
       The conferees agree to authorize an increase of $10.0 million in PE 
   63401F and no funds in PE 63173C for low cost launch technology         
   development. The conferees direct the Secretary of the Air Force to     
   utilize these funds in support of the Scorpius and Excalibur concepts in
   a manner that is most effective. The conferees also believe that the Air
   Force should begin to program sustaining funds to support these         
   technology efforts in the outyears.                                     
           Space maneuver vehicle                                                  

       The budget request did not include funds for space maneuver vehicle 
   or common aero vehicle technology development.                          
       The House bill would authorize an increase of $15.0 million in PE   
   63401F to support development of space maneuver vehicle and common aero 
   vehicle technology development.                                         
       The Senate amendment would authorize an increase of $10.0 million in
   PE 65864F for space maneuver vehicle technology development.            
       The conferees agree to authorize no increase in fiscal year 1999    
   funds, but note that $10.0 million is available in fiscal year 1998     
   funds appropriated for the Military Spaceplane. The conferees agree to  
   authorize the use of these fiscal year 1998 funds for space maneuver    
   vehicle or common aero vehicle technology development.                  
       The conferees direct the Air Force to work with the National        
   Aeronautics and Space Administration (NASA) on developing responsive,   
   reusable space access systems such as the space maneuver vehicle, which 
   could serve as a reusable upper stage for a variety of space test       
   missions.                                                               
           Space control technology development                                    

       The budget request did not include funds for a new space control    
   technology initiative.                                                  
       The Senate amendment would authorize an increase of $30.0 million   
   for space control technology development.                               
       The House bill would authorize the budget request for a new space   
   control technology initiative.                                          
       The conferees have reviewed the Department of Defense's February    
   1998 report on the Kinetic Energy Anti-Satellite (KE ASAT) program. The 
   report states that ``DOD is currently examining potential space control 
   related research, development, and acquisition options to support the   
   President's policy, satisfy military requirements within available      
   resources, and address the architecture.'' In the cover letter to this  
   report, the Under Secretary of Defense for Acquisition and Technology   
   states that ``I anticipate that these efforts will culminate in a       
   comprehensive plan in time for the FY 2000 President's budget.''        
       The conferees support the development of such a plan but are        
   concerned that insufficient resources are available to support a        

                    comprehensive evaluation of various technical options.        
          Therefore, the conferees agree to authorize an increase of $15.0 in PE  
          63438F to support a range of space control technology activities and to 
          develop the ``comprehensive plan'' cited in DOD's report. The Assistant 
          Secretary of Defense for Command, Control, Communications, and          
          Intelligence (Space and Information Superiority) shall be responsible   
          for developing this plan. The conferees direct the Secretary of Defense 
          to submit a report to the congressional defense committees by February  
          15, 1999, that describes the Secretary's plan for executing the space   
          control technology funds specified above. The report should also        
          describe the Secretary's plan for continuing these efforts in fiscal    
          year 2000 and beyond.                                                   
       The conferees note that $37.5 million is available in fiscal year   
   1998 funds appropriated for the KE ASAT program. The conferees direct   
   the Secretary to obligate promptly these funds. If the Secretary        
   concludes that a portion of these fiscal year 1998 funds should be      
   applied to other space control development activities, the conferees    
   direct the Secretary to include any such recommendation in the          
   comprehensive space control technology development plan specified above.
   The conferees will consider any such recommendation and any related     
   reprogramming that the Secretary may choose to submit to Congress.      
           Variable stability in-flight simulator test aircraft                    

       The budget request included no funding for the Variable Stability   
   In-Flight Simulator Test Aircraft (VISTA).                              
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $7.3 million in 
   PE 64237F for the VISTA.                                                
       The conferees agree to authorize an increase of $7.3 million in PE  
   64237F for the VISTA.                                                   
           Electronic warfare development                                          

       The budget request included $90.1 million in PE 64270F for          
   electronic warfare development.                                         
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $20.0 million to
   accelerate the development of the C 130 Compass Call upgrade to the     
   block 30 configuration.                                                 
       The conferees agree to authorize an increase of $20.0 million to    
   accelerate the development of the C 130 Compass Call upgrade to the     
   block 30 configuration.                                                 
           Evolved expendable launch vehicle program                               

       The budget request included $280.3 million for the Evolved          
   Expendable Launch Vehicle (EELV) program.                               
    The House bill would authorize the budget request.                     

    The Senate amendment would authorize the budget request.               

       The conferees are aware of excess prior year funding in the EELV    
   program. The conferees agree to authorize a decrease to the budget      
   request of $14.0 million in PE 64853F, and direct that $14.0 million in 
   excess prior years funds be used to satisfy fiscal year 1999            
   requirements for the EELV program.                                      
           Big Crow program office                                                 

       The budget request included no funding for the Big Crow Program     
   Office (BCPO). The BCPO operates two flying laboratories to evaluate    
   weapons and communications systems under stressful conditions.          
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $10.0 million to
   the budget request for the BCPO to underwrite activities in fiscal year 
   1999.                                                                   
       The conferees agree to authorize an increase of $8.0 million for    
   BCPO, and support the need for the report on funding policy and         
   management directed in the Senate report (S. Rept. 105 189).            
           Flight test safety                                                      

       The budget request included $370.1 million in PE 65807F for test and
   evaluation support.                                                     
       The House bill would authorize an increase of $6.0 million for      
   flight test safety enhancements.                                        
       The Senate amendment would authorize a decrease of $4.0 million, as 
   discussed elsewhere in this statement of managers.                      
       The conferees agree to authorize a net increase of $2.0 million in  
   PE 65807F, including an increase of $6.0 million for flight test safety 
   enhancements at the Air Force Flight Test Center and a decrease of $4.0 
   million, as discussed elsewhere in this report.                         
            16 Squadrons                                                           

       The budget request included $125.0 million in PE 27133F for F 16    
   squadrons.                                                              
    The House bill would authorize a decrease of $24.6 million.            

       The House report (H. Rept. 105 532) noted that the budget request   
   reflects an increase of $24.6 million over the level forecast as        
   necessary to support fiscal year 1999 requirements in the fiscal year   
   1998 budget request.                                                    
    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   

           Advanced medium range air-to-air missile                                

       The budget request included $45.0 million in PE 27163F for advanced 
   medium range air-to-air missile (AMRAAM) research.                      
       The House bill and the Senate amendment would authorize the budget  
   request.                                                                
       The conferees agree to authorize a decrease of $20.0 million to     
   reflect the delayed EMD effort.                                         
    The conferees are aware that there are additional risk reduction       


                    activities that will be required before the Air Force begins  
          the engineering and manufacturing development (EMD) effort for the      
          AMRAAM pre-planned product improvement (P3I) program. The conferees     
          support the goals of the P3I program, but believe it prudent to conduct 
          the additional risk reduction activities.                               
           Joint Air-To-Surface Standoff Missile                                   

       The budget request included $132.9 million for the Joint            
   Air-to-Surface Standoff Missile (JASSM).                                
       The House bill and the Senate amendment would authorize the budget  
   request.                                                                
       The budget request included 52 test missiles to support the JASSM   
   test program. Based largely on lower than expected cost estimates, the  
   conferees understand the Air Force now plans to procure 69 test         
   missiles. Even under a revised test plan, eight of these missiles are   
   excess to the testing needs of the program. The conferees agree to      
   authorize a decrease of $3.0 million to eliminate these missiles.       
           Theater Battle Management C4I                                           

       The budget request included $27.3 million for theater battle        
   management C4I.                                                         
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $5.0 million for
   pre-planned product improvements for the air support operations center  
   (ASOC).                                                                 
       The conferees agree to authorize an increase of $5.0 million for    
   pre-planned product improvements for the ASOC.                          
           Joint Surveillance and Target Attack Radar System                       

       The budget request included $123.8 million in PE 27581F for the     
   Joint Surveillance and Target Attack Radar System (JSTARS).             
       The House bill would authorize a decrease of $5.6 million to        
   eliminate unnecessary studies and research.                             
    The Senate amendment would authorize the budget request.               

       The conferees note that the budget request includes $40.2 million   
   for the Radar Technology Improvement Program (RTIP). The conferees      
   support the RTIP program, but also understand that the Air Force has    
   identified a funding shortfall of $428.0 million for this program in    
   fiscal year 2000 and beyond. Given the uncertain status of the program, 
   the conferees believe it is prudent to reduce the level of resources    
   applied to RTIP in fiscal year 1999 pending submission of a fully funded
   budget by the Air Force. Accordingly, the conferees agree to authorize a
   decrease of $25.0 million, as follows:                                  
    (1) $5.6 million to eliminate unnecessary studies and research; and    

       (2) $19.4 million to slow RTIP until such time as the Air Force     
   clarifies future funding of the JSTARS program.                         
           Seek Eagle                                                              

       The budget request included $17.6 million in PE 27590F for the Seek 
   Eagle weapons integration flight test program.                          
       The House bill would authorize an increase of $2.0 million to       
   continue testing Longshot, a range-increasing modification for          
   munitions.                                                              
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $2.0 million to     
   continue testing Longshot.                                              
           Defense Airborne Reconnaissance Program research and development        

       The budget request included funds for research and development in   
   the Army, Navy, Air Force, and Defense-Wide accounts for activities of  
   the Defense Airborne Reconnaissance Program (DARP), as shown in the     
   following table.                                                        

                                                                               

               Account  Budget request             Change from request          Conference agreement     

                                             House bill     Senate amendment              

RDT&E, Army                       75,636       (26,000)                           70,048  
RDT&E, Navy                          342         67,200             (23,400)      66,548  
RDT&E, Air Force                                224,008                          349,403  
RDT&E, Defense-Wide              444,137      (143,333)              (8,000)      35,665  
                        ----------------  -------------  -------------------  ----------  

       Section 905 of the National Defense Authorization Act for Fiscal    
   Year 1998 (Public Law 105 85) transferred the management                
   responsibilities of the Defense Airborne Reconnaissance Office (DARO) to
   the military services, while retaining Office of the Secretary of       
   Defense (OSD)-level oversight responsibilities for determining airborne 
   reconnaissance architecture and systems interface requirements.         
       The budget request reflected continuation of airborne reconnaissance
   programs within DARO. However, subsequent to submitting the budget      
   request, the Secretary of Defense decided to:                           
    (1) abolish the DARO;                                                  

       (2) transfer the OSD-level functions to the Assistant Secretary of  
   Defense for Command, Control, Communications, and Intelligence (ASD     
   C3I); and                                                               
       (3) transfer program management responsibilities to the military    
   services.                                                               
       This decision was reflected in a April 14, 1998 letter from the     
   Under Secretary of Defense for Acquisition and Technology.              
    The conferees agree to make these adjustments, in both the             


                    procurement and the research and development titles. These    
          transfers are reflected in the tables contained in the conference       
          report. In addition, a more detailed spreadsheet of DARO-related        
          investment programs, summarizing transfers and other adjustments to     
          individual budget lines and program elements, is provided in the        
          classified annex that accompanies this conference report.               
       The conferees note that, unless otherwise reflected in the statement
   of managers, the transfers do not reflect a change to the purposes for  
   which the funds were requested in the original budget request.          
       The conferees are extremely concerned that assignment of acquisition
   program management and funding to the services has not been seen as a   
   signal that stovepipe systems of the past will be acceptable in the     
   future. The conferees stress that these programmatic actions demand a   
   firm leadership role by the Assistant Secretary of Defense (Command,    
   Control, Communications and Intelligence) in establishing policy and    
   exercising oversight to ensure reconnaissance system interoperability   
   for joint operations.                                                   
       In particular, the tactical control system (TCS), previously        
   assigned to the Unmanned Aerial Vehicle (UAV) Joint Program Office,     
   continues to be assigned to the Navy as the lead service. The conferees 
   note that there is some disagreement within the Department of Defense   
   with respect to whether TCS will serve as the implementation of a single
   standard tactical UAV and sensor control architecture. The conferees    
   believe that the issue of who operationally controls UAVs and their     
   sensors is an issue separate and distinct from system design technical  
   capabilities. The conferees believe it is imperative that the Joint     
   Requirements Oversight Counsel makes the necessary standards decisions  
   to ensure that operational commanders have full operational flexibility 
   for employment of UAVs.                                                 
       The budget request included $5.0 million in PE 35204D8Z for the     
   Army's Unmanned Aerial Vehicle (UAV) Systems Integration Laboratory     
   (SIL), and included $3.0 million for continued development of the       
   Multiple UAV Simulation Environment (MUSE).                             
       The House bill would direct the Assistant Secretary of Defense      
   (Command, Control, Communications and Intelligence) to provide the      
   congressional defense and intelligence committees a plan, which includes
   a funding profile, for the continued operation of the SIL no later than 
   March 31, 1999.                                                         
    The Senate amendment had no similar provision.                         

    The Senate recedes.                                                    

           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $9,314.7 million for Defense-Wide, Research and Development in the   
   Department of Defense. The House bill would authorize $9,173.9 million. 
   The Senate amendment would authorize $9,302.8 million. The conferees    
   recommended an authorization of $8,848.8 million. Unless noted          
   explicitly in the statement of managers, all changes are made without   
   prejudice.                                                              

   Offset Folios 1197 to 1205 insert here                                  



           University research initiative                                          

       The budget request included $216.0 million in PE 61103D for the     
   university research initiative. The request included $10.0 million for  
   the Defense Experimental Program to Stimulate Competitive Research      
   (DEPSCoR).                                                              
       The House bill would authorize an increase $15.0 million for the    
   DEPSCoR.                                                                
       The Senate amendment would authorize the budget request but would   
   fence an additional $10.0 million within the request for the DEPSCoR, a 
   total of $20.0 million.                                                 
    The House recedes.                                                     

           Ballistic Missile Defense Organization funding and programmatic guidance

       The budget request included approximately $3.6 billion for the      
   Ballistic Missile Defense Organization (BMDO) for research, development,
   test, and evaluation (RDT&E), and procurement.                          
       The House bill would authorize an increase of $76.8 million for     
   BMDO. In addition, the House bill would authorize an increase of $50.0  
   million for radar improvements related to Navy Upper Tier under Navy    
   research, development, test, and evaluation (RDT&E).                    
       The Senate amendment would authorize a decrease of $97.7 million for
   BMDO.                                                                   
    The conferees agree to authorize a decrease of $51.7 million for BMDO. 

       The conferees recommended funding allocations for BMDO are          
   summarized in the following table. Additional programmatic and funding  
   guidance is also provided below.                                        

                            BMDO FUNDING ALLOCATION                            
                            [In millions of dollars]                           

                   Program  Request        Senate         House       Conference        

                                                                  Change     Total  

Support Technology              253.5      +140.0      +12.8      +130.0     383.5  
THAAD                           821.7      -323.9                 -294.3     527.4  
TMD BM/C3*                       22.8                                         22.8  
Navy Lower Tier**               289.1                                        289.1  
Navy Upper Tier***              190.4      +120.0      +70.0      +120.0     310.4  
MEADS                            43.0       -33.0                  -19.0      24.0  
NMD                             950.5                                        950.5  
Joint TMD                       176.8                   -2.0                 176.8  
PAC 3**                         480.5                                        480.5  
FOS E&I                          96.9                                         96.9  
BMD Tech Ops                    190.1                   -4.0                 190.1  
Int'l Coop Programs              50.7        -0.8                  +12.0      62.7  
Threat/Countermeasures           22.1                                         22.1  

*Procurement only.                                                                                                                 
**Procurement and RDT&E.                                                                                                           
***The House bill also included an increase of $50.0 million for radar improvements related to Navy Upper Tier under Navy RDT&E.   

                                     SUPPORT TECHNOLOGY                           

       The conferees continue to support BMDO's wide bandgap electronics   
   material development program. Higher speed and higher temperature       
   operation afforded by wide bandgap electronic materials could enhance   
   the miniaturization and functionality of advanced sensors and processing
   systems for space-based ballistic missile defense (BMD) sensors and     
   ground-based radar systems. The conferees agree to authorize an increase
   of $14.0 million in PE 62173C to support this important activity.       
       The conferees continue to support the Atmospheric Interceptor       
   Technology (AIT) program to develop advanced interceptors with potential
   applications for a range of theater missile defense (TMD) programs. The 
   conferees agree to authorize an increase of $22.0 million in PE 63173C  
   to continue the AIT program.                                            
       The conferees commend BMDO and the Air Force for increasing funding 
   in the fiscal year 1999 budget request for the Space Based Laser (SBL)  
   Readiness Demonstrator (RD) program, but are concerned by the Air       
   Force's failure to move the program beyond initial concept definition   
   studies. The conferees continue to support the development of an SBL RD 
   that could be ready for launch in the 2006 2008 timeframe and urge the  
   Secretary of Defense to provide the necessary funding and programmatic  
   guidance to put the SBL program on this path. Due to the failure to     
   release a request for proposal (RFP) and the Air Force's apparent lack  
   of interest in aggressively advancing the program, the conferees will   
   evaluate alternative management arrangements for the program. The       
   conferees direct the Secretary of Defense to promptly release the RFP   
   for an SBL RD that could be launched in the 2006 2008 timeframe. In     
   order to support this objective, the conferees agree to authorize an    
   increase of $94.0 million in PE 63173C.                                 
    National Missile Defense                                               

       The conferees note the existence of some confusion regarding what,  
   if any, national missile defense (NMD) policy has been established in   
   law or otherwise endorsed by Congress. Although the conferees agreed to 
   a provision on this subject last year, which was enacted in the National
   Defense Authorization Act for Fiscal Year 1998 (section 231 of Public   
   Law 105 85), this provision did not address NMD deployment policy nor   
   otherwise endorse the administration's policy known as                  
   ``three-plus-three''.                                                   
       Although the Congress has acceded to recent funding requests for the
   administration's ``three-plus-three'' program, it has never             

                    formally endorsed the concept. Indeed, the continued lack of  
          programmatic definition associated with the ``plus-three'' phase has    
          called into question the administration's willingness and ability to    
          deploy an NMD system on the ``three-plus-three'' schedule, the integrity
          of the concept itself, and exacerbated the current debate. The NMD      
          program is the only major defense acquisition program that is not being 
          managed to scheduled milestones beyond initial development. This is a   
          departure from usual practice and proven program management principles. 
          The conferees note that the Director of BMDO has testified that NMD is  
          still an ``extremely high risk'' program. The conferees believe that the
          lack of program definition in the ``plus-three'' phase, and the lack of 
          a defined path from this phase into production and deployment, is       
          contributing to this risk and suboptimal decision-making with adverse   
          impact to NMD programmatics and budgets.                                
       At the same time, the conferees note that the bipartisan Commission 
   to Assess the Ballistic Missile Threat to the United States unanimously 
   concluded that ``under some plausible scenarios . . . the U.S. might    
   well have little or no warning before operational deployment'' of long  
   range ballistic missiles by hostile powers. The conferees believe that  
   the potential mismatch between this warning time and the deployment     
   timeline for a national missile defense poses a conundrum. Current      
   policy is that no ballistic missile threat to the United States         
   currently justifies deployment of a national missile defense. However,  
   when new ballistic missile threats do emerge, it may be too late to     
   respond in a timely manner.                                             
       In view of the above, the conferees believe that further program    
   definition in the ``plus-three'' phase and beyond will mitigate some of 
   the risks identified. Accordingly, the Secretary of Defense is expected 
   to establish appropriate milestones and exit criteria for the NMD       
   program that are consistent with those for other major defense          
   acquisition programs. Further, the Secretary is expected to conduct NMD 
   program milestone and budget reviews to ensure that established exit    
   criteria are being met.                                                 
       The conferees note that the Secretary of Defense has completed and  
   submitted to Congress the report on sea-based NMD options called for in 
   last year's conference report (H. Rept. 105-340), but that this report  
   was submitted only in classified form. The conferees direct the         
   Secretary to submit an unclassified summary of this report to the       
   congressional defense committees as soon as possible.                   
                             MEDIUM EXTENDED AIR DEFENSE SYSTEM                   

       Although the conferees continue to support the need for a TMD system
   to support maneuver forces, the conferees are troubled by the failure of
   the Department of Defense to structure a fully-funded development       
   program to satisfy this requirement. Although the conferees would       
   support a coherent and fully-funded Medium Extended Air Defense System  
   (MEADS) program, they are unwilling to support a MEADS program that has 
   no funding programmed beyond fiscal year 1999. The conferees note that  
   the Department of Defense has had ample opportunity to address this     
   shortfall. In light of the Department's unwillingness to provide        
   adequate funding in the outyears, the conferees recommend a reduction of
   $19.0 million in PE 63869C. Additional funding and programmatic guidance
   regarding the MEADS program is provided elsewhere in this report.       
                      THEATER HIGH ALTITUDE AREA DEFENSE (THAAD) SYSTEM           

       The conferees continue to support the development, production, and  
   fielding of THAAD as a matter of highest priority. The conferees support
   the budget request of $497.7 million for THAAD Demonstration and        
   Validation (Dem/Val). In addition, as addressed elsewhere in this       
   report, the conferees agree to authorize an increase of $29.6 million in
   THAAD Dem/Val funding to support increased competition in the THAAD     
   program, for a total authorization in PE 63861C of $527.4 million.      
       The conferees are encouraged by the recent cost sharing agreement   
   between the prime contractor and BMDO, and believe that testing should  
   resume at an expeditious pace, without undue delay. However, given      
   recent delays in the THAAD testing program, and the requirement for     
   THAAD to achieve three successful intercept tests prior to entering     
   Engineering and Manufacturing Development (EMD), the conferees agree to 
   authorize a decrease of $323.9 million from PE 64861C for THAAD EMD.    
       The conferees expect the Secretary of Defense not to overreact to   
   limited, albeit adverse, test results but to re-double efforts to       
   structure a THAAD program that provides for as timely a response as     
   possible to the recent medium range ballistic missile threat            
   developments. The conferees reiterate the views expressed in previous   
   reports that the THAAD missile and the Navy Upper Tier missile should   
   not be viewed as competing systems, but as complementary. The conferees 
   do not support proposals to use the Navy Upper Tier missile as a        
   substitute for THAAD. The conferees note that the Navy endorses         
   continuation of the THAAD program and views continuation of THAAD       
   testing as important to the success of an accelerated Navy Upper Tier   
   program.                                                                
                               NAVY UPPER TIER (THEATER WIDE)                     

       The conferees continue to support the Navy Upper Tier program and   
   urge the Secretary of Defense to accelerate this important development  
   effort within an acceptable degree of program risk. To facilitate this  
   acceleration, the conferees also urge the Navy to begin allocating funds
   from within its budget to complement those already programmed within the
   BMDO budget.                                                            
       The conferees are concerned that necessary radar improvements have  
   not kept up with developments in the Navy Upper Tier interceptor missile
   system. Therefore, the conferees agree to authorize an increase of $50.0
   million for radar improvements competition. The conferees direct BMDO   
   and the Navy to accelerate radar upgrades to ensure that this capability
   becomes available at the earliest possible date. In pursuing this       
   competition, the conferees direct that a prototype solid state radar be 
   available in 2001 in order to take full advantage of the Standard       
   Missile III development testing planned for                             

                    2002. In addition, the conferees agree to authorize an        
          increase of $70.0 million for Navy Upper Tier acceleration, for an      
          overall increase of $120.0 million in PE 63868C.                        
                                  BMD TECHNICAL OPERATIONS                        

       The conferees support the efforts being performed at the Army Space 
   and Strategic Defense Command's Advanced Research Center (ARC). The ARC 
   continues to be a valuable tool in support of the Army's development of 
   both theater and national missile defense systems. Therefore, the       
   conferees agree to authorize an increase of $5.0 million in PE 63874C   
   for support of the ARC.                                                 
       The conferees note substantial unexplained growth in BMDO's system  
   architecture and engineering effort and agree to authorize a decrease of
   $5.0 million in PE 63874C.                                              
                             INTERNATIONAL COOPERATIVE PROGRAMS                   

       The budget request included $37.9 million for BMDO's Israeli        
   Cooperative Project, which includes funding for the Arrow ballistic     
   missile defense system. The conferees agree to authorize an increase of 
   $12.0 million in PE 63875C to support interoperability design so the    
   Arrow can operate alongside forward deployed U.S. missile defense       
   systems.                                                                
                                        PATRIOT PAC-3                             

       At the request of the Director of BMDO, the conferees recommend a   
   zero-balance transfer of $40.0 million from PAC-3 procurement to PAC-3  
   EMD to properly align funds for the type of work being performed. The   
   conferees note with concern that this realignment is the result of      
   significant delays in the PAC-3 flight test program. The conferees      
   remain convinced that PAC-3 is an essential TMD system and is the only  
   near term defense against threats emerging in the Southwest Asia and    
   elsewhere. Nevertheless, if the PAC-3 test program does not demonstrate 
   significant improvement, the conferees do not rule out the possibility  
   of future funding reductions.                                           
                                 MEDICAL FREE ELECTRON LASER                      

       The budget request included $9.7 million in PE 62227D for the       
   medical free electron laser program.                                    
    The House bill would authorize an increase of $5.0 million.            

    The Senate amendment would authorize an increase $7.0 million.         

    The conferees agree to authorize an increase of $7.0 million.          

                       COMPUTING SYSTEMS AND COMMUNICATIONS TECHNOLOGY            

       The budget request included $417.7 million in PE 62301E for         
   computing systems and communications technology.                        
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize a decrease of $30.0 million in 
   the joint infrastructure protection project and a transfer of an        
   additional $10.0 million from that project to PE 33104F for cyber       
   security research.                                                      
       The conferees endorse the views in the Senate report (S. Rept.      
   105-189) with regard to the joint infrastructure protection project and 
   reiterate the requirement for the report specified by the Senate. The   
   conferees are especially concerned about the deficient planning for such
   a project given the widely recognized need to address vulnerabilities in
   the U.S. information infrastructure as quickly as possible. However, in 
   recognition of the urgency of this issue, the conferees agree to an     
   undistributed reduction in PE 62301E of $40.0 million to allow Defense  
   Advanced Research Projects Agency (DARPA) flexibility to allocate the   
   reduction consistent with national security priorities.                 
           Chemical-biological defense program                                     

       The budget request included $620.3 million for the                  
   chemical-biological defense program, including $336.4 million in        
   research and development, test and evaluation and $283.9 million in     
   procurement. The budget request also included $88.0 million for the     
   Defense Advanced Research Projects Agency (DARPA) biological warfare    
   (BW) defense program (PE 62383E).                                       
       The House bill would authorize the budget request for the           
   chemical-biological defense program and the biological warfare defense  
   program (PE 62383E), but would decrease the budget request of $6.9      
   million for procurement of contamination avoidance equipment for the use
   by the Reserve Components to respond to domestic emergencies.           
       The Senate amendment would recommend the following increases to the 
   budget request for the chemical-biological defense program: $10.0       
   million to accelerate research and development of small, light-weight,  
   man-portable chemical and biological agent detection sensors; $4.0      
   million in PE 62384BP for Project SAFEGUARD to continue proof of concept
   testing to establish sensor performance, initiate packaging and         
   real-time processing, and the conduct of platform studies; and $1.5     
   million in PE 62383E to demonstrate the use of technologies for the     
   deployment of telemedicine and other capabilities to the warfighters;   
   but would recommend a $12.0 million reduction to the budget request for 
   the DARPA BW program.                                                   
       Additionally, the Senate amendment would transfer the mission,      
   function and resources for the chemical-biological defense program to   
   the Defense Threat Reduction Agency (DTRA), consistent with the         
   recommendation of the November 1997 Defense Reform Initiative (DRI).    
       The conferees agree to authorize an increase of $15.5 million for   
   chemical-biological defense for acceleration of research and development
   of small, light-weight, man-portable chemical and biological detectors  
   ($5.0 million in PE 61384BP and $5.0 million in PE 62384BP), $4.0       
   million in PE 62384 BP for Project SAFEGUARD, and $1.5 million in PE    
   62384E for the demonstration and deployment of technologies for         
   telemedicine and other capabilities to the warfighters; but would reduce
   the budget request by $7.0 million for                                  

                    PE 62383E. Additionally, the conferees continue to express    
          strong support for innovative technologies to detect chemical and       
          biological agents, such as aerogels and radio frequency identification  
          sensor tags, and encourage the broad participation of the national      
          laboratories, universities and, where appropriate, industry, in these   
          efforts.                                                                
       The conferees endorse the concerns expressed in the Senate report   
   (S. Rept. 105 189) regarding the shortcomings and deficiencies in the   
   chemical-biological defense program related to the provision of adequate
   force structure and equipment to protect military facilities, as well as
   the deficiencies in doctrine, policy, equipment and training for the    
   defense of critical overseas ports and airfields. The conferees direct  
   the Secretary of Defense to report to the congressional defense         
   committees by December 1, 1998 and annually thereafter, in the          
   Department of Defense Nuclear, Chemical Biological (NCB) Defense Annual 
   Report, on the plans to correct these deficiencies, including the       
   deployment on a long-term basis of Army Biological Integrated Detection 
   Systems (BIDS) companies in high threat commands or regions.            
               OVERSIGHT AND MANAGEMENT OF CHEMICAL/BIOLOGICAL DEFENSE PROGRAM    

       The conferees note progress achieved in implementing the provisions 
   of section 1701 of the National Defense Authorization Act for Fiscal    
   Year 1994 (Public Law 103 160, 52 U.S.C. 1522) in consolidating,        
   coordinating and integrating the chemical-biological defense            
   requirements of the military departments into a single office within the
   Department of Defense. Under this agreement, the DOD chemical-biological
   defense program office provides overall policy and budget guidance for  
   the program, the Defense Acquisition Board process provides oversight of
   the program, and the Department of the Army acts as the executive agent.
   The conferees also note that the establishment of a Joint Nuclear,      
   Chemical and Biological (NCB) Board to provide management structure for 
   the program ensures that the operational needs of the services are      
   integrated and coordinated, and that unnecessary duplication of effort  
   is eliminated in the preparation of the chem-bio defense Program        
   Objective Memorandum.                                                   
       The conferees agree that a single office for overall coordination   
   and integration of the DOD chem-bio defense program, as required by     
   Public Law 103 160, be maintained within the Office of the Secretary,   
   and strongly believe that the office must be assigned sufficient staff  
   to exercise its policy and budget guidance roles. In addition, the      
   conferees strongly support continued implementation of the Joint Service
   Agreement to ensure coordination, integration and management of the     
   program.                                                                
       With regard to the transfer of the chem-bio defense program to the  
   Defense Threat Reduction Agency (DTRA), the conferees agree that the    
   management role of the DTRA with regard to the chem-bio defense program 
   should be limited to those chem-bio defense activities and projects that
   represent unique operational mission responsibilities of DTRA.          
   Therefore, the conferees do not agree to transfer overall responsibility
   for the execution and day-to-day management of the chem-bio defense     
   program to DTRA. However, to ensure consideration of DTRA chem-bio      
   defense and related counterproliferation operational requirements in the
   DOD chem-bio defense program, the conferees recommend that DTRA become a
   party to the Joint Service Agreement on NCB defense and be included as a
   voting member of the Joint NCB Defense Board.                           
           Tactical technology                                                     

       The budget request included $189.0 million in PE 62702E for tactical
   technology.                                                             
       The House bill would authorize a decrease of $37.0 million for      
   applied research in tactical technology.                                
       The Senate amendment would authorize a decrease of $5.0 million for 
   the increased scope of work on the micro unmanned aerial vehicle        
   program.                                                                
       The conferees agree to authorize a decrease of $32.0 million in PE  
   62702E.                                                                 
           Integrated command and control technology                               

       The budget request included $34.0 million in PE 62708E for          
   integrated command and control technology.                              
       The House bill would authorize an increase of $6.0 million for      
   continued development of advanced technologies for flat panel displays. 
       The Senate amendment would authorize an increase of $8.0 million for
   flat panel display to continue the development of a domestic            
   infrastructure within the context of the flat panel display initiative. 
       The conferees agree to authorize an increase of $7.0 million for    
   flat panel displays.                                                    
           Materials and electronic technologies                                   

       The budget request included $244.4 million in PE 62712E for material
   and electronics technology.                                             
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $6.0 million for
   the continued development of the mixed mode electronics multi-technology
   insertion (MIME) program.                                               
       The conferees agree to authorize an increase of $6.0 million for the
   MIME program and to authorize a reduction of $8.0 million for           
   sonoelectronics to fund other higher priority projects.                 
           Weapons of mass destruction technologies                                

       The budget request included $203.6 million for weapons of mass      
   destruction technologies (PE 62715BR) of the Defense Special Weapons    
   Agency (DSWA).                                                          
    The House bill would authorize the budget request.                     

    The Senate amendment would recommend an increase of $15.0              


                    million, including $10.0 million to maintain nuclear core     
          competencies and critical scientific and engineering expertise; $2.0    
          million to maintain efforts to protect critical civil and commercial    
          advanced electronic technologies and space systems against nuclear and  
          conventional explosions; and $3.0 million to accelerate the pace and    
          development of components and subsystems toward a prototype ``deep      
          digger'' system.                                                        
       The conferees agree to authorize an increase of $13.0 million to the
   budget request: $10.0 million to maintain nuclear core competencies and 
   critical scientific and engineering expertise in nuclear weapons effects
   technology and $3.0 million to accelerate the pace and development of   
   components and subsystems toward a prototype ``deep digger'' system.    
       The conferees remain concerned about the impact of high altitude    
   nuclear and conventional explosions on critical civil and commercial    
   activities and the potential vulnerability of next generation satellites
   and high technology upon which U.S. Armed Forces rely. The conferees    
   have supported the efforts of the DSWA to conduct research on the       
   effects of electromagnetic pulse (EMP) and the potential impact on      
   military systems and critical technologies, and to develop technologies 
   that would reduce potential vulnerabilities of the effects of radiation 
   and EMP on advanced electronic technologies and space systems.          
       The conferees endorse the direction contained in the House Report   
   (H. Rept. 105 532) accompanying its fiscal year 1999, defense           
   authorization bill that the Secretary of Defense, in consultation with  
   the Director of Central Intelligence, report to the congressional       
   defense committees by March 1, 1999 on the potential effects of high-   
   and low-frequency EMP on critical military and civil systems and steps  
   that might be taken to reduce potential vulnerabilities to EMP.         
           Explosives demilitarization technology                                  

       The budget request included $11.6 million for the explosives        
   demilitarization technology program (PE 63104D8Z).                      
       The House bill would authorize an increase of $2.0 million to allow 
   continued aggressive development of environmentally safe procedures to  
   safely dispose of conventional military munitions.                      
       The Senate amendment would authorize an increase of $5.5 million:   
   $4.0 million to complete the demonstration of existing commercially     
   available blast chamber technology; and $1.5 million to design a mobile 
   system utilizing the commercially available blast chamber technology.   
       The conferees agree to authorize an increase of $6.0 million to the 
   budget request, including $2.0 million to continue aggressive           
   development of environmentally safe procedures to dispose of            
   conventional military munitions and $4.0 million to complete the        
   demonstration of commercially available blast chamber technology as a   
   viable alternative to open burn/open detonation demilitarization of     
   conventional munitions.                                                 
       The conferees concur with the concerns expressed in the Senate      
   report (S. Rept. 105 189) regarding the existence of small numbers of   
   conventional munitions at demilitarization sites in the United States   
   which need to be destroyed, where it may not be cost effective or       
   practical to construct a destruction facility. The conferees support the
   efforts of the Department of Defense to design a mobile system utilizing
   the commercially available blast chamber technology.                    
           Counterterror technical support program                                 

       The budget request included $35.8 million for the counterterror     
   technical support (CTTS) program (PE 63122D8Z).                         
       The House bill would authorize an increase of $4.0 million increase 
   for the development and demonstration of biometric access control       
   technology, to include the use of authentication software and the       
   principal component method of facial recognition.                       
       The Senate amendment would authorize an increase of $5.0 million for
   the facial recognition technology program. Additionally, the Senate     
   would recommend the transfer of the counterterror technical support     
   program to the Defense Threat Reduction Agency.                         
       The conferees agree to authorize an increase of $4.0 million for the
   facial recognition technology program. In addition, the conferees       
   endorse two recommendations contained in the Senate report (S. Rept. 105
   185). First, the conferees support efforts by the Department of Defense 
   to maintain collaborative efforts with allies who have demonstrated     
   counter-terrorism capabilities, which can provide the United States with
   a cost-effective way to remain on the cutting-edge of technology.       
   Second, the conferees support efforts by the Department to continue its 
   examination of retrofit options and to develop design guidelines for new
   and existing structures, including the use of composite systems.        
       The conferees recognize the success of the interagency Technical    
   Support Working Group (TSWG) and the Counterterror Technical Support    
   program, and direct that oversight and direction of the program remain  
   with the Office of the Assistant Secretary for Special Operations and   
   Low Intensity Conflict.                                                 
       The conferees understand that the ASD (SO/LIC) is responsible for   
   oversight of the TSWG and the Office of Special Technology (OST). The   
   conferees also understand that there are other entities within the      
   Department of Defense that can contribute to the interagency program to 
   combat terrorism, such as the Defense Special Weapons Agency (DSWA), and
   encourage the TSWG to continue its coordination activities with these   
   DOD entities, as well as with non-DOD entities, to ensure that the      
   expertise available to the U.S. Government is appropriately applied to  
   national and international efforts to combat terrorism.                 
       The conferees also encourage the continued cooperation between the  
   TSWG and the Physical Security Action Group (PSEAG) to ensure that the  
   CTTS and the physical security equipment programs address technologies  
   that meet force protection needs.                                       
           Counterproliferation support program                                    

       The budget request included $80.4 million for the                   
   counterproliferation support program, $70.6 million in PE 63160BR and   

          $9.8 million in PE 65160BR.                                             

       The House bill would recommend that the counterproliferation support
   program be maintained at the fiscal year 1998 level and would authorize 
   a decrease of $13.0 million.                                            
       The Senate amendment would authorize an increase of $4.0 million to 
   PE 65160BR for the Counterproliferation Analysis and Planning System    
   (CAPS) and an increase of $3.0 million to PE 63160BR for the high       
   frequency active auroral research program (HAARP). In addition, the     
   Senate would recommend an increase of $20.5 million increase for the    
   unfunded requirements for the U.S. Special Operations Command (USSOCOM) 
   for training, equipment and activities related to detecting,            
   identifying, rendering safe, destroying or recovering weapons of mass   
   destruction.                                                            
    The House recedes.                                                     

       The conferees endorse the concerns expressed in the Senate report   
   (S. Rept. 105-185) and the recommendation that funds authorized for     
   HAARP not be diverted to fund government overhead and Systems           
   Engineering and Technical Assessments (SETA) support, and that the      
   combined overhead/SETA support costs be no more than 10 percent.        
           Automatic target recognition                                            

       The budget request included $5.1 million in PE 63232D for automatic 
   target recognition.                                                     
       The House bill would authorize an increase of $3.0 million for      
   optical correlation technology research.                                
    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   

           Generic logistics research and development technology demonstrations    

       The budget request included $17.8 million in PE 63712S for generic  
   logistics research and development technology demonstrations.           
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $4.0 million for
   the computer assisted technology transfer program.                      
       The conferees agree to authorize an increase of $4.0 million for the
   computer assisted technology transfer program.                          
           Strategic Environmental Research and Development Program                

       The budget request included $54.4 million for the Strategic         
   Environmental Research and Development Program (SERDP) and transferred  
   the program from PE 63716D to PE 63780A.                                
    The House bill included no funds for SERDP.                            

    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize the budget request and direct that 
   SERDP be identified under a Department of Defense (DOD) program element 
   to avoid confusion about its unique multi-agency purpose. The conferees 
   recognize the value of SERDP as a tri-agency cooperative program that   
   supports basic and applied research and development of innovative       
   technologies to meet the environmental obligations of the DOD, the      
   Department of Energy, and the Environmental Protection Agency. The      
   conferees expect that maintaining SERDP under a DOD program element will
   preserve its multi-agency focus.                                        
           Advanced electronics technologies                                       

       The budget request included $244.7 million in PE 63739E for advanced
   electronics technologies.                                               
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $10.0 million   
   for advanced mask writer development in advanced lithography and would  
   authorize a decrease of $4.0 million for new start work in project MT   
   04.                                                                     
       The conferees agree to authorize an increase of $10.0 million for   
   advanced lithography development, as described in the Senate report (S. 
   Rept. 105-189), and a decrease of $8.4 million for molecular level      
   printing program acceleration and submarine sensor suite development to 
   fund higher priority projects.                                          
           Maritime technology                                                     

       The budget request included $15.0 million in PE 63746E for the      
   maritime technology (MARITECH) advanced shipbuilding enterprise (ASE)   
   program.                                                                
       The Senate amendment would authorize an increase of $5.0 million to 
   PE 63746E for MARITECH ASE.                                             
    The House bill would authorize the budget request.                     

       The conferees agree to authorize an increase of $5.0 million to PE  
   63746E for MARITECH ASE.                                                
           Advanced concept technology demonstrations                              

       The budget request included $116.3 million in PE 63750D for advanced
   concept technology demonstrations.                                      
       The House bill would authorize a decrease of $12.0 million for      
   advanced concept technology demonstrations.                             
       The Senate amendment would authorize a decrease of $6.0 million in  
   the same program.                                                       
       The conferees agree to authorize a decrease of $12.0 million for    
   advanced concept technology demonstrations.                             
           High performance computing modernization program                        

       The budget request included $140.9 million in PE 63755D for high    
   performance computing modernization program.                            
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $20.0 million to
   sustain operations of supercomputing centers established with Department
   of Defense funds and an increase of $3.0 million for a program to       
   address related challenges in remote visualization, distance learning   
   expansion, and collaborative exploitation of high performance computing 
   capabilities.                                                           

    The House recedes.                                                     

           Command, control and communications systems                             

       The budget request included $200.1 million in PE 63760E for command,
   control and communications systems.                                     
       The House bill would authorize a decrease of $27.5 million for      
   command, control and communications systems.                            
       The Senate amendment would authorize a decrease of $11.0 million in 
   the same program.                                                       
    The conferees agree to authorize a decrease of $27.5 million.          

           Sensor and guidance technology                                          

       The budget request included $213.2 million in PE 63762E for sensor  
   and guidance technology.                                                
       The House bill would authorize a decrease of $13.1 million within   
   the program and an increase of $10.0 million for seismic sensor         
   technology development.                                                 
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize a decrease of $13.1 million for the
   program. The funding for seismic sensor technology development is       
   addressed elsewhere in this statement of managers.                      
           Land warfare technology                                                 

       The budget request included $108.5 million in PE 63764E for land    
   warfare technology.                                                     
       The House bill would authorize a decrease of $11.6 million in the   
   program.                                                                
       The Senate amendment would authorize a decrease of $4.0 million for 
   a new start project in LNW01.                                           
       The conferees agree to a decrease of $17.6 million in the program: a
   reduction of $11.6 million, as described in the House report (H. Rept.  
   105 532); and a reduction of $6.0 million for tactical mobile robots    
   acceleration and situation awareness system program growth to fund      
   higher priority programs.                                               
           Physical security                                                       

       The budget request included $31.7 million for the Department of     
   Defense physical security program (PE 63228D8Z).                        
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize a decrease of $6.0 million for 
   activities related to demonstrating commercial off-the-shelf            
   technologies. In addition, the Senate would make available $3.0 million 
   for a study to determine the utility of a software technology developed 
   jointly by industry and the national laboratories, the Analytic System  
   and Software for Evaluating Safeguards and Security (ASSESS), for use by
   the Department of Defense as an integral component in conducting        
   vulnerability assessments at numerous Department of Defense facilities  
   and installations.                                                      
       The conferees agree to authorize a decrease of $3.0 million for     
   activities related to demonstrating commercial off-the-shelf            
   technologies in PE 63228D8Z, and that decreases to this program not be  
   made to projects currently underway. Additionally, the conferees would  
   make available $3.0 million for a study on the utility of ASSESS as an  
   integral component of DOD efforts to assess vulnerability assessments at
   its facilities and installations.                                       
           Continuous acquisition and life-cycle support activities initiative     

       The budget request included $1.9 million in PE 63736D for the       
   continuous acquisition and life-cycle support activities (CALS)         
   initiative.                                                             
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $2.0 million for
   the integrated data environment program.                                
       The conferees agree to authorize an increase of $2.0 million for the
   integrated data environment program.                                    
           North Atlantic Treaty Organization research and development             

       The budget request included $44.4 million for the North Atlantic    
   Treaty Organization (NATO) research and development activities in the   
   following accounts: $11.6 million for the Army (PE 63790A); $11.0       
   million for the Navy (PE 63790N); $11.1 million for the Air Force (PE   
   63790F); and $10.7 million for the Department of Defense (PE 63790T).   
       The House bill would authorize a decrease of $5.0 million VECTOR    
   activity in the Navy program (PE 63790N), an international flight       
   demonstration effort utilizing X 31 experimental aircraft.              
       The Senate amendment would recommend that funds for the NATO        
   research and development activities remain at the fiscal year 1998      
   funding levels plus inflation, resulting in the following decreases:    
   $2.0 million (Army); $1.1 million (Navy); $0.4 million (Air Force); and 
   $2.3 million (defense-wide).                                            
       The conferees agree to authorize the following decreases: $2.0      
   million (Army); $4.0 million (Navy); $0.4 million (Air Force); and $2.3 
   million (defense-wide). The omnibus reprogramming (FY98 16PA) currently 
   before the Congress for approval includes as a source of funds $3.0     
   million from the Navy NATO research and development program for         
   activities related to VECTOR. According to the rationale making the     
   sources available for reprogramming, agreements have not been reached   
   yet between the United States and Sweden, and therefore the funds are   
   available. The conferees recommend that the Department of the Navy      
   utilize those funds for activities in fiscal year 1999.                 
           Humanitarian demining                                                   

       The budget request included $17.2 million for humanitarian demining 
   research and development activities in PE 63920D8Z.                     
    The House bill would authorize a decrease of $5.0 million.             

    The Senate amendment would authorize the budget request.               

    The conferees agree to authorize the budget request.                   


           Joint robotics program-engineering development                          

       The budget request included $11.3 million in PE 64709D for the joint
   robotics program-engineering development.                               
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $6.0 million for
   accelerated joint robotics technology engineering and management        
   development.                                                            
       The conferees agree to authorize an increase of $6.0 million for    
   accelerated joint robotics technology engineering and management        
   development.                                                            
           Defense technology analysis                                             

       The budget request included $5.0 million in PE 65798S for the       
   defense technology analysis program.                                    
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an increase of $2.0 million for
   the commodity management technology program.                            
       The conferees agree to an increase of $2.0 million for the commodity
   management technology program.                                          
           Defense technical information services                                  

       The budget request included $46.5 million in PE 65801K for defense  
   technical information services.                                         
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize a decrease of $1.0 million for 
   expansion of defense technical information.                             
       The conferees agree to authorize a decrease of $1.0 million for     
   expansion of defense technical information.                             
           Special operations intelligence systems development                     

       The budget request included $1.8 million for special operations     
   forces intelligence systems development.                                
       The House bill would authorize an increase of $5.0 million for      
   research and development requirements associated with the Special       
   Operations intelligence vehicle.                                        
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize an increase of $2.5 million for    
   development of the Special Operations intelligence vehicle.             
           Live fire testing                                                       

       The budget request included $9.9 million in PE 65131D for live fire 
   testing.                                                                
       The House bill would authorize an increase of $4.0 million to expand
   threat vulnerability testing to include the threat of radio frequency   
   weapons.                                                                
    The Senate amendment would authorize the budget request.               

    The Senate recedes.                                                    

                        ITEMS OF SPECIAL INTERESt                        

           Advanced lightweight grenade launcher                                   

       The conferees note ongoing efforts by the Special Operations Command
   (SOCOM) to develop new lightweight weapon systems necessary to support  
   critical mission requirements by reducing the load that special         
   operations personnel must carry. The conferees support ongoing efforts  
   to develop a new advanced lightweight grenade launcher (ALGL) that will 
   support special operations missions and believe this capability has     
   applicability beyond the Special Operations Command. The conferees      
   encourage the Special Operations Command to assess future warfighting   
   requirements and determine the viability of ALGL concept. If ALGL meets 
   warfighting requirements, the conferees would expect SOCOM to request   
   funding necessary to develop this weapon and meet future warfighting    
   requirements.                                                           
           Advanced tactical computer science and sensor technology                

       The budget request included $18.5 million in PE 63772A for advanced 
   tactical computer science and sensor technology.                        
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize an additional $2.5 million for 
   digital intelligence technology development.                            
    The Senate recedes.                                                    

       The conferees strongly endorse the use of commercial-off-the-shelf  
   (COTS) technology where appropriate to meet the needs of the 21st       
   Century Army. The committee urges the Army to consider spending up to   
   $5.0 million of the discretionary funds in the Army's digitization      
   program to explore alternative COTS technology for command and control  
   applications for dismounted soldiers.                                   
           Commercial technologies for maintenance activities                      

       The conferees agree to amend the budget request to change the name  
   of PE 63805S to commercial technologies for maintenance activities.     
       The conferees support funding for this program established in       
   section 361 of the National Defense Authorization Act for Fiscal Year   
   1998. The conferees believe the commercial technologies for maintenance 
   activities program provides a framework for the depot maintenance       
   activities to work together with U.S. manufacturing companies on        
   projects of common interest in which industry will match Department of  
   Defense funding on a two-for-one basis. The conferees believe that in   
   planning the program in the outyears, the Defense Logistics Agency (DLA)
   should require each of the participating services to match DLA funds for
   the projects conducted under the program. In managing the program in    
   fiscal year 1999, the DLA should consider imposing such a matching      
   requirement where practicable.                                          

           Cyber Security Program                                                  

       The conferees support the Air Force cyber-security program, which   
   would allow the Air Force to conduct research and development at        
   federally funded research and development centers that are currently    
   working in collaboration on issues relating to security information     
   assurance. This program would help to facilitate the transition of      
   information assurance technology to the defense community which is vital
   as the Defense Department increases its reliance on computer networks   
   and information technology.                                             
           Defense information superiority, assurance, and interoperability        

       Joint Vision 2010, the Joint Chiefs of Staff conceptual template for
   how U.S. Armed Forces will fight future wars, identifies information    
   superiority--the capability of maintaining an uninterrupted flow of     
   information while denying an adversary's ability to do the same--as a   
   key enabler for success in any future conflict.                         
       The conferees believe that communications network interoperability  
   problems experienced by Navy carrier battle groups during operational   
   test and evaluation of the advanced combat direction system and the     
   cooperative engagement capability, as discussed elsewhere in this       
   statement of managers, highlight potentially greater interoperability   
   problems in communications, command, control, computers, intelligence,  
   surveillance, and reconnaissance (C4ISR) systems networking at the joint
   level. Such problems will adversely affect the ability of U.S. Armed    
   Forces to achieve the information superiority required for success on   
   future battlefields.                                                    
       The General Accounting Office (GAO) has identified a number of      
   activities within the Department of Defense (DOD) intended to ensure    
   that U.S. Armed Forces are capable of establishing and maintaining      
   information superiority in the future. According to the GAO reports, the
   DOD has begun to make progress toward establishing a comprehensive C4ISR
   architecture, but needs to complete its development, establish adequate 
   information assurance measures, and ensure compliance with the          
   architecture by the military departments, unified commands, and         
   agencies. The GAO also observed that the complexity, magnitude, and cost
   of DOD's information superiority efforts warrant a comprehensive annual 
   overview of the state of the Department's management and oversight of   
   C4ISR acquisitions. The conferees understand that the DOD agreed with   
   the recommendations contained in the GAO reports.                       
       Accordingly, the conferees direct the Secretary of Defense to submit
   with the DOD budget request for fiscal year 2000 a report to the        
   congressional defense committees on the implementation of the           
   information superiority concept and its attendant key C4ISR systems     
   development and acquisitions. The report should describe a DOD roadmap  
   for C4ISR interoperability. The report should describe identified       
   obstacles to interoperability, architecture development, implementation,
   and maintenance and the plans, including the planned allocation of      
   resources, to address them.                                             
           Joint simulation system                                                 

       The conferees view the development of the Joint Simulation System   
   (JSIMS) in PE 92740J as an important step in meeting a critical joint   
   readiness requirement. In addition, JSIMS provides a framework for the  
   migration of all training simulations into a common system and the      
   elimination of the existing suite of legacy simulations across the      
   services. These legacy simulations are increasingly outdated and        
   expensive to maintain. JSIMS is also a key enabler for the joint        
   experimentation process recently directed by the Secretary of Defense to
   be established under the Commander in Chief, U.S. Atlantic Command.     
       The conferees encourage the Department of Defense to adequately fund
   this program in fiscal year 2000 and beyond as a means of ensuring that 
   full operating capability follows the fielding of initial operating     
   capability without delay.                                               
           Man overboard indicator technology                                      

       The budget request included no funds for the development of man     
   overboard indicator technology.                                         
       Both the House report (H. Rept. 105 532) and the Senate report (S.  
   Rept. 105 189) encouraged the Navy to investigate the utility of        
   commercially available, water-activated man overboard indicator and the 
   feasibility of integrating such a system for fleet use.                 
       The conferees encourage the Navy to investigate the feasibility of  
   integrating a commercial off-the-shelf man overboard indicator as a     
   means of immediately alerting ship control personnel of a person        
   accidentally falling overboard. Additionally, the conferees encourage   
   the Navy to continue their initiatives to identify a commercial         
   off-the-shelf personnel tracking and physiological monitoring system,   
   and to investigate the possibility and utility of combining man         
   overboard, tracking, and physiological monitoring requirements into one 
   device.                                                                 
           Materials research                                                      

       The House report (H. Rept. 105 532) expressed concern about the     
   direction of materials research within the Department of Defense and the
   belief that such research should seek to reduce long-term dependence for
   critical defense materials upon foreign sources. The report directed the
   Secretary of Defense to undertake a basic review of the policies and    
   programs regarding defense critical materials and critical materials    
   research and to report the results of this review by February 15, 1999. 
    The Senate report (S. Rept. 105 189) included no similar direction.    

       The conferees note the views expressed in the House report and the  
   potential vulnerabilities of the domestic and foreign supplier base for 
   critical defense materials needed in the production of future defense   
   systems. The conferees recognize the decline in funding of applied      
   materials research in the Department, particularly in the support of    
   fundamental materials research by the Defense Advanced                  

          Research Projects Agency.                                               

       In addition to the issues identified in the House report, the       
   conferees direct the Secretary of Defense to assess the requirements for
   a long-range plan for future materials research that would ensure the   
   availability of emerging high performance materials for future defense  
   needs and to include the results of this assessment in the report       
   submitted to the Congress. As a part of this assessment, the Secretary  
   should consider the state of competition, both within the United States 
   and international markets, for raw materials for high speed             
   applications, such as gallium or other materials.                       
           Military human immunodeficiency virus research                          

       The budget request included $5.7 million in PE 63105A for military  
   human immunodeficiency virus research.                                  
    The House bill would authorize the budget request.                     

       The Senate amendment would authorize a decrease of $2.6 million for 
   the program.                                                            
    The conferees agree to authorize the budget request.                   

           Navy antisubmarine warfare program                                      

       The conferees note the 1997 report by the Naval Studies Board of the
   National Academy of Sciences, Technology for the United States Navy and 
   Marine Corps, 2000 2035. The report concludes that:                     
       (1) antisubmarine warfare (ASW) is one of the Navy's most           
   fundamental core competencies;                                          
       (2) ASW must remain a core competency in the face of a submarine    
   threat that will increase in the 21st century to become the dominant    
   threat to the accomplishment of naval missions;                         
       (3) the continuing draw down in naval forces and the current        
   de-emphasis on ASW have seriously eroded the Navy's ASW capabilities;   
       (4) this erosion of capabilities comes at a time when potential     
   future adversaries are rapidly acquiring advanced quieting techniques   
   and other offensive submarine capabilities;                             
       (5) the lack of consensus on a submarine threat and competing naval 
   warfare priorities, combined with mounting pressure on the overall      
   defense budget, have put the Navy's ASW program at historically low     
   levels;                                                                 
       (6) advances in ASW capability come about only as a result of       
   dedicated, long-term research and development based on at-sea           
   operations, testing, measurements, and experimentation; and             
       (7) these types of research and development projects and operations 
   are largely absent from current Navy programs and plans.                
       The conclusions of the Naval Studies Board closely parallel         
   congressional concerns about the erosion of the Navy's ASW capabilities 
   since the end of the Cold War. These concerns led to direction to the   
   Secretary of Defense in the statement of managers that accompanied the  
   conference report on S. 1124 (H. Rept. 104 450), and in the classified  
   annex that accompanied the statement of managers on H.R. 3230 (H. Rept. 
   104 724). These reports directed the Secretary to assess the current and
   projected U.S. ASW capability in the light of the developing threat and 
   budget trends, and to identify the short-term and long-term improvements
   needed to cope with the evolving submarine threat.                      
       The conferees commend the Navy and the Office of the Secretary of   
   Defense for The 1997 Anti-Submarine Warfare Assessment, dated March     
   1998. The assessment reaffirms that ASW is a top priority mission for   
   the Navy, as well as being a core and enduring naval competency. The    
   assessment of ASW training, modernization, and organization concludes   
   that ASW training proficiency has declined and recommends that          
   responsibility for ASW proficiency be refocused in the fleet. According 
   to the report, the highest priority ASW modernization efforts are funded
   and the President's budget request for fiscal year 1999 provides        
   adequate equipment to respond to likely threats to the end of the Future
   Year Defense Program and beyond. The Navy has also created a new staff  
   organization within the Office of the Chief of Naval Operations (N 84), 
   and charged that organization with the responsibility for integration   
   and assessment of the Navy ASW program.                                 
       The conferees believe that ASW is a critical enabler for naval      
   operations in the world's littoral regions, and that a stable and       
   focused ASW program under appropriate oversight by the Department of the
   Navy and the Office of the Secretary of Defense will be critical to     
   achieving the goals of near- and long-term improvements in ASW          
   proficiency and capabilities. To that end, the conferees direct the Navy
   to update, at least biannually, an ASW Master Plan that reflects the    
   Navy's overall ASW investment strategy and program. The conferees also  
   believe that the Chief of Naval Operations should consider providing    
   staffing and responsibility for N 84 that is on a level commensurate    
   with that of other Navy staff resource sponsors for the functional      
   warfare areas.                                                          
           Navy land attack missile program                                        

       The budget request included $11.3 million in PE 63795N for continued
   evaluation of a naval version of the Army Tactical Missile System       
   (NTACMS) for naval surface ship and submarine use. No funds were        
   included in the budget request for the Land Attack Standard Missile     
   (LASM), a land attack variant of the Navy Standard Missile.             
       The House bill would authorize the budget request. The House bill   
   would also direct that the Navy's land attack missile program not       
   proceed to a Milestone I development decision until the analysis of     
   alternatives and other issues appropriate to a major acquisition program
   milestone decision have been resolved.                                  
       The Senate amendment would authorize the budget request. The Senate 
   amendment would also direct the Secretary of the Navy to report, among  
   other things, an analysis of alternatives for an advanced gun system    
   that considers fulfilling some portion of the Navy's fire support       
   requirement with a modified version of the Army's extended range        
   multiple launch rocket system and some portion of the fire support      
   requirement with NTACMS.                                                

       The House Report (H. Rept. 105 132) accompanying the National       
   Defense Authorization Act for Fiscal Year 1998 cautioned that a         
   thorough, objective and independent cost and operational effectiveness  
   analysis of competing system alternatives for meeting the operational   
   requirements for a naval land attack missile would be required before   
   the Navy proceeds with any development milestone decision for such a    
   missile system.                                                         
       The conferees are aware that the Chief of Naval Operations selected 
   LASM as the most cost effective near-term solution to its requirement   
   for a land attack missile system. According to the Navy, selection of   
   LASM was based on an extensive and broadly based land attack analysis   
   that compared LASM and NTACMS on the basis of range, responsiveness,    
   lethality, growth potential, and cost. But, the conferees believe that  
   the assumptions used in the analysis may not accurately reflect the     
   operational realities of the littoral battlefield. In addition, the     
   impact of selecting LASM may result in the cancellation of the NTACMS   
   program. Cancellation of NTACMS would result in a different approach    
   regarding land attack missile support of Marines ashore and submarine   
   employment in the littorals from that described in Navy testimony before
   Congress. The conferees are reluctant to approve a request for          
   authorizing LASM if it results in cancellation of NTACMS without Navy   
   explanations of the impact of such a decision on support of Marines     
   ashore and other submarine missions in littoral warfare.                
       The conferees agree to authorize $11.3 million for development, risk
   reduction, and analytical activities leading to a defense acquisition   
   program milestone decision for the missile system program to satisfy the
   Navy's land attack missile requirement. The conferees direct the        
   Secretary of Defense to ensure that the analysis of alternatives for a  
   Navy land attack missile system, as discussed in the statements of      
   managers accompanying the National Defense Authorization Act for 1998   
   (Public Law 105 85) and the National Defense Authorization Act for      
   Fiscal Year 1999 (H. Rept. 105 532 and S. Rept. 105 189), and other     
   issues appropriate to a major acquisition milestone decision are        
   completed and the results reviewed by the Defense Acquisition Board     
   before the Navy proceeds with a development milestone decision for the  
   land attack missile system.                                             
           Oceanographic research information                                      

       The conferees are aware of recent announcements by the Vice         
   President that the Department of the Navy is declassifying, and will    
   make available for use by the public and private institutions and       
   agencies with ocean research and education programs, previously         
   classified acoustical data from the U.S. Navy's underwater Sound        
   Surveillance System (SOSUS) and data on ocean temperature and salinity  
   levels under the Arctic ice cap. These data can be used, among other    
   things, to track the migrations of large marine mammals, predict natural
   catastrophes, and support long-term climate change research. The        
   conferees believe that such actions provide the opportunity to leverage 
   the nation's $16.0 billion investment in the SOSUS system by making data
   from this system available for continuing defense research and for      
   civilian scientific research and education.                             
       The conferees request that the Chairman of the National             
   Oceanographic Research Leadership Council conduct an assessment of: (1) 
   the value of SOSUS data to meet the requirements of appropriate private 
   and public institutions and agencies with ocean research and education  
   programs; (2) the cost of making SOSUS data available for such purposes 
   in comparison to the cost of deploying alternative data-gathering       
   systems; (3) recommended options for making such data available to      
   civilian and defense research and education institutions and agencies;  
   and (4) recommendations on effective ways to foster cooperation among   
   agencies that would benefit from SOSUS data, including the potential for
   cost-sharing among the agencies and institutions that would participate 
   in the program. In conducting the assessment, the Council should take   
   into account the cooperative research and development agreement that was
   established between the Navy and the Scientific Environmental Research  
   Foundation in June 1998, to use deactivated SOSUS stations to collect   
   data for scientific and educational purposes. The conferees further     
   request that a report of the results of the assessment be included in   
   the annual report to Congress on the National Oceanographic Partnership 
   Program that is to be submitted by March 1, 1999.                       
           Optical correlation technology for automatic target recognition         

       The conferees understand that progress in the development of optical
   correlation technology for automatic target recognition holds promise   
   for the application of this technology to precision munitions, target   
   cueing for surveillance systems, medical diagnosis, and other           
   applications. The conferees agree with the direction contained in the   
   House report (H. Rept. 105 532) that the Under Secretary of Defense     
   (Acquisition and Technology) report to the congressional defense        
   committees with the submission of the fiscal year 2000 budget request,  
   the overall plan and program of the Department of Defense for the       
   development and demonstration of optical correlator technology for      
   automatic target recognition. The conferees urge the Secretary of       
   Defense to consider using discretionary funds to continue development of
   this program through fiscal year 1999.                                  
           Patriot anti-cruise missile defense                                     

       The conferees reaffirm their support for fully evaluating the       
   Patriot anti-cruise missile (PACM) concept and direct the Secretary of  
   the Army to complete a rigorous test and evaluation program in fiscal   
   year 1999, using funds previously appropriated for this purpose, to     
   determine the effectiveness of the PACM seeker against the full range of
   cruise missile threats. Results of this evaluation shall be provided to 
   the congressional defense committees in a report by April 15, 1999. The 
   report shall also include an assessment of options and associated costs 
   for utilizing the PACM seeker in future upgrades to existing Patriot    
   missiles.                                                               
           Project M                                                               


       The budget request included $4.9 million in PE 63508N to continue   
   the development and demonstration of advanced vibration control and     
   quieting technology for naval machinery support structures that was     
   developed under the Defense Advanced Research Project Agency's Project  
   M.                                                                      
       The House bill would authorize the budget request. The House bill   
   would also direct the Secretary of the Navy to program funds for fiscal 
   year 2000 to develop a prototype system for surface ships that uses the 
   Project M technology.                                                   
    The Senate amendment would authorize the budget request.               

       The conferees agree to authorize the budget request to continue the 
   development and demonstration of the Project M technology in the Navy's 
   submarine large scale vehicle. The conferees also request the Secretary 
   of the Navy to assess the potential benefits that might result from the 
   application of the Project M technology in surface ships and to report  
   the results of that assessment to the congressional defense committees  
   by March 31, 1999.                                                      
           Software security                                                       

       The conferees note the potential value of continuing efforts to     
   improve computer security by developing and testing prototype software  
   security mechanisms, and the conferees urge the Secretary of Defense to 
   consider using $500,000 from discretionary funds for this purpose.      
            legislative provisions adopted                                          

                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              

           Authorization of appropriations (secs. 201 202)                         

       The House bill contained provisions (secs. 201 202) that would      
   authorize the recommended fiscal year 1999 funding levels for all       
   research, development, test, and evaluation accounts.                   
    The Senate amendment contained similar provisions.                     

    The conference agreement includes these provisions.                    

               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

                      Management responsibility for Navy mine countermeasures      
           programs (sec. 211)                                                     
       The House bill contained a provision (sec. 211) that would extend   
   until fiscal year 2003 the Office of the Secretary of Defense's         
   responsibilities for certifying that: (1) the Navy has submitted an     
   adequate plan for mine countermeasures programs; (2) the budget and the 
   Future Years Defense Program support the plan; and (3) the Chairman of  
   the Joint Chiefs of Staff has determined the Navy's program is          
   sufficient.                                                             
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

           Future aircraft carrier transition technologies (sec. 212)              

       The budget request included $149.5 million for future aircraft      
   carrier research and development in PE 63512N and $40.6 million for     
   CV(X) feasibility studies in PE 63564N. The request also included $38.5 
   million for CVN 77 contract design in PE 64567N.                        
       The House bill contained a provision (sec. 212) that would authorize
   the budget request and designate $50.0 million of the $149.5 million    
   authorization for future carrier development to be available for CVN 77 
   research and development.                                               
    The Senate amendment contained a similar provision (sec. 212).         

    The Senate recedes.                                                    

           Manufacturing technology program (sec. 213)                             

       The House bill contained a provision (sec. 213) that would amend    
   section 2525 of title 10, United States Code, to establish goals for    
   cost sharing in the manufacturing technology program and procedures for 
   waiver of the cost sharing requirements. The provision would also       
   require the Secretary of Defense to include information on the extent of
   cost sharing by participants in the manufacturing technology program in 
   the five-year plan for the manufacturing technology program.            
       The Senate amendment contained a similar provision (sec. 216) which 
   would modify cost sharing requirements to allow for different levels of 
   cost sharing where appropriate, provide for establishing the level of   
   cost sharing by competitive bidding, move the authority for wavier of   
   cost sharing requirements to the service secretaries, and require cost  
   share reporting to track investments by non-industry program            
   participants.                                                           
       The conferees agree to a provision that would require the use of    
   competitive procedures for determination of cost sharing, delegate the  
   authority to waive cost sharing requirements to the Under Secretary of  
   Defense for Acquisition and Technology or to service acquisition        
   executives, provide for the establishment of annual goals for cost      
   sharing, and require that the five-year plan for the program include    
   assessments of the effectiveness of the manufacturing technology program
   and of the extent to which costs of projects are being shared by the    
   participants in the program.                                            
       The conferees note the requirement of section 2525(d)(1) of Title   
   10, United States Code, that competitive procedures shall be used for   
   awarding all grants and entering into all contracts, cooperative        
   agreements, and other transactions under the manufacturing technology   
   program. The conferees note further the policy of Congress, as reflected
   in section 2374 of Title 10, United States Code, that the Department of 
   Defense, the military departments, the Coast Guard, and the National    
   Aeronautics and Space Administration, should not be required by         
   legislation to award a new grant for research, development, test, or    
   evaluation to a non-federal entity; and that any                        

                    program, project, or technology identified in legislation be  
          awarded through merit-based selection procedures.                       
                      Sense of Congress on the defense science and technology      
           program (sec. 214)                                                      
       The House bill contained a provision (sec. 214) that would express  
   the sense of Congress that at least 10 percent of the funds in the      
   research, development, test and evaluation accounts of the services     
   should be spent on science and technology programs. The provision would 
   also express the sense of Congress concerning certain management        
   objectives and would require an interagency study on recommendations for
   maintaining the technology base supporting the Department of Defense.   
       The Senate amendment contained a provision (sec. 1076) that would   
   express the sense of Congress that the Secretary of Defense have an     
   objective of increasing science and technology funding by no less than 2
   percent over inflation above the amount requested for the prior fiscal  
   year for each year during the period of fiscal years 2000 through 2008. 
   The provision would also express the sense of Congress regarding        
   management goals for the program.                                       
       The Senate recedes with an amendment that would include the Senate  
   funding objectives and integrate the House and Senate management goals. 
           Next generation internet (sec. 215)                                     

       The budget request included $40.0 million in PE 62110E for the next 
   generation internet program.                                            
       The House bill contained a provision (sec. 215) that would authorize
   $53.0 million for the program and clarify that the amount specified in  
   section 201(4) would be the amount authorized for the program,          
   notwithstanding any other provision of law.                             
       The Senate amendment contained no similar provision and would       
   authorize the budget request.                                           
    The Senate recedes.                                                    

           Crusader self-propelled artillery system program (sec. 216)             

       The Senate amendment contained a provision (sec. 211) that would    
   require the Secretary of the Army to revisit both requirements and      
   schedule for the established Crusader program and provide a report to   
   the Congress that addresses:                                            
       (1) assessment of the risk associated with the current Crusader     
   program technology;                                                     
       (2) total requirement for Crusader associated with Army After Next  
   force structure revisions;                                              
     (3) potential for reducing system weight by as much as 50 percent;    

       (4) potential for propellant and munition alternatives and the      
   impact of maturing this technology on the overall program schedule; and 
       (5) cost and benefit analysis of delaying procurement of Crusader to
   avoid affordability issues associated with the current schedule and     
   allow for maturation of weight and propellant technologies.             
       The provision would limit the expenditure of funds for Crusader     
   development to $223.0 million until 30 days after the date on which the 
   Secretary of the Army submits the results of this report to the         
   Congress.                                                               
    The House bill contained no similar provision.                         

    The House recedes with an amendment.                                   

           Airborne Laser Program (sec. 217)                                       

       The Senate amendment contained a provision (sec. 214) that would:   
   (1) direct the Secretary of Defense to conduct an assessment of the     
   technical obstacles and operational shortcomings expected for the       
   Airborne Laser (ABL) program; (2) direct the Secretary to submit a      
   report to Congress by March 15, 1999 that outlines his findings and     
   recommendations regarding the ABL program; (3) recommend a reduction of 
   $97.0 million for the ABL program; and (4) direct that no more than     
   $150.0 million of the funds remaining available to the ABL program be   
   obligated until 30 days after the Secretary submits the report.         
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would: (1) direct the      
   Secretary of Defense to conduct an assessment of the technical and      
   operational aspects of the ABL program; (2) direct the Secretary to     
   submit a report to Congress by March 15, 1999 that outlines his findings
   and recommendations regarding the ABL program; (3) authorize $235.2     
   million for the ABL program, a reduction of $57.0 million to the budget 
   request; and (4) direct that no more than $185.0 million of the funds   
   authorized for the ABL program be obligated until 30 days after the     
   Secretary submits the report.                                           
       The conferees understand and support the Department of Defense's    
   desire to achieve operational boost phase intercept capability as soon  
   as technically possible. In pursuit of this goal, the conferees support 
   continuation of the Airborne Laser program. The conferees note that,    
   although the ABL program has undergone a significant degree of technical
   review, questions having to do with the technical risk in the program   
   continue to be raised in the Department of Defense and by independent   
   organizations. Although the conferees have not come to any final        
   conclusions regarding these questions, they are concerned that the      
   current ABL development program may not include sufficient near-term    
   risk reduction in the area of beam compensation and may be structured to
   proceed too rapidly with finalization of an objective design. In        
   particular, the conferees are concerned that the Air Force plans to     
   enter engineering and manufacturing development (EMD) without adequate  
   time to operate,                                                        

                    test, and evaluate the program definition and risk reduction  
          (PDRR) configuration. For example, the Air Force plans to order its     
          first EMD aircraft a year before the PDRR aircraft undergoes a full     
          system demonstration against a missile target.                          
       To meet these concerns, the conferees believe that the Secretary of 
   Defense must carefully evaluate the technical risk in the ABL program   
   and determine: (1) whether additional testing and risk reduction is     
   necessary prior to integration of the ABL subsystems into a commercial  
   747 400F aircraft; and (2) whether the fully integrated PDRR aircraft   
   should be operated for a period of time and thoroughly tested prior to  
   finalizing an objective design. In addition, the Secretary must also    
   evaluate the ABL operational concepts and their relationship to         
   technical risk and uncertainties in the program.                        
       The conferees direct the Secretary of Defense to establish an       
   independent review team to assist him in addressing the issues specified
   above, and transmit to Congress the review team's findings with the     
   Secretary's report. While this review is underway, and while the Air    
   Force undertakes additional ground testing and data collection, the     
   conferees believe that the Air Force should temporarily slow the pace of
   activities related to integration of the PDRR aircraft. Therefore, the  
   conferees agree to authorize a reduction of $57.0 million to the budget 
   request for ABL. If the Secretary concludes that additional ground      
   testing or other risk reduction activities beyond those already planned 
   are required during fiscal year 1999, the conferees agree to authorize  
   the Secretary to utilize up to $40.0 million from funds authorized for  
   ABL to conduct those activities.                                        
           Enhanced Global Positioning System program (sec. 218)                   

       The Senate amendment contained a provision (sec. 215) that would:   
   (1) require the Secretary of Defense to develop an enhanced Global      
   Positioning System (GPS) program as an urgent national security         
   priority; (2) authorize $44.0 million for fiscal year 1999 to begin such
   development; (3) urge the Secretary of Defense to fund adequately this  
   initiative in the Future Years Defense Program; (4) urge the Secretary  
   of Transportation to provide sufficient funding to support additional   
   civil frequencies and other enhancements for civil users; (5) extend by 
   five years the existing requirement to outfit all major Defense         
   Department platforms with GPS receivers by the year 2000; and (6)       
   require the Secretary to submit a plan for implementing this provision  
   by April 15, 1999.                                                      
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

       The conferees strongly support the modernization of the Global      
   Positioning System to meet new military requirements and evolving       
   threats. Such modernization should include those enhancements necessary 
   to sustain the Global Positioning System's unique advantage to friendly 
   forces for the long term. Similarly, the modernization plan should      
   include a suitable array of methods and techniques to deny these same   
   advantages to an adversary when necessary. Although U.S. forces         
   presently may be more dependent than other nations' forces on the Global
   Positioning System's highly accurate position, velocity, and timing     
   information, these same dependencies will naturally arise among the     
   forces of potential enemies as satellite navigation technologies are    
   further disseminated and integrated into force doctrine, training, and  
   techniques, and as GPS-embedded applications become widely available.   
   While near term needs may suggest that assured access to GPS signals by 
   the United States and its allies will have a higher pay-off than        
   techniques that would deny access to the GPS signal by adversaries, a   
   longer term view suggests that denial of enemy exploitation may offer   
   significant, if not overwhelming, advantage. Furthermore, the conferees 
   recognize that modernization of GPS satellites will take a long time    
   given current purchasing approaches and the long life of individual     
   satellites comprising the operational satellite constellation. A design 
   change that must be implemented in a full constellation to be effective 
   will take 12 or more years to field and will be in place for another 12 
   13 years. This 25-year time period necessitates balanced investment in  
   both protection and prevention enhancements. Although the conferees     
   appreciate the funding constraints facing the Department of Defense,    
   they do not believe that such constraints justify freezing the GPS      
   design for the next quarter century in a way that does not adequately   
   respond to obvious emerging threats. Consequently, the conferees direct 
   the Secretary of Defense to undertake a GPS modernization program that  
   improves access by friendly forces and denies access by hostile forces. 
   The conferees direct the Secretary to include in the report required by 
   this provision specific details of the actions to protect and deny the  
   GPS signal.                                                             
       The conferees note that the effort by the Department of Defense to  
   modernize the GPS system has delayed the new GPS satellite design. Given
   this situation, it is premature for the Department to enter into a      
   multi-year procurement or other significant block satellite buy. At the 
   same time, however, the Department requires additional funds for        
   research and development to define fully the scope of the GPS           
   modernization effort and to begin development of new satellite          
   sub-systems. Therefore, the conferees agree to authorize no funds in Air
   Force missile procurement for GPS advance procurement, and to authorize 
   an increase of $44.0 million in PE 64480F for GPS modernization.        
                            SUBTITLE C--BALLISTIC MISSILE DEFENSE                 

           Sense of Congress on national missile defense coverage (sec. 231)       

       The House bill contained a provision (sec. 231) that would express  
   the sense of Congress that any deployed national missile defense system 
   should defend all fifty states and that U.S. territories should be      
   protected from ballistic missile attack.                                
    The Senate amendment contained no similar provision.                   

    The Senate recedes with a clarifying amendment.                        

                      Limitation on funding for the Medium Extended Air Defense    
           System (sec. 232)                                                       

       The House bill contained a provision (sec. 232) that would prohibit 
   the Secretary of Defense from obligating or expending funds authorized  
   and appropriated for the Medium Extended Air Defense System (MEADS)     
   until the Secretary certifies to Congress that funding has been         
   designated for MEADS in the Future Years Defense Program (FYDP). The    
   provision would require that if such certification is not received by   
   January 1, 1999, the funds authorized for MEADS would thereafter be     
   authorized only for the purpose of research and development to adapt the
   Patriot Advanced Capability 3-Configuration 3 (PAC 3) to meet the Army  
   requirement for a mobile theater missile defense system.                
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would make funds          
   authorized for MEADS available to support alternative programmatic and  
   technical approaches to meeting the requirement for mobile theater      
   missile defense if the Secretary does not certify to Congress that      
   funding has been designated for MEADS in the FYDP.                      
                      Limitation on funding for cooperative ballistic missile      
           defense programs (sec. 233)                                             
       The House bill contained a provision (sec. 233) that would prohibit 
   obligation or expenditure of $5.0 million authorized to be appropriated 
   for the Russian-American Observation Satellites (RAMOS) program until   
   the Secretary of Defense certifies to Congress that the Department of   
   Defense has received detailed information concerning the nature, extent,
   and military implications of ballistic missile technology transfer from 
   Russian sources to Iran.                                                
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Sense of Congress with respect to ballistic missile defense  
           cooperation with Russia (sec. 234)                                      
       The Senate amendment contained a provision (sec. 231) that would    
   state that the United States should seek to foster a climate of         
   cooperation with Russia on matters related to missile defense,          
   especially in the area of early warning.                                
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

       The conferees believe that a cooperative approach to ballistic      
   missile defense could lead to a mutually agreeable evolution of the ABM 
   Treaty, i.e., either modification or replacement by a newer             
   understanding or agreement, that would clear the way for the United     
   States and Russia to deploy national missile defenses each believes     
   necessary for its security. If implemented in a cooperative manner, the 
   conferees do not believe that such steps would undermine the original   
   intent of the ABM Treaty, which was to maintain strategic stability and 
   permit significant nuclear arms reductions.                             
           Ballistic missile defense program elements (sec. 235)                   

       The House bill contained a provision (sec. 235) that would realign  
   program elements for the Ballistic Missile Defense Organization and     
   require each program element to include funding for the management and  
   support necessary for the activities within that program element.       
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Restructuring of Theater High Altitude Area Defense System   
           Acquisition Strategy (sec. 236)                                         
       The House bill contained a provision (sec. 236) that would: (1)     
   require the Secretary of Defense to select an alternative contractor as 
   a potential source for the development and production of the Theater    
   High Altitude Area Defense (THAAD) interceptor missile within a         
   ``leader-follower'' acquisition strategy; (2) require the Secretary of  
   Defense to establish a cost sharing arrangement with the THAAD prime    
   contractor for flight test failures of that missile beginning with the  
   ninth test flight; (3) require the Secretary of Defense to proceed as   
   expeditiously as possible with the milestone approval process for the   
   engineering and manufacturing development (EMD) phase of the THAAD      
   system for the battle management and command, control, and              
   communications (BM/C3) and ground based radar elements of the system;   
   (4) prohibit the obligation of funds for the THAAD user operational     
   evaluation system (UOES) until there have been two successful tests of  
   the THAAD interceptor missile; and (5) prohibit the Secretary of Defense
   from approving the commencement of EMD for the THAAD interceptor missile
   until there have been three successful tests of that missile.           
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would: (1) require the    
   Secretary of Defense to take appropriate steps to implement technical   
   and price competition for the development and production of the THAAD   
   interceptor missile; (2) authorize $29.6 million to establish this      
   technical and price competition; (3) require the Secretary of Defense to
   establish a cost sharing arrangement with the THAAD prime contractor for
   flight test failures of that missile beginning with the ninth flight    
   test; (4) allow the Secretary of Defense to proceed with the milestone  
   approval process for the EMD phase of the THAAD system for the BM/C3 and
   ground based radar elements of the system; (5) require the Secretary of 
   Defense to prepare a plan that would allow for contingency deployment of
   THAAD missile interceptors before U.S. military forces are equipped with
   the objective configuration of those missiles; and (6) prohibit the     
   Secretary of Defense from approving the commencement of EMD for the     
   THAAD interceptor missile until there have been three successful tests  
   of that missile.                                                        
       The conferees are aware that the Department of Defense is           
   considering establishment of a second source for the THAAD interceptor  
   missile seeker, the portion of the missile deemed to contain the highest
   technical risk. Based on information received to date, the              

                    conferees tentatively support this proposal, but direct the   
          Secretary of Defense to submit a detailed report on this concept to the 
          congressional defense committees by February 15, 1999, including the    
          cost and programmatic implications of this approach.                    
                                  SUBTITLE D--OTHER MATTERS                       

                      Extension of authority to carry out certain prototype        
           projects (sec. 241)                                                     
       The Senate amendment contained a provision (sec. 218) that would    
   extend the authority to carry out certain prototyping projects as       
   specified under section 845 of the National Defense Authorization Act   
   for Fiscal Year 1994 (Public Law 103 160), through September 30, 2001.  
    The House bill contained no similar provision.                         

    The House recedes.                                                     

       The conferees continue to believe that the section 845 authority    
   should only be used in the exceptional cases where it can be clearly    
   demonstrated that a normal contract or grant will not allow sufficient  
   access to affordable technologies. The conferees are especially         
   concerned that such authority not be used to circumvent the appropriate 
   management controls in the standard acquisition and budgeting process.  
   Any further consideration of extending this authority beyond September  
   30, 2001 will be based upon a careful review and a conclusion by the    
   congressional defense committees that this authority has been used in a 
   limited and responsible manner. The conferees direct the Secretary of   
   Defense to provide a report to the congressional defense committees, no 
   later than March 1, 1999, on the use of this authority.                 
                      North Atlantic Treaty Organization alliance ground           
           surveillance concept definition (sec. 242)                              
       The Senate amendment contained a provision (sec. 219) that would    
   make available funds from Army and Air Force research and development of
   a North Atlantic Treaty Organization Alliance Ground Surveillance (NATO 
   AGS) capability based on the Joint Surveillance/Target Attack Radar     
   System (JSTARS).                                                        
    The House bill contained no similar provision.                         

    The House recedes.                                                     

           NATO common funded civil budget (sec. 243)                              

       The Senate amendment contained a provision (sec. 220) that would    
   authorize the contribution of the United States to the common funded    
   Civil Budget of NATO.                                                   
       The House amendment contained no similar provision, but would       
   authorize funds included in the budget request for the U.S. contribution
   to the common funded Civil Budget of NATO.                              
    The House recedes.                                                     

                      Executive agent for cooperative research program of the      
           Department of Defense and the Department of Veterans Affairs (sec. 244) 
       The Senate amendment contained a provision (sec. 222) that would    
   authorize $10.0 million for the Department of Defense/Department of     
   Veterans Affairs (DOD/VA) Cooperative Research Program and clarify the  
   role of the Department of Defense as executive agent of the program.    
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would delete the reference 
   to funding. The conferees agree to authorize $10.0 million in PE 63738D 
   for the DOD/VA cooperative research program.                            
                      Review of pharmacological interventions for reversing brain  
           injury (sec. 245)                                                       
       The Senate amendment contained a provision (sec. 232) that would    
   require the Secretary of Defense to review and report to the Congress on
   research on pharmacological interventions for reversing brain injury    
   resulting from injuries incurred in combat or exposures to chemical     
   weapons.                                                                
    The House bill contained no similar provision.                         

    The House recedes.                                                     

       The conferees direct that the Secretary of Defense include in the   
   report a discussion of the ability to detect and treat status           
   epilepticus at the scene of the injury, which could have an impact on   
   reducing mortality and morbidity resulting from both head trauma and    
   chemical weapon exposure.                                               
                      Pilot program for revitalizing the laboratories and test and 
           evaluation centers of the Department of Defense (sec. 246)              
       The Senate amendment contained a provision (sec. 1067) that would   
   provide authority for one laboratory and one test and evaluation center 
   to carry out a pilot program to demonstrate improved cooperative        
   agreements with universities and other private entities.                
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

           Chemical warfare defense (sec. 247)                                     

       The House bill contained a provision (sec. 723) that would authorize
   the Secretary of the Air Force to conduct research on health-related    
   environmental and ecological effects of exposure to chemical, biological
   and radiological hazards and to develop more accurate risk assessment   
   tools. In addition, the provision would authorize an increase of $1.8   
   million in the Defense Health Program to conduct this risk assessment   
   program.                                                                
       The Senate amendment contained a provision (sec. 1045) that would   
   direct the Secretary of Defense to review, and modify as appropriate,   
   Department of Defense chemical warfare defense policy and doctrine      
   regarding the protection of U.S. forces against exposure to low levels  

                    of chemical warfare agents. In addition, the provision would  
          require the Secretary of Defense to report to the congressional defense 
          committees on any modification to chemical warfare policy and doctrine  
          as a result of the review, and establish a plan for a five-year research
          program to assist the Secretary in developing policy and doctrine on    
          exposure to low-level chemical agents.                                  
       The conferees agree to a provision that would direct the Secretary  
   of Defense to review and modify Department of Defense chemical warfare  
   policy and doctrine to ensure that U.S. forces are adequately protected 
   against any exposure to chemical warfare agents, to include exposure to 
   low-levels of chemical agents and other potentially toxic substances in 
   the environment that would endanger the health of exposed personnel.    
   Additional areas to be included in the review are the exposure of U.S.  
   forces to low-grade nuclear and electromagnetic radiation, preventive   
   medications, and diesel, jet, and other hydro-carbon based fuels.       
       The provision would also require the Secretary of Defense to develop
   and carry out a plan to establish a research program that would assist  
   the Secretary in developing policy and doctrine, as well as new risk    
   assessment methods and instruments, with respect to the effects of      
   exposure to chemical warfare agents and other toxic substances, in order
   to ensure that U.S. forces are adequately protected against exposure to 
   chemical warfare agents and toxic substances. The provision also        
   requires that a five-year budget plan be developed.                     
       The Secretary of Defense is required to report to the congressional 
   defense committees not later than May 1, 1999, on the review of DOD     
   policies and doctrine on exposure to chemical warfare agents and toxic  
   substances, and any recommendations to modify current policy and        
   doctrine as a result of the review, any recommended legislative         
   provisions, and the plan to establish the research program.             
           Landmine alternatives (sec. 248)                                        

       The Senate amendment contained a provision (sec. 233) that would    
   make $17.2 million available from funds authorized in section 201 of    
   this Act for alternatives to anti-personnel landmines and anti-personnel
   submunitions used in mixed anti-tank mine systems; would require the    
   Secretary of Defense to contract with scientific organizations to       
   identify existing and new tactics, technologies and concepts that would 
   provide comparable combat capabilities to current anti-personnel        
   landmines and anti-personnel landmines used in mixed systems, and report
   to Congress on their recommendations; would require the Secretary of    
   Defense to submit a report to the congressional defense committees by   
   April 1, 1999 and April 1, 2000 on the progress achieved in identifying 
   and deploying tactics, technologies and concepts as alternatives to     
   anti-personnel landmines; and would define anti-personnel landmines and 
   mixed munition systems consistent with the definitions contained in the 
   Convention on the Prohibition on the Use, Stockpiling, Production and   
   Transfer of Anti-Personnel Mines and their Destruction (otherwise known 
   as the Ottawa Treaty) for anti-personnel landmine and mixed mine        
   systems.                                                                
       The House bill contained no similar provision, but would authorize  
   the budget request for Army and defense-wide activities related to      
   research and development of alternatives to anti-personnel landmines.   
       The conferees agree to a provision that would direct that not more  
   than $19.2 million be made available from amounts authorized in section 
   201 of this Act for research and development of alternatives to         
   anti-personnel landmines and anti-personnel landmines used in mixed     
   anti-tank mine systems that would be equivalent to the combat           
   capabilities of the current systems. The conferees also direct the      
   Secretary of Defense to submit, with the fiscal year 2000 budget, an    
   explanation of any funds requested to support a research and development
   program for existing and new technologies and concepts that could       
   provide an equivalent combat capability to anti-personnel submunitions  
   used in mixed mine systems or to mixed mine systems.                    
       Additionally, the conferees direct the Secretary of Defense to      
   submit a report to the congressional defense committees describing      
   progress made in identifying existing and new technologies and concepts 
   as alternatives to anti-personnel submunitions used in mixed mine       
   systems or to mixed mine systems. The conferees direct the Secretary to 
   include in the report the recommendations of two scientific             
   organizations regarding the identification, adaptation, modification,   
   research and development of existing and new technologies and concepts. 
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Limitation on funding for counterproliferation support                  

       The House bill contained a provision (sec. 234) that would prohibit 
   the obligation or expenditure of funds requested in the fiscal year 1999
   budget for the counterproliferation support program in PE 63160BR until 
   receipt of an annual report required by Section 234 of the National     
   Defense Authorization Act of 1998 (Public Law 105 340) on the threat    
   posed to the United States and its allies by weapons of mass destruction
   and cruise and ballistic missiles.                                      
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

           Unmanned aerial vehicle programs                                        

       The budget request included $178.7 million for High Altitude        
   Endurance, Unmanned Aerial Vehicles (HAE UAVs) in the Defense-Wide      
   research and development account (PE 35205D8Z). This included $90.1     
   million for the Global Hawk program, $40.5 million for the DarkStar     
   program, and $48.1 million for common ground segment development. Within
   these totals, the budget request included $68.6 million to support      
   contractor participation in test and evaluation of military utility in  
   joint exercises for the Global Hawk and DarkStar programs ($39.2 million
   and $29.4 million, respectively). The budget request also included $4.3 
   million for Air Force endurance                                         

          UAVs in PE 35205F.                                                      

       The House bill would authorize an increase of $32.5 million in the  
   procurement title to buy three additional Global Hawk UAVs. The House   
   bill would also transfer HAE UAV development funding from Defense-Wide  
   research and development to PE 35205F.                                  
       The Senate amendment would authorize a decrease of $8.5 million. The
   Senate amendment also contained a provision (sec. 213) that would       
   terminate the DarkStar unmanned aerial vehicle program, and transfer    
   $32.5 million to the Global Hawk unmanned aerial vehicle program once   
   phase II testing of the Global Hawk unmanned aerial vehicle is complete.
       The conferees note the recent successful test flights of the        
   DarkStar UAV. The Senate recedes on the provision to terminate the      
   DarkStar program.                                                       
       The conferees are disappointed that these two UAV programs have not 
   been able to adhere to the original schedule. The conferees believe that
   the delays in the Global Hawk and DarkStar development and test programs
   will reduce the level of participation in joint exercises in fiscal year
   1999 below that level assumed in the budget request. The conferees are  
   also aware that these delays have affected the common ground segment    
   development effort as well.                                             
       In view of the above, the conferees believe that the budget request 
   for joint exercise participation and common ground segment development  
   exceeds what can realistically be accomplished in fiscal year 1999.     
   Thus, the conferees agree to authorize a decrease of $25.0 million for  
   these two activities in a manner which will allow equitable testing of  
   both Global Hawk and DarkStar, the specific application of which shall  
   be at the discretion of the Secretary of the Air Force.                 
       The conferees have also learned that, because of business decisions 
   about production facilities unrelated to the Global Hawk program, the   
   contractor is experiencing substantial dislocation in its business plan 
   and the construction facility has been forced to operate in a manner    
   that could adversely impact any future Global Hawk production.          
   Accordingly, the conferees agree to authorize an increase of $25.0      
   million to mitigate the effects of the business plan dislocation on the 
   Global Hawk construction facility.                                      
       In summary, the conferees authorize $183.0 million for endurance    
   UAVs in PE 35205F, including a $25.0 million increase to mitigate       
   adverse impacts to the Global Hawk construction facility, and a $25.0   
   million decrease to be applied against the joint exercise and/or common 
   ground segment development activities.                                  
       In accordance with section 216 of the National Defense Authorization
   Act for Fiscal Year 1998 (Public Law 105 85), the conferees reiterate   
   that no additional HAE UAV aircraft are to be procured until the        
   completion of the respective phase II military user assessments (NMA).  
       Because the conferees believe that the transition to procurement    
   could involve significant air vehicle design changes, the conferees     
   direct the Department of Defense to conduct any follow-on HAE UAV       
   procurement program in adherence with its established acquisition       
   procedures. Further, the conferees direct that no follow-on HAE UAV     
   procurement may commence until the Secretary of the Air Force provides  
   the congressional defense and intelligence committees with the          
   following:                                                              
     (1) a formal statement of requirements for the HAE UAVS;              

       (2) a certification that either or both of these UAVs satisfy the   
   Air Force's military utility and suitability requirements; and          
       (3) completes a formal engineering and manufacturing development    
   program for the selected UAV alterative(s).                             
           Persian gulf illnesses                                                  

       The Senate amendment contained a provision (sec. 221) that would    
   authorize an increase of $10.0 million in PE 61105D for research in     
   Persian Gulf illnesses.                                                 
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       The conferees urge the Secretary of Defense to use discretionary    
   funds to increase research for Persian Gulf illnesses in fiscal year    
   1999.                                                                   
           Low cost launch development program                                     

       The Senate amendment contained a provision (sec. 223) that would    
   increase funds for low cost launch technology development.              
    The House bill contained no similar provision.                         

       The Senate recedes. Funding for low cost launch technology          
   development is addressed elsewhere in this report.                      
                            TITLE III--OPERATION AND MAINTENANCE                  

           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $94,219.1 million for Operation and Maintenance in the Department of 
   Defense and $900.0 for Working Capital Fund Accounts in fiscal year     
   1999. The House bill would authorize $92,476.5 million for Operation and
   Maintenance and $1,746.1 for Working Capital Fund Accounts. The Senate  
   amendment would authorize $93,849.8 million for Operation and           
   Maintenance and $764.1 for Working Capital Fund Accounts. The conferees 
   recommended an authorization of $92,891.5 million for Operation and     
   Maintenance and $1,746.1 for Working Capital Fund Accounts for fiscal   
   year 1999. Unless noted explicitly in the statement of managers, all    
   changes are made without prejudice.                                     

   Offset Folios 1242 to 1270 insert herer                                 



           Arms control implementation                                             

       The budget request included $275.3 million in the military services 
   and defense accounts to meet specific arms control implementation and   
   compliance obligations. The budget request is formulated on anticipated 
   resource requirements, to include planning assumptions of anticipated   
   dates of entry into force of arms control agreements, numbers of        
   inspections or observations to be performed in the year, data reporting 
   and information exchange requirements.                                  
       The House bill would decrease the budget request for the On-Site    
   Inspection Agency for the following: $1.5 million for START II          
   implementation activities; $1.0 million for implementation of the Open  
   Skies Treaty; and $1.0 million for activities related to entry into     
   force of the Comprehensive Test Ban Treaty (CTBT). The House bill would 
   also authorize a decrease of $25.0 million for research and development 
   activities related to implementation of the CTBT. Lastly, the House bill
   would authorize no funds for reimbursement to the Organization for the  
   Prohibition of Chemical Weapons (OPCW) for the costs of inspectors      
   salaries and transportation from the Hague for inspections conducted    
   pursuant to the Chemical Weapons Convention.                            
       The Senate amendment would authorize no funds to reimburse the      
   Organization for the Prohibition of Chemical Weapons for inspectors     
   salaries and transportation from The Hague to the U.S. Point of Entry,  
   and for reimbursement of the cost of arms control inspections in foreign
   countries when those costs are the obligation of the inspected country. 
       The conferees agree to authorize a decrease of $28.0 million for the
   following arms control implementation activities: $1.5 million for START
   II; $1.0 million for Open Skies activities; $1.0 million for CTBT; $9.0 
   million for reimbursement of other than ``usual'' in-country inspection 
   costs; and, $0.5 million for anticipated reimbursement of payments for  
   arms control inspection costs borne by the inspected party to a treaty  
   or agreement. The conferees also agree to a decrease of $15.0 million   
   for research and development activities in support of CTBT and U.S.     
   nuclear test detection requirements.                                    
       The conferees agree that of the funds authorized for research and   
   development activities in support of CTBT requirements, $20.0 million   
   shall be available for efforts to develop critical seismic technology to
   detect, verify, and evaluate both natural and weapons-related phenomena 
   important to nuclear test detection.                                    
           Navy Environmental Leadership Program                                   

       The budget request included $2.4 million for the Navy Environmental 
   Leadership Program (NELP).                                              
    The House bill would authorize an increase of $4.0 million for NELP.   

    The Senate amendment would authorize no funds for NELP.                

    The conferees agree to authorize an increase of $2.0 million for NELP. 

           Defense Threat Reduction Agency (DTRA)                                  

       The budget request included $304.7 million for the Defense Threat   
   Reduction Agency (DTRA).                                                
       In November 1997, as part of its Defense Reform Initiative (DRI),   
   the Department of Defense recommended the establishment on October 1,   
   1998 of the Defense Threat Reduction Agency (DTRA), a single agency that
   would carry out programs to counter proliferation and reduce threats    
   posed by weapons of mass destruction and to provide nuclear weapons     
   stockpile and related support. The agency would consolidate several     
   functions from the Office of the Secretary of Defense (OSD) and the     
   Washington Headquarters Services involved in the oversight and          
   management of associated programs, including the On-Site Inspection     
   Agency (OSIA), the Defense Special Weapons Agency (DSWA), the           
   chemical-biological defense program and the counterproliferation support
   program. The budget request also recommended elimination of the position
   of the Assistant to the Secretary of Defense for Nuclear, Chemical and  
   Biological Matters (ATSD(NCB)).                                         
    The House bill would authorize a decrease of $500,000 for DTRA.        

       The Senate amendment would authorize a decrease of $20.0 million for
   DTRA and would recommend that in addition to transferring the activities
   of the OSIA and DSWA to the DTRA, the chemical-biological defense       
   program, counterproliferation support program, the unitary and          
   nonstockpile chemical and munitions destruction programs, and programs  
   related to force protection, such as the physical security program (PE  
   63228D8Z), and the counter-terror technical support program (PE         
   63122D8Z), also be transferred to DTRA.                                 
       The conferees agree to authorize a decrease of $12.0 million for    
   DTRA. The conferees agree that the counterproliferation support program 
   and activities related to force protection, such as the physical        
   security program (PE 63228D8Z) and subelements of the counter-terror    
   technical support program (PE 63122D8Z) related to weapons of mass      
   destruction and force and infrastructure protection, be transferred to  
   DTRA. As noted elsewhere in this report, oversight and direction of the 
   counter-terror technical support program remains with the Assistant     
   Secretary of Defense (Special Operations/Low Intensity Conflict).       
       The conferees agree that policy and programmatic oversight for the  
   chem-bio defense program and the chemical demilitarization program      
   should remain within the Office of the Secretary of Defense, and that   
   the Department of the Army should remain the executive agent for these  
   programs, pursuant to Section 1701 of the National Defense Authorization
   Act for Fiscal Year 1994 (Public Law 103 160) and Section 1412 of the   
   Department of Defense Authorization Act for Fiscal Year 1986 (Public Law
   99 145). However, the conferees do recognize that there may be          
   activities within both of these programs that represent unique          
   operational responsibilities of DTRA, and encourage DTRA to consult     
   closely with both the Office of the Secretary of Defense and the        
   Department of the Army.                                                 
       The conferees agree to a separate provision (sec. 1521) dealing with
   the Defense Technical Security Administration (DTSA). A discussion of   
   the conferees recommendation for the DTSA can be found                  

          elsewhere in this report.                                               

       The conferees do not agree to transfer the statutory responsibility 
   for nuclear weapons, including support of the Nuclear Weapons Council,  
   to DTRA. Elsewhere in this report the conferees discuss in greater      
   detail the decision not to abolish the Assistant to the Secretary of    
   Defense for Nuclear, Chemical, and Biological Matters.                  
       A part of the proposal to create DTRA is the physical consolidation 
   of the various functions located in the Dulles area of Virginia. The    
   On-Site Inspection Agency (OSIA), one of the DTRA components, is        
   currently located in the Dulles area. The conferees have been informed  
   by the Department of Defense (DOD) that sufficient space does not       
   currently exist at OSIA, or in the Dulles area, to co-locate all of the 
   DTRA elements in one building or in one complex. As a result, DOD must  
   either build or lease substantial additional space to accommodate the   
   new organization. The conferees believe that one of the primary goals of
   any consolidation should be to have all the elements of the DTRA either 
   in one building or complex or at least within walking distance of each  
   other. Otherwise, the conferees are concerned the consolidation         
   unnecessarily could result in substantial disruption of personnel and   
   substantial increases in time commuting to meetings and other events    
   during the day.                                                         
       Before any further commitments for office space are made or         
   additional efforts taken to consolidate the component parts of DTRA in  
   the Dulles area, the conferees direct the Secretary of Defense to submit
   a report no later than May 14, 1999 on the cost and overall effect of   
   this move on the work of the agency. This report should address: the    
   availability of public transportation; plans for transporting employees 
   during the day; relocations costs; commuting impacts; potential savings;
   an assessment of the advantages and disadvantages of co-locating and    
   co-locating to the Dulles area; issues associated with force protection;
   an assessment of the alternatives to co-locating including not moving;  
   and the impact on retention and morale of personnel that would move.    
           Joint Military Intelligence Program                                     

       The budget request included $3.8 billion in the Operation and       
   Maintenance, Defense-Wide account for classified and intelligence       
   programs, including funds in the Joint Military Intelligence Program for
   the National Imagery and Mapping Agency (NIMA), the Joint Reserve       
   Intelligence Program (JRIP), and the Command, Control, Communications,  
   Computers, Intelligence, Surveillance, and Reconnaissance Integrated    
   Architecture Plan (CIAP).                                               
       The House bill would authorize a net decrease of $9.0 million for   
   NIMA, an increase of $3.0 million for JRIP, and an increase of $3.0     
   million for CIAP. The House report (H. Rept. 105 508) accompanying the  
   Intelligence Authorization Act for Fiscal Year 1999 (H.R. 3694) directed
   that no funds authorized or appropriated for NIMA be made available for 
   the joint mapping tool kit (JMTK) module of the global command and      
   control system (GCCS) until the Assistant Secretary of Defense for      
   Command, Control, Communications, and Intelligence (ASD(C3I)) either    
   certifies that the Defense Information Systems Agency (DISA) will       
   procure the module commercially, or reports to the congressional defense
   and intelligence committees why such commercial procurement would be    
   disadvantageous.                                                        
       The Senate amendment would authorize the budget request for NIMA,   
   JRIP, and CIAP.                                                         
       The conferees agree to authorize a decrease of $7.0 million for NIMA
   sustaining capabilities and an increase of $7.0 million for product     
   outsourcing. The conferees direct that the sustaining capabilities      
   reduction be applied equitably across all NIMA facilities and functions,
   and that no more than half of the decrease be applied to personnel. The 
   conferees also agree to authorize an increase of $3.0 million for JRIP  
   and an increase of $3.0 million for CIAP.                               
       With regard to the House position on JMTK module procurement, the   
   conferees agree that NIMA and DISA should be acquiring commercially     
   available products unless there is very strong justification to the     
   contrary. Therefore, the conferees direct the ASD (C3I) to provide the  
   congressional defense and intelligence committees by January 29, 1999 a 
   report on his plan for: (1) establishing a process for certifying       
   commercial products that meet GCCS interface protocols and standards;   
   (2) providing all documentation needed for vendors to determine whether 
   their applications software products can achieve such certification; and
   (3) ensuring that NIMA and DISA are making all reasonable efforts to    
   evaluate commercially available GCCS modules (such as JMKT) that can    
   achieve such certification before spending Department of Defense funds  
   to develop such modules.                                                
           Domestic emergency response program                                     

       The budget request included $246.2 million for key Department of    
   Defense programs to counter paramilitary and terrorist threats involving
   weapons of mass destruction, including $99.1 million for the domestic   
   emergency response preparedness program as follows: $49.9 million for   
   the Department of Defense to prepare and enhance Federal, state and     
   local response capabilities to terrorist incidents involving weapons of 
   mass destruction (WMD), and $49.2 million for the Department of the Army
   for the Reserve Components' participation in domestic emergency         
   preparedness and response to the terrorist use of weapons of mass       
   destruction.                                                            
       The House bill would authorize a decrease of $28.5 million for the  
   Reserve Components' participation in WMD domestic preparedness,         
   including $14.6 million for military personnel, $7.0 million for        
   operation and maintenance, and $6.9 million for the procurement of      
   contamination avoidance equipment.                                      
       The Senate amendment would authorize the budget request for domestic
   emergency preparedness for the Department of Defense and the Department 
   of the Army. In addition, the Senate would recommend the transfer of the
   mission, function and resources for the Defense domestic emergency      
   preparedness program to the Defense Threat Reduction Agency (DTRA).     
       The conferees agree to authorize the budget request for countering  
   paramilitary and terrorist WMD threats and for the DOD and              

                    the Department of the Army for the WMD domestic emergency     
          response program. Authorization of Reserve Components' participation in 
          WMD domestic emergency preparedness and response is discussed in Title V
          of this report. Additionally, specific adjustments to program elements  
          for countering paramilitary and terrorist WMD threats are discussed     
          elsewhere in the report on the individual projects which are included in
          the program.                                                            
       The conferees are aware that a National Coordinator has been        
   appointed by the President, pursuant to the direction contained in the  
   National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 
   201), whose responsibilities shall include operational oversight of the 
   Federal government's security and counterterrorism efforts, to include  
   domestic emergency preparedness and response to the terrorist use of    
   WMD. The conferees have included a provision in Title XIV of this report
   that would require the President to increase the effectiveness of the   
   domestic emergency preparedness program and to submit a report to       
   Congress by January 31, 1999 outlining the actions taken to increase the
   effectiveness of the program. In addition, the conferees direct that the
   report submitted by the President on January 31, 1999 include           
   information on the efforts to meet the challenge of limiting the damage 
   and manage the consequences of the terrorist use of WMD, as outlined in 
   Presidential Decision Directive (PDD) 62. The conferees understand that 
   the intent of PDD 62 is to create a new and more systematic approach to 
   fighting the threat of the terrorist use of WMD. The report should      
   outline the role and obligations of the National Coordinator in         
   overseeing the relevant policies and programs in the U.S. Government,   
   the responsibility of the National Coordinator to the Congress,         
   implementation of recommendations on budgets for counter-terrorism      
   programs and the coordination and development of guidelines necessary   
   for crisis management. The conferees request that the President's report
   identify requirements for any additional fiscal year 1999 funds that may
   be required to implement actions taken to increase the effectiveness of 
   the domestic emergency response program.                                
       The conferees endorse the direction contained in the Senate report  
   (S. Rept. 105 189) requiring the Secretary of Defense to report to the  
   congressional defense committees on the use of the DOD stockpile of     
   vaccines, medical supplies and protective gear in a domestic WMD        
   emergency, and the availability of vaccines, antiserums and antidotes in
   other Federal entities that could also be used. In addition, the        
   President's report to Congress should discuss the advisability of       
   establishing regional stockpiles of both emergency protective gear and  
   vaccines that could be available for emergency use by Federal, state and
   local responders in the event of a terrorist event using WMD.           
                        ITEMS OF SPECIAL INTEREST                        

           Fire support software engineering center                                

       The conferees are concerned about the readiness and upgrades of Army
   command and control and fire direction systems presently maintained by  
   the Fire Support Software Engineering Center (FSSEC) at Fort Sill,      
   Oklahoma. Delays on systems such as the Battery Computer System, the    
   Initial Fire Support Automated System, and the Multiple Launch Rocket   
   System must be avoided. Therefore, the conferees urge the Army to       
   continue full operational funding for the FSSEC.                        
           Lead-based paint soil contamination at Department of Defense facilities 

       A December 20, 1996, Environmental Protection Agency (EPA)          
   memorandum indicates that the Comprehensive Environmental Response,     
   Compensation and Liability Act (CERCLA) may be applied to compel the    
   cleanup of lead-contaminated soils on federal facilities. The conferees 
   understand that, to date, EPA has only applied this interpretation of   
   CERCLA at DOD sites.                                                    
       The conferees note that section 120(a)(1) and (2) of the CERCLA     
   provides that federal facilities are to comply with all guidelines,     
   rules, regulations, and criteria ``. . . in the same manner, and to the 
   extent as such guidelines, rules, regulations, and criteria are         
   applicable to other facilities.'' Although the conferees recognize that 
   there may be quantifiable human health risks that support response      
   actions at certain sites with lead-based paint contamination, there is  
   concern about consistency.                                              
       The conferees are concerned about the possibility of disparate      
   enforcement actions related to lead-based paint. The conferees direct   
   that the Secretary of Defense include in the fiscal year 1998 annual    
   report on environmental restoration (10 U.S.C. 2706(a)) a description of
   the sites, human health risks, costs, and delays, if any, related to the
   EPA enforcement of response action requirements for lead-based paint at 
   Department of Defense sites.                                            
           State certification of underground storage tanks                        

       The conferees note that underground storage tanks owned and operated
   by the Department of Defense (DOD) are subject to Federal, state, and   
   local statutory and regulatory guidance. The Resource Conservation and  
   Recovery Act (RCRA) (42 U.S.C. 6991 6991h) sets minimum standards for   
   spill, overfill, and corrosion protection mechanisms to be included in  
   standards for upgrading, replacing, and closing new and existing        
   underground storage tanks. Existing underground storage tanks, those    
   installed prior to December 22, 1988, must be upgraded to have spill,   
   overfill, and corrosion protection, otherwise such tanks may be subject 
   to removal, closure in place, or replacement. Generally, state          
   environmental regulatory agencies have adopted the Federal minimum RCRA 
   compliance standards for underground storage tanks.                     
       A recent audit conducted by the DOD Office of Inspector General (IG)
   determined that there were significant variances between state- and     
   DOD-generated underground storage tank inventories. The DOD IG          
   determined that such divergent results occurred because the DOD managers
   and state environmental regulators prepared separate underground storage
   tank inventories that were not reconciled.                              

                    Consistent with that determination, the DOD IG concluded that 
          operations may be disrupted at some DOD installations after December 22,
          1998, if state regulatory agencies do not obtain accurate data with     
          which to assess DOD underground storage tank compliance under RCRA,     
          Subtitle I.                                                             
       The conferees direct the Secretary of Defense to submit a report, no
   later than 60 days after the enactment of this Act, to the congressional
   defense committees on the number of underground storage tanks projected 
   to be noncompliant after December 22, 1998. The report shall identify a 
   plan that would minimize operational disruptions associated with        
   noncompliant tanks.                                                     
                      LEGISLATIVE PROVISIONS ADOPTED                     

                          SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS             

           Authorization of appropriations (secs. 301 302)                         

       The House bill contained provisions (secs. 301 302) that would      
   authorize the recommended fiscal year 1999 funding levels for all       
   operations and maintenance and working capital fund accounts.           
    The Senate amendment contained similar provisions.                     

    The conference agreement includes these provisions.                    

           Armed Forces Retirement Home (sec. 303)                                 

       The House bill contained a provision (sec. 303) that would authorize
   $70.7 million from the Armed Forces Retirement Trust Fund for the       
   operation of the Armed Forces Retirement Home, including the U.S.       
   Soldiers' and Airmen's Home and the Naval Home.                         
    The Senate amendment contained an identical provision (sec. 303).      

    The conference agreement includes this provision.                      

                      Transfer from the National Defense Stockpile Transaction Fund
           (sec. 304)                                                              
       The House bill contained a provision (sec. 304) that would authorize
   the Secretary of Defense, to the extent provided in an appropriation    
   act, to transfer $150.0 million from the National Defense Stockpile     
   Transaction Fund to the operations and maintenance accounts.            
    The Senate amendment contained an identical provision.                 

    The conference agreement includes this provision.                      

               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

           Refurbishment of M1 A1 Tanks (sec. 311)                                 

       The House bill contained a provision (sec. 305) that would authorize
   $31.0 million for the refurbishment of up to 70 M1 A1 tanks under the   
   AIM XXI program.                                                        
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Operation of prepositioned fleet, National Training Center,  
           Fort Irwin, California (sec. 312)                                       
       The House bill contained a provision (sec. 306) that would authorize
   $60.2 million for the operation of the prepositioned fleet of equipment 
   during training operations at the National Training Center, Fort Irwin, 
   California.                                                             
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

           Berthing space at Norfolk Naval Shipyard, Virginia (sec. 313)           

       The House bill contained a provision (sec. 307) that would authorize
   the Navy to obligate $6.0 million for the relocation of the U.S.S.      
   Wisconsin from Norfolk Naval Shipyard to another suitable location to   
   increase available berthing space at the shipyard.                      
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

       The conferees are aware of the facility capacity constraints at     
   Norfolk Naval Shipyard where the Navy currently maintains some of its   
   inactive reserve vessels. These constraints require the relocation of   
   the U.S.S. Wisconsin to a different location in order to make space     
   available for active vessels in need of repair and maintenance. Because 
   of the requirement for the Navy to berth this deep draft vessel within  
   the Norfolk vicinity so that it can be returned to the shipyard for     
   reactivation, if necessary, the Navy is exploring alternative berthing  
   sites including some within the Elizabeth River. The committee is aware 
   that the redeployment of this vessel to a suitable location in the      
   Norfolk area may require some additional dredging. Therefore, the       
   conferees recommend an increase of $6.0 million for the dredging and    
   other costs associated with the redeployment of the U.S.S. Wisconsin    
   within the Norfolk region.                                              
           NATO common-funded military budget (sec. 314)                           

       The budget request for Army operations and maintenance included     
   $227.4 million for support of other nations, which includes support of  
   North Atlantic Treaty Organization (NATO) operations and NATO expansion.
       The Senate amendment contained a provision (sec. 314) that would    
   authorize the budget request for Army operations and maintenance for    
   support of other nations.                                               
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                            SUBTITLE C--ENVIRONMENTAL PROVISIONS                  


                      Settlement of claims of foreign governments for environmental
           cleanup of overseas sites formerly used by the Department of Defense    
           (sec. 321)                                                              
       The Senate amendment contained a provision (sec. 326) that would    
   require the President to provide notification to Congress of any        
   negotiations related to the ex-gratia settlement of environmental       
   cleanup claims by other countries.                                      
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Authority to pay negotiated settlement for environmental     
           cleanup of formerly used defense sites in Canada (sec. 322)             
       The House bill contained a provision (sec. 321) that would authorize
   the Secretary of Defense to pay the Government of Canada up to $100.0   
   million in annual payments over a ten year period.                      
       The Senate amendment contained a provision (sec. 325) that would    
   allow for the payment of $100.0 million reimbursement to Canada, subject
   to annual authorizations and appropriations process. The Department     
   would be required to submit to Congress evidence of proportionate       
   Canadian investment in environmental cleanup in support of each annual  
   authorization and appropriation request. The provision would make       
   certain findings regarding the basis for the reimbursement, state that  
   the authorization shall not be construed as precedent setting, and that 
   the $100.0 million would be paid in full satisfaction of any and all    
   environmental contamination claims by Canada.                           
       The House recedes with an amendment that would authorize the $10.0  
   million appropriated in fiscal year 1998 appropriation for the Canadian 
   reimbursement.                                                          
           Removal of underground storage tanks (sec. 323)                         

       The House bill contained a provision (sec. 322) that would enable   
   the Department of Defense (DOD) to use not more than $150,000 of the    
   funds available for environmental restoration of formerly used defense  
   sites to conduct removal of underground storage tanks at the Authorities
   Allied Industrial Park in Macon, Georgia.                               
    The Senate amendment contained no similar provision.                   

       Senate recedes with an amendment that would give the Secretary of   
   Defense discretion to fund any tank removal at formerly used defense    
   sites. The conferees note that such exercise of discretion would be     
   dependent upon a determination of DOD liability, consistent with current
   law. The conferees direct the Secretary of Defense to determine whether 
   it would be appropriate to use authorized funds for removal of former   
   DOD underground storage tanks, and then report to the congressional     
   defense committees within 90 days of the enactment of this Act.         
                      Report regarding polychlorinated biphenyls under Department  
           of Defense control overseas (sec. 324)                                  
       The Senate amendment contained a provision (sec. 321) that would    
   amend Chapter 157 of title 10, United States Code, by adding a new      
   section to permit Department of Defense agencies to transport to the    
   United States for disposal, treatment, or storage of foreign            
   manufactured polychlorinated biphenyls (PCBs) generated by the          
   Department's overseas activities. The provision would ensure that the   
   PCB-containing material transported to the United States is handled in  
   an environmentally responsible manner.                                  
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the Secretary
   of Defense to submit a report to the Congress that addresses            
   international and domestic issues related to the transportation and     
   disposition of foreign manufactured PCBs.                               
                      Modification of deadline for submittal to Congress of annual 
           reports on environmental activities (sec. 325)                          
       The Senate amendment contained a provision (sec. 322) that would    
   amend section 2706 of title 10, United States Code, by substituting the 
   45 day annual reporting deadline for the current 30 day period.         
    The House bill contained no similar provision.                         

    The House recedes.                                                     

       The conferees are aware that the Department of Defense has          
   considered modification of the annual report on environmental           
   restoration activities. While the Department has been directed to       
   restructure the annual report on environmental compliance by including  
   useful and comprehensible information, the conferees note that the      
   environmental restoration report does not require such changes. The     
   conferees expect that any modifications to the annual environmental     
   reports will be fully coordinated with the Committee on Armed Services  
   of the Senate and the Committee on National Security of the House of    
   Representatives.                                                        
           Submarine solid waste control (sec. 326)                                

       The Senate amendment contained a provision (sec. 323) that would    
   amend the Act to Prevent Pollution from Ships (APPS) (33 U.S.C. 1901, et
   seq.) by authorizing certain submersible vessels owned or operated by   
   the Navy to discharge non-plastic garbage that has been compacted and   
   weighted to ensure negative buoyancy within special use areas. The APPS 
   implements the Annex V of the International Convention for the          
   Prevention of Pollution on Ships (MARPOL). The Navy has determined that 
   compliance with the special use area requirements of MARPOL Annex V     
   would impair submarine operations and operational capability, or would  
   not be technologically feasible. A comprehensive Navy environmental     
   analysis revealed that the discharge of non-plastic garbage from Navy   
   submarines would not have a significant effect on the marine            
   environment, either within or beyond the limits of MARPOL Annex V       
   special use areas.                                                      
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

    The conferees direct the Navy to provide adequate support and          


                    justification for future funding requests related to the      
          compliance obligations associated with this new authority.              
           Arctic Military Environmental Cooperation program (sec. 327)            

       The budget request included $5.5 million in the defense operations  
   and maintenance to address military environmental matters in the Arctic 
   region under the Arctic Military Environmental Cooperation (AMEC)       
   program, to include environmental restoration activities.               
       The Senate amendment contained a provision (sec. 327) that would    
   authorize the AMEC program, subject to the legislative prohibitions and 
   limitations of the Cooperative Threat Reduction (CTR) program, to       
   include section 1503 of the National Defense Authorization Act for      
   Fiscal Year 1997 (Public Law 105 85). The provision would authorize $4.0
   million for AMEC, a decrease of $1.5 million, and would preclude the    
   obligation or expenditure of fiscal year 1999 funds until 45 days after 
   the Secretary of Defense submits a plan that specifies the conformance  
   of AMEC projects to existing prohibitions and limitations on the use of 
   CTR funds.                                                              
       The House bill contained no similar provision. The House report (H. 
   Rept. 105 532) urged the Secretary of Defense to use up to $1.0 million 
   to support the establishment of a Joint United States-Russia Nuclear    
   Materials Commission that would include legislators, agency and ministry
   leaders, and environmental experts representing the international       
   environmental community.                                                
       The House recedes with an amendment that would require congressional
   notification prior to the obligation of AMEC funds, similar to the      
   requirement that applies to the use of CTR funds, and would also        
   prohibit the use of AMEC funds for environmental restoration. The       
   conferees agree that AMEC should address important military             
   environmental issues related to U.S. national security interests in the 
   Arctic. In order to ensure that AMEC has the requisite focus, the       
   conferees expect the Secretary of Defense to develop a comprehensive    
   program plan, consistent with the legislative prohibitions and          
   limitations of the CTR program. That plan must be in place before funds 
   are obligated for AMEC. The conferees direct the Secretary of Defense to
   include in the plan a specific program termination date.                
       The Secretary of Defense recently notified the Congress of an intent
   to reobligate prior year CTR funds for AMEC to ``. . . focus on threats 
   to the environment. . . .'' The conferees are concerned about the       
   vagueness of this notice, the possible use of reobligated funds for     
   environmental restoration, and the potential conflict with existing law.
   The Congress prohibited the use of CTR funds for the provision of       
   assistance to promote environmental restoration (National Defense       
   Authorization Act for Fiscal Year 1997 (Public Law 105 85)). The new    
   AMEC authority and existing CTR requirements would prohibit the use of  
   CTR or AMEC funds for environmental restoration.                        
                      Sense of Congress regarding oil spill prevention training for
           personnel on board Navy vessels (sec. 328)                              
       The Senate amendment contained a provision (sec. 328) that would    
   express a sense of the Senate that the Secretary of the Navy should     
   ensure that personnel on board Navy vessels in Puget Sound, Washington, 
   receive oil spill prevention training.                                  
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

                          SUBTITLE D--INFORMATION TECHNOLOGY ISSUES               

                      Additional information technology responsibilities of chief  
           information officers (sec. 331)                                         
       The House bill contained a provision (sec. 311) that would assign   
   certain responsibilities to the chief information officers of the       
   military services and the Department of Defense to ensure that          
   information system budget requests are sufficient and that the systems  
   themselves are interoperable.                                           
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would ensure that the     
   Chief Information Officer of the Department of Defense (DOD) is         
   responsible for examining all information systems within the Department 
   to ensure that they are interoperable and are not duplicative of other  
   DOD systems.                                                            
           Defense-wide electronic mall system for supply purchases (sec. 332)     

       The House bill contained a provision (sec. 312) that would require  
   the Defense Logistics Agency to develop a single, defense wide          
   electronic mall system that would be operational by June 1, 1999.       
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the Joint   
   Electronic Commerce Program Office (JECPO) of the Department of Defense 
   to develop a single, defense-wide electronic mall system, which would   
   provide a single, defense-wide electronic point of entry and a single   
   view, access, and ordering capability for all Department of Defense     
   electronic catalogs. The provision would direct that the Defense        
   Logistics Agency would be responsible for maintaining the system under  
   the direction of the JECPO.                                             
                      Year 2000 Compliance of Department of Defense Information    
           Technology and National Security Systems                                
       The conferees are concerned with the Department of Defense's (DOD)  
   and the intelligence community's information technology and national    
   security systems lack of progress in achieving year 2000 (Y2K)          
   compliance. While debate continues over which steps are necessary to    
   prepare the national security community for 21st century threats, the   
   conferees agree that insufficient attention has been given to preparing 
   this community for the Y2K transition.                                  
       Despite the fact that Y2K problems have been known for years, the   
   Department has not met its projected time lines for renovating all      

                    necessary systems. In particular, many mission critical       
          systems are still in the renovation phase, with little assurance from   
          DOD that the required testing and integration efforts will be completed 
          in sufficient time to avoid system-wide problems. The Department's      
          reliance upon other public and private sector, including other nations, 
          information technology systems adds to these concerns.                  
       It is difficult to know how other nations will react if their own   
   information technology systems are crippled by Y2K deficiencies and they
   are left without reliable and complete information. In an age where     
   weapons of mass destruction with global reach are controlled through    
   elaborate information networks, it is of critical importance that steps 
   be taken to minimize any confusion or misunderstandings before they     
   develop into crisis situations. The conferees commend the U.S. Strategic
   Command for its foresight and efforts in strengthening communications   
   with other nations on Y2K, ensuring responsible management of Y2K       
   problems that may arise.                                                
       For these reasons the conferees included three provisions (secs.    
   333, 334, and 335) to address the Department's and the intelligence     
   communities Y2K issues. As discussed further in this title, these       
   provisions cover such issues as Y2K contingency plans, relations with   
   foreign nations, testing of systems, and adequate funding.              
                      Priority funding to ensure year 2000 compliance of           
           information technology and national security systems (sec. 333)         
       The House bill contained a provision (sec. 314) that would transfer 
   $1.0 billion from other information technology and national security    
   programs to assist in the Department's Y2K compliance efforts. The      
   provision would also require that 75 percent of funds for information   
   technology and national security programs be used for these Y2K efforts.
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would prohibit the        
   expenditure of funds on the development or modernization of any         
   information technology system unless that system is Y2K compliant, or is
   required to be performed by law. The amendment would further protect    
   funds for mission critical systems from any unallocated reductions.     
   Finally, the provision would require the Department to develop          
   contingency plans for these systems in the event that they are not Y2K  
   compliant, and provide the Congress with a report on the Department's   
   efforts to ensure its systems are compliant.                            
                      Evaluation of year 2000 compliance as part of training       
           exercises programs (sec. 334)                                           
       The House bill contained a provision (sec. 315) that would require  
   the Secretary of Defense to provide the congressional defense committees
   with a report that would outline the Department's plans for             
   incorporating Y2K tests as part of its joint exercises.                 
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require that Y2K    
   tests be incorporated in at least 25 exercises, and that each mission   
   critical system expected to be used in any major theater war be tested  
   in at least one of these exercises.                                     
                      Continuity of essential operations at risk of failure because
           of information technology and national security systems that are not    
           year 2000 compliant (sec. 335)                                          
       The Senate amendment contained a provision (sec. 1026) that would   
   require the Secretary of Defense and the Director of Central            
   Intelligence to provide a joint report outlining their planned course of
   action to ensure a continuity of essential operations in the year 2000. 
    The House bill contained no similar provision.                         

    The House recedes with an amendment that would eliminate the findings. 

       The conferees believe the report should include the adoption of a   
   comprehensive contingency plan for the entire national security         
   community, as well as individual contingency plans for the separate     
   elements of the community, including the creation of crisis action teams
   to respond to emergencies arising from the Y2K problem. Furthermore, the
   report should outline any cooperative agreements between the United     
   States and foreign countries to ensure that the Y2K problems with the   
   strategic systems of those countries do not pose a threat to the United 
   States.                                                                 
                   SUBTITLE E--DEFENSE INFRASTRUCTURE SUPPORT IMPROVEMENT         

                      Clarification of definition of depot-level maintenance and   
           repair (sec. 341)                                                       
       The House bill contained a provision (sec. 335) that would clarify  
   section 2460 (a) of title 16, United States Code, to include the        
   location at which depot level maintenance is performed.                 
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Reporting and analysis requirements before change of         
           commercial and industrial type functions to private sector performance  
           (sec. 342)                                                              
       The House bill contained a provision (sec. 331) that would amend and
   clarify certain requirements and notifications that the Department of   
   Defense must meet before it could study a commercial or industrial type 
   function under section 2461 of title 10, United States Code.            
       The Senate amendment contained a provision (sec. 346) that would    
   express the Sense of the Senate that the Secretary of Defense should    
   take action to initiate public-private competitions pursuant to Office  
   of Management and Budget Circular A 76 for functions of the Department  
   of Defense involving not fewer than 180,000 full time employees over the
   next six years. The provision would further waive any study requirements
   for functions involving 50 or fewer employees, and would give the       
   Department increased flexibility to choose the public or                

                    private option that provides the best overall value for the   
          taxpayer by expressly authorizing the use of ``best value'' techniques  
          for public-private competitions for support services.                   
       The Senate recedes with an amendment that would not include the     
   requirement contained in the original House provision for the Secretary 
   of Defense to notify the Congress of his determination regarding the    
   cost effectiveness of procuring services or supplies through the private
   sector, rather than a working capital fund organization, before entering
   into such a contract. Any analysis performed to determine if supplies or
   services should be procured from the private sector rather than through 
   a working capital fund organization, should, to the extent practicable, 
   include the impact on the rates of the working capital fund             
   organization. Furthermore, although the provision would allow any       
   employee to raise an objection on the grounds that the required report  
   and certifications were not performed, such an objection would have to  
   be raised within 90 days of the date on which the employee either knew, 
   or should have known, that the function was being studied for potential 
   conversion to the private sector. In addition, the provision would waive
   the reporting requirement of section 2461 of title 10, United States    
   Code, for functions with 51 or more employees, rather than 21 or more   
   employees as provided in current law.                                   
                      Notification of determinations of military items as being    
           commercial items for purposes of the exception to requirements regarding
           core logistics capabilities (sec. 343)                                  
       The House bill contained a provision (sec. 336) that would define a 
   commercial item for those situations in which the Department is         
   determining if there is a requirement to establish a core depot         
   maintenance capability. This definition would require that before an    
   item can be considered a commercial item, and therefore not require a   
   core depot maintenance capability, at least 90 percent of the total     
   content by component value remains identical to the commercial version. 
   It would further require that purchases and leases to the general       
   public, rather than the government, constitute the majority of          
   transactions of the item before it could be considered commercial.      
    The Senate had no similar provision.                                   

       The Senate recedes with an amendment that would require the         
   Secretary of Defense submit to the Congress a report that outlines any  
   determination regarding core depot maintenance capability and a detailed
   justification for each item determined for the first time to be a       
   commercial item for the purposes of section 2464 of title 10, United    
   States Code.                                                            
                      Oversight of development and implementation of automated     
           identification technology (sec. 344)                                    
       The House bill contained a provision (sec. 333) that would require  
   the Smart Card Technology Office within the Defense Human Resources     
   Field Activity of the Department of Defense (DOD) to be responsible for 
   the oversight and coordination of Automated Identification Technology   
   programs within the DOD.                                                
       The Senate amendment contained a provision (sec. 345) that would    
   require the Navy to allocate up to $25.0 million for Smart Cards. The   
   Senate amendment also required the Navy to equip at least one carrier   
   battle group, one air wing, and one amphibious readiness group, in each 
   of the Atlantic and Pacific Fleets with Smart Card technology by March  
   31, 1999, and prohibited the procurement of the Joint Uniformed Services
   Identification card for the Department of the Navy after March 31, 1999 
   unless these units were equipped with Smart Cards. The Senate amendment 
   also required the Secretary of the Navy to submit a plan to equip all   
   operational naval units with Smart Cards.                               
       The Senate recedes with an amendment that would establish an        
   Automated Identification Technology Office within the Department of     
   Defense with the responsibility for the development and coordination of 
   DOD automated information technology programs including but not limited 
   to Smart Cards. The conferees further agree to delay the date for       
   equipping the Atlantic and Pacific naval units with Smart Cards to June 
   30, 1999 and to require the Secretary of Defense to submit a plan to the
   congressional defense committees for the use of Smart Card technology by
   each military department rather than requiring a plan only for the Navy.
           Contractor-operated civil engineering supply stores program (sec. 345)  

       The House bill contained a provision (sec. 338) that would prohibit 
   the incorporation of a civil engineering supply function into a broader 
   base operations function for the purpose of competition or contracting  
   until the Secretary of Defense submits a report to the Congress         
   identifying the reasons for the incorporation, including why the        
   combined competition or contract is the best method by which to achieve 
   savings.                                                                
    The Senate amendment contained no similar provision.                   

    The Senate recedes with a technical amendment.                         

                      Conditions on expansion of functions performed under prime   
           vendor contracts for depot-level maintenance and repair (sec. 346)      
       The House bill contained a provision (sec. 334) that would require  
   the Secretary of Defense or the secretary of a military department to   
   provide a report to the Congress each time the secretary intends to     
   enter into a prime vendor contract for a hardware system, including one 
   involving depot-level maintenance or logistics management functions. The
   report would address the competitive procedures that are proposed to be 
   used to award the prime vendor contract, the effect of the contract on  
   the working capital funds, and the costs and benefits associated with   
   the contract which demonstrate that it will result in savings to the    
   Federal Government over the life of the contract. The provision would   
   prohibit the secretary concerned from entering into such a contract     
   until 60 days after submission of the report.                           
    The Senate amendment contained no similar provision.                   

    The Senate recedes with an amendment that would make the               


                    provision applicable to any prime vendor contract that the    
          Department of Defense proposes to enter into that involves the          
          depot-level maintenance of a piece of military equipment or major weapon
          systems. The Department would have to wait 30 days after submitting to  
          the Congress a report that outlines the competitive procedures to be    
          used as well as an examination of the costs (including costs derived as 
          a result of changes to the working capital fund organizations) and      
          benefits that will result from the contract, before entering into the   
          contract.                                                               
                      Best commercial inventory practices for management of        
           secondary supply items (sec. 347)                                       
       The Senate amendment contained a provision (sec. 344) that would    
   direct the secretary of each military department to develop and submit  
   to the Congress a schedule for the implementation of the best inventory 
   management practices found in the commercial sector that are consistent 
   with military requirements. The provision would also require the        
   Comptroller General of the Department of Defense to review the extent to
   which the service secretaries comply with this requirement, and the     
   extent to which best commercial inventory practices are being           
   implemented by the Defense Logistics Agency.                            
    The House bill contained a similar provision.                          

    The House recedes with a technical amendment.                          

           Personnel reductions in Army Materiel Command (sec. 348)                

       The House bill contained a provision (sec. 339) that would require  
   the Comptroller General of the United States to provide to the          
   congressional defense committees a report outlining the readiness impact
   of proposed personnel reductions within the Army Materiel Command and   
   would delay the implementation of these reductions until the report is  
   provided, or March 31, 1999.                                            
       The Senate amendment contained a similar provision but did not delay
   the implementation of these reductions.                                 
    The House recedes.                                                     

           Inventory management of in-transit items (sec. 349)                     

       The Senate amendment contained a provision (sec. 349) that would    
   require the Secretary of Defense to submit a plan to the Congress on    
   those actions the Secretary is taking to ensure effective management and
   oversight of in-transit secondary inventory.                            
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the Secretary
   of Defense to submit a plan to the Congress that would address the      
   actions the Department is taking to improve the management and oversight
   of both secondary inventory, as well as major end-items.                
           Review of Defense Automated Printing Service functions (sec. 350)       

       The Senate amendment contained a provision (sec. 1085) that would   
   require the Secretary of Defense to select an entity outside of the     
   Department of Defense to review the functions of the Defense Automated  
   Printing Service (DAPS).                                                
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require an           
   experienced private sector entity be consulted during the review of DAPS
   functions.                                                              
                      Development of plan for establishment of core logistic       
           capabilities for maintenance and repair of C 17 aircraft (sec. 351)     
       The House bill contained a provision (sec. 337) that included       
   findings regarding the need to perform depot-level maintenance of the C 
   17 aircraft in government depots, and would require the Secretary of the
   Air Force to submit to the Congress a plan for the establishment of the 
   core logistics capabilities for the C 17 aircraft, consistent with the  
   requirements of section 2464 of title 10, United States Code. The       
   provision would further prohibit the extension of the interim contract  
   for the C 17 Flexible Sustainment Program until after the end of the 60 
   day period beginning on the date the plan is submitted to Congress.     
    The Senate amendment had no similar provision.                         

    The Senate recedes with an amendment that would delete the findings.   

       The conferees note that in January of 1999, the C 17 will complete  
   its fourth year of its operational capability. At that point, the       
   Department of the Air Force must have the capability to maintain the    
   non-commercial portions of this system in a public depot, should the    
   need arise.                                                             
             SUBTITLE F--COMMISSARIES AND NONAPPROPRIATED FUND INSTRUMENTALITIES  

                      Continuation of management and funding of Defense Commissary 
           Agency through the Office of the Secretary of Defense (sec. 361)        
       The House bill contained a provision (sec. 341) that would require  
   that the Defense Commissary Agency (DECA) continue to be managed and    
   funded through the Office of the Secretary of Defense.                  
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the         
   Secretary of Defense to establish a Board of Directors to oversee the   
   operations of DECA.                                                     
                      Expansion of current eligibility of reserves for commissary  
           benefits (sec. 362)                                                     
       The House bill contained a provision (sec. 342) that would increase 
   the number of days that certain ready reserve members and reserve       
   retirees under the age of 60 are eligible to use commissary stores from 
   12 days each calendar year to 24 days each calendar year,               

                    and would extend commissary eligibility to members of the     
          national guard who are activated during federally-declared disasters.   
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Costs payable to the Department of Defense and other federal 
           agencies for services provided to the Defense Commissary Agency (sec.   
           363)                                                                    
       The Senate amendment contained a provision (sec. 1049) that would   
   prohibit the Defense Commissary Agency from paying any costs for        
   services provided by a Department of Defense or other federal agency    
   that exceeds the price at which the service could be procured in full   
   and open competition.                                                   
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would clarify that the     
   prohibition only applies to overseas transportation services.           
                      Collection of dishonored checks presented at commissary      
           stores (sec. 364)                                                       
       The Senate amendment contained a provision (sec. 1050) that would   
   permit the Secretary of Defense to impose a charge for the collection of
   dishonored checks presented at a commissary store in a manner consistent
   with the practices of commercial grocery stores.                        
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Restrictions on patron access to, and purchases in, overseas 
           commissaries and exchange stores (sec. 365)                             
       The House bill contained a provision (sec. 344) that would authorize
   the Secretary of Defense to continue to restrict the sale of certain    
   items in overseas exchanges and commissaries, but would require that the
   Secretary ensure that such restrictions are consistent with the primary 
   purpose of providing U.S. made goods to authorized patrons.             
    The Senate amendment contained no similar provision.                   

    The Senate recedes with a clarifying amendment.                        

                      Repeal of requirement for Air Force to sell tobacco products 
           to enlisted personnel (sec. 366)                                        
       The House bill contained a provision (sec. 343) that would repeal   
   section 9623 of title 10, United States Code. This section requires the 
   Air Force to sell not more than 16 ounces of tobacco a month to any     
   enlisted member who requests it.                                        
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Prohibition on consolidation or other organizational changes 
           of Department of Defense retail system (sec. 367)                       
       The House bill contained a provision (sec. 346) that would prohibit 
   the Department of Defense from consolidating military exchange and      
   commissary operations, and from conducting further study of             
   consolidation, unless specifically authorized by law.                   
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would eliminate the       
   prohibition against conducting further studies.                         
       The conferees note that the Department of Defense recently          
   contracted for a due diligence study regarding exchange integration. The
   conferees intend for that study to continue, but expect that            
   implementation of any study recommendations would await congressional   
   approval. The conferees do not intend that the prohibition against      
   consolidation or merger of retail systems be an impediment to           
   implementing agreements and operations among the exchange systems that  
   are determined to be mutually beneficial and increase efficiency of the 
   exchange systems.                                                       
           Defense Commissary Agency telecommunications (sec. 368)                 

       The Senate amendment contained a provision (sec. 1051) that would   
   require the Secretary of Defense to provide the Defense Commissary      
   Agency (DECA) authority to obtain telecommunications and related        
   services under the Federal Telecommunications System (FTS) 2000/2001    
   contract, and to report to the Committee on Armed Services of the Senate
   and the Committee on National Security of the House of Representatives  
   when DECA telecommunications have been initiated under the FTS 2000/2001
   contract.                                                               
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

                      Survey of commissary store patrons regarding satisfaction    
           with commissary store merchandise (sec. 369)                            
       The House bill contained a provision (sec. 348) that would require  
   the Secretary of Defense to survey eligible commissary store patrons to 
   determine their interest in commissary stores selling beer and wine. The
   provision would also authorize the Secretary to conduct a demonstration 
   project at seven military installations in the United States, after     
   consideration of the survey results.                                    
       The Senate amendment contained a provision (sec. 351) that would    
   prohibit the Secretary of Defense from conducting a survey of eligible  
   commissary store patrons to determine their interest in commissary      
   stores selling beer and wine and from conducting a demonstration project
   in which beer and wine would be sold in commissaries.                   
       The Senate recedes with an amendment that would require the         
   Secretary of Defense to conduct survey of eligible patrons of the       
   commissary system to determine patron satisfaction with commissary store
   products.                                                               
                                  SUBTITLE G--OTHER MATTERS                       


                      Eligibility requirements for attendance at Department of     
           Defense domestic dependent elementary and secondary schools (sec. 371)  
       The House bill contained a provision (sec. 361) that would permit   
   dependents residing in a territory, commonwealth, or possession of the  
   United States to participate in an educational program when the parent  
   is a service member assigned to a remote or unaccompanied location. The 
   provision would also clarify the authority of the Secretary of Defense  
   to make exceptions for enrollment in dependent schools for dependents of
   civilian employees in Puerto Rico and Guam, where such employees reside 
   off the installation, and would provide that the Department be          
   reimbursed for the cost of such education.                              
    The Senate amendment contained a similar provision (sec. 1055).        

       The Senate recedes with an amendment that would preserve the portion
   of the Senate provision with regard to permitting dependents of United  
   States Customs Service agents in Puerto Rico to attend Department of    
   Defense schools during the term of the agent's assignment in Puerto     
   Rico.                                                                   
                      Assistance to local educational agencies that benefit        
           dependents of members of the Armed Forces and Department of Defense     
           civilian employees (sec. 372)                                           
       The House bill contained a provision (sec. 364) that would authorize
   $35.0 million for educational assistance to local education agencies    
   where the standard for the minimum level of education within the state  
   could not be maintained because of the large number of                  
   military-connected students or the effects of base realignments and     
   closures.                                                               
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

           Department of Defense readiness reporting system (sec. 373)             

       The House bill contained a provision (sec. 367) that would require  
   the Secretary of Defense to establish a comprehensive reporting system  
   to measure the capability of the armed forces to carry out their        
   responsibilities under the National Security Strategy, defense planning 
   guidance, and the National Military Strategy. The information collected 
   by this system would be presented each month to the Chairman of the     
   Joint Chiefs of Staff, and to the congressional defense committees. This
   would replace the quarterly readiness reports that are currently        
   provided by the Department of Defense to the Congress.                  
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would delay the           
   implementation date of this provision, clarify that the Secretary of    
   Defense is not required to submit the complete documentation of each    
   joint monthly readiness review to the Congress, and make other technical
   changes.                                                                
       The conferees recognize that stable requirements for measuring and  
   reporting readiness are essential in order for the Department of Defense
   to develop an effective readiness reporting system that is capable of   
   making valid comparisons over time.                                     
       The conferees urge the Secretary to retain in the new reports       
   required by this section those elements of the expanded Quarterly       
   Readiness Report to the Congress that are believed to be effective in   
   informing the Congress on the readiness of our armed forces.            
                      Specific emphasis of program to investigate fraud, waste, and
           abuse within Department of Defense (sec. 374)                           
       The House bill contained a provision (sec. 362) that would expand   
   the formal waste, fraud, and abuse program within the Department of     
   Defense to include any overpayment to a vendor.                         
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Condition for providing financial assistance for support of  
           additional duties assigned to the Army National Guard (sec. 375)        
       The Senate amendment contained a provision (sec. 347) that would    
   require the Secretary of the Army to conduct a competition with the     
   private sector prior to expanding the amount of support which the Army  
   National Guard performs pursuant to section 113(b) of title 32, United  
   States Code, if that support is not yet performed by the Guard, or that 
   support is not currently under official consideration by the Secretary  
   of the Army for award to the National Guard.                            
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would also allow qualified 
   public sector sources, including depots, to participate in any          
   competition for activities that the National Guard is seeking to perform
   under section 113(b).                                                   
                      Demonstration program to improve quality of personal property
           shipments of members (sec. 376)                                         
       The House bill contained a series of provisions (secs. 381 387) that
   would require the Department of Defense to replace its existing pilot   
   program to re-engineer the movement of household goods with a program   
   known as the Commercial-Like Activities for Superior Quality            
   Demonstration (CLASS) Program, that would make certain modifications to 
   the existing regulations governing the movement of these goods.         
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the         
   Secretary of Defense to implement and complete within one year the      
   current pilot program designed in consultation with industry            
   representatives. The Secretary would also be required to submit to the  
   Congress a report, not later than August 31, 1999, outlining the extent 
   to which the current program meets its goals and to report the extent to
   which the industry alternative program would meet these goals.          
                      Pilot program for acceptance and use of landing fees charged 
           for use of domestic military airfields by civil aircraft (sec. 377)     

       The Senate amendment contained a provision (sec. 313) that would    
   authorize the secretary of the military department to accept payments   
   for the use of domestic military and shared use airfields by civil      
   aircraft and to use those payments for the operation and maintenance of 
   the airfield.                                                           
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require that the     
   Secretary of the Department of Defense establish uniform procedures for 
   the collection and obligation of any receipts generated as a result of  
   such fees.                                                              
           Strategic plan for expansion of distance learning initiatives (sec. 378)

       The House bill contained a provision (sec. 365) that would require  
   the Secretary of Defense to develop a plan to establish a framework for 
   developing and applying distance learning technologies to training      
   courses where it makes sense and is cost effective.                     
       The Senate amendment contained a provision (sec. 1029) that would   
   require the Secretary of Defense to develop and provide to the Congress 
   a five-year plan for guiding and expanding distance learning initiatives
   in the Department of Defense.                                           
    The House recedes.                                                     

                      Public availability of operating agreements between military 
           installations and financial institutions (sec. 379)                     
       The House bill contained a provision (sec. 366) that would subject  
   operating agreements that provide financial services, including         
   electronic banking, on military installations in the United States, to  
   the same requirements of the Freedom of Information Act (FOIA) as all   
   other federal contracts.                                                
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Funding for information technology and national security programs       

       The House bill contained a provision (sec. 313) that would require  
   the expenditure of certain funds for information technology programs of 
   the military services.                                                  
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

                      Requirement to maintain government owned and operated core   
           logistics capability                                                    
       The House bill contained a provision (sec. 332) that would amend    
   section 2464 of title 10, United States Code, by requiring that core    
   depot maintenance workloads be performed by public depots acting as     
   prime contractors rather than subcontractors.                           
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

                      Extension of demonstration project for uniform funding of    
           morale, welfare, and recreation activities                              
       The House bill contained a provision (sec. 345) that would extend   
   for one year the authority of the Secretary of Defense to conduct a     
   demonstration project for the uniform funding of morale, welfare, and   
   recreation activities at certain military installations.                
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

                      Authorized use of appropriated funds for relocation of Navy  
           Exchange Service Command                                                
       The House bill contained a provision (sec. 347) that would provide  
   that the Navy Exchange Service Command (NEXCOM) shall not be required to
   reimburse the United States for appropriated funds allotted to NEXCOM   
   during fiscal years 1994, 1995, and 1996 for costs incurred in          
   connection with the relocation of NEXCOM headquarters to Virginia Beach,
   Virginia, and for the lease of headquarters space.                      
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

           Fees for providing historical information to the public                 

       The Senate amendment contained a provision (sec. 1056) that would   
   allow the historical institutes of the military services to provide     
   historical information to members of the public for a fee that is       
   equivalent to the cost of researching and transmitting the information. 
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                        TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS               

                               LEGISLATIVE PROVISIONS ADOPTED                     

                                  SUBTITLE A--ACTIVE FORCES                       

           End strengths for active forces (sec. 401)                              

       The House bill contained a provision (sec. 401) that would authorize
   the following end strengths for active duty personnel of the armed      
   forces as of September 30, 1999:                                        

                                                                               

                                         Fiscal year--                          

                     1998 authorization    1999 request    1999 recommendation  

Army                            495,000         480,000                484,800  
Navy                            390,802         372,696                376,423  
Marine Corps                    174,000         172,200                173,922  
Air Force                       371,577         370,882                371,577  
                  ---------------------  --------------  ---------------------  
Total                         1,431,379       1,395,778              1,406,722  

       The Senate amendment contained a provision (sec. 401) that would    
   authorize active duty end strengths for fiscal year 1999, as shown      
   below:                                                                  

                                                                               

                                        Fiscal year--                          

                    1998 authorization    1999 request    1999 recommendation  

Army                           495,000         480,000                480,000  
Navy                           390,802         372,696                372,696  
Marine Corps                   174,000         172,200                172,200  
Air Force                      371,577         370,882                370,882  
                 ---------------------  --------------  ---------------------  
Total                        1,431,379       1,395,778              1,395,778  

    The House recedes.                                                     

           Revision in permanent end strength levels (sec. 402)                    

       The House bill contained a provision (sec. 402) that would amend    
   section 691 of title 10, United States Code, by establishing new end    
   strength floors for the active forces at the levels recommended in      
   section 401. This section would also permit active end strengths to vary
   up to one percent below the established floor.                          
       The Senate amendment contained a provision (sec. 404) that would    
   repeal section 691 of title 10, United States Code, which established   
   end strength floors for the military services.                          
       The Senate recedes with an amendment that would establish end       
   strength floors at the levels in the budget request and would permit    
   active end strengths to vary up to 0.5 percent flexibility below the    
   established floor.                                                      
           Date for submission of annual manpower requirements report (sec. 403)   

       The House bill contained a provision (sec. 403) that would establish
   a new suspense date for the submission of an Annual Manpower            
   Requirements Report, requiring it to be transmitted to the Congress not 
   later than 30 days after the budget for the next fiscal year is         
   submitted to Congress.                                                  
       The Senate amendment contained a provision (sec. 521) that would    
   change the date the Secretary of Defense must submit the Annual Manpower
   Requirements Report from February 15 of each year to a date not later   
   than 45 days after the President submits the budget to the Congress.    
    The House recedes with a clarifying amendment.                         

                      Additional exemption from percentage limitation on number of 
           lieutenant generals and vice admirals (sec. 404)                        
       The Senate amendment contained a provision (sec. 402(a)) that would 
   increase from six to seven the number of lieutenant generals and vice   
   admirals serving on the Joint Staff who are exempt from the limit of    
   lieutenant generals and vice admirals on active duty.                   

    The House bill contained no similar amendment.                         

    The House recedes.                                                     

                      Extension of authority for Chairman of the Joint Chiefs of   
           Staff to designate up to 12 general and flag officer positions to be    
           excluded from general and flag officer grade limitations (sec. 405)     
       The House bill contained a provision (sec. 404) that would extend to
   October 1, 2001, from October 1, 1998, the authority for the Chairman of
   the Joint Chiefs of Staff to exclude up to 12 general and flag officer  
   positions from existing grade limitations.                              
       The Senate amendment contained a provision (sec. 402(b)) that would 
   extend until October 1, 2002, the temporary authority to exclude up to  
   12 joint duty officers from the limitation on authorized general and    
   flag officer strength.                                                  
    The House recedes.                                                     

                      Exception for Chief, National Guard Bureau, from limitation  
           on number of officers above major general (sec. 406)                    
       The conference report includes a provision that would exempt the    
   position of Chief of the National Guard Bureau from the limitation on   
   the number of officers above major general serving on active duty in    
   that officer's armed force.                                             
                      Limitation on daily average of personnel on active duty in   
           grades E 8 and E 9 (sec. 407)                                           
       The Senate amendment contained a provision (sec. 403) that would    
   change the method for computing the time limitation on active duty      
   enlisted personnel serving in the grades of E 8 and E 9 to a fiscal year
   basis from a calendar year basis. The recommended provision would also  
   correct a technical error in the existing statute.                      
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would make the provision   
   effective October 1, 1999.                                              
                                 SUBTITLE B--RESERVE FORCES                       

           End strengths for selected reserve (sec. 411)                           

       The House bill contained a provision (sec. 411) that would authorize
   the following end strengths for the selected reserve personnel,         
   including the end strength for reserves on active duty in support of the
   reserves, as of September 30, 1999:                                     

                                                                                                         

                                                                         Fiscal year--                          

                                                    1998 authorization     1999 request    1999 recommendation  

The Army National Guard of the United States                   361,516          357,000                357,000  
The Army Reserve                                               208,000          208,000                209,000  
The Naval Reserve                                               94,294           90,843                 90,843  
The Marine Corps Reserve                                        42,000           40,018                 40,018  
The Air National Guard of the United States                    108,002          106,991                106,991  
The Air Force Reserve                                           73,447           74,242                 74,242  
The Coast Guard Reserve                                          8,000            8,000                  8,000  
                                                 ---------------------  ---------------  ---------------------  
Total                                                          895,259          885,094                886,094  

       The increases in selected reserve end strength shown above include  
   the additions to the end strength for reserves on active duty in support
   of the reserves described in section 412 of the House bill.             
       The Senate amendment contained a provision (sec. 411) that would    
   authorize Selected Reserve end strengths for fiscal year 1999 as shown  
   below:                                                                  

                                                                                                         

                                                                         Fiscal year--                          

                                                    1998 authorization     1999 request    1999 recommendation  

The Army National Guard of the United States                   361,516          357,000                357,000  
The Army Reserve                                               208,000          208,000                208,000  
The Naval Reserve                                               94,294           90,843                 90,843  
The Marine Corps Reserve                                        42,000           40,018                 40,018  
The Air National Guard  of the United States                   108,002          106,991                106,991  
The Air Force Reserve                                           73,447           74,242                 74,242  
The Coast Guard Reserve                                          8,000            8,000                  8,000  
                                                 ---------------------  ---------------  ---------------------  
Total                                                          895,259          885,094                885,094  


       The House recedes with an amendment that would authorize the        
   following end strengths for the selected reserve personnel, including   
   the end strength for reserves on active duty in support of the reserves,
   as of September 30, 1999:                                               

                                                                                                          

                                                                          Fiscal year--                          

                                                     1998 authorization     1999 request    1999 recommendation  

The Army National Guard  of the United States                   361,516          357,000                357,223  
The Army Reserve                                                208,000          208,000                208,003  
The Naval Reserve                                                94,294           90,843                 90,843  
The Marine Corps Reserve                                         42,000           40,018                 40,018  
The Air National Guard  of the United States                    108,002          106,991                106,992  
The Air Force Reserve                                            73,447           74,242                 74,243  
The Coast Guard Reserve                                           8,000            8,000                  8,000  
                                                  ---------------------  ---------------  ---------------------  
Total                                                           895,259          885,094                885,322  

       The amendment would increase the end strengths for Selected Reserve 
   personnel to include the authorization to use reserves for emergencies  
   involving weapons of mass destruction.                                  
                      End strengths for reserves on active duty in support of the  
           reserves (sec. 412)                                                     
       The House bill contained a provision (sec. 412) that would authorize
   the following end strengths for reserves on active duty in support of   
   the reserves, as of September 30, 1999:                                 

                                                                                                          

                                                                          Fiscal year--                          

                                                     1998 authorization     1999 request    1999 recommendation  

The Army National Guard  of the United States                    22,310           21,763                 21,763  
The Army Reserve                                                 11,500           11,804                 12,804  
The Naval Reserve                                                16,136           15,590                 15,590  
The Marine Corps Reserve                                          2,559            2,362                  2,362  
The Air National Guard  of the United States                     10,616           10,930                 10,930  
The Air Force Reserve                                               748              991                    991  
                                                  ---------------------  ---------------  ---------------------  
Total                                                            62,869           63,440                 64,440  

       The provision would increase by 1,000 the number of Active Guard and
   Reserve authorizations for the United States Army Reserve above the     
   budget request.                                                         
       The Senate amendment contained a provision (sec. 412) that would    
   authorize full-time support end strengths for fiscal year 1999, as shown
   below:                                                                  

                                                                                                          

                                                                          Fiscal year--                          

                                                     1998 authorization     1999 request    1999 recommendation  

The Army National Guard  of the United States                    22,310           21,763                 21,763  
The Army Reserve                                                 11,500           11,804                 11,804  
The Naval Reserve                                                16,136           15,590                 15,590  
The Marine Corps Reserve                                          2,559            2,362                  2,362  
The Air National Guard  of the United States                     10,671           10,930                 10,930  
The Air Force Reserve                                               867              991                    991  

       The Senate recedes with an amendment that would authorize the       
   following end strengths for reserves on active duty in support of the   
   reserves, as of September 30, 1999:                                     

                                                                                                          

                                                                          Fiscal year--                          

                                                     1998 authorization     1999 request    1999 recommendation  

The Army National Guard  of the United States                    22,310           21,763                 21,986  
The Army Reserve                                                 11,500           11,804                 12,807  
The Naval Reserve                                                16,136           15,590                 15,590  
The Marine Corps Reserve                                          2,559            2,362                  2,362  
The Air National Guard  of the United States                     10,616           10,930                 10,931  
The Air Force Reserve                                               748              991                    992  
                                                  ---------------------  ---------------  ---------------------  
Total                                                            62,869           63,440                 64,668  

       The amendment would increase the end strengths for reserves on      
   active duty in support of the reserves to include the authorization to  
   use the reserves for emergencies involving weapons of mass destruction. 
           End strengths for military technicians (dual status) (sec. 413)         

       The House bill contained a provision (sec. 413) that would authorize
   the following end strengths for military technicians (dual status) as of
   September 30, 1999:                                                     


                                                                                                            

                                                                           Fiscal year--                           

                                                      1998 authorization     1999 request     1999 recommendation  

The Army National Guard of the United States                      23,125           22,179                  23,125  
The Army Reserve                                                   5,503            5,205                   5,395  
The Air National Guard of the United States                       22,853           22,408                  22,408  
The Air Force Reserve                                              9,802            9,761                   9,761  
                                                   ---------------------  ---------------  ----------------------  
Total                                                             61,007           59,553                  60,689  

       The Senate amendment contained a provision (sec. 413) that would    
   authorize military technician end strengths for fiscal year 1999, as    
   shown below:                                                            

                                                                                                            

                                                                           Fiscal year--                           

                                                      1998 authorization     1999 request     1999 recommendation  

The Army National Guard of the United States                      23,125           22,179                  22,179  
The Army Reserve                                                   5,503            5,205                   5,205  
The Air National Guard of the United States                       22,853           22,408                  22,408  
The Air Force Reserve                                              9,802            9,761                   9,761  

    The Senate recedes.                                                    

                      Increase in number of members in certain grades authorized to
           serve on active duty in support of the reserves (sec. 414)              
       The House bill contained a provision (sec. 414) that would authorize
   increases in the grades of reserve members authorized to serve on active
   duty or on full-time national guard duty for the administration of the  
   reserves or the national guard. The provision would authorize 133       
   additional majors, 22 additional enlisted personnel in the grade of E 9,
   and 89 additional enlisted personnel in the grade of E 8 in the Air     
   Force. The provision would also authorize 26 additional colonels and 20 
   additional enlisted personnel in the grade of E 9 in the Army.          
       The Senate amendment contained a provision (sec. 415) that would    
   increase the number of officers and senior enlisted personnel on active 
   duty in certain grades in the reserve components of the Army and the Air
   Force in support of the reserves. The recommended provision would       
   increase the authorized number of Army reserve component colonels from  
   412 to 438 and enlisted members in the grade of E 9 from 603 to 623. The
   provision would increase the authorized number of Air Force reserve     
   component majors from 643 to 791; lieutenant colonels from 672 to 713;  
   colonels from 274 to 297; enlisted members in the grade of E 8 from 890 
   to 997; and enlisted members in the grade of E 9 from 366 to 395.       
    The House recedes with a clarifying amendment.                         

                      Consolidation of strength authorizations for active status   
           Naval Reserve flag officers of the Navy Medical Department staff corps  
           (sec. 415)                                                              
       The Senate amendment contained a provision (sec. 416) that would    
   consolidate flag officer authorizations for the Navy Reserve Medical    
   Department Staff Corps, identify the components of the Medical          
   Department Staff Corps, and allocate one rear admiral (lower half)      
   authorization to each component of the Medical Department Staff Corps.  
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                         SUBTITLE C--AUTHORIZATION OF APPROPRIATIONS              

           Authorization of appropriations for military personnel (sec. 421)       

       The House bill contained a provision (sec. 421) that would authorize
   $70.7 billion to be appropriated for military personnel accounts in     
   fiscal year 1999.                                                       
       The Senate amendment contained similar provisions (sec. 421) that   
   would authorize $70.4 billion to be appropriated for military personnel 
   for fiscal year 1999.                                                   
       The House recedes with an amendment that would authorize $70.6      
   billion for military personnel for fiscal year 1999.                    
       The conferees provide the following itemization of the increases and
   decreases from the President's budget request related to military       
   personnel accounts and personnel-related Operation and Maintenance      
   accounts.                                                               

Fiscal Year 1999 Military Personnel Budget Items                        

          [In millions of dollars]                                                

  Increases:                                                             

  3.6 percent basic pay increase                                          

 186.0                                                                   

  Active Army End Strength                                                

 25.0                                                                    

  USNR Contributory Support to CINCs (ADT)                                

 5.0                                                                     

  USNR Active Duty Special Work                                           

 5.0                                                                     

  USMCR Increased Use                                                     

 3.4                                                                     

  Increase USAR AGRs                                                      

 15.0                                                                    

  Army National Guard Schools & Special Training                          

 20.0                                                                    

  Army Enlistment Bonus                                                   

 10.0                                                                    

  Navy Enlistment Bonus                                                   

 9.4                                                                     

  Navy College Fund                                                       

 13.9                                                                    

  USMC Enlistment Bonus                                                   

 3.0                                                                     

  USMC College Fund                                                       

 5.9                                                                     

   Total adds                                                             

 301.6                                                                   

  Reductions:                                                            

  Obligations for Advanced Pay                                            

 301.0                                                                   

  Army                                                                    

 161.0                                                                   

  Navy                                                                    

 69.0                                                                    

  Air Force                                                               

 53.0                                                                    

  USMC                                                                    

 18.0                                                                    

  FY 99 End Strength Underexecution                                       

 151.8                                                                   

  Army                                                                    

 3.0                                                                     

  Navy                                                                    

 11.8                                                                    

  USMC                                                                    

 9.3                                                                     

  USAF                                                                    

 83.3                                                                    

  Army Guard                                                              

 28.0                                                                    

  Army Reserve                                                            

 5.4                                                                     

  Navy Reserve                                                            

 5.0                                                                     

  Marine Corps Reserve                                                    

 N/A                                                                     

  Air Guard                                                               

 N/A                                                                     

  Air Force Reserve                                                       

 6.0                                                                     

  Foreign Currency Fluctuation                                            

 29.6                                                                    

  Army                                                                    

 5.3                                                                     

  Navy                                                                    

 12.0                                                                    

  USMC                                                                    

 4.2                                                                     

  Air Force                                                               

 8.1                                                                     

  Unemployment Compensation:                                             

  Air Force                                                               

 4.0                                                                     

                                                                          

   Total Reductions                                                       

 486.4                                                                   




       The conferees are concerned about the increasing challenges to all  
   services in attracting quality personnel. The conferees are especially  
   concerned about the Navy's projected inability to realize their         
   established recruiting goals during fiscal year 1998. In addition, the  
   conferees are concerned that Navy recruiting may be underfunded for     
   fiscal year 1999. The conferees have increased the recruiting accounts  
   to assist services' recruiting efforts. The conferees urge the Navy to  
   commit additional resources to the recruiting function so as to avoid a 
   recurrence of the projected recruiting failures. The conferees adjusted 
   the personnel related Operation and Maintenance accounts, as follows:   

Fiscal Year 1999 MILPERS-related Operation & Maintenance Accounts       

          [In millions of dollars]                                                

  Increases:                                                             

  Navy Recruiting Advertising                                             

 $17.5                                                                   

  USMC Recruiting Advertising                                             

 12.0                                                                    

  Air National Guard Recruiting Advertising                               

 3.0                                                                     

  USAFR Recruiting Advertising                                            

 3.0                                                                     

  Navy Recruiter Support                                                  

 3.3                                                                     

  National Guard Youth Challenge Program                                  

 21.5                                                                    

  STARBASE                                                                

 5.0                                                                     

  USMCR Increased Use                                                     

 1.2                                                                     

  USMCR Active Duty Special Work                                          

 2.1                                                                     

  Army National Guard Military Technicians                                

 27.0                                                                    

  Total MILPERS-related O&M Increases                                     

 95.6                                                                    

  Reductions:                                                            

  Innovative Readiness Training                                           

 10.0                                                                    

  Total MILPERS-related O&M Reductions                                    

 10.0                                                                    


                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Exclusion of additional reserve component general and flag   
           officers from limitation on number of general and flag officers who may 
           serve on active duty                                                    
       The Senate amendment contained a provision (sec. 414) that would    
   permit a number of reserve component general and flag officers ordered  
   to active duty for more than 179 days to be excluded from the limitation
   on the number of general and flag officers on active duty. The number of
   reserve component general and flag officers ordered to active duty under
   this authority would not exceed three percent of the total number of    
   authorized active duty general and flag officers.                       
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                             TITLE V--MILITARY PERSONNEL POLICY                   

                               LEGISLATIVE PROVISIONS ADOPTED                     

                            SUBTITLE A--OFFICER PERSONNEL  POLICY                 

                      Codification of eligibility of retired officers and former   
           officers for consideration by special selection boards (sec. 501)       
       The House bill contained a provision (sec. 501) that would clarify  
   that a retired or former officer may be considered for promotion by a   
   special selection board without being returned to active duty.          
    The Senate amendment contained no similar provision.                   

    The Senate recedes with a clarifying amendment.                        

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

                    The House bill contained a provision (sec. 502) that would    
          clarify that the Congress intended that written communications from     
          officers to promotion boards authorized in section 614 of title 10,     
          United States Code, be limited to matters that enhance the officer's    
          case for promotion.                                                     
       The Senate amendment contained a provision (sec. 503) that would    
   modify the conditions under which separation pay is paid. Under the     
   provision, officers who submit a request to a promotion board not to be 
   selected for promotion and are subsequently not selected for promotion  
   would not be eligible for separation pay if the reason for their        
   separation is failure to be promoted to the next higher grade. The      
   provision would require the report of a selection board that received   
   communications from an officer who requested not to be selected to      
   include that officer's name.                                            
    The House recedes with a clarifying amendment.                         

           Streamlined selective retention process for regular officers (sec. 503) 

       The House bill contained a provision (sec. 503) that would eliminate
   the requirement to convene boards of review for regular officers who    
   have been recommended for administrative separation by boards of inquiry
   and would eliminate the 30-day board of inquiry notification process.   
       The Senate amendment contained a provision (sec. 501) that would    
   eliminate the requirement to convene boards of review for officers who  
   have been recommended for administrative separation by a board of       
   inquiry.                                                                
    The House recedes.                                                     

                      Permanent applicability of limitations on years of active    
           naval service of Navy limited duty officers in grades of commander and  
           captain (sec. 504)                                                      
       The Senate amendment contained a provision (sec. 502) that would    
   make permanent the temporary mandatory retirement points for Navy       
   Limited Duty Officers. The recommended change would not affect Marine   
   Corps Limited Duty Officers of the same grades.                         
    The House bill contained no similar provision.                         

    The House recedes.                                                     

           Tenure of Chief of the Air Force Nurse Corps (sec. 505)                 

       The House bill contained a provision (sec. 505) that would clarify  
   that the Secretary of the Air Force determines the length of the tour   
   served by the Chief of the Air Force Nurse Corps                        
       The Senate amendment contained a provision (sec. 504) that would    
   extend the term of office for the chief of the Air Force Nurse Corps    
   from three years to four years.                                         
    The Senate recedes.                                                    

                      Grade of Air Force Assistant Surgeon General for Dental      
           Services (sec. 506)                                                     
       The conference report includes a provision that would require the   
   Assistant Surgeon General for Dental Services of the Air Force to be an 
   officer in the grade of brigadier general.                              
                      Review regarding allocation of Naval Reserve Officers'       
           Training Corps scholarships among participating colleges and            
           universities (sec. 507)                                                 
       The Senate amendment contained a provision (sec. 505) that would    
   modify the method by which the Navy allocates Naval Reserve Officer     
   Training Corps (NROTC) scholarships within a state.                     
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would urge the Secretary of
   the Navy to review the method by which the Navy allocates NROTC         
   scholarships.                                                           
                            SUBTITLE B--RESERVE COMPONENT MATTERS                 

                      Use of reserves for emergencies involving weapons of mass    
           destruction (sec. 511)                                                  
       The Senate amendment contained a provision (sec. 515) that would    
   authorize the President to call-up reserve forces in response to        
   domestic emergencies involving a use, or threatened use, of a weapon of 
   mass destruction. In addition, the provision would permit reserve       
   full-time support personnel to perform duties in support of emergency   
   preparedness programs to prepare for, or to respond to, an emergency    
   involving the use of a weapon of mass destruction.                      
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would limit the number of  
   reserves who may serve on active duty in support of the defense against 
   the domestic use of weapons of mass destruction, and would require the  
   Secretary of Defense to certify that members of a rapid assessment      
   element team have been trained and that the teams possess the requisite 
   equipment to meet all mission requirements.                             
                      Service required for retirement of National Guard officer in 
           higher grade (sec. 512)                                                 
       The Senate amendment contained a provision (sec. 511) that would    
   extend the period for which a National Guard officer could receive      
   credit towards the time-in-grade required for retirement.               
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Reduced time-in-grade requirement for reserve general and    
           flag officers involuntarily transferred from active status (sec. 513)   
       The Senate amendment contained a provision (sec. 512) that would    
   authorize the secretary of a military department to retire, at the      

                    grade held on active reserve status, a reserve component      
          general or flag officer who is involuntarily transferred from active    
          reserve status.                                                         
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Active status service requirement for promotion consideration
           for Army and Air Force Reserve component brigadier generals (sec. 514)  
       The House bill contained a provision (sec. 512) that would require  
   the Secretary of the Army and the Secretary of the Air Force to consider
   reserve brigadier generals serving in an inactive status for promotion  
   if the officers had been in an inactive status for less than one year as
   of the date of the convening of the promotion board, and continuously   
   served for at least one year on the reserve active status list or the   
   active duty list immediately before transfer to inactive status.        
       The Senate amendment contained a provision (sec. 513) that would    
   authorize the Secretary of the Army or the Secretary of the Air Force to
   waive the eligibility requirements to permit a reserve component        
   brigadier general of the Army or Air Force who is on the reserve        
   inactive status list to be considered for promotion to major general. To
   be eligible for the waiver, the reserve brigadier general must have     
   served at least one year on the reserve active status list or active    
   duty list immediately preceding transfer to the inactive status list,   
   and the transfer to the inactive status list occurred within the        
   twelve-month period preceding the date the promotion board convenes.    
    The Senate recedes.                                                    

                      Composition of selective early retirement boards for rear    
           admirals of the Naval Reserve and major generals of the Marine Corps    
           Reserve (sec. 515)                                                      
       The House bill contained a provision (sec. 511) that would authorize
   the Secretary of the Navy to convene selective early retirement boards  
   for rear admirals in the Navy Reserve and major generals in the Marine  
   Corps Reserve without complying with the requirement specified in       
   section 14102 of title 10, United States Code, that one half of the     
   selection board members be reserve officers and that all the board      
   members hold higher permanent grades than the officers being considered 
   by the board.                                                           
       The Senate amendment contained a provision (sec. 514) that would    
   change the minimum grade requirement for officers participating as      
   members of a board convened to consider rear admirals in the Naval      
   Reserve or major generals in the Marine Corps Reserve for early         
   retirement, and would require any active duty officer participating in a
   selective early retirement board considering Naval Reserve rear admirals
   or Marine Corps Reserve major generals be one grade higher than the     
   officers being considered, and would require that at least one member of
   the board be a reserve officer in the same grade as the officers being  
   considered.                                                             
    The House recedes with a clarifying amendment.                         

                      Authority for temporary waiver for certain Army Reserve      
           officers of baccalaureate degree requirement for promotion of reserve   
           officers (sec. 516)                                                     
       The House bill contained a provision (sec. 513) that would authorize
   an exception to the requirement for reserve officers in the Army        
   commissioned through the Army Officer Candidate School to possess a     
   baccalaureate degree before promotion to the grade of captain. The      
   exception would expire on October 1, 2000.                              
    The Senate amendment contained no similar provisions.                  

       The Senate recedes with an amendment that would authorize the       
   Secretary of the Army to waive, on a case-by-case basis, for two years, 
   the requirement for reserve officers in the Army commissioned through   
   the Army Officer Candidate School to possess a baccalaureate degree     
   before being promoted to the grade of captain. The authority for the    
   Secretary of the Army to grant a waiver would expire on September 30,   
   2000.                                                                   
       The conferees expect that the Secretary of the Army will only grant 
   waivers to those individuals who demonstrate progress toward achieving  
   the goal of earning a baccalaureate degree.                             
                      Furnishing of burial flags for deceased members and former   
           members of the Selected Reserve (sec. 517)                              
       The Senate amendment contained a provision (sec. 1082) that would   
   direct the Secretary of Veterans Affairs to provide a U.S. flag to drape
   the casket of deceased members or former members of the Selected        
   Reserve.                                                                
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

                         SUBTITLE C--MILITARY EDUCATION AND TRAINING              

                      Separate housing for male and female recruits during recruit 
           basic training (sec. 521)                                               
       The House bill contained a provision (sec. 521) that would amend    
   title 10, United States Code, to require each of the military           
   departments to assign male and female recruits to same-gender units at  
   the platoon, flight, and division levels, and to house male and female  
   recruits in separate barracks or troop housing facilities. It would     
   provide each of the service secretaries the authority to waive the      
   separate barracks requirement initially at specific installations due to
   a lack of adequate facilities at the installation. However, it would    
   require that no such waiver be in effect after October 1, 2001. This    
   section also would require that if a waiver is granted at a particular  
   installation, the secretary of a military department shall require that 
   male and female recruits be housed on separate floors in military       
   barracks or troop housing facilities at that installation. During the   
   interim period, housing recruits on separate floors is defined to       
   include billeting male and female recruits separately and               

                    securely either on separate floors, in separate bays, or on   
          same floors with a fire-safe wall separating the recruits. Further, the 
          separate billeting spaces should include independent sleeping areas,    
          latrines and separate, lockable entrances. To facilitate the Army's     
          ability to make barracks modifications needed for housing by separate   
          floors, the committee recommends an increase of $8.0 million in that    
          department's operations and maintenance account.                        
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the         
   secretaries of the military departments to provide separate, safe, and  
   secure housing for male and female recruits with the sleeping areas     
   separated by permanent walls and access limited to separate entrances by
   April 15, 1999. Should an installation not be able to meet this         
   requirement, males and females would be required to be housed in        
   separate facilities. The amendment would require that all future        
   construction of barracks at basic training sites accommodate separate,  
   safe, and secure housing for both male and female recruits. The         
   amendment would also require the General Accounting Office to report on 
   the costs associated, by service, with providing separate buildings for 
   male and female recruits.                                               
           After-hours privacy for recruits during basic training (sec. 522)       

       The House bill contained a provision (sec. 522) that would amend    
   title 10, United States Code, to require each of the secretaries of the 
   military departments to restrict after-hours access to recruit housing  
   areas to same-sex training personnel. The provision would allow an      
   exception to this policy in case of an emergency or circumstance        
   requiring immediate action.                                             
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would restrict after-hours
   access to recruit housing areas to drill sergeants and other training   
   personnel who are of the same gender as the recruits housed in that area
   or to members of the chain of command as long as they are accompanied by
   a member, who is not a recruit, but is of the same gender, as the       
   recruits housed in that area.                                           
       The conferees note that these restrictions are intended to cover the
   period after ``lights out'' at night until ``lights on'' in the morning.
                      Sense of the House of Representatives relating to small unit 
           assignments by gender during recruit basic training (sec. 523)          
       The conference report contains a provision that would express the   
   sense of the House of Representatives that the secretaries of the       
   military departments should require males and females to be assigned to 
   separate units at the platoon, division, or flight level during recruit 
   basic training.                                                         
       The conferees direct the Secretary of Defense to include a separate 
   section in the report on sexual harassment required by section 591 of   
   the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
   105 85) of the National Defense Authorization Act for Fiscal Year 1998  
   to report on sexual misconduct at the basic training centers of each of 
   the military departments. Specifically, the report shall include a      
   statistical summary, by type, of all incidents of sexual misconduct,    
   including sexual harassment and fraternization, involving trainees,     
   cadre members or trainees and cadre members that occurred in the basic  
   training centers of each service. The data provided in the report for   
   each service should be expressed using a common standard of measurement 
   and should include a summary of the disciplinary and administrative     
   actions taken in response to the misconduct. Consistent with the        
   requirement for the sexual harassment report, the report on sexual      
   misconduct in basic training shall be submitted to the Congress no later
   than April 1, 1999, and shall include data on all cases of sexual       
   misconduct that occurred during the preceding year.                     
       The Commission on Military Training and Gender-Related Issues,      
   established in the National Defense Authorization Act for Fiscal Year   
   1998, is expected to report to the Congress in April 1999, on its review
   of the basic training programs of each of the military services. The    
   House conferees intend to fully review all matters pertaining to basic  
   training once the findings and recommendations of the Commission are    
   received and anticipate the likelihood of legislation next year on      
   issues addressed in the Commission's review, including the issue of     
   gender-separate basic training.                                         
                      Extension of reporting dates for Commission on Military      
           Training and Gender-Related Issues (sec. 524)                           
       The House bill contained a provision (sec. 523) that would amend    
   section 562 of the National Defense Authorization Act for Fiscal Year   
   1998 (Public Law 105 85) to extend the reporting dates required of the  
   Commission on Military Training and Gender-Related Issues. This         
   provision would extend the date of the initial report to October 15,    
   1998, and the final report to March 15, 1999.                           
    The Senate amendment contained a similar provision (sec. 526).         

    The Senate recedes.                                                    

           Improved oversight of innovative readiness training (sec. 525)          

       The House bill contained a provision (sec. 524) that would require  
   the Department of Defense to implement the General Accounting Office    
   recommendations to improve program compliance with section 2012 of title
   10, United States Code, which governs the Innovative Readiness Training 
   program, and would require the Department to establish better cost      
   accounting methods.                                                     
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                     SUBTITLE D--DECORATIONS, AWARDS, AND COMMENDATIONS           

           Study of new decorations for injury or death in line of duty (sec. 531) 


       The House bill contained a provision (sec. 531) that would require  
   the Secretary of Defense, in cooperation with the secretaries of the    
   military departments and the Secretary of Transportation with regard to 
   the Coast Guard, to determine the appropriate name, policy, award       
   criteria, and design for two new decorations, that recognize the service
   of members of the armed forces who are killed or wounded under          
   non-combat conditions and U.S. civilians who are killed or wounded while
   serving in an official capacity with a U.S. armed forces. This provision
   would also require the Secretary to submit a legislative proposal to    
   establish the two decorations and a recommendation concerning the need  
   for the new decorations to the Committee on Armed Services of the Senate
   and the National Security Committee of the House of Representatives, not
   later than July 31, 1999.                                               
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the         
   Secretary of Defense to study the need for such awards, the criteria    
   that may be used to determine eligibility for such awards, and to report
   the results of the study to the Senate Armed Services of the Senate and 
   the National Security Committee of the House of Representatives, not    
   later than July 31, 1999.                                               
                      Waiver of time limitations for award of certain decorations  
           to certain persons (sec. 532)                                           
       The House bill contained a provision (sec. 532) that would waive the
   statutory time limitations for the award of military decorations to     
   individuals who have been recommended for award of the decorations by   
   the secretaries of the military departments.                            
    The Senate amendment contained a similar provision (sec. 530).         

       The House recedes with an amendment that would include awards       
   approved by the secretaries of the military departments since May 12,   
   1998.                                                                   
                      Commendation and commemoration of the Navy and Marine Corps  
           personnel who served in the United States Navy Asiatic Fleet from 1910  
           1942 (sec. 533)                                                         
       The House bill contained a provision (sec. 533) that would commend  
   those personnel who served in the Asiatic Fleet of the United States    
   Navy between 1910 and 1942.                                             
    The Senate amendment contained a similar provision (sec. 1060).        

    The House recedes with a clarifying amendment.                         

       The conferees note that March 1, 1999, is the 57th anniversary of   
   the sinking of the Asiatic Fleet's flagship, the U.S.S. Houston, by     
   Japanese Imperial Forces. The conferees believe that March 1, 1999, may 
   be the most appropriate day for the President to designate as the United
   States Navy Asiatic Fleet Memorial Day.                                 
                      Appreciation for service during World War I and World War II 
           by members of the Navy assigned on board merchant ships as the Naval    
           Armed Guard Service (sec. 534)                                          
       The House bill contained a provision (sec. 534) that would express  
   the appreciation of the Congress and the American people for the service
   of members of the Navy assigned as gun crews aboard merchant ships as   
   part of the Naval Armed Guard Service during World War I and World War  
   II.                                                                     
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Sense of Congress regarding the heroism, sacrifice, and      
           service of the military forces of South Vietnam and other nations, and  
           indigenous groups in connection with the United States Armed Forces     
           during the Vietnam conflict (sec. 535)                                  
       The House bill contained a provision (sec. 535) that would recognize
   and honor the significant heroism, sacrifices, and service that the     
   armed forces of South Vietnam and other allies made while fighting      
   together with U.S. Military Forces during the Vietnam conflict.         
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Sense of Congress regarding the heroism, sacrifice, and      
           service of former South Vietnamese commandos in connection with the     
           United States Armed Forces during the Vietnam conflict (sec. 536)       
       The House bill contained a provision (sec. 536) that would recognize
   and honor the significant heroism, sacrifices and service that the South
   Vietnamese commandos made during the Vietnam conflict. The House report 
   (H. Rept. 105 532) notes that section 657 of the National Defense       
   Authorization Act for Fiscal Year 1997 (Public Law 104 201) authorized  
   compensation for Vietnamese commandos incarcerated for 20 years or more.
    The Senate amendment contained a similar provision (sec. 1068).        

    The Senate recedes.                                                    

                      Prohibition on members of armed forces entering correctional 
           facilities to present decorations to persons who have committed serious 
           violent felonies (sec. 537)                                             
       The Senate amendment contained a provision (sec. 531) that would    
   prohibit the military services from presenting a military award or      
   decoration in a prison or confinement facility.                         
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

       The conferees note that the provision does not preclude the military
   services from awarding a military award or decoration to an eligible    
   current or former service member who may be confined. However, the award
   may not be presented to the individual in a prison or confinement       
   facility.                                                               
             SUBTITLE E--ADMINISTRATION OF AGENCIES RESPONSIBLE FOR REVIEW AND    
                         CORRECTION OF MILITARY RECORDS                           

           Personnel freeze (sec. 541)                                             

       The House bill contained a provision (sec. 541) that would preserve 
   the current level of performance of the Army Review Board Agency, the   
   Air Force Review Boards Agency, and the Board for Correction of Naval   
   Records by requiring a report to the Congress 90 days before the number 
   of employees assigned to those organizations is reduced below the number
   assigned, as of October 1, 1997.                                        
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

           Professional staff (sec. 542)                                           

       The House bill contained a provision (sec. 542) that would amend    
   chapter 79 of title 10, United States Code, to require each Board for   
   the Correction of Military Records to employ an attorney and a physician
   to serve as advisors to the staff on legal and medical matters being    
   considered by the board.                                                
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

           Ex parte communications (sec. 543)                                      

       The House bill contained a provision (sec. 543) that would amend    
   chapter 79 of title 10, United States Code, to require each Board for   
   the Correction of Military Records to provide applicants with copies of 
   communications that directly apply to or have a material effect on the  
   applicants' cases.                                                      
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

           Timeliness standards (sec. 544)                                         

       The House bill contained a provision (sec. 544) that would require  
   each Board for the Correction of Military Records to improve the        
   timeliness of board actions over a ten-year period, beginning in fiscal 
   year 2001 and culminating with a requirement to complete action on 90   
   percent of the cases within ten months of receipt during fiscal year    
   2011 and beyond.                                                        
    The Senate amendment contained no similar provision.                   

    The Senate recedes with a clarifying amendment.                        

           Scope of correction of military records (sec. 545)                      

       The conference agreement includes a provision that would define     
   military records for purposes of payment of claims arising from         
   correction of a military record and would require the Secretary of      
   Defense to report to the Congress not later than March 31, 1998, on the 
   effect of the six-year bar to retroactive payments when relief is       
   granted by a Board for the Correction of Military Records.              
                                     SUBTITLE F--REPORTS                          

           Report on personnel retention (sec. 551)                                

       The House bill contained a provision (sec. 1033) that would require 
   the Secretary of Defense to submit, within 90 days of enactment, a      
   report to the Congress that contains information on the retention of    
   active duty service members of each military service during each fiscal 
   year from 1989 through 1998.                                            
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Report on process for selection of members for service on    
           courts-martial (sec. 552)                                               
       The House bill contained a provision (sec. 561) that would require  
   the Secretary of Defense to submit to the Congress, by April 15, 1999, a
   report on the method of selection of members of the armed forces to     
   serve on courts-martial, including the development of a plan by the     
   military services for random selection of members.                      
    The Senate amendment contained no similar provision.                   

    The Senate recedes with an amendment.                                  

                      Report on prisoners transferred from United States           
           Disciplinary Barracks, Fort Leavenworth, Kansas, to Federal Bureau of   
           Prisons (sec. 553)                                                      
       The House bill contained a provision (sec. 560) that would require  
   the Secretary of Defense to evaluate and report to Congress on the      
   rationale for, and effectiveness of, the policy of transferring         
   prisoners from the United States Disciplinary Barracks, Fort            
   Leavenworth, Kansas, to the Federal Bureau of Prisons, and would require
   the Secretary of the Army to monitor the parole and recidivism rates of 
   the military prisoners transferred to the Federal Bureau of Prisons.    
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Review and report regarding the distribution of National     
           Guard full-time support among the states (sec. 554)                     
       The Senate amendment contained a provision (sec. 1035) that would   
   require the Chief of the National Guard Bureau to review the process    
   used to allocate and distribute resources, including all categories of  
   full-time manning, among the states for the National Guard and to report
   not later than March 15, 1999 to the congressional defense committees.  
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would focus the review on  
   the process used to allocate and distribute all categories of National  
   Guard full-time support among the states, would require the             

                    Chief of the National Guard Bureau to submit the report to the
          Secretary of Defense, and would require the Secretary of Defense to     
          forward the report, along with his evaluation of the report, to the     
          Committee on Armed Services of the Senate and the National Security     
          Committee of the House of Representatives.                              
                                  SUBTITLE G--OTHER MATTERS                       

                      Two-year extension of certain force drawdown transition      
           authorities relating to personnel management and benefits (sec. 561)    
       The House bill contained a provision (sec. 551) that would extend   
   through fiscal year 2000 certain temporary authorities which provide the
   tools the armed services need to manage personnel reductions and shape  
   the force following the completion of the drawdown of military forces.  
       The Senate amendment contained a provision (sec. 522) that would    
   extend until September 30, 2003, the force reduction transition period  
   management and benefits authorities established during the drawdown of  
   the military services.                                                  
       The House recedes with an amendment that would extend the temporary 
   authorities until September 30, 2001.                                   
           Leave without pay for suspended academy cadets and midshipmen (sec. 562)

       The House bill contained a provision (sec. 552) that would authorize
   the appropriate secretary, upon the recommendation of the Superintendent
   of the United States Military Academy, the United States Naval Academy, 
   the United States Air Force Academy, or the United States Coast Guard   
   Academy, to order a cadet or midshipman to be placed on involuntary     
   leave without pay under certain circumstances.                          
       The Senate amendment contained a provision (sec. 604) that would    
   authorize the superintendents of the military academies and the Coast   
   Guard Academy to order a cadet or midshipman to be placed on involuntary
   leave without pay if the cadet or midshipman is pending separation from 
   the academy for misconduct, conduct deficiency, or honor violation while
   the separation is pending final approval.                               
       The House recedes with an amendment that would authorize the        
   appropriate service secretary to order a cadet or midshipman to be      
   placed on involuntary leave without pay if the cadet or midshipman is   
   pending separation from the academy for misconduct, conduct deficiency, 
   or honor violation while the separation is pending final approval.      
                      Continued eligibility under Voluntary Separation Incentive   
           program for members who involuntarily lose membership in a reserve      
           component (sec. 563)                                                    
       The House bill contained a provision (sec. 554) that would authorize
   Voluntary Separation Incentive (VSI) recipients to continue to receive  
   VSI payments after separation from the reserves when the separation was 
   due to age, years of service, failure to be selected for promotion, or  
   medical disqualification, provided the ineligibility does not result    
   from a deliberate action to avoid service.                              
       The Senate amendment contained a provision (sec. 523) that would    
   permit members who separated under the VSI program and lost their       
   membership in a reserve component, as a result of certain conditions, to
   continue to receive the benefit payments.                               
    The House recedes with a clarifying amendment.                         

                      Reinstatement of definition of financial institution in      
           authorities for reimbursement of defense personnel for Government errors
           in direct deposit of pay (sec. 564)                                     
       The House bill contained a provision (sec. 555) that would amend    
   sections 1053 and 1594 of title 10, United States Code, to specify that 
   the term ``financial institution'' means a bank, savings and loan       
   association or similar institution, or credit union chartered by the    
   United States or a State.                                               
    The Senate amendment contained a similar provision (sec. 1047).        

    The Senate recedes with a clarifying amendment.                        

           Increase in maximum amount for College Fund program (sec. 565)          

       The House bill contained a provision (sec. 556) that would increase 
   the maximum College Fund payment to $50,000, effective October 1, 1999, 
   for service members enlisting after that date.                          
       The Senate amendment contained a provision (sec. 618) that would    
   increase the amount authorized for military service College Fund        
   programs, not to exceed $50,000, an increase of $10,000.                
       The Senate recedes with an amendment that would remove the specified
   effective date.                                                         
           Central Identification Laboratory, Hawaii (sec. 566)                    

       The House bill contained a provision (sec. 557) that would require  
   the Secretary of Defense to establish joint manning requirements for the
   Central Identification Laboratory, Hawaii (CILHI), and to staff CILHI at
   100 percent of its manpower requirements.                               
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

       The conferees do not intend that this provision be interpreted to   
   direct that billets at the Central Identification Laboratory, Hawaii, be
   designated as joint billets on the joint duty assignment list. The      
   Secretary of Defense may, however, designate billets at the Central     
   Identification Laboratory, Hawaii, as joint duty on the joint duty      
   assignment list if he determines that the billets meet the existing     
   criteria for such designation.                                          

           Military funeral honors for veterans (sec. 567)                         

       The House bill contained a provision (sec. 558) that would require  
   the secretaries of the military departments to provide, upon request,   
   honor guard details for the funerals of veterans. The provision would   
   specify that the honor guard details be comprised of not less than three
   persons with the capability to play a recording of Taps, unless a bugler
   is included in the detail. The honor guard detail would consist of      
   members of the armed forces, members of veterans organizations, or other
   organizations approved for participation by the Secretary of Defense.   
   The provision would require the Secretary of Defense to establish a     
   system for selection of units of the armed forces or other organizations
   to provide honor guard details. Before issuing regulations to establish 
   the system, the Secretary of Defense would consult with veterans service
   organizations to determine the views of those organizations regarding   
   methods for providing honor guard details at funerals for veterans,     
   suggestions for organizing the system to provide those details, and     
   estimates of the resources that those organizations could provide for   
   honor guard details. This provision would apply to burials of veterans  
   that occur on, or after, October 1, 1999.                               
       The Senate amendment contained a provision (sec. 1079) that would   
   require, not later than October 31, 1998, the Secretary of Defense, in  
   consultation with the Secretary of Veterans Affairs, to convene a       
   conference to determine means of improving and increasing the           
   availability of military burial honors for veterans.                    
       The Senate recedes with an amendment that would combine the two     
   provisions in such a manner as to require the Secretary of Defense, in  
   consultation with the Secretary of Veterans Affairs, to convene a       
   conference, not later than December 31, 1998, to determine means of     
   improving and increasing the availability of military burial honors for 
   veterans, and to report the findings and recommendations resulting from 
   the conference to the Committee on Armed Services of the Senate and the 
   National Security Committee of the House of Representatives not later   
   than March 15, 1999. The provision would also require the secretaries of
   the military departments to provide, upon request, honor guard details  
   for the funerals of veterans comprised of not less than three persons   
   with the capability to play a recording of Taps, unless a bugler is     
   included in the detail, for the funerals of veterans, after December 31,
   1999.                                                                   
       The conferees intend that the requirement to provide a three- person
   burial detail upon request of a veteran to be effective only if the     
   Secretary of Defense and the Secretary of Veterans Affairs do not       
   recommend an acceptable alternative proposal in the required report. If 
   a recommended alternative includes permitting members of veterans       
   service organizations to perform burial honor details, the Secretary of 
   Defense may consider providing equipment and materiel, as appropriate,  
   to support burial honor detail duties.                                  
       The conferees agree that men and women have unselfishly answered the
   call to arms at tremendous personal sacrifice. These men and women who  
   served honorably, whether in war or peace, deserve commemoration for    
   their military service at the time of their death by an appropriate     
   tribute. Burial honors are an important means of reminding Americans of 
   the sacrifices endured to keep the Nation free.                         
                      Status in the Naval Reserve of cadets at the Merchant Marine 
           Academy (sec. 568)                                                      
       The House bill contained a provision (sec. 563) that would require  
   the Secretary of Defense, in coordination with the Secretary of         
   Transportation, to ensure that citizens of the United States appointed  
   as cadets at the United States Merchant Marine Academy are members of   
   the Naval Reserve. The provision would also require the Secretary of    
   Defense to issue such cadets military identification cards.             
    The Senate amendment contained no similar provision.                   

    The Senate recedes with a clarifying amendment.                        

       The conferees direct the Secretary of the Navy to determine the     
   specific status cadets at the United States Merchant Marine Academy     
   shall have within the Naval Reserve. The Secretary shall ensure that the
   benefits associated with the military identification card issued to     
   cadets at the United States Merchant Marine Academy are consistent with 
   their status within the Naval Reserve.                                  
                      Repeal of restriction on civilian employment of enlisted     
           members (sec. 569)                                                      
       The Senate amendment contained a provision (sec. 525) that would    
   repeal section 974 of title 10, United States Code, which restricts     
   enlisted personnel from engaging in a civilian pursuit or business if   
   the pursuit or business interferes with the employment of local         
   civilians in their art, trade, or profession.                           
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Transitional compensation for abused dependent children not  
           residing with the spouse or former spouse of a member convicted of      
           dependent abuse (sec. 570)                                              
       The Senate amendment contained a provision (sec. 528) that would    
   authorize transitional compensation to eligible dependent children who  
   do not reside with a spouse or former spouse who is also eligible for   
   transitional compensation payments. The recommended provision would     
   ensure that dependent children who are victims of abuse are not denied  
   compensation because of family circumstances that may cause the         
   dependent children not to reside with the spouse or former spouse.      
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

                      Pilot program for treating GED and home school diploma       
           recipients as high school graduates for determinations of eligibility   
           for enlistment in the armed forces (sec. 571)                           
    The Senate amendment contained a provision (sec. 529) that would       


                    establish a five-year pilot program to permit participants in 
          a National Guard Youth Challenge Program who receive a general education
          development (GED) certificate and those who complete their high school  
          requirements through a home schooling program to enlist in the armed    
          forces, as if they had received a high school diploma. The recommended  
          provision would limit the pilot program to not more than 10,000 persons 
          per year (1,250 per educational source per military service). The       
          provision would require the Secretary of Defense to conduct a           
          comprehensive evaluation of the performance of the participants in the  
          pilot program and report the results to the Congress not later than     
          February 1, 2004.                                                       
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would reduce the number of 
   participants to 5,000 per year (1,250 per military service) and require 
   a separate evaluation of the performance of GED and home school         
   participants.                                                           
                      Sense of Congress concerning New Parent Support Program and  
           military families (sec. 572)                                            
       The House bill contained a provision (sec. 1051) that would express 
   the sense of Congress that the New Parent Support Program has been an   
   effective tool in curbing family violence within the military community 
   and that the Department of Defense should seek ways to ensure that, in  
   future fiscal years, sufficient funds are made available for this       
   program. The recommended provision would also require that, within 120  
   days of the date of enactment of this Act, the Secretary of Defense to  
   submit a report to the Congress describing the manner in which the New  
   Parent Support Program is being implemented by each service, the number 
   of military installations receiving support for the program, and the    
   funding for the program by the date of each military service for fiscal 
   years 1994 through 1998 and the amount of funding projected for fiscal  
   year 1999.                                                              
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the report  
   to address funding during fiscal years 1994 through 1999, and the       
   funding projected for fiscal year 2000.                                 
                      Advancement of Benjamin O. Davis, Junior, to grade of General
           on the retired list of the Air Force (sec. 573)                         
       The Senate amendment contained a provision (sec. 532) that would    
   authorize the President to advance Benjamin O. Davis, Junior, to the    
   grade of General on the retired list of the Air Force. The provision    
   would specifically provide that no additional benefits accrue to General
   Davis or his heirs as a result of this advancement.                     
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

                      Sense of the House of Representatives concerning adherence by
           civilians in military chain of command to the standard of exemplary     
           conduct required of commanding officers and others in authority in the  
           Armed Forces (sec. 574)                                                 
       The House bill contained a provision (sec. 559) that would extend   
   the requirement for exemplary conduct on commanding officers and others 
   to the President, as Commander-in-Chief, and the Secretary of Defense,  
   both of whom exercise authority in the military chain of command.       
    The Senate amendment contained no similar provision.                   

       The conference agreement includes a provision that would express the
   sense of the House of Representatives that civilian members of the      
   military chain of command should, in the same manner as commanding      
   officers and others in authority in the armed forces, show in themselves
   a good example of virtue, honor, and patriotism, and to subordinate     
   themselves to those ideals.                                             
       For many years, commanding officers, and others in authority, in the
   Navy have been required by law to conduct themselves in an exemplary    
   manner. The National Defense Authorization Act for Fiscal Year 1998     
   extended such a requirement for exemplary conduct to commanding         
   officers, and others in authority, in the Army and Air Force. This      
   provision results from the House conferees' belief that a similar       
   standard for exemplary conduct should also extend to the civilian       
   leaders designated by title 10, United States Code, as being in the     
   military chain of command.                                              
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Posthumous commissions and warrants                                     

       The House bill contained a provision (sec. 504) that would authorize
   the President to promote an officer posthumously when the secretary of a
   military department approves the results of the appropriate board after 
   the date of death of the officer, so long as the officer is selected for
   promotion by a promotion board before the date of death.                
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

                      Study of revising the term of service of members of the      
           United States Court of Appeals for the Armed Forces                     
       The House bill contained a provision (sec. 562) that would require  
   the Secretary of Defense to submit to Congress a report on the          
   desirability of revising the term of appointment for judges of the      
   United States Court of Appeals for the Armed Forces so that the term    
   would be for 15 years or until the judge attained age 65, whichever is  
   later.                                                                  
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

                      Repeal of limitations on authority to set rates and waive    
           requirement for reimbursement of expenses incurred for instruction at   
           service academies of persons from foreign countries                     

       The Senate amendment contained a provision (sec. 524) that would    
   repeal the limitations on the authority of the secretary of a military  
   department to waive the requirement for reimbursement of expenses for   
   foreign students at the military service academies.                     
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                      Moratorium on changes of gender-related policies and         
           practices pending completion of the work of the Commission on Military  
           Training and Gender-Related Issues                                      
       The Senate amendment contained a provision (sec. 527) that would    
   prohibit the Secretary of Defense from implementing any policy changes  
   with regard to separation or integration of members of the armed forces 
   on the basis of gender, which are within the responsibility of the      
   Commission on Military Training and Gender-Related Issues, until the    
   commission has completed its work and issued its report. The final      
   report is due on March 15, 1999.                                        
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                    TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS           

                               LEGISLATIVE PROVISIONS ADOPTED                     

                               SUBTITLE A--PAY AND ALLOWANCES                     

           Increase in basic pay for fiscal year 1999 (sec. 601)                   

       The House bill contained a provision (sec. 601) that would waive    
   section 1009 of title 37, United States Code, and increase, effective   
   January 1, 1999, the rates of basic pay for members of the uniformed    
   services by 3.6 percent or the percent increase determined under        
   subsection (c) of section 1009 of title 37, United States Code, should  
   the President approve a pay increase for federal workers, whichever is  
   higher.                                                                 
       The Senate amendment contained a provision (sec. 601) that would    
   waive section 1009 of title 37, United States Code, and increase the    
   rates of basic pay for members of the uniformed services by 3.6 percent,
   effective January 1, 1999.                                              
    The Senate recedes.                                                    

                      Rate of pay for cadets and midshipmen at the service         
           academies (sec. 602)                                                    
       The Senate amendment contained a provision (sec. 602) that would    
   increase the rate of pay for cadets and midshipmen at the service       
   academies from $558.04 per month to $600.00 per month, effective January
   1, 1999.                                                                
    The House bill contained no similar provision.                         

    The House recedes.                                                     

           Basic allowance for housing outside the United States (sec. 603)        

       The House bill contained a provision (sec. 602) that would authorize
   the payment of advance deposits and rent for housing in overseas areas  
   when required by local conditions. The provision would also protect the 
   member from losses due to fluctuations in the value of foreign currency 
   and would allow the government to recoup the full amount of advances, to
   include any gain resulting from currency fluctuations.                  
    The Senate amendment contained no similar provision                    

    The Senate recedes.                                                    

           Basic allowance for subsistence for reserves (sec. 604)                 

       The House bill contained a provision (sec. 603) that would clarify  
   the entitlement of reservists to rations in kind or payment for meals   
   purchased when rations in kind are not available.                       
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                       SUBTITLE B--BONUSES AND SPECIAL INCENTIVE PAYS             

                      Three-month extension of certain bonuses and special pay     
           authorities for reserve forces (sec. 611)                               
       The House bill contained a provision (sec. 611) that would extend   
   the authority for the special pay for health care professionals who     
   serve in the Selected Reserve in critically short wartime specialties,  
   the Selected Reserve reenlistment bonus, the Selected Reserve enlistment
   bonus, special pay for enlisted members of the Selected Reserve assigned
   to certain high priority units, the Selected Reserve affiliation bonus, 
   the Ready Reserve enlistment and reenlistment bonus, and the prior      
   service enlistment bonus until September 30, 2000. The provision would  
   also extend the authority for repayment of educational loans for certain
   health professionals who serve in the Selected Reserve until October 1, 
   2000.                                                                   
       The Senate amendment contained a provision (sec. 611) that would    
   extend the authority to pay special pay critically short wartime health 
   specialists in the Selected Reserve, the Selected Reserve reenlistment  
   bonuses, the Selected Reserve enlistment bonuses, the special pay for   
   enlisted members assigned to certain high priority units in the Selected
   Reserve, the Selected Reserve affiliation bonus, the Ready Reserve      
   enlistment and reenlistment bonus, the repayment of loans for certain   
   health professionals who serve in the Selected Reserve, and the prior   
   service enlistment bonus until December 31, 1999.                       
    The House recedes.                                                     

       The conferees understand the value of bonuses and special pay as a  
   tool for recruiting and retaining skilled, qualified personnel. The     

                    conferees intend that these bonuses will be reauthorized on an
          annual basis.                                                           
                      Three-month extension of certain bonuses and special pay     
           authorities for nurse officer candidates, registered nurses, and nurse  
           anesthetists (sec. 612)                                                 
       The House bill contained a provision (sec. 612) that would extend   
   the authority for the nurse officer candidate accession program, the    
   accession bonus for registered nurses, and the incentive special pay for
   nurse anesthetists until September 30, 2000.                            
       The Senate amendment contained a provision (sec. 612) that would    
   extend the authority to pay certain bonuses and special pay for nurse   
   officer candidates, registered nurses, and nurse anesthetists until     
   December 31, 1999.                                                      
    The House recedes.                                                     

       The conferees understand the value of bonuses and special pay as a  
   tool for recruiting and retaining skilled, qualified personnel. The     
   conferees intend that these bonuses will be authorized on an annual     
   basis.                                                                  
                      Three-month extension of authorities relating to payment of  
           other bonuses and special pays (sec. 613)                               
       The House bill contained a provision (sec. 613) that would extend   
   the authority for the aviation officer retention bonus, reenlistment    
   bonus for active members, enlistment bonuses for members with critical  
   skills, special pay for nuclear qualified officers who extend the period
   of active service, and the nuclear career accession bonus to September  
   30, 2000. The provision would also extend the authority for the nuclear 
   career annual incentive bonus until October 1, 2000.                    
       The Senate amendment contained a provision (sec. 613) that would    
   extend the authority to pay the aviation officer retention bonus, the   
   reenlistment bonus for active members, the enlistment bonuses for       
   critical skills, the special pay for nuclear qualified officers who     
   extend the period of active service, the nuclear career accession bonus,
   and the nuclear career annual incentive bonus until December 31, 1999.  
    The House recedes.                                                     

       The conferees understand the value of bonuses and special pay as a  
   tool for recruiting and retaining skilled, qualified personnel. The     
   conferees intend that these bonuses will be reauthorized on an annual   
   basis.                                                                  
                      Increased hazardous duty pay for aerial flight crewmembers in
           certain pay grades (sec. 614)                                           
       The Senate amendment contained a provision (sec. 620a) that would   
   increase the hazardous duty pay for enlisted aerial flight crewmembers. 
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

                      Aviation career incentive pay and aviation officer retention 
           bonus (sec. 615)                                                        
       The House bill contained a provision (sec. 614) that would make     
   clarifying amendments to sections 301a and 301b of title 37, United     
   States Code, to facilitate the payment of Aviation Career Incentive Pay 
   and Aviation Continuation Pay to warrant officers.                      
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Diving duty special pay for divers having diving duty as a   
           nonprimary duty (sec. 616)                                              
       The House bill contained a provision (sec. 615) that would clarify  
   that the service secretaries may continue paying diving pay to members  
   not assigned to diving duties when the members are required to maintain 
   diving proficiency.                                                     
    The Senate amendment contained a similar provision (sec. 620b).        

    The House recedes.                                                     

       The conferees believe that members should be required to maintain   
   proficiency as a diver only when they are subject to no notice return to
   diving duty on a temporary or permanent basis.                          
           Hardship duty pay (sec. 617)                                            

       The House bill contained a provision (sec. 620) that would change   
   the criteria eligibility to receive hardship duty pay from a location to
   a specific duty without regard to location.                             
    The Senate amendment contained a similar provision (sec. 620).         

    The House recedes with a clarifying amendment.                         

                      Selective reenlistment bonus eligibility for Reserve members 
           performing active Guard and Reserve duty (sec. 618)                     
       The House bill contained a provision (sec. 616) that would authorize
   payment of selective reenlistment bonuses to members of the reserve     
   components who are on extended active duty in the Active Guard and      
   Reserve (AGR) program.                                                  
       The Senate amendment contained a provision (sec. 614) that would    
   authorize the secretary concerned to offer a reenlistment bonus to      
   reserve component members who are on extended active duty in support of 
   the reserves. The provision would require reserve component members on  
   active duty in support of the reserves to meet the same criteria as     
   regular component enlisted personnel to be eligible for a reenlistment  
   bonus.                                                                  
    The House recedes with a clarifying amendment.                         

                      Repeal of ten percent limitation on certain selective        
           reenlistment bonuses (sec. 619)                                         
       The House bill contained a provision (sec. 617) that would remove   
   the 10 percent limitation on the number of selective                    

          reenlistment bonuses in excess of $20,000 that may be paid.             

       The Senate amendment contained a provision (sec. 615) that would    
   repeal the restriction limiting the number of selective reenlistment    
   bonuses which exceed $20,000 paid during any fiscal year.               
    The Senate recedes with a clarifying amendment.                        

                      Increase in maximum amount authorized for Army enlistment    
           bonus (sec. 620)                                                        
       The House bill contained a provision (sec. 618) that would increase 
   the maximum bonus for enlistment in the Army from $4,000 to $6,000.     
       The Senate amendment contained a provision (sec. 616) that would    
   increase the maximum amount authorized to be offered to a qualifying    
   high school graduate who enlists in the Army for at least three years in
   designated skills from $4,000 to $6,000.                                
    The House recedes with a clarifying amendment.                         

                      Equitable treatment of Reserves eligible for special pay for 
           duty subject to hostile fire or imminent danger (sec. 621)              
       The House bill contained a provision (sec. 619) that would authorize
   reserve members to receive the amount of imminent danger pay authorized 
   for a full month regardless of the number of qualifying days served by  
   the member during the month. The provision would make the imminent      
   danger pay payment policy for reservists consistent with the policy for 
   active duty members. Accordingly, the House bill provided for an        
   increase of $3.0 million over the amount included in the budget request 
   for reserve imminent danger pay.                                        
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Retention incentives initiative for critically short military
           occupational specialites (sec. 622)                                     
       The Senate amendment contained a provision (sec. 620(c)) that would 
   require the Secretary of Defense to establish a series of new           
   incentives, in addition to the current incentives, to encourage service 
   members in critically short specialities to reenlist.                   
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            

           Payments for movements of household goods arranged by members (sec. 631)

       The Senate amendment contained a provision (sec. 603) that would    
   authorize the Departments of Defense, Health, and Transportation to     
   provide members of the uniformed services with a reimbursement or       
   monetary allowance in advance for the cost of transportation for that   
   member's baggage and household effects. The monetary allowance may be   
   paid only if payment of the allowance results in an overall cost savings
   to the government. This will enhance the ability of members of the      
   uniformed services to arrange for the movement of their household goods 
   themselves, rather than relying upon the current system, whereby the    
   employing agencies arrange for the movement of these goods for the      
   members.                                                                
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would insert the words     
   ``new sentence'' in (a)(1)(B). The amendment would further replace the  
   word ``a'' with the word ``the'' in the same paragraph. Finally, the    
   amendment would make technical changes to standing law reflecting the   
   fact that paragraphs have been redesignated because of the elimination  
   of subsection (j).                                                      
                      Exception to maximum weight allowance for baggage and        
           household effects (sec. 632)                                            
       The House bill contained a provision (sec. 631) that would authorize
   the service secretaries to exceed the maximum weight allowance for      
   shipment of household goods to a new permanent duty station to          
   accommodate shipment of consumable goods that cannot be reasonably      
   obtained at the new location.                                           
                                                                           

    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

       The conferees intend that this apply only to shipments to a new     
   permanent duty station where consumable goods are not reasonably        
   available. The conferees do not intend the increased weight allowance to
   be used for shipments from a permanent duty station in which consumable 
   goods were not reasonably available.                                    
                      Travel and transportation allowances for travel performed by 
           members in connection with rest and recuperative leave from overseas    
           stations (sec. 633)                                                     
       The House bill contained a provision (sec. 632) that would clarify  
   that the service secretaries may provide the transportation authorized  
   the rest and recuperation travel using either government or commercial  
   carriers. This provision would enhance the cost efficiency of the rest  
   and recuperation program being provided to personnel assigned to        
   Operation Joint Guard in the Republic of Bosnia and Herzegovina.        
       The Senate amendment contained a provision (sec. 621) that would    
   authorize the secretary concerned to pay for commercial transportation, 
   not to exceed the cost of government provided transportation, for leave 
   travel of members assigned to overseas locations in contingency         
   operations or at overseas locations where unusual conditions exist. The 
   provision would permit members to receive one round trip during any     
   period of service of at least six months, but not to exceed 24 months.  
    The Senate recedes.                                                    


           Storage of baggage of certain dependents (sec. 634)                     

       The House bill contained a provision (sec. 633) that would amend    
   section 430 of title 37, United States Code, to authorize dependents of 
   military members assigned to overseas locations annual round trip visits
   while those dependents are college students in the United States. The   
   provision would authorize the storage of unaccompanied baggage of such  
   dependents in lieu of shipment if advantageous to the government.       
       The Senate amendment contained a provision (sec. 622) that would    
   authorize storage of a dependent student's unaccompanied baggage in lieu
   of shipping the baggage to the overseas duty station of the sponsor.    
   When a student attending school in the United States returns to spend   
   the summer with their family in an overseas location, they must ship    
   their goods to the overseas location. The recommended provision would   
   permit the baggage to be stored locally, which is less expensive than a 
   round-trip overseas shipment.                                           
    The Senate recedes.                                                    

                      Commercial travel of Reserves at Federal supply schedule     
           rates for attendance at inactive-duty training assemblies (sec. 635)    
       The House bill contained a provision (sec. 368) that would permit   
   members of the reserve components to use General Services Administration
   federal supply contracts for commercial air transportation in order to  
   perform inactive duty training.                                         
    The Senate amendment contained a similar provision (sec. 623).         

    The House recedes.                                                     

              SUBTITLE D--RETIRED PAY, SURVIVOR BENEFITS, AND RELATED  MATTERS    

           Paid-up coverage under Survivor Benefit Plan (sec. 641)                 

       The Senate amendment contained a provision (sec. 631) that would,   
   effective October 1, 2003, terminate Survivor Benefit Plan payments     
   following 30 years of payments and attainment of the age of 70.         
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would make the effective   
   date October 1, 2008.                                                   
           Survivor Benefit Plan open enrollment period (sec. 642)                 

       The Senate amendment contained a provision (sec. 634) that would    
   establish a one-year open enrollment period for the Survivor Benefit    
   Plan, beginning March 1, 1999. The provision would require persons      
   electing to enroll in the Survivor Benefit Plan during the open         
   enrollment period to pay premiums equal to the amount the member would  
   have paid had the member enrolled at the first opportunity afforded that
   member, with interest, and any additional amount the Secretary of       
   Defense determines to be necessary to make the election actuarially     
   sound.                                                                  
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Effective date of court-required former spouse survivor      
           benefit plan coverage effectuated through elections and deemed elections
           (sec. 643)                                                              
       The House bill contained a provision (sec. 641) that would          
   standardize the effective date of Survivor Benefit Plan coverage for a  
   former spouse as the first day of the first month following the date of 
   the court order directing the coverage.                                 
    The Senate amendment contained a similar provision (sec. 632).         

    The House recedes with a clarifying amendment.                         

                      Presentation of a United States flag to members of the Armed 
           Forces upon retirement (sec. 644)                                       
       The Senate amendment contained a provision (sec. 637) that would    
   require the secretary of a military department to present a United      
   States flag to a member upon retirement from active or reserve service. 
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

                      Recovery, care, and disposition of remains of medically      
           retired member who dies during hospitalization that begins while on     
           active duty (sec. 645)                                                  
       The House bill contained a provision (sec. 553) that would authorize
   military retirees the same benefits for recovery, care, and disposition 
   of remains as active duty members when that member is medically retired 
   from active duty while hospitalized and the hospitalization is          
   continuous until the date of death.                                     
    The Senate amendment contained a similar provision (sec. 633).         

    The House recedes with a clarifying amendment.                         

           Revision to computation of retired pay for certain members (sec. 646)   

       The House bill contained a provision (sec. 642) that would clarify  
   that section 1406(i) of title 10, United States Code, would not apply to
   enlisted members who, after serving as the senior enlisted advisor of an
   armed force, are reduced in grade as the result of a court-martial      
   sentence, nonjudicial punishment, or other administrative process. The  
   provision would also provide that the computation of the high-three     
   average of a retired enlisted member who was reduced in grade be based  
   on the lower grade.                                                     
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would retain the          
   clarification to section 1406(i).                                       
    The conferees urge the Secretary of Defense to review the effect       


                    of a reduction in grade on members who are reduced in grade   
          and who may retire under the high-three average method of computation of
          retired pay and, if appropriate, recommend legislation to ensure that   
          the member's retired pay be computed based on the lower grade.          
           Elimination of backlog of unpaid retired pay (sec. 647)                 

       The Senate amendment contained a provision (sec. 638) that would    
   require the Secretary of the Army to eliminate the backlog of unpaid    
   retired pay for members and the former members of the Army, the Army    
   Reserve, and the Army National Guard by December 31, 1998.              
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

                                  SUBTITLE E--OTHER MATTERS                       

                      Definition of possessions of the United States for pay and   
           allowances purposes (sec. 651)                                          
       The House bill contained a provision (sec. 651) that would delete   
   the Canal Zone from the list of U.S. possessions as defined in title 37,
   United States Code.                                                     
    The Senate amendment contained a similar provision (sec. 641).         

    The Senate recedes with a clarifying amendment.                        

           Accounting of advance payments (sec. 652)                               

       The House bill contained a provision (sec. 652) that would clarify  
   the authority of the secretary concerned to disburse advance payments to
   service members in a permanent change of station status in amounts that 
   may exceed available appropriations in the relevant military personnel  
   accounts.                                                               
    The Senate amendment (sec. 1046) contained a similar provision.        

    The Senate recedes with a technical amendment.                         

                      Reimbursement of rental vehicle costs when motor vehicle     
           transported at government expense is late (sec. 653)                    
       The House bill contained a provision (sec. 653) that would authorize
   a service member being transferred to an overseas station to rent a car 
   for one week at government expense when the privately owned vehicle     
   shipped to the overseas location does not arrive as scheduled. The      
   provision would limit the car rental reimbursement to $30 a day for one 
   week, and would require the Secretary of Defense to certify in a report 
   to the Congress that a system is operational to recover the cost of the 
   reimbursement for the rental car from the shipping company that caused  
   the delay prior to any reimbursement.                                   
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Education loan repayment program for health professions      
           officers serving in Selected Reserve (sec. 654)                         
       The House bill contained a provision (sec. 654) that would increase 
   the authorized caps on the education loan amounts that may be repaid by 
   the Secretary of Defense to recruit and retain health professionals with
   shortage wartime critical medical skills who serve in the Selected      
   Reserve. The provision would increase the repayment amounts from $3,000 
   per year and $20,000 total to $10,000 and $50,000, respectively.        
       The Senate amendment contained a provision (sec. 617) that would    
   modify the current education loan repayment program by permitting the   
   services to offer the program to certain health professions students,   
   and would increase the loan repayment limit from $3,000 per year and a  
   total of $20,000 to $20,000 per year and a total of $50,000.            
    The House recedes.                                                     

                      Federal employees' compensation coverage for students        
           participating in certain officer candidate programs (sec. 655)          
       The Senate amendment contained a provision (sec. 642) that would    
   provide medical coverage to college students participating in a Senior  
   Reserve Officers' Training program or the Marine Corps Platoon Leaders  
   Course who are injured or become ill while attending training on orders.
   The provision would provide for medical coverage for injury or illness  
   even if incurred during non-duty hours, provided the injury or illness  
   is determined to be in the line of duty, as prescribed by service       
   regulations.                                                            
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Relationship of enlistment bonuses to eligibility to receive 
           Army college fund supplement under Montgomery GI bill Educational       
           Assistance Program (sec. 656)                                           
       The Senate amendment contained a provision (sec. 619) that would    
   authorize the military services to offer both an enlistment bonus and a 
   college fund program to prospective recruits in selected critically     
   short specialities.                                                     
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

                      Authority to provide financial assistance for education of   
           certain defense dependents overseas (sec. 657)                          
       The Senate amendment contained a provision (sec. 643) that would    
   authorize the Secretary of Defense to provide financial assistance to   
   sponsors of dependents in overseas areas in which the Department of     
   Defense does not operate schools.                                       
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Clarifications concerning payments to certain persons        
           captured or interned by North Vietnam (sec. 658)                        

       The Senate amendment contained a provision (sec. 635) that would    
   authorize payments to the surviving parents or siblings of Vietnamese   
   commandos who were not married at the time of their death.              
       The Senate amendment contained an additional provision (sec. 636)   
   that would clarify that payments to Vietnamese commandos or their       
   survivors must be paid directly to the authorized recipient.            
    The House bill contained no similar provisions.                        

       The House recedes with an amendment that would combine the two      
   provisions into a single provision.                                     
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Voting rights of military personnel                                     

       The Senate amendment contained a provision (sec. 644) that would    
   amend the Soldiers' and Sailors' Civil Relief Act of 1940 to preclude a 
   military member from losing a claim to state residency for the purpose  
   of voting in federal and state elections because of absence due to      
   military orders, and amend the Uniformed and Overseas Citizens Absentee 
   Voting Act to require each state to permit absent military voters to use
   absentee registration procedures and to vote by absentee ballot in      
   elections for state and local offices, in addition to federal offices as
   provided in current law.                                                
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                             TITLE VII--HEALTH CARE PROVISIONS                    

                               LEGISLATIVE PROVISIONS ADOPTED                     

                              SUBTITLE A--HEALTH CARE SERVICES                    

           Dependents' dental program (sec. 701)                                   

       The House bill contained a provision (sec. 721) that would amend    
   section 1076a(b)(2) of title 10, United States Code, to allow for the   
   cap on an enrolled member's share of the monthly premium for the        
   dependent dental program to be adjusted annually for inflation.         
       The Senate amendment contained a provision (sec. 701) that would    
   establish an index under which an enrolled member's monthly premium for 
   the dependent dental plan could increase in a manner not to exceed the  
   percentage of the annual pay raise.                                     
       The House recedes with an amendment that would not include the      
   Dependent Dental Program within TRICARE and would prohibit the Secretary
   of Defense from reducing the dependent dental benefit without prior     
   consultation with the Committee on Armed Services of the Senate and the 
   National Security Committee of the House of Representatives.            
                      Expansion of dependent eligibility under retiree dental      
           program (sec. 702)                                                      
       The House bill contained a provision (sec. 701) that would amend    
   section 1076c of title 10, United States Code, to allow dependents of   
   certain retired service members to enroll in the retiree dental program 
   even if the retired member does not enroll in the program.              
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

           Plan for redesign of military pharmacy system (sec. 703)                

       The House bill contained a provision (sec. 703) that would require  
   the Secretary of Defense to submit to the Congress, by March 1, 1999, a 
   plan for a system-wide redesign of the military and contractor retail   
   and mail-order pharmacy system by incorporating the ``best business     
   practices'' of the private sector.                                      
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

       The conferees intend that the uniform formulary be considered the   
   minimum and not the maximum inventory of drugs that may be available    
   through a military treatment facility. The conferees expect that, if the
   military treatment facility commander determines that the beneficiary   
   population served by that military treatment facility requires drugs    
   that could be provided in a more cost effective manner to the government
   through the military treatment facility, the military treatment facility
   commander must have the flexibility to add such drugs to the formulary  
   in that facility. The conferees instruct the Secretary of Defense that  
   the required pharmacy redesign plan not include any proposal in which   
   pharmacies in military treatment facilities could charge fees or co-pays
   for active duty personnel, nor for any formulary or equivalent generic  
   drug dispensed to any eligible beneficiary. The conferees do not intend 
   that any proposed pharmacy redesign would include any proposal to permit
   retail pharmacies to purchase drugs at a government rate.               
                      Transitional authority to provide continued health care      
           coverage for certain persons unaware of loss of CHAMPUS eligibility     
           (sec. 704)                                                              
       The House bill contained a provision (sec. 704) that would authorize
   the Secretary of Defense to extend temporarily CHAMPUS eligibility to   
   certain beneficiaries who may have been unaware of their loss of        
   eligibility for CHAMPUS coverage.                                       
    The Senate amendment contained a similar provision (sec. 704).         

    The Senate recedes.                                                    

                                 SUBTITLE B--TRICARE PROGRAM                      

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

       The House bill contained a provision (sec. 711) that would amend    
   section 1095 of title 10, United States Code, to authorize the Secretary
   of Defense to allow TRICARE contractors to pay certain provider claims  
   for the provision of health care services for accidental injury prior to
   seeking payment from potential third-party payers.                      
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      TRICARE prime automatic enrollments and retiree payment      
           options (sec. 712)                                                      
       The House bill contained a provision (sec. 712) that would direct   
   the Secretary of Defense to establish procedures for the automatic      
   enrollment in TRICARE Prime at a military treatment facility for        
   active-duty dependents residing within the catchment area of the        
   facility, would require advance written notification of this enrollment,
   and would allow enrolled family members to disenroll from Military      
   Treatment Facility TRICARE Prime at any time. The provision would also  
   permit retired service members to have any fees associated with         
   enrollment in TRICARE to be paid through an allotment from their retired
   pay or via electronic funds transfer from a financial institution.      
    The Senate amendment contained a similar provision (sec. 703).         

       The House recedes with an amendment that would permit retired       
   members enrolled in TRICARE Prime to pay enrollment fees by allotment,  
   electronic funds transfer or direct payment on a monthly or quarterly   
   basis, would permit automatic re-enrollment for everyone who is enrolled
   in TRICARE Prime, and would permit automatic enrollment in TRICARE Prime
   for authorized family members of service members in grades E 4 and      
   below.                                                                  
       The conferees intend that service members be notified that their    
   authorized family members have been enrolled in TRICARE Prime and advise
   them of the procedures to change the enrollment if the automatic        
   enrollment process did not properly enroll their authorized family      
   members. The conferees intend that the Secretary of Defense establish   
   procedures to notify those beneficiaries enrolled in TRICARE Prime of   
   the status of their enrollment upon arrival at a new duty station to    
   ensure that the enrollment is appropriate. The conferees direct the     
   secretaries of the military departments to ensure that unit commanders  
   include TRICARE Prime enrollment as part of all predeployment and       
   permanent change of station inprocessing procedures to ensure that      
   service members are apprised of the enrollment status of their          
   authorized family members and the procedures to modify the enrollment,  
   if necessary. The Secretary of Defense may establish the annual         
   re-enrollment date for those enrolled in TRICARE Prime as he determines 
   to be most efficient. The conferees do not necessarily intend that the  
   annual re-enrollment date be on the specific anniversary of the initial 
   enrollment.                                                             
                      System for tracking data and measuring performance in meeting
           TRICARE access standards (sec. 713)                                     
       The House bill contained a provision (sec. 722) that would require  
   the Secretary of Defense to establish a system for measuring military   
   treatment facilities and TRICARE contractors' performance in meeting the
   Department of Defense standards for access to primary care services.    
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

           Establishment of appeals process for claimcheck denials (sec. 714)      

       The House bill contained a provision (sec. 728) that would require  
   the Secretary of Defense, not later than November 1, 1998, to submit a  
   proposal to establish an appeals process in cases of denials through the
   Claim Check computer software system of claims by civilian health care  
   providers in TRICARE.                                                   
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would direct the Secretary
   of Defense to establish an appeals process in cases of denials of claims
   from a civilian health care provider in TRICARE by any computer based   
   software system and to report to the Committee on Armed Services of the 
   Senate and the National Security Committee of the House of              
   Representatives when the appeals system is implemented.                 
                      Reviews relating to accessibility of health care under       
           TRICARE (sec. 715)                                                      
       The Senate amendment contained a provision (sec. 711) that would    
   require the Secretary of Defense to revise the TRICARE policy manual to 
   clarify that rehabilitative services are available to a patient for a   
   head injury when the treating physician certifies that such services    
   would be beneficial and to review the adequacy of the provider network  
   to determine whether the networks include sufficient health care        
   providers and specialists.                                              
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the Secretary
   of Defense to review the TRICARE policy manual to determine whether the 
   policies dealing with the availability of rehabilitative services for   
   patients suffering from head injuries are adequate and address the      
   consideration of certification by an attending physician and report to  
   the Committee on Armed Services of the Senate and the National Security 
   Committee of the House of Representatives, not later than April 1, 1999.
       The conferees direct the Secretary of Defense to ensure that the    
   TRICARE policy manual is written in such a manner as to be clear and    
   easy to comprehend by health care providers and others who may be       
   involved in decisions concerning the authorized coverage under TRICARE. 
            SUBTITLE C--HEALTH-CARE SERVICES FOR MEDICARE-ELIGIBLE DEPARTMENT OF  
                      DEFENSE BENEFICIARIES (SECS. 721 724)                       

       The House bill contained a provision (sec. 729) that would authorize
   a three-year demonstration project under which not more than 70,000     
   Medicare-eligible beneficiaries of the Military Health Care System may  
   enroll in the Federal Employees Health Benefits Program (FEHBP). The    
   provision would require the Secretary of Defense and the Director of the
   Office of Personnel Management to report to the Congress, not later than
   39 months after the beginning of the test, on the effectiveness of the  
   demonstration. The Comptroller General would be required to make a      
   similar report within the same time frame as the report of the Secretary
   of Defense.                                                             
       The Senate amendment contained a provision (sec. 707) that would    
   authorize the Secretary of Defense to conduct three health care         
   demonstration projects in order to assess the feasibility and           
   advisability of providing health care to certain Medicare-eligible      
   beneficiaries of the Military Health Care System. The demonstrations    
   would begin not later than January 1, 2000 and end not later than       
   December 31, 2003. The recommended provision would authorize: one       
   demonstration project in which Medicare-eligible beneficiaries of the   
   Military Health Care System would participate in the Federal Employees  
   Health Benefits Program; a second demonstration project would create a  
   TRICARE Senior Supplement program in which Medicare-eligible            
   beneficiaries of the Military Health Care System could enroll; and a    
   demonstration that would extend the TRICARE mail order pharmacy benefit 
   to Medicare-eligible beneficiaries of the Military Health Care System.  
       The Senate recedes with an amendment that would limit the FEHBP     
   demonstration to not more than 66,000 participants, require the         
   Secretary of Defense to implement a redesigned pharmacy benefit for     
   Medicare-eligible DOD beneficiaries at two sites, and include the       
   TRICARE Senior Supplement demonstration from the Senate amendment. The  
   demonstrations and the redesigned pharmacy benefit would begin not later
   than January 1, 2000. The FEHBP demonstration would begin during the    
   FEHBP open season for 2000. Implementation of the pharmacy redesign     
   would begin not later than October 1, 1999. The TRICARE Senior          
   Supplement would begin not later than January 1, 2000. The              
   demonstrations would end not later than December 31, 2002. The Secretary
   of Defense, and in the case of the FEHBP demonstration, the Director of 
   the Office of Personnel Management, would be required to report to the  
   Congress not later than December 31, 2002 on the costs, effectiveness,  
   and the feasibility of making the programs permanent. The Comptroller   
   General would be required to make similar reports within the same time  
   frame as the reports of the Secretary of Defense. In addition, the      
   Comptroller General would be required to complete a comprehensive       
   comparative analysis of the three projects and report to the Congress   
   not later than March 31, 2003.                                          
       The conferees expect that the Secretary of Defense will strongly    
   urge Medicare-eligible beneficiaries to participate in Medicare Part B. 
   The conferees note participation in Medicare Part B is not required for 
   eligibility in the FEHBP demonstration; however, those who do not elect 
   to participate in Medicare Part B and later require Medicare benefits   
   may be required to pay a significant penalty.                           
       The conferees expect that health benefit plans under chapter 89 of  
   title 5, United States Code, that participate in the FEHBP demonstration
   project will establish separate enrollment codes for self-only and      
   self-and-family elections as an essential element of the requirement to 
   maintain a separate risk pool for covered beneficiaries. Further, the   
   conferees expect the Secretary of Defense and the Director of the Office
   of Management and Budget to seek the views of health plans that desire  
   to participate in the demonstration about any aspect that the health    
   plan believes would, in any way, prejudice the results of the project.  
   The report required of the Secretary of Defense and the Director of the 
   Office of Personnel Management shall include verbatim, written views by 
   any participating health plan on the conduct of the demonstration       
   project.                                                                
       The conferees strongly believe that eligible beneficiaries must     
   receive accurate, objective, and timely information from the Department 
   of Defense about the opportunity to enroll in a health benefits plan    
   offered under chapter 89 of title 5, United States Code, as well as the 
   other projects. The conferees direct the Secretary of Defense, after    
   consultation with the Director of the Office of Personnel Management and
   with the participating health plans, to ensure that an educational      
   program is implemented that will provide each eligible beneficiary with 
   easily understandable information concerning enrollment options,        
   enrollment terms and limitations, and any other information reasonably  
   considered essential to making an informed decision concerning          
   participation in a demonstration project.                               
       As part of the TRICARE Senior Supplement demonstration, the         
   Secretary of Defense shall require participants to pay an enrollment fee
   which may not exceed 75 percent of the total subscription charges in a  
   year for self-only or self-and-family fee for service coverage under    
   FEHBP. The conferees expect the Secretary of Defense to use as the basis
   for determining the enrollment fee the FEHBP plan that is comparable to 
   the TRICARE Extra benefit. The conferees do not expect that the FEHBP   
   plan selected as the base plan will be the most expensive plan, and thus
   prejudice the demonstration project.                                    
              SUBTITLE D--OTHER CHANGES TO EXISTING LAWS REGARDING HEALTH CARE    
                                   MANAGEMENT                                     
                      Process for waiving informed consent requirement for         
           administration of certain drugs to members of Armed Forces for purposes 
           of a particular military operation (sec. 731)                           
       The Senate amendment contained a provision (sec. 713) that would    
   require that an investigational new drug or a drug unapproved for its   
   applied use not be administered to a member of the armed forces unless  
   the member provides prior consent. The recommended provision would      
   permit the Secretary of Defense to request the President waive the      
   requirement for prior consent if the Secretary determines that obtaining
   consent is not feasible, is contrary to the best interests of the       
   members involved, or is not in the best interests of national security. 

    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

       The conferees note that presidential approval, Congressional        
   reports, and prior written notice to the member do not apply to Federal 
   Drug Administration informed consent exceptions applicable to standard  
   medical practice in the United States, as distinguished from informed   
   consent exceptions that relate specifically to military functions and   
   activities.                                                             
                      Health benefits for abused dependents of members of the armed
           forces (sec. 732)                                                       
       The Senate amendment contained a provision (sec. 712) that would    
   require the secretary concerned to provide an abused dependent of a     
   former member of a uniformed service with medical and dental care during
   the period that the abused dependent is receiving transitional          
   compensation under section 1059 of title 10, United States Code.        
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

                      Provision of health care at military entrance processing     
           stations and elsewhere outside medical treatment facilities (sec. 733)  
       The Senate amendment contained a provision (sec. 702) that would    
   extend the coverage of contract physicians by the same malpractice      
   litigation rules as other Department of Defense health care providers.  
   The provision would also extend the authority of the Secretary of       
   Defense to provide reasonable attorney's fees in any litigation in which
   government attorneys do not provide representation.                     
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would extend the current   
   authority until December 31, 2000, and would require the Secretary of   
   Defense to conduct a test of alternative methods for conducting medical 
   screenings for enlistment qualification and report the findings not     
   later than March 1, 2000.                                               
                      Professional qualifications of physicians providing military 
           health care (sec. 734)                                                  
       The House bill contained a provision (sec. 726) that would require  
   the secretary of a military department to ensure that each military     
   physician holds an unrestricted medical license. The House bill also    
   contained a provision (sec. 727) that would require the Secretary of    
   Defense to establish a mechanism to ensure that each military physician 
   completes the continuing medical education requirements applicable to   
   their medical specialty.                                                
       The Senate amendment contained a single provision (sec. 708) similar
   to the two provisions in the House bill.                                
    The House recedes with a clarifying amendment.                         

                                  SUBTITLE E--OTHER MATTERS                       

           Enhanced Department of Defense organ and tissue donor program (sec. 741)

       The Senate amendment contained a provision (sec. 705) that would    
   require the Secretary of Defense, the secretaries of the military       
   departments, and the Surgeons General to enhance the support for organ  
   and tissue donor elections made by service members.                     
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require that service 
   members are provided with appropriate information about organ and tissue
   donation and are afforded the opportunity to elect to be a donor        
   subsequent to completion of initial training, but prior to their first  
   duty assignment.                                                        
           Authorization to establish a Level One Trauma Training Center (sec. 742)

       The House bill contained a provision (sec. 724) that would authorize
   the Secretary of the Army to establish a Level One Trauma Training      
   Center in accordance with the American College of Surgeons standards for
   trauma centers.                                                         
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Authority to establish center for study of post-deployment   
           health concerns of members of the armed forces (sec. 743)               
       The Senate amendment contained a provision (sec. 709) that would    
   require the Secretary of Defense to contract with an independent        
   organization to assess the feasibility and advisability of establishing 
   an independent entity to evaluate and monitor interagency coordination  
   of issues related to the post-deployment health concerns of members of  
   the armed forces and to report to the Congress on the results of the    
   assessment not later than one year after the enactment of this act.     
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would authorize the        
   Secretary of Defense to establish a center devoted to a longitudinal    
   study to evaluate information on the health conditions of members of the
   armed forces upon their return from deployment on military operations in
   order to rapidly identify trends in illnesses or injuries among such    
   members.                                                                
                      Report on implementation of enrollment-based capitation for  
           funding for military medical treatment facilities (sec. 744)            
       The House bill contained a provision (sec. 725) that would require  
   the Secretary of Defense to report to the Congress, by March 1, 1999, on
   the potential impact of using an enrollment-based capitation methodology
   to allocate funds to military medical treatment facilities.             

       The Senate amendment contained no similar provision. The Senate     
   recedes.                                                                
                      Joint Department of Defense and Department of Veterans       
           Affairs reports relating to interdepartmental cooperation in the        
           delivery of medical care (sec. 745)                                     
       The Senate amendment contained a provision (sec. 706) that would    
   require the Secretary of Defense and the Secretary of Veterans Affairs  
   to conduct a joint survey of their respective beneficiary populations to
   identify, by category of individual, the expectations of, requirements  
   for, and behavior patterns of those populations regarding medical care. 
   The provision would require this collaborative effort be developed      
   jointly and administered by an independent entity. Additionally, this   
   provision would require the Secretaries of Defense and Veterans Affairs 
   to review all applicable statutes, regulations, policies and beneficiary
   attitudes that may preclude or limit cooperative health care programs,  
   including the sharing of facilities and other resources, between the    
   Department of Defense and the Department of Veterans Affairs.           
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would clarify that the     
   joint survey need not include information that is currently available   
   from other sources and that the secretaries report all required         
   information to the Committee on Armed Services of the Senate and the    
   National Security Committee of the House of Representatives.            
       The conferees intend that the required pharmaceutical review be     
   oriented toward identifying ways to improve cooperative arrangements    
   between the Department of Defense and the Department of Veterans        
   Affairs. The conferees do not support expanding government pricing for  
   drugs to non-government entities.                                       
                      Report on research and surveillance activities regarding Lyme
           disease and other tick-borne diseases (sec. 746)                        
       The Senate amendment contained a provision (sec. 710) that would    
   authorize $3.0 million within the Defense Health Program to be used for 
   research and surveillance activities related to Lyme disease and other  
   tick-borne diseases.                                                    
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the Secretary
   of Defense to report to the Committee on Armed Services of the Senate   
   and the National Security Committee of the House of Representatives on  
   the impact of Lyme disease and other tick-borne diseases on military    
   readiness and the efforts within the Department of Defense to prevent,  
   identify, and treat such diseases.                                      
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Plan for provision of health care for military retirees and  
           their dependents comparable to health care provided under TRICARE Prime 
       The House bill contained a provision (sec. 702) that would require  
   the Secretary of Defense to submit to the Congress, by March 1, 1999, a 
   plan for ensuring that military retirees, including Medicare-eligible   
   retirees, and their dependents have access to health care benefits      
   comparable to those offered through TRICARE Prime, the managed-care     
   option of the TRICARE program.                                          
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

            TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED   
                                     MATTERS                                      
                               LEGISLATIVE PROVISIONS ADOPTED                     

           SUBTITLE A--AMENDMENTS TO GENERAL CONTRACTING AUTHORITIES, PROCEDURES, 
                                 AND LIMITATIONS                                  
                      Limitation on use of price preference upon achievement of    
           contract goal for small and disadvantaged businesses (sec. 801)         
       The Senate amendment contained a provision (sec. 803) that would    
   condition the use of the 10 percent price preference criteria in section
   2323 of title 10, United States Code, on the failure of the Department  
   of Defense (DOD) to achieve the goal in the section during the prior    
   fiscal year.                                                            
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

       The amendment would clarify that the limitation on the use of the   
   price preference applies only to the DOD and would specify procedures   
   for implementing a suspension of the use of the price preference.       
                      Distribution of assistance under the procurement technical   
           assistance cooperative agreement program (sec. 802)                     
       The Senate amendment contained a provision (sec. 804) that would    
   amend section 2413 of title 10, United States Code, and repeal section  
   2415, United States Code, to recognize the change in the Department of  
   Defense contract administration structure.                              
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would retain section 2415  
   and amend sections 2413 and 2415 by striking ``region'' and inserting   
   ``district''.                                                           
           Defense commercial pricing management improvement (sec. 803)            

       The Senate amendment contained a provision (sec. 805) that would    
   require the Federal Acquisition Regulation (FAR) be revised to provide  
   guidelines that would ensure price reasonableness in sole-source        
   commercial item purchases. The FAR would also be revised to clarify     
   issues such as the appropriate use of different types of information    

          for establishing such price reasonableness.                             

       The provision would also require the Secretary of Defense to        
   establish procedures to ensure that, to the maximum extent practicable, 
   sole-source spare parts purchases are negotiated through corporate      
   contracts by single contracting officers or item managers to ensure that
   the government receives maximum leverage for the size of its purchases  
   and to ensure that catalog discount issues and price reasonableness     
   determinations are not treated in an isolated or piecemeal fashion.     
   Finally, the provision would require the Secretary of Defense to        
   establish a system for tracking price trends in spare parts in order to 
   isolate categories of items that require further management attention.  
   The provision would provide the Secretary of Defense with the discretion
   to set up such a system in a manner that would ensure minimal burden on 
   the acquisition system and proper management.                           
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would clarify the          
   information to be considered in determining price reasonableness, the   
   role of support organizations in the Department of Defense, and the     
   reporting requirements applicable to the price trend analyses.          
       The conferees intend that these regulatory changes address the types
   of abuses uncovered in recent audits conducted by the Department of     
   Defense (DOD) Inspector General on sole source commercial spare parts   
   purchases by the DOD. The conferees do not intend this provision to     
   impede implementation of the general federal government policy stated in
   the Federal Acquisition Streamlining Act of 1994 and the Federal        
   Acquisition Reform Act of 1996 of relying on the commercial sector to an
   increasing extent for goods and services.                               
                      Modification of senior executives covered by limitation on   
           allowability of compensation for certain contractor personnel (sec. 804)
       The Senate amendment contained a provision (sec. 813) that would    
   revise the definition of the term ``senior executive'' for purposes of  
   the limitation on allowability of compensation for certain contractor   
   personnel.                                                              
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would clarify that the     
   revised definition applies to costs incurred after January 1, 1999,     
   under covered contracts.                                                
                      Separate determinations of exceptional waivers of truth in   
           negotiation requirements for prime contracts and subcontracts (sec. 805)
       The Senate amendment contained a provision (sec. 814) that would    
   allow the heads of agencies to waive the requirements under the Truth in
   Negotiations Act that subcontractors provide certified cost and pricing 
   data in cases where such requirements have been waived for prime        
   contractors due to a determination of exceptional circumstances.        
    The House bill contained no similar provision.                         

       The House recedes with a clarifying amendment concerning the        
   organizational waiver level.                                            
       The conferees agree that the term ``exceptional circumstances''     
   requires more than the belief that it may be possible to determine the  
   contract price to be fair and reasonable without the submission of      
   certified cost and pricing data. For example, a waiver may be           
   appropriate in circumstances where it is possible to determine price    
   reasonableness without cost or pricing data and the contracting officer 
   determines that it would not be possible to enter into a contract with a
   particular contractor in the absence of a waiver. The conferees direct  
   the Department of Defense to work with the appropriate executive branch 
   officials to clarify the situations in which an exceptional circumstance
   waiver may be granted.                                                  
           Procurement of conventional ammunition (sec. 806)                       

       The House bill contained a provision (sec. 801) that would require  
   that ammunition or ammunition components procured by the Department of  
   Defense (DOD) be acquired from domestic sources pursuant to section 2534
   of title 10, United States Code.                                        
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would assign to the single
   manager for conventional ammunition in the DOD the authority to restrict
   the procurement of conventional ammunition to the national technology   
   and industrial base. The amendment would also require the single manager
   for conventional ammunition to limit specific procurements, in          
   accordance with section 2304(c)(3) of title 10, United States Code, in  
   cases where it is determined that doing so is necessary to maintain a   
   facility, producer, manufacturer, or other supplier available for       
   furnishing an essential item of ammunition or ammunition component in   
   cases of national emergency or to achieve industrial mobilization.      
       This provision supersedes existing guidance issued by the DOD as it 
   relates to the procurement of ammunition from domestic sources. The     
   conferees direct the Department of the Army to issue new guidance to    
   replace the DOD guidance superseded by this provision. The conferees    
   intend that the determination specified in the provision be conducted   
   within the Department of the Army using procedures prescribed by the    
   Secretary of the Army.                                                  
           Para-aramid fibers and yarns (sec. 807)                                 

       The Senate amendment contained a provision (sec. 801) that would    
   authorize the Secretary of Defense to procure articles containing       
   para-aramid fibers and yarns manufactured in a foreign country that is a
   party to defense memorandum of understanding, if such country allows    
   U.S. manufacturers of that product to compete for sales to that foreign 
   country.                                                                
    The House bill contained no similar provisions.                        

       The House recedes with an amendment that would allow the Secretary  
   of Defense to procure articles containing yarns and fibers manufactured 
   in a country with whom the United States has a defense memorandum of    
   understanding upon making a determination described in                  

          the provision.                                                          

                      Clarification of responsibility for submission of information
           on prices previously charged for property or services offered (sec. 808)
       The Senate amendment contained a provision (sec. 816) that would    
   amend the Truth in Negotiations Act to clarify requirements for         
   contractors to provide appropriate price information required by federal
   contracting officers to determine price reasonableness.                 
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require that the     
   Federal Acquisition Regulation (FAR) be amended to provide that         
   compliance with the requirement to submit data shall be a condition for 
   an offer or to be eligible to enter into a contract or subcontract,     
   subject to such exceptions as the Federal Acquisition Regulatory Council
   determines appropriate. The conferees intend that any exceptions to the 
   requirement to submit price-related information be limited to those     
   situations that are clearly specified in the FAR pursuant to this       
   provision.                                                              
       Nothing in this section would require any contractor to submit      
   certified cost or pricing data, to comply with the Cost Accounting      
   Standards, or to comply with the contract cost principles, if the       
   contractor is not otherwise required to do so. The conferees do not     
   intend this provision to require any revision to the FAR except to the  
   extent specifically required by subsections (c) and (d).                
                      Amendments and study relating to procurement from firms in   
           industrial base for production of small arms (sec. 809)                 
       The House bill contained a provision (sec. 803) that would amend    
   section 2473 of title 10, United States Code, to require the Secretary  
   of Defense to procure all small arms end items, small arms repair parts,
   modifications to improve small arms, and repair parts consisting of     
   small arms barrels, bolts and receivers from the small arms production  
   industrial base.                                                        
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require specified   
   small arms purchases be made only from a firm in the small arms         
   industrial base unless the Secretary determines, with a regard to a     
   particular procurement, that such requirement is not necessary to       
   preserve the small arms industrial base. The requirements under section 
   2473 would apply to procurement of repair parts for or modifications to 
   improve the M16 series rifle, the MK19 grenade machine gun, the M4      
   series carbine, the M240 series machine gun, and the M249 squad         
   automatic weapon. The amendment would also require the Secretary of the 
   Army to conduct a study under the auspices of the Army Science Board to 
   examine whether the requirements of section 2473 should be expanded in  
   specified ways and authorizes the Secretary to do so based on the       
   recommendations of the Army Science Board. The conferees expect the     
   completion of the Army Science Board study, including recommendations,  
   no later than 180 days after the date of enactment of this Act.         
                                  SUBTITLE B--OTHER MATTERS                       

                      Eligibility of involuntarily downgraded employee for         
           membership in an acquisition corps (sec. 811)                           
       The House bill contained a provision (sec. 802) that would enable   
   civilian members of the Defense Acquisition Corps who are reduced in    
   grade due to a base closing or downsizing to retain their membership in 
   the Acquisition Corps for the purposes of the Defense Acquisition       
   Workforce Improvement Act.                                              
    The Senate amendment contained a similar provision (sec. 809).         

    The House recedes.                                                     

                      Time for submission of annual report relating to Buy American
           Act (sec. 812)                                                          
       The House bill contained a provision (sec. 804) that would reduce   
   the time for the submission of the annual report relating to the Buy    
   American Act required in section 827 of the National Defense            
   Authorization Act for Fiscal Year 1997 (Public Law 104 201) from 90 to  
   60 days after the end of the fiscal year.                               
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Procurement of travel services for official and unofficial   
           travel under one contract (sec. 813)                                    
       The Senate amendment contained a provision (sec. 802) that would    
   allow the procurement of travel services under one contract for both    
   official and unofficial travel.                                         
    The House bill contained no similar provision.                         

    The House recedes.                                                     

           Department of Defense purchases through other agencies (sec. 814)       

       The Senate amendment contained a provision (sec. 806) that would    
   require the Secretary of Defense to revise regulations issued pursuant  
   to section 844 of the National Defense Authorization Act for Fiscal Year
   1994 (Public Law 103 160), which cover all purchases of goods and       
   services by the Department of Defense under so-called ``multiple award  
   task order and delivery order contracts'' entered into or administered  
   by any other agency.                                                    
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

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

       The Senate amendment contained a provision (sec. 807) that would    
   specify that the responsibility for the establishment of policy and     
   requirements for educational programs of the defense acquisition        
   university be vested in the Under Secretary of Defense for Acquisition  
   and Technology.                                                         
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Pilot programs for testing program manager performance of    
           product support oversight responsibilities for life cycle of acquisition
           programs (sec. 816)                                                     
       The Senate amendment contained a provision (sec. 810) that would    
   require the Secretary of Defense to designate 10 programs for which the 
   program manager will be made responsible for the life cycle cost issues 
   through the life of the program. The Secretary would be required to     
   report, no later than February 1, 1999, to the congressional defense    
   committees on the 10 programs and to include any policy, regulatory,    
   organizational, or legislative changes that would be required to fully  
   implement this new approach to life cycle cost management.              
    The House bill contained no similar provision.                         

    The House recedes.                                                     

       The conferees direct that the Secretary of Defense include in the   
   report to the Congress on the pilot program candidates a discussion of  
   the appropriate point in the acquisition cycle for life cycle cost      
   management to transition from the program manager to the logistics      
   organizations of the services.                                          
           Scope of protection of certain information from disclosure  (sec. 817)  

       The Senate amendment contained a provision (sec. 811) that would    
   amend section 2371 of title 10, United States Code, to clarify that     
   certain information submitted by outside parties in cooperative         
   agreements for basic, applied, and advanced research are protected from 
   disclosure under section 552 of title 5, United States Code.            
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Plan for rapid transition from completion of small business  
           innovative research into defense acquisition programs (sec. 818)        
       The Senate amendment contained a provision (sec. 812) that would    
   require the Secretary of Defense to develop a plan for facilitating a   
   rapid transition for successfully completed research under the Small    
   Business Innovative Research (SBIR) program into defense acquisition    
   programs.                                                               
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would clarify the elements 
   of the plan and the procedures for preparing and transmitting the plan  
   to the Congress.                                                        
                      Five-year authority for the Secretary of the Navy to exchange
           certain items (sec. 819)                                                
       The Senate amendment contained a provision (sec. 815) that would    
   authorize the Secretary of the Navy to enter into a barter agreement    
   during fiscal years 1999 through 2003 to exchange vehicles for repair   
   and remanufacture of ribbon bridges for the Marine Corps.               
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Permanent authority for use of major test range and test     
           facility installations by commercial entities (sec. 820)                
       The Senate amendment contained a provision (sec. 217) that would    
   amend section 2681 of title 10, United States Code, to make the         
   temporary authority to permit commercial use of test and evaluation     
   centers permanent.                                                      
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Inventory exchange authorized for certain fuel delivery      
           contract (sec. 821)                                                     
       The Senate amendment contained a provision (sec. 817) that would    
   require the Secretary of Defense to submit to Congress no later than    
   December 1, 1998 a report recommending alternative means for a small and
   disadvantaged business that delivers by barge to Defense Energy Supply  
   Point-Anchorage under a contract with the Defense Energy Supply Center  
   to fulfill its contractual obligations and not lose its small and       
   disadvantaged business status when ice conditions in the Cook Inlet     
   threaten the physical delivery of such fuel. The provision would also   
   provide that such small and disadvantaged business could not lose its   
   small and disadvantaged business status through February 1999 if ice    
   conditions in the Cook Inlet prevent deliveries of bulk fuel and the    
   Secretary of Defense determines that effects of such inability to       
   deliver would result in an inequity to the supplier.                    
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would eliminate the        
   requirement for a report from the Secretary of Defense and clarify that 
   the provision would in no case authorize a barrel-for-barrel exchanges  
   totaling more than 15 percent of the total amount of bulk fuel under a  
   contract. The amendment would also clarify that the authority under the 
   section does not affect the requirement that a contractor otherwise     
   fulfill its contractual obligations.                                    
                    Legislative Provisions Not Adopted                   

           Study on increase in micro-purchase threshold                           


       The House bill contained a provision (sec. 805) that would require  
   the Comptroller General to conduct a study to assess the impact of the  
   current micro-purchase program and the advisability of                  

                    increasing the micro-purchase threshold to $10,000 under      
          section 32 of the Office of Federal Procurement Policy Act.             
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

       The conferees believe that a thorough analysis of any proposal to   
   raise the micropurchase threshold, including the impact on small        
   business participation in contracting, must be provided to the Congress 
   by the Department of Defense before such a change can be considered.    
                      Repeal of requirement for Director of Acquisition Education, 
           Training, and Career Development to be within the Office of the Under   
           Secretary of Defense for Acquisition and Technology                     
       The Senate amendment contained a provision (sec. 808) that would    
   remove the requirement that the Director of Acquisition Education,      
   Training, and Career Development be appointed within the Office of the  
   Under Secretary of Defense for Acquisition and Technology.              
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       The conferees believe that the issue of the status of the director  
   of acquisition education, training, and career development should be    
   deferred until the Department of Defense has clarified the future role  
   of the Office of the Under Secretary of Acquisition and Technology in   
   the planning and execution of higher education for acquisition          
   professionals in the Department of Defense.                             
                TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT       

                               LEGISLATIVE PROVISIONS ADOPTED                     

                 SUBTITLE A--DEPARTMENT OF DEFENSE OFFICERS AND ORGANIZATION      

                      Reduction in number of Assistant Secretary of Defense        
           positions (sec. 901)                                                    
       The Senate amendment contained a provision (sec. 901) that would    
   codify the reductions in the number of assistant secretaries of defense 
   announced by the Secretary of Defense as part of the Defense Reform     
   Initiative. Specifically, the recommended provision would reduce the    
   number of assistant secretaries of defense from ten to nine.            
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Repeal of statutory requirement for position of Assistant    
           Secretary of Defense for Command, Control, Communications and           
           Intelligence (sec. 902)                                                 
       The Senate amendment contained a provision (sec. 902) that would    
   rename the Assistant Secretary of Defense for Command, Control,         
   Communications, and Intelligence (ASD C3I) to the Assistant Secretary of
   Defense for Space and Information Superiority, and change the           
   statutorily designated duties associated with this position.            
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would repeal section       
   138(b)(3) of title 10, United States Code.                              
       The Secretary of Defense recently announced a number of             
   organizational changes to the Office of the Secretary of Defense        
   pursuant to the Defense Reform Initiative. Among these changes is a     
   significant modification of the office of the ASD C3I. As a result, the 
   current title no longer describes the full range of responsibilities of 
   this office, nor adequately identifies its functional priorities. The   
   conferees endorse the new title ``Assistant Secretary of Defense for    
   Space and Information Superiority''.                                    
       The conferees continue to support a ``single focal point for space''
   in the Department of Defense, and believe that there are synergies to be
   gained by linking this function with the Department's information       
   superiority activities. The conferees note that, although there is a    
   significant degree of overlap between ``information superiority'' and   
   ``space'', these two functional areas also have many unique aspects that
   deserve significant focused attention. Therefore, the conferees endorse 
   the Secretary's decision to include the term ''space'' in the revised   
   title of this important position.                                       
       The conferees note that the Assistant Secretary for Space and       
   Information Superiority will be responsible for some of the most        
   critical issues facing the Department of Defense, including space       
   policy, information assurance, information operations, intelligence     
   policy, command, control, communications, surveillance, reconnaissance, 
   the ``year 2000'' problem, and electromagnetic spectrum issues. The     
   conferees believe that one of the most significant challenges facing the
   Assistant Secretary will be the integration and mutual leveraging of the
   various elements that he will supervise.                                
                      Independent task force on transformation and Department of   
           Defense organization (sec. 903)                                         
       The House bill contained a provision (sec. 905) that would require  
   the Secretary of Defense to create a task force of the Defense Science  
   Board for the purpose of determining the appropriate organization of the
   Department of Defense in light of the ongoing transformation in the     
   conduct of war. The task force would be established not later than      
   November 1, 1998 and the Secretary should transmit the findings of the  
   task force along with recommendations and comments to the Congress by   
   March 1, 1999.                                                          
    The Senate amendment contained no similar provision.                   

    The Senate recedes with a clarifying amendment.                        

           Authority to expand the National Defense University (sec. 904)          

    The Senate amendment contained a provision (sec. 903) that would       


                    permit the Secretary of Defense to designate, as he considers 
          appropriate, educational institutions of the Department of Defense as   
          institutions of the National Defense University.                        
    The House bill contained no similar provision.                         

    The House recedes.                                                     

           Center for Hemispheric Defense Studies (sec. 905)                       

       The Senate amendment contained a provision (sec. 909) that would    
   authorize funds available within the Latin American cooperation         
   authority be used for the operation of the Center for Hemispheric       
   Defense Studies.                                                        
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

           Restructuring of administration of Fisher Houses (sec. 906)             

       The House bill contained a provision (sec. 308) that would authorize
   appropriations from the Fisher House Trust Funds for use in the         
   operation and maintenance of the Fisher Houses of the Army, Navy, and   
   Air Force.                                                              
       The Senate amendment contained a provision (sec. 907) that would    
   repeal section 2221 of title 10, United States Code, and direct the     
   secretaries of the military departments to establish a nonappropriated  
   fund in each department as the single source of funding to operate,     
   maintain, and improve the Fisher Houses and Fisher Suites, and to close 
   each Fisher House Trust Fund and transfer the amounts in the Fund to the
   respective nonappropriated fund.                                        
    The House recedes with a clarifying amendment.                         

                      Management reform for research, development, test and        
           evaluation activities (sec. 907)                                        
       The Senate amendment contained a provision (sec. 906) that would    
   require the Department of Defense to conduct a cross-service analysis   
   and a plan for restructuring and revitalization of the Department of    
   Defense laboratories and test and evaluation (T&E) centers. The         
   provision would also require that the Department develop a plan and     
   schedule for establishing a cost-based management information system for
   identifying and comparing costs among the services' labs and T&E        
   centers.                                                                
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the          
   Department to analyze opportunities to improve efficiency and reduce    
   duplication by designating responsibilities by lead agencies or         
   executive agent, by area or function, or by other streamlining          
   initiatives. The amendment would also strike sections (2)(D) and (2)(E) 
   of the Senate provision. The conferees agree that the Department should 
   explore options for an alternative management structure for T&E. The    
   conferees agree that the lessons learned in personnel demonstration     
   projects and pilot projects should be considered in any plan to         
   restructure or reengineer the laboratories and test centers.            
                   SUBTITLE B--DEPARTMENT OF DEFENSE FINANCIAL MANAGEMENT         

           Improved accounting for defense contract services (sec. 911)            

       The House bill contained a provision (sec. 906) that would require  
   the Department of Defense to make numerous changes to the way they      
   request funds for advisory and assistance services. The provision would 
   require the Comptroller of the Department of Defense to conduct an      
   assessment of the total non-Federal effort that resulted from the       
   performance of all contracts for such services during the previous,     
   current and following fiscal year. The provision would also prohibit the
   Department from classifying more than 15 percent of its contractual     
   services in a miscellaneous budget category but would allow the         
   Department to report 30 percent in its fiscal year 2000 budget as       
   miscellaneous. In addition, the provision would codify the definition of
   advisory and assistance services to include; management and professional
   support services; studies, analyses, and evaluations; and, engineering  
   and technical services. Finally, the provision would reduce the amount  
   of funding that was budgeted for these services by $500.0 million.      
    The Senate had no similar provision.                                   

       The Senate recedes with an amendment that would strike the          
   requirement for the Comptroller of the Department of Defense to conduct 
   an assessment of the total non-Federal effort that resulted from the    
   performance of all contracts for such services during the previous      
   fiscal year, and the total non-Federal effort that will result from the 
   performance of all contracts for such services during the current fiscal
   year. The amendment would codify the definition of advisory and         
   assistance services to that currently contained in the Department of    
   Defense's directive, and would reduce the cut to these services to      
   $240.0 million.                                                         
                      Report on Department of Defense financial management         
           improvement plan (sec. 912)                                             
       The Senate amendment contained a provision (sec. 1022) that would   
   require the Comptroller General to report to the congressional defense  
   committees on the Department's financial management improvement plan    
   required by section 2222 of title 10, United States Code.               
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Study of feasibility of performance of Department of Defense 
           finance & accounting functions by private sector sources or other       
           Federal sources (sec. 913)                                              
       The Senate amendment contained a provision (sec. 1023) that would   
   require the Department of Defense to study the finance and accounting   
   functions within the Department to assess the potential for             

          consolidation and possible competition of these functions.              

    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

                      Limitation on reorganization and consolidation of operating  
           locations of the Defense Finance and Accounting Service (sec. 914)      
       The Senate amendment contained a provision (sec. 1024) that would   
   require the Secretary of Defense to study and define future workload    
   requirements for each of the finance and accounting operating locations 
   (OPLOCs) of the Defense Finance and Accounting Service, and determine   
   whether excess capacity exists. The provision would also require that   
   the study be submitted to the congressional defense authorization       
   committees by December 15, 1998, and that no OPLOCs could be closed     
   until six months after the submission of this study.                    
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would change the date for  
   the submission of the study to the Congress to January 15, 1999 and     
   delay the closing of any OPLOCs until 90 days after the submission of   
   the study.                                                              
                      Annual report on resources allocated to support and mission  
           activities (sec. 915)                                                   
       The House bill contained a provision (sec. 1031) that would require 
   the Secretary of Defense to provide in his annual report to the Congress
   a description of the personnel and budetary resources dedicated to      
   support activities as compared to mission-related activities. This      
   provision would also require the same information for the prior five    
   years. The provision would also require a listing of the number of      
   military and civilian personnel assigned to headquarters activities as a
   percentage of military end-strength for the past 10 years.              
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the         
   headquarters numbers to be provided for the past five years, and would  
   require the Secretary to submit to the Congress the definition of       
   ``support'' and ``mission'' activities that the Secretary will use in   
   the development of the report.                                          
                        SUBTITLE C--JOINT WARFIGHTING EXPERIMENTATION             

           Findings concerning joint warfighting experimentation (sec. 921)        

       The Senate amendment contained a provision (sec. 1201) that would   
   make congressional findings that provide the historical and policy basis
   for the need to conduct joint warfighting experimentation.              
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would abbreviate the       
   description of the basis for the need to conduct joint warfighting      
   experimentation.                                                        
                      Sense of Congress concerning joint warfighting               
           experimentation (sec. 922)                                              
       The Senate amendment contained a provision (sec. 1202) that would   
   express a sense of the Congress on the importance of designating a      
   commander with the mission for joint warfighting experimentation, a     
   sense of the Congress that such commander should be provided with       
   adequate resources and authority to effectively conduct such            
   experimentation, and a sense of the Congress that the Congress should   
   review the process of military transformation, as evidenced by the      
   results of such experimentation, and if the process is determined       
   inadequate, to consider legislation that would ensure the effective     
   conduct of joint warfighting experimentation.                           
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would modify the sense of  
   the Congress related to the commander's authority by abbreviating the   
   enumeration of such authorities.                                        
           Reports on joint warfighting experimentation (sec. 923)                 

       The Senate amendment contained a provision (sec. 1203) that would   
   require the commander designated to conduct joint warfighting           
   experimentation to submit comprehensive initial and annual reports,     
   through the Secretary of Defense to Congress on such experimentation.   
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the          
   designated commander to report on changes in his authority to develop or
   acquire equipment, supplies or services that relate directly to joint   
   warfighting experimentation.                                            
                                  SUBTITLE D--OTHER MATTERS                       

                      Further reductions in defense acquisition and support        
           workforce (sec. 931)                                                    
       The House bill contained a provision (sec. 901) that would reduce   
   the defense acquisition workforce, as defined in section 912(a) of the  
   National Defense Authorization Act for Fiscal Year 1998 (Public Law 105 
   85), by a total of 70,000 over three years.                             
    The Senate amendment contained no similar provision.                   

    The Senate recedes with an amendment.                                  

       The amendment would limit the reduction to 25,000 personnel         
   positions in fiscal year 1999 and would authorize the Secretary of      
   Defense to waive up to 12,500 upon a certification by the Secretary that
   reducing a greater number of such positions would be inconsistent with  
   the cost-effective management of the defense acquisition system to      
   obtain best value equipment and with ensuring military readiness.       
       The reduction would apply to positions in the defense acquisition   
   and support workforce and limit the reduction of core acquisition       
   workforce positions to a level proportional with other occupational     
   elements in the larger defense acquisition and support workforce.       

                      Limitation on operation and support funds for the Office of  
           the Secretary of Defense (sec. 932)                                     
       The House bill contained a provision (sec. 902) that would limit the
   obligation of funds for the Office of the Secretary of Defense to 90    
   percent of the appropriated level for that office until such time as the
   Secretary submits the reports that were required by section 904(b) of   
   the National Defense Authorization Act for Fiscal Year 1997, and        
   sections 911(b) and 911(c) of the National Defense Authorization Act for
   Fiscal Year 1998.                                                       
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Clarification and simplification of responsibilities of      
           inspectors general regarding whistleblower protections (sec. 933)       
       The House bill contained a provision (sec. 908) that would modify   
   certain requirements relating to inspector general investigations of    
   reprisal complaints.                                                    
       The Senate amendment contained a provision (sec. 1053) that would   
   modify the same requirements in a different manner, and amend certain   
   other requirements imposed upon inspector general investigations of such
   complaints.                                                             
    The House recedes with an amendment.                                   

                      Repeal of requirement relating to assignment of tactical     
           airlift mission to reserve components (sec. 934)                        
       The House bill contained a provision (sec. 907) that would repeal   
   section 1438 of the National Defense Authorization Act for Fiscal Year  
   1991 (Public Law 101 510), which requires the Department of Defense to  
   shift the tactical airlift mission to the reserves, unless the Secretary
   of Defense waives this requirement on annual basis.                     
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Consultation with Marine Corps on major decisions directly   
           concerning Marine Corps aviation (sec. 935)                             
       The House bill contained a provision (sec. 909) that would direct   
   the Secretary of the Navy to require that the views of the Commandant of
   the Marine Corps be obtained before a milestone decision or other major 
   decision is made by an element of the Department of the Navy outside the
   Marine Corps on a matter that concerns Marine Corps aviation systems    
   acquisition or support.                                                 
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would make the provision  
   more generic.                                                           
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Revision to defense directive relating to management         
           headquarters and headquarters support activities                        
       The House bill contained a provision (sec. 903) that would require  
   the Department of Defense to implement a revised directive, to be       
   applied uniformly throughout the Department, that accounts for          
   management headquarters personnel by function rather than organization. 
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

                      Report on individuals employed in private sector who provide 
           services under contract for the Department of Defense                   
       The House bill contained a provision (sec. 910) that would require  
   the Secretary of Defense to provide an annual report to the Congress    
   that would outline the quantity, costs, and value of services that are  
   provided to the Department of Defense by non-Federal workers.           
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

       The conferees understand that significant cost would be incurred by 
   the Department in establishing a new system to annually track the       
   quantity and value of non-Federal contract services. Therefore, the     
   conferees direct the Department, to the extent practicable, using only  
   existing personnel and contracting systems, to report to the Committee  
   on Armed Services of the Senate and the National Security Committee of  
   the House of Representatives by April 15, 1998, the number of work year 
   equivalents performed by individuals employed by non-Federal entities   
   providing services to the Department, categorized by Federal supply     
   class code, the appropriation from which the contract was funded, and   
   the major organizational element procuring the services.                
           Reduction in Department of Defense headquarters staff                   

       The Senate amendment contained a provision (sec. 904) that would    
   codify the reductions in the Department of Defense headquarters staff   
   announced by the Secretary of Defense as part of the Defense Reform     
   Initiative. Specifically, the recommended provision would require the   
   Office of the Secretary of Defense to reduce by 33 percent; defense     
   agencies to reduce by 21 percent; Department of Defense field activities
   to reduce by 36 percent; the Joint Staff to reduce by 29 percent; the   
   headquarters of the combatant commands and associated activities to     
   reduce by seven percent; and other headquarters elements, including the 
   headquarters of the military departments and their major commands and   
   associated activities to reduce by 29 percent. The recommended provision
   would require the Secretary of Defense to submit, not later than March  
   1, 1999, a plan to implement the directed personnel reductions.         
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

           Permanent requirement for quadrennial defense review                    


       The Senate amendment contained a provision (sec. 905) that would    
   make permanent the requirement for a Quadrennial Defense Review and the 
   National Defense Panel.                                                 
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                      To redesignate the position of Director of Defense Research  
           and Engineering, abolish the position of Assistant to the Secretary of  
           Defense for Nuclear and Chemical and Biological Defense Programs, and   
           transfer the duties of the latter position to the former position       
       The Senate amendment contained a provision (sec. 908) that would    
   redesignate the position of Director of Defense Research and            
   Engineering, abolish the position of Assistant to the Secretary of      
   Defense for Nuclear and Chemical and Biological Defense and transfer    
   certain duties to the new organization.                                 
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       The Nuclear Weapons Council is a statutorily mandated body          
   consisting of Department of Defense and Department of Energy members.   
   The Council has specific responsibilities to ensure the safety and      
   reliability of the Nation's nuclear weapons stockpile. The Assistant to 
   the Secretary of Defense for Nuclear and Chemical and Biological Defense
   Programs is the primary Department of Defense focal point for nuclear   
   weapons matters, and reports directly to the Secretary of Defense. This 
   position also serves as the executive director of the Nuclear Weapons   
   Council. Unfortunately, this important position has been vacant for many
   months. The conferees are concerned that, as a result of this position  
   being vacant for an extended period of time, nuclear weapons matters and
   issues associated with maintaining the U.S. nuclear deterrent are not   
   receiving the attention they deserve. The conferees urge the President  
   to submit to the Senate, for advice and consent, a nomination as soon as
   possible.                                                               
           Military aviation accident investigations                               

       The Senate amendment contained a provision (sec. 910) that would    
   require the Secretary of Defense to establish a task force to review the
   procedures used by the Department of Defense to conduct military        
   aviation accident investigations and to identify mechanisms for         
   improving such investigations. The provision would also require the     
   Secretary of Defense to prescribe uniform regulations that would provide
   for the release of reports on the accident investigation to the family  
   members of those involved in the accident.                              
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                                TITLE X--GENERAL PROVISIONS                       

                               LEGISLATIVE PROVISIONS ADOPTED                     

                                SUBTITLE A--FINANCIAL MATTERS                     

           Transfer authority (sec. 1001)                                          

       The House bill contained a provision (sec. 1001) that would provide 
   the authorization for reprogramming involving the transfer of           
   authorization between the amounts authorized in Division A of the Act.  
    The Senate amendment contained an identical provision.                 

    The conference agreement includes this provision.                      

           Incorporation of classified annex (sec. 1002)                           

       The House bill contained a provision (sec. 1002) that would         
   incorporate the classified annex prepared by the Committee on National  
   Security into this Act.                                                 
    The Senate amendment contained no similar provision.                   

       The Senate recedes with a technical amendment that would provide    
   that the classified annex prepared by the committee of conference be    
   incorporated into this Act.                                             
                      Authorization of prior emergency supplemental appropriations 
           for fiscal year 1998 (sec. 1003)                                        
       The Senate amendment contained a provision (sec. 1003) that would   
   authorize the emergency supplemental appropriations enacted in the 1998 
   Supplemental Appropriations and Rescissions Act (Public Law 105 174).   
   This Act provided funding for fiscal year 1998 expenses related to      
   military operations in Southwest Asia, Bosnia, and for natural          
   disasters.                                                              
      The House bill contained no similar provision.                       

      The House recedes.                                                   

                      Authorization of appropriations for Bosnia peacekeeping      
           operations for fiscal year 1999 (sec. 1004)                             
       The Senate amendment contained a provision (sec. 1002) that would   
   provide emergency authorization of $1.9 billion to fund U.S.            
   participation in Bosnia peacekeeping operations for fiscal year 1999.   
       The House bill contained a provision (sec. 1201) that would not     
   authorize additional funding for U.S. participation in Bosnia           
   peacekeeping operations, and would limit the Secretary of Defense from  
   expending funds appropriated to the Department of Defense for fiscal    
   year 1999 in excess of $1.9 billion. The provision would provide for an 
   emergency exception of not more than $100.0 million for the purpose of  
   safeguarding U.S. Forces in the event of hostilities, and would require 
   the Secretary of Defense to submit a report to the Congress by April 1, 
   1999 on the need for any additional funds required for Bosnia operations
   in fiscal year 1999.                                                    
       The conferees agree to a provision that would provide emergency     
   authorization of $1.9 billion to fund operations in Bosnia for fiscal   
   year 1999, but would limit funding to the amounts authorized in this    

                    section. The President may waive this limitation after        
          submitting to the Congress a certification that the waiver is based on  
          the national interest and will not adversely affect the readiness of    
          U.S. Military Forces. In conjunction with the certification, the        
          President must submit a request for supplemental appropriations to fund 
          the increased costs and a report. The report submitted with the         
          certification must contain the reasons for the waiver, the specific     
          reasons the additional funds are required, and a discussion of the      
          readiness impact of the continued deployment of the U.S. Military Forces
          in Bosnia or supporting Bosnia peacekeeping operations.                 
           Partnership for Peace information system management (sec. 1005)         

       The budget request included $2.0 million for the Partnership for    
   Peace Information Management System (PIMS) (PE 1001017D8Z).             
       The Senate amendment contained a provision (sec. 1004) that would   
   make $5.0 million available in defense-wide activities for the          
   Partnership for Peace Information Management System (PIMS) in the       
   following amounts: $3.0 million in section 301 and $2.0 million in      
   section 201(4) of this Act.                                             
       The House bill contained no similar provision, but would recommend  
   the budget request for operation and maintenance and would recommend an 
   increase of $4.0 million to the budget request for PIMS research and    
   development activities for the development of an international medical  
   program global satellite system. Additionally, the House bill would     
   require that no funds be made available for this activity until the     
   Secretary of Defense submits a report to the congressional defense      
   committees on the impact of the international medical program global    
   satellite system on the Department of Defense (DOD) radio frequency     
   spectrum.                                                               
       The conferees agree to a provision that would make $5.0 million     
   available in defense-wide activities for PIMS in defense-wide operation 
   and maintenance and research and development activities. In addition,   
   the conferees agree to authorize a $4.0 million increase for PIMS       
   research and development activities for the development of an           
   international medical global satellite system. The conferees agree with 
   the recommendation of the House (H. Rept. 105 532) regarding the        
   requirement of the Secretary of Defense to submit a report on the impact
   of this system on the DOD frequency spectrum prior to obligation of     
   funds. In addition, the report of the Secretary of Defense should       
   include a plan on how the satellite-based medical telecommunications    
   distribution and delivery network would be integrated into PIMS, the    
   cost of integrating this technology into PIMS, the primary focus and    
   content of the program and the contribution to the overall mission of   
   PIMS, and information on the need for bilateral agreements.             
       Lastly, the conferees direct that all applicable competitive        
   procedures be used in the award of contracts, grants, and other         
   agreements under this program and that the Department require           
   significant cost-sharing from all non-federal participants.             
                      United States contribution to NATO common-funded budgets in  
           fiscal year 1999 (sec. 1006)                                            
       The resolution of ratification to the Protocols to the North        
   Atlantic Treaty of 1949 on Accession of Poland, Hungary, and the Czech  
   Republic (Treaty Document 105 36) agreed to by the Senate on April 30,  
   1998 included a condition that requires authorization of funds for the  
   U.S. contribution to the common-funded budget of the North Atlantic     
   Treaty Organization (NATO) beginning in fiscal year 1999 if the amounts 
   exceed the totals expended in fiscal year 1998.                         
       The Senate amendment contained a provision (sec. 1006) that would   
   authorize funds for the U.S. contribution to NATO common-funded budgets 
   and the use of unexpended balances from prior years.                    
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

           Liquidity of working-capital funds (sec. 1007)                          

       The Senate amendment contained a provision (sec. 341) that would    
   ensure the liquidity of the working-capital funds (WCFs) during fiscal  
   year 1999 and would provide a mechanism to allow the Department of      
   Defense to recover operating losses during the year of execution. The   
   provision would also place limitations on the amounts of advance billing
   within the Department.                                                  
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would not specify the      
   corrective actions the Secretary of Defense may take to eliminate cash  
   balance shortfalls in the WCFs and adjusts the limitations on advance   
   billings.                                                               
                      Termination of authority to manage working-capital funds and 
           certain activities through the Defense Business Operating Fund (sec.    
           1008)                                                                   
       The Senate amendment contained a provision (sec. 342) that would    
   transfer the relevant statutory authorities and reporting requirements  
   to the Department of Defense's working-capital fund operations (section 
   2208 of title 10, United States Code) and would repeal the statutory    
   authority for the Defense Business Operations Fund.                     
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

                      Clarification of authority to retain recovered costs of      
           disposals in working-capital funds (sec. 1009)                          
       The Senate amendment contained a provision (sec. 343) that would    
   clarify the authority of the Defense Reutilization and Marketing Service
   to retain, from proceeds received from sales of surplus supplies,       
   materials, or equipment, an amount equal to the costs incurred in the   
   sale, reutilization, or disposal of such items.                         
    The House bill contained no similar provision.                         

    The House recedes.                                                     


                      Crediting of amounts recovered from third parties for loss or
           damage to personal property shipped or stored at government expense     
           (sec. 1010)                                                             
       The Senate amendment contained a provision (sec. 1054) that would   
   allow funds recovered from third parties in relation to household good  
   claims to be deposited into the current appropriations for payment of   
   such claims.                                                            
      The House bill contained no similar provision.                       

      The House recedes with a technical amendment.                        

                           SUBTITLE B--NAVAL VESSELS AND SHIPYARDS                

                      Revision to requirement for continued listing of two         
           Iowa-class battleships on the Naval Vessel Register (sec. 1011)         
       The House bill contained a provision (sec. 1011) that would direct  
   the Secretary of the Navy to list U.S.S. Iowa (BB 61) and U.S.S.        
   Wisconsin (BB 64) as the two Iowa class battleships maintained on the   
   Naval Vessel Register, in accordance with section 1011 of the National  
   Defense Authorization Act for Fiscal Year 1996                          
      The Senate amendment contained a similar provision (sec. 1011).      

      The Senate recedes.                                                  

           Transfer of U.S.S. New Jersey (sec. 1012)                               

       The House bill contained a provision (sec. 1012) that would direct  
   the Navy to strike U.S.S. New Jersey from the Naval Vessel Register and 
   transfer it to a not-for-profit entity that will locate the vessel in   
   the State of New Jersey.                                                
      The Senate amendment contained no similar provision.                 

      The Senate recedes.                                                  

           Homeporting of the U.S.S. Iowa in San Francisco, California (sec. 1013) 

       The Senate amendment contained a provision (sec. 1016) that would   
   express the sense of the Congress that the U.S.S. Iowa should be        
   homeported in San Francisco, California.                                
      The House bill contained no similar provision.                       

      The House recedes.                                                   

           Sense of Congress concerning the naming of an LPD 17 vessel (sec. 1014) 

       The Senate amendment contained a provision (sec. 1014) that would   
   express the sense of the Congress that an LPD 17 class vessel should be 
   named the U.S.S. Clifton B. Cates, in honor of the 19th Commandant of   
   the Marine Corps.                                                       
      The House bill contained no similar provision.                       

      The House recedes with a clarifying amendment.                       

           Reports on naval surface fire-support capabilities (sec. 1015)          

       The Senate amendment contained a provision (sec. 1027) that would   
   direct the Secretary of the Navy to report by March 31, 1999, to the    
   Committee on Armed Services of the Senate and the National Security     
   Committee of the House of Representatives on battleship readiness for   
   meeting naval surface fire-support requirements.                        
      The House bill contained no similar provision.                       

      The House recedes with a clarifying amendment.                       

                      Long-term charter of three vessels in support of submarine   
           rescue, escort, and towing (sec. 1016)                                  
       The House bill contained a provision (sec. 1013) that would         
   authorize charter of the three vessels in accordance with section 2401  
   of title 10, United States Code.                                        
       The Senate amendment contained a similar provision (sec. 1012) and  
   directed the Department to utilize fully the R/V Gosport and other      
   assets owned and operated by the Navy for secondary services including  
   torpedo retrieval, sonar calibration, and submarine sea trial escort    
   prior to out-sourcing for these services.                               
      The Senate recedes.                                                  

       The conferees agree to authorize the Navy to enter into charters    
   through September 30, 2003 in accordance with section 2401 of title 10, 
   United States Code, for the Carolyn Chouest, Kellie Chouest, and Dolores
   Chouest and direct the Department of the Navy to utilize fully the R/V  
   Gosport and other similar vessels prior to out-sourcing for secondary   
   services described above.                                               
           Transfer of obsolete Army tugboat (sec. 1017)                           

       The House bill contained a provision (sec. 1014) that would permit  
   the Secretary of the Army to substitute the tugboat Attleboro (LT 1977) 
   for the tugboat Normandy (LT 1971) as one of two tugboats authorized to 
   be transferred by the Secretary under section 1023 of the National      
   Defense Authorization Act for Fiscal Year 1998 (Public Law 105 86).     
      The Senate amendment contained no similar provision.                 

      The Senate recedes.                                                  

           SUBTITLE C--COUNTER DRUG ACTIVITIES AND OTHER ASSISTANCE FOR CIVILIAN  
                                 LAW ENFORCEMENT                                  
       The budget request for drug interdiction and other counter-drug     
   activities of the Department of Defense (DOD) totals $882.8 million.    
   This includes the $727.6 million central transfer account and $155.2    

                    million in the operating budgets of the military services for 
          counter-drug operations.                                                
       However, these numbers do not accurately represent the Department's 
   total commitment to the war on drugs. For example, these numbers do not 
   include a proportionate share of the costs of procuring military systems
   that are used to support the war on drugs. They also do not capture the 
   personnel costs for the thousands of active duty service members who are
   engaged in counter-narcotics activities over the course of the fiscal   
   year. Furthermore, the budget does not include all maintenance costs for
   assets used in counter-drug activities, or a proportionate share of base
   operation support costs for those units performing counter-drug         
   activities. Together, these costs exceed several hundred million dollars
   each year.                                                              
       In addition, these numbers do not reflect the value of the equipment
   and training that the DOD provides to other nations in support of their 
   counter-narcotics activities pursuant to section 506 of the Foreign     
   Assistance Act. This section provides authorization for up to $75.0     
   million worth of counter-narcotics support to foreign governments each  
   year. The conferees are concerned that this authority, which was        
   intended to be used to enhance U.S. counter-narcotics support to nations
   in the source zone, is simply used to offset costs which more           
   appropriately belong in the State Department budgets. The conferees are 
   further concerned that the continued provision of non-excess military   
   equipment to foreign governments may have an adverse impact on U.S.     
   military readiness. The conferees direct the Secretary of Defense to    
   provide the congressional defense committees with a list of those items 
   that are provided pursuant to Section 506, together with the Secretary's
   plans for replacing this equipment.                                     
       Finally, the conferees are concerned that in some cases the         
   Department of Defense may be pressured into dedicating scarce resources 
   within its budget recommendation to the President for the               
   counter-narcotics missions that are the primary responsibility of the   
   Department of State or other Federal agencies. This practice could be   
   detrimental to other high priority military missions, including         
   counter-terrorism and counter-proliferation, in today's resource        
   constrained environment. The conferees believe that the Secretary of    
   Defense and the Chairman of the Joint Chiefs are in the best position to
   understand all of the national security responsibilities of DOD, and to 
   make a balanced recommendation to the President regarding the manner in 
   which the resources of the Armed Forces should be utilized in such a way
   as to most effectively carry out those responsibilities.                
       The conferees recommend the following authorization for the         
   Department's counter-narcotics activities:                              

Drug Interdiction & Counter-drug Activities, Operations and Maintenance 
                   (In thousands of dollars; may not add due to rounding)         

   Fiscal Year 1999 Drug and Counter-drug Request                          

 $882,831                                                                



            Goal 1 (Dependent Demand Reduction)                12,830



            Goal 2 (Support to DLEAs)                97,384



            Goal 3 (DOD Personnel Demand Reduction)                72,936



            Goal 4 (Drug Interdiction--TZ/SWB)                406,554



            Goal 5 (Supply Reduction)                293,127

   Increases:                                                              



            Caribbean/Eastern Pacific Surface Interdiction                8,000



            Caper Focus                  6,000



            Gulf States Initiative/Regional Counter-drug Training                7,000



            Multi Jurisdictional Task Force                1,000



            South West Border Fence                3,000



            National Guard State Plans                29,000

   Reductions:                                                             



            JIATF SOUTH                  17,000



            Southern Air Forces Counter-Drug Support                4,000



            Mexico GBEGO                 4,000



            National Guard Cargo/Mail Inspection Project                29,000


                      Enhanced transit zone interdiction--Caribbean/Eastern Pacific
           interdiction initiative, caper focus                                    
       Although the Department of Defense continues to serve as the single 
   lead Federal agency for the detection and monitoring of suspected       
   drug-trafficking activities within the transit zones, the Department's  
   budget in this region has declined dramatically since 1993. This decline
   is a result of presidential guidance in 1993 that directed a gradual    
   shift in emphasis from the transit zone to source zone counter-drug     
   activities. While the Administration's strategic focus moved to South   
   America, illegal drugs continue to flow through the eastern Pacific     
   Ocean and Caribbean Sea to U.S. markets.                                
       The conferees encourage the Department to explore new initiatives to
   enhance current interdiction capabilities so that if Panamanian         
   facilities are no longer available, a viable interdiction program       
   remains. To assist the Department in this effort, the conferees have    
   included a provision that would provide $14.5 million within the        
   counter-narcotics central transfer account for the increased deployment 
   of the Department's Cyclone Class Patrol Coastal Craft (PCs) to the     
   Caribbean and eastern Pacific, and any maintenance or modifications of  
   these craft (such as forward looking infra-red devices and combat craft 
   recovery systems) necessary to enhance their interdiction capabilities. 
   Such increased deployment will provide Commander-in-Chief, Southern     
   Command (CINCSOUTH) with a more substantial naval presence in his       
   theater of operations with which to increase surface interdiction       
   efforts of suspected narco-traffickers. The conferees include an        
   additional $8.0 million for the Department's Caribbean efforts in order 
   to help pay for increased deployment. The conferees expect the          
   Department to identify the remaining $6.5 million from within its       
   interdiction budget.                                                    
       The conferees direct the Secretary of Defense to provide the        
   Committee on Armed Services of the Senate and the Committee on          

                    National Security of the House of Representatives with a      
          report outlining the extent to which the PCs, operating either with or  
          without a mothership, were effective during fiscal year 1999 in the     
          interdiction and deterrence of maritime drug trafficking. This report   
          should also outline the CINCSOUTH's and the CINCSOCOM's recommendation  
          regarding any future deployment of these craft to SOUTHCOM's Area of    
          Responsibility (AOR), and the Secretary of Defense's recommendation as  
          to the appropriate funding mechanism for these future deployments.      
                       Caper Focus                                                 

       The conferees are disturbed by the recent testimony of General      
   Charles E. Wilhelm, Commander-in-Chief, Southern Command (CINCSOUTH),   
   regarding the Department's inability ``to mount effective detection,    
   monitoring and tracking operations in the eastern Pacific, a pipeline   
   which feeds Mexico and ultimately the U.S.'' As a result of competing   
   demands for maritime patrol aircraft, the Secretary of Defense postponed
   the final phase of Operation Caper Focus, a promising operation         
   targeting multi-nation cargo vessels in the eastern Pacific. During the 
   initial phases of Operation Caper Focus, Joint Interagency Task Force-  
   East (JIATF E) assets interdicted 27 metric tons of cocaine and gained  
   valuable intelligence on regional trafficking methods. Despite these    
   preliminary results, the Secretary of Defense has not made available the
   additional air or maritime assets necessary to execute the operation,   
   nor has the Director of JIATF E transferred assets from the Caribbean.  
       The conferees are convinced of the need to take advantage of this   
   opportunity to seize large amounts of cocaine through the continuation  
   of Operation Caper Focus. Therefore, the conferees include a provision  
   that would authorize $10.5 million to support this operation. The       
   conferees urge the Secretary of Defense to seek the views of CINCSOUTH  
   in identifying the capabilities needed to determine how these funds     
   should be applied. Finally, the conferees directs that the Secretary of 
   Defense provide the Committee on Armed Services of the Senate and the   
   Committee on National Security of the House of Representatives a report 
   outlining the recommendations of CINCSOUTH and an implementation plan   
   detailing the Department's expanded operational support to Operation    
   Caper Focus no later than January 15, 1999. The conferees include an    
   additional $6.0 million in order to help pay for this deployment. The   
   conferees expect the Department to provide the remaining $4.5 million   
   from within its interdiction budget.                                    
                 Gulf States Counter-drug Initiative                               

       The conferees understand the Gulf States Counter-drug Initiative has
   grown beyond its original counter-drug mission and now performs         
   important work for other high priority missions of the Department of    
   Defense, including counter-terrorism. Therefore, the conferees support  
   the transfer of this activity from the Department's Counter-drug account
   to the C3I Joint Military Intelligence Program in accordance with its   
   increased mission, and recommend an additional $6.0 million for its     
   counter narcotics activities. The conferees expects that the Department 
   will fund GSCI's operations through the Joint Military Intelligence     
   Program budget in the future. The conferees authorize a further $1.0    
   million for the Gulf States Counter-drug Initiative Regional            
   Counter-drug Training Academy.                                          
                  Multi-Jurisdictional Task Force                                  

       The budget request included $2.0 million for the                    
   Multi-Jurisdictional Counter-drug Task Force. The conferees understand  
   that additional funds are needed to improve the Multi-Jurisdictional    
   Counter-drug Task Force's training program by increasing the number of  
   conventional courses, distance learning projects and state narcotics    
   conventions for law enforcement officers. Therefore, the conferees      
   recommend $3.0 million, an increase of $1.0 million for the             
   Multi-Jurisdictional Counter-drug Task Force.                           
                   National Guard State plans                                      

       The budget request included $29.0 million for National Guard        
   Cargo/Mail Inspection Support and $118.6 million for National Guard     
   General Support. The conferees note that beginning in fiscal year 1998, 
   funds for cargo/mail inspection support were transferred from the       
   general support account due to its high priority at the national level. 
   While the conferees continue to endorse this program as a means to deny 
   illegal drugs from entering the United States, the conferees believe    
   that this program should compete with other high priority National Guard
   counter-narcotics operations. Therefore, the conferees recommend $147.6 
   million for National Guard General Support, an increase of $29.0        
   million, and a corresponding decrease of $29.0 million for National     
   Guard Cargo/Mail Inspection Support.                                    
                       JIATF-South                                                 

       The conferees continue to be concerned with the impact that our     
   military withdrawal from Panama will have upon U.S. drug interdiction   
   capabilities. The Panamanian facilities provide a unique location from  
   which to deploy U.S. counter-narcotics assets. The loss of these        
   facilities will have a significant impact upon the U.S. ability to      
   maintain the current level of drug interdiction efforts. Since the      
   United States and the Government of Panama have been unable to reach an 
   agreement regarding the continued deployment of U.S. military personnel 
   to Panama after the remaining facilities are turned over at the end of  
   1999, the conferees believe it is imprudent to significantly expand and 
   facilitize JIATF-South as recommended in the budget request. Until such 
   an agreement is signed, the conferees believe that JIATF-South should   
   operate with the same resources that it received for fiscal year 1998.  
   Therefore, the conferees recommend a reduction of $17.0 million for this
   program.                                                                
           Southern Air Forces Counter-Drug Support                                


       The budget request included $24.4 million for Southern Air Forces   
   (SOUTHAF) Counter-Drug Support, including $19.0 million for the         
   operation and maintenance of ground mobile radars (GMRs) within the U.S.
   Southern Command area of operations. The conferees recommend $20.4      
   million for SOUTHAF Counter-Drug Support, a decrease of $4.0 million.   
           Ground-based end game operations--Mexico                                

       The budget request included $16.0 million for the counter-narcotics 
   training of the Armed Forces of Mexico; a significant increase from     
   previous years. The conferees recommend $12.0 for this program; a       
   decrease of $4.0 million.                                               
           Support for counter-drug activities of Peru and Colombia                

       Section 1033 of the National Defense Authorization Act for Fiscal   
   Year 1998 (Public Law 105 85) authorized the Secretary of Defense to    
   provide support for the counter-drug activities of the Governments of   
   Peru and Colombia. The conferees wish to clarify that the intent of     
   Congress was to provide nonlethal assistance, including unarmed riverine
   patrol boats, to establish a riverine interdiction program in Peru and  
   Colombia. The conferees note that other programs exist in which the     
   Government of Peru can acquire the weaponry necessary to arm these      
   vessels.                                                                
                               LEGISLATIVE PROVISIONS ADOPTED                     

                      Program authority for Department of Defense support to other 
           agencies for counter-drug activities (sec. 1021)                        
       The House bill contained a provision (sec. 1021) that would extend  
   section 1004 of the National Defense Authorization Act for Fiscal Year  
   1991 through fiscal year 2000. The provision would also allow the       
   Department of Defense to use counter-drug funds for any major renovation
   or modification of a Department of Defense facility being used for      
   counter-narcotics purposes. Prior to using this authority for any such  
   projects that will exceed $500,000, the Department must notify the      
   congressional defense committees.                                       
    The Senate amendment contained a similar provision.                    

       The Senate recedes with an amendment that would extend section 1004 
   of the National Defense Authorization Act for Fiscal Year 1991 through  
   fiscal year 2002.                                                       
                      Department of Defense support of National Guard drug         
           interdiction and counter-drug activities (sec. 1022)                    
       The Senate amendment contained a provision (sec. 334) that would    
   make certain changes to the National Guard's authority to perform       
   counter-narcotics activities. These changes would include the           
   authorization to make minor purchases using National Guard              
   counter-narcotics funding. This provision would also allow the Guard to 
   provide expanded support to youth outreach programs. Finally, the       
   provision would authorize the use of funds appropriated for             
   counter-narcotics activities to be used for a member of the Guard's     
   annual training as long as these funds were reimbursed with funds that  
   were appropriated for training.                                         
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would limit the size of    
   purchases to $5,000 per purchase order unless approval to exceed that   
   amount is provided in advance by the Secretary of Defense. The amendment
   would further require that counter-narcotics activities not degrade     
   military readiness, or increase the cost of training. The amendment     
   would also require that in the case of unit participation in            
   counter-narcotics activities, the missions will support valid unit      
   training requirements. Finally, the amendment would clarify that the pay
   and benefits of a member of the Guard who is serving on full time active
   duty in support of the counter-narcotics activities of the Guard does   
   not receive an amount of pay and benefits during his annual training    
   more than the amount he would be entitled to if he were not performing  
   these counter-narcotics activities.                                     
                      Patrol Coastal Craft for drug interdiction by Southern       
           Command (sec. 1023)                                                     
       The Senate amendment contained a provision (sec. 331) that would    
   provide $18.5 million within the counter-narcotics central transfer     
   account for the increased deployment of the Department's Patrol Coastal 
   Craft to the Caribbean and eastern Pacific. The Senate amendment also   
   contained a provision (sec. 335) that would express the sense of the    
   Congress that the Secretary of Defense should revise the Global Military
   Force Policy to treat counter-drug operations as a military operation   
   other than war. Furthermore, the Senate amendment contained a provision 
   (sec. 311) that would require the U.S. Special Operations Command to use
   the resources that are saved within its operating budget as a result of 
   funding the Patrol Coastal Craft within the counter-narcotics budget for
   training and related operations associated with its                     
   counter-proliferation and counter-terrorism missions.                   
       The House bill contained a provision (sec. 1022) that would provide 
   $24.4 million within the counter-narcotics central transfer account for 
   the continued conduct of Operation Caper Focus.                         
       The conferees include a single provision that would (1) express the 
   sense of the Congress that the Secretary of Defense should ensure that  
   the international drug interdiction and counter-drug activities of the  
   Department of Defense are accorded adequate resources within the budget 
   allocation of the Department to execute its counter-narcotics mission;  
   (2) provide $10.5 million within the counter-narcotics central transfer 
   account for the continued conduct of Operation Caper Focus; and (3)     
   provide $14.5 million within the counter-narcotics central transfer     
   account for the increased deployment of the Department's Patrol Coastal 
   Craft to the Caribbean and eastern Pacific. The provision would also    
   require that the $4.5 million that the Special Operations Command saved 
   within its operating                                                    

                    budget as a result of funding the Patrol Coastal Craft within 
          the counter-narcotics budget be used for training and related operations
          associated with its counter-proliferation and counter-terrorism         
          missions.                                                               
                  SUBTITLE D--MISCELLANEOUS REPORT REQUIREMENTS AND REPEALS       

           Repeal of unnecessary and obsolete reporting provisions (sec. 1031)     

       The Senate amendment contained a provision (sec. 1021) that would   
   repeal certain obsolete reporting requirements imposed upon the         
   Department of Defense.                                                  
    The House bill contained no similar provision.                         

       The House recedes with an amendment which would retain an annual    
   report on the use of money rentals for leases of non-excess property,   
   and which would completely repeal a provision partially repealed in the 
   Senate amendment.                                                       
                      Report regarding use of tagging system to identify           
           hydrocarbon fuels used by Department of Defense (sec. 1032)             
       The Senate amendment contained a provision (sec. 312) that would    
   authorize the Department of Defense to conduct a pilot program to       
   determine if hydrocarbon fuels used by the Department can be tagged.    
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the Secretary
   of Defense to provide a report to the congressional defense committees  
   outlining the feasibility, costs, and benefits of using fuel tags to    
   help deter theft and facilitate the determination of the source of      
   surface and underground pollution in locations having separate fuel     
   storage facilities belonging to the Department and civilian companies.  
                          SUBTITLE E--ARMED FORCES RETIREMENT HOME                

                      Appointment of Director and Deputy Director of the Naval Home
           (sec. 1041)                                                             
       The Senate amendment contained a provision (sec. 1075) that would   
   disestablish the civilian positions of director and deputy director of  
   the Naval Home and would require that the Secretary of Defense appoint a
   director and deputy director from among military officers recommended by
   the military departments.                                               
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Revision of inspection requirements relating to Armed Forces 
           Retirement Home (sec. 1042)                                             
       The House bill contained a provision (sec. 363) that would revise   
   the current procedures for the periodic inspection of the Armed Forces  
   Retirement Homes by the Inspector General of each of the military       
   departments on an alternating basis, and would require that upon        
   completion of these inspections, the report of the inspections shall be 
   provided to the Congress.                                               
       The Senate amendment contained a provision (sec. 1057) that would   
   eliminate the requirement for the Department of Defense Inspector       
   General to conduct inspections of the Armed Forces Retirement Homes, as 
   well as review the inspections conducted by the inspectors general of   
   the military departments. The recommended provision would require       
   inspections of the homes every three years. Responsibility to conduct   
   inspections would rotate among the three services on a schedule         
   determined by the Secretary of Defense.                                 
    The Senate recedes with a clarifying amendment.                        

                      Clarification of land conveyance authority, Armed Forces     
           Retirement Home (sec. 1043)                                             
       The House bill contained a provision (sec. 1041) that would clarify 
   subsection (a) of section 1053 of the National Defense Authorization Act
   for Fiscal Year 1997 (Public law 104 201), to state clearly that the    
   original purpose of this disposal provision was to authorize only the   
   sale of a specific parcel of land at the Armed Forces Retirement Home,  
   Washington, D.C. through an open bid process at not less than fair      
   market value, with the receipts of the sale to be deposited in the Armed
   Forces Retirement Homes Trust Fund.                                     
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would direct the Armed    
   Forces Retirement Home to proceed with the sale of a specific parcel of 
   land at the Armed Forces Retirement Home, Washington, D.C. to a         
   neighboring non-profit organization or an entity or entities related to 
   such organization at fair market value, as determined by the Armed      
   Forces Retirement Home Board based on an independent appraisal, to a    
   neighboring non-profit organization or an entity or entities related to 
   such organization.                                                      
                      SUBTITLE F--MATTERS RELATING TO DEFENSE PROPERTY            

                      Plan for improved demilitarization of excess and surplus     
           defense property (sec. 1051)                                            
       The Senate amendment contained a provision (sec. 1077) that would   
   require the Secretary of Defense to assign demilitarization codes to    
   military equipment and ensure that this equipment is demilitarized in   
   accordance with those codes. The provision would further require that   
   anyone who is convicted of knowingly participating in the exportation of
   merchandise in violation of Federal law, be fined or imprisoned for up  
   to five years.                                                          
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the Secretary
   of Defense to submit to Congress a plan to address the                  

                    problems with the sale or other disposal of excess and surplus
          defense materials. The plan would include how the Department will (1)   
          implement all appropriate demilitarization training, (2) improve        
          oversight of demilitarization functions and the maintenance of          
          demilitarization codes, and (3) assign accurate demilitarization codes. 
          The plan will also include the steps the Secretary intends to take to   
          centralize the demilitarization functions and responsibilities of the   
          Department of Defense.                                                  
           Transfer of F 4 Phantom II aircraft to foundation (sec. 1052)           

       The Senate amendment contained a provision (sec. 1058) that would   
   authorize the Secretary of the Air Force to transfer one surplus F 4    
   phantom aircraft to a foundation by means of a conditional deed of gift.
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

                       SUBTITLE G--OTHER DEPARTMENT OF DEFENSE MATTERS            

                      Pilot program on alternative notice of receipt of legal      
           process for garnishment of federal pay for child support and alimony    
           (sec. 1061)                                                             
       The House bill contained a provision (sec. 1042) that would allow   
   the Department of Defense to refrain from providing court documents to a
   military member, concerning child support and alimony payments, prior to
   proceeding with a court ordered garnishment. The Defense Finance and    
   Accounting Service would continue to include pertinent information with 
   the notification to the service member involved.                        
       The Senate amendment contained a similar provision (sec. 1048), but 
   limited the Department of Defense to a pilot program.                   
       The House recedes with an amendment that would allow the Department 
   to conduct a pilot program for three years and provide an annual report 
   on the status of this program to the congressional defense committees.  
                      Training of special operations forces with friendly foreign  
           forces (sec. 1062)                                                      
       The House bill contained a provision (sec. 1043) that would amend   
   section 2011 of title 10, United States Code, to improve the level of   
   reporting associated with the authority of U.S. special operations      
   forces to train with the forces of foreign nations and require that any 
   such training receive the prior approval of the Secretary of Defense.   
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would limit the scope of  
   the provision to changes in the regulations for, and the elements of the
   annual report on, the training of special operations forces with        
   friendly foreign forces.                                                
       The conferees emphasize that, while improved interoperability and   
   relations with the friendly foreign forces may be an ancillary benefit, 
   the training of U.S. special operations forces under the authority of   
   this section must clearly be the primary purpose of the training. The   
   conferees also underscore that training with ``other security forces''  
   of a friendly foreign country, rather than with such country's armed    
   forces, should be a rare exception. Finally, it is expected that the    
   Secretary will not delegate the approval authority for such training to 
   a level below an assistant secretary of defense and that both the       
   Assistant Secretaries for International Security Affairs and Special    
   Operations and Low Intensity Conflict should participate in the required
   approval process.                                                       
           Research grants competitively awarded to service academies (sec. 1063)  

       The Senate amendment contained a provision (sec. 1052) that would   
   permit the service academies to compete for and receive research grants 
   offered by a corporation, fund, foundation, educational institution, or 
   other similar entity that is organized and operated primarily for       
   scientific, literary, or educational purposes that are awarded          
   competitively.                                                          
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

           Department of Defense use of frequency spectrum (sec. 1064)             

       The Senate amendment contained a provision (sec. 1062) that would   
   require the Secretary of Defense to report to the defense authorizing   
   committees the costs to the Department of Defense (DOD) resulting from  
   reallocations of the radio frequency spectrum authorized by DOD. The    
   provision would also require that any entity that purchases any portion 
   of the radio frequency spectrum previously reserved for use by any      
   federal agency, including DOD, and that the Federal agency has          
   relinquished for sale or lease, shall reimburse the Federal agency for  
   the cost incurred by the Federal government to make that portion of the 
   frequency spectrum available. The provision would further require a     
   report in the annual budget request for each Federal department or      
   agency that incurs costs for such frequency reallocations. Finally, the 
   provision would exempt from the reimbursement requirement those portions
   of the Federal radio frequency spectrum identified for reallocation in  
   the first reallocation report submitted to the President and Congress,  
   except for reallocations of that portion of the spectrum located in the 
   1710 1755 megahertz band.                                               
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

           Department of Defense aviation accident investigations (sec. 1065)      

    The Senate amendment contained a provision (sec. 1028) that would      


                    require the Secretary of Defense to provide an assessment of  
          the role of the Office of the Secretary of Defense and the Joint Staff  
          in the investigation of military aircraft accidents. Additionally, the  
          provision would require the Secretary of Defense to report on the       
          advisability of requiring an independent entity of the Department of    
          Defense to supervise military aircraft accident investigations.         
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the Secretary
   of Defense to prescribe uniform regulations establishing procedures by  
   which the military departments shall provide periodic reports on the    
   conduct and progress of investigations to the families of those involved
   in an aviation accident.                                                
       The conferees note the importance of a regular flow of accurate     
   information to the families of those involved in an aviation accident   
   and encourage the Secretary of Defense to include in regulations        
   specific circumstances for providing information to the families.       
   Additionally, the conferees encourage the Secretary of Defense to       
   consider accepting comments from the National Transportation Safety     
   Board in developing regulations pertaining to aviation accident         
   investigations.                                                         
                      Investigation of actions relating to 174th Fighter Wing of   
           New York Air National Guard (sec. 1066)                                 
       The House bill contained a provision (sec. 1047) that would require 
   the Inspector General of the Department of Defense to investigate the   
   grounding of the 174th Fighter Wing of the New York Air National Guard  
   and the subsequent dismissal, demotion, or reassignment of 12 pilots.   
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the         
   Inspector General of the Department of Defense to conduct a new         
   investigation into the facts and circumstances leading to the December  
   1, 1995, grounding of the 174th Fighter Wing of the New York Air        
   National Guard and to provide the report of the investigation to the    
   Committee on Armed Services of the Senate and the Committee on National 
   Security of the House of Representatives, not later than 180 days after 
   enactment.                                                              
           Program to commemorate 50th anniversary of the Korean War (sec. 1067)   

       The Senate amendment contained a provision (sec. 1061) that would   
   increase the amount authorized to be expended for the Korean War        
   Commemorative Program from $1.0 million to $10.0 million over a seven   
   year period.                                                            
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would authorize $1.82      
   million for this program in fiscal year 1999.                           
       The conferees direct the Secretary of the Army to include within    
   future budget requests the amount of funds necessary for the continued  
   operation of this program.                                              
           Designation of America's national maritime museum (sec. 1068)           

       The Senate amendment contained a provision (sec. 1078) that would   
   designate two maritime museums as America's National Maritime Museum.   
   The provision also provided criteria for subsequent additions of museums
   to the group of museums designated as America's National Maritime       
   Museum.                                                                 
    The House bill contained no similar provision.                         

       The House recedes with an amendment that prescribes the procedures  
   for subsequent additions of museums to the group designated as America's
   National Maritime Museum.                                               
           Technical and clerical amendments (sec. 1069)                           

       The Senate amendment contained a provision (sec. 1063) that would   
   make various technical and clerical amendments to existing law.         
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would make additional      
   technical and clerical amendments to existing law.                      
                                  SUBTITLE H--OTHER MATTERS                       

                      Act constituting presidential approval of vessel war risk    
           insurance requested by the Secretary of Defense (sec. 1071)             
       The Senate amendment contained a provision (sec. 1059) that would   
   authorize the pre-approval of vessel war risk insurance under the       
   Merchant Marine Act, 1936 (46 U.S.C. App. 1281), so that it can be      
   immediately available in an emergency or contingency.                   
    The House bill contained no similar provision.                         

       The House recedes with a technical amendment and an amendment adding
   an effective date to the provision.                                     
                      Extension and reauthorization of Defense Production Act of   
           1950 (sec. 1072)                                                        
       The Senate amendment contained a provision (sec. 1064) that would   
   reauthorize the Defense Production Act of 1950 (50 U.S.C. 2161 and 2166)
   for a period of one year.                                               
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Requirement that burial flags furnished by the Secretary of  
           Veterans Affairs be wholly produced in the United States (sec. 1073)    
       The House bill contained a provision (sec. 1046) that would amend   
   section 2301 of title 38, United States Code, to require that any flags 
   furnished for burial purposes be wholly produced in the United States.  
    The Senate amendment contained no similar provision.                   

    The Senate recedes with an amendment allowing the Secretary of         


                    Veterans Affairs to waive the requirement upon making a       
          determination that the requirement cannot reasonably be met or that it  
          would not be in the national interest of the United States. The         
          conferees direct that, in the event he intends to waive the requirement,
          the Secretary notify Congress concerning the factors upon which he has  
          based his determination.                                                
                      Sense of Congress concerning tax treatment of principal      
           residence of members of armed forces while away from home on active duty
           (sec. 1074)                                                             
       The House bill contained a provision (sec. 1049) that would express 
   the sense of Congress that a member of the armed forces should be       
   treated as using property as a principal residence during any period    
   that the member (or the member's spouse) is serving on extended active  
   duty, but only if the member used the property as a principal residence 
   for any period during or before the period of extended active duty.     
    The Senate amendment contained no similar provision.                   

    The Senate recedes with a clarifying amendment.                        

                      Clarification of State authority to tax compensation paid to 
           certain employees (sec. 1075)                                           
       The House bill contained a provision (sec. 1045) that would limit   
   state taxation of the pay of workers at Fort Campbell, Kentucky, to the 
   state or political subdivision thereof in which the workers reside. The 
   provision would also limit state taxation of federal employees employed 
   at federal hydroelectric facilities located on the Columbia and Missouri
   Rivers to the state or political subdivision thereof in which the       
   employees reside.                                                       
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Outlay limitations                                                      

       The House bill contained a provision (sec. 1003) that would restrict
   the amount of fiscal year 1999 discretionary outlays available to the   
   Department of Defense for military functions and the Department of      
   Energy for national security programs to an amount consistent with the  
   national defense total provided in the Balanced Budget Act of 1997.     
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

                      Long-term charter contracts for acquisition of auxiliary     
           vessels for the Department of Defense                                   
       The House bill contained a provision (sec. 1015) that would         
   authorize the Secretary of the Navy to enter into a contract for the    
   long-term lease or charter of newly built combat logistics force,       
   strategic sealift and auxiliary support vessels.                        
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

                      Sense of the Congress regarding the establishment of a       
           counter-drug center in Panama                                           
       The House bill contained a provision (sec. 1023) that would express 
   the sense of the Congress that the Secretary of Defense, in consultation
   with the Secretary of State, should continue to engage in negotiations  
   with the Government of Panama for the establishment of a multinational  
   counter-drug center in Panama.                                          
    The Senate amendment had no similar provision.                         

    The House recedes.                                                     

       The conferees understand the important contribution that the        
   facilities in Panama, including JIATF-South, provide. The conferees are 
   aware of the unfortunate difficulty that the U.S. Government has        
   encountered in its negotiations with the Government of Panama for the   
   continued operation of these facilities as part of a multinational      
   counter-narcotics center. The conferees encourage the Secretary of State
   to continue these important negotiations.                               
           Assignment of members of armed forces to assist INS and Customs Service 

       The House bill contained a provision (sec. 1024) that would         
   authorize the assignment of members of the armed services to assist the 
   Immigration and Naturalization Service and the Customs Service.         
    The Senate amendment had no similar provision.                         

    The House recedes.                                                     

           Facilitation of operations at Edwards Air Force Base                    

       The House bill contained a provision (sec. 1048) that would         
   authorize the Secretary of the Air Force to provide assistance to the   
   Dryden Flight Research Center of the National Aeronautics and Space     
   Administration.                                                         
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

           Operation, maintenance, and upgrade of Air Force space launch facilities

       The House bill contained a provision (sec. 1050) that would prohibit
   the obligation of funds appropriated for the operation, maintenance, or 
   upgrade of the Western and Eastern Space Launch Facilities of the Air   
   Force for any other purpose.                                            
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

       The conferees believe that maintaining a strong, robust space launch
   capability, including modern and well maintained space launch           

                    facilities, is essential to preserving a strong military and  
          scientific capability. The conferees believe that the reprogramming of  
          any resources appropriated to ensure that space launch facilities are   
          fully maintained in their best condition, should only be conducted if   
          planned launches, or other programmed activities, are canceled.         
           Southwest border fence                                                  

       The Senate amendment contained a provision (sec. 333) that would    
   require the Secretary of Defense to perform an analysis of the          
   effectiveness of the Southwest border fence in reducing the flow of     
   drugs into the United States before further expansion.                  
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       The conferees are concerned with the continued transportation of    
   narcotics across the Southwest border and into the United States. Over  
   the past few years, the Department of Defense has explored several      
   initiatives to reduce this flow of illegal drugs. One such initiative   
   was the construction of a border fence along portions of the border.    
   Although the conferees support such initiatives, the conferees believe  
   that a thorough analysis should be performed to determine how the fence 
   might be made more effective before the Department proceeds with any    
   planned expansion. The conferees direct the Secretary of Defense to     
   undertake such an analysis.                                             
       In the interim, the conferees recommend $3.0 million to facilitate  
   completion of the Southwest border fence project from within the        
   domestic law enforcement agencies support component of the Department of
   Defense Counter-Drug Plan.                                              
                      Increase operations and maintenance for Army National        
           Guard/reduce amounts from revised economic assumptions                  
       The Senate amendment contained a provision (sec. 1005) that would   
   reduce authorizations for appropriations to reflect the updated         
   inflation estimates for fiscal year 1999 by the Office of Management and
   Budget. The amendment also increased funding for the Army National Guard
   operations and training programs, and the arms control programs of the  
   Department of Energy.                                                   
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       The conferees agreed to adopt the revised economic assumptions.     
   Funding for the Army National Guard and the Department of Energy arms   
   control programs are discussed in other portions of this report.        
           Ship scrapping pilot program                                            

       The Senate amendment contained a provision (sec. 1017) that would   
   direct the Secretary of the Navy to carry out a ship scrapping pilot    
   program to gather data on the costs associated with scrapping and to    
   demonstrate cost effective technologies and techniques that ensure      
   worker safety and environmental protection. Under the pilot program, the
   Secretary would be required to give a greater weight to technical and   
   performance-related factors than to cost and price-related factors. The 
   Secretary of the Navy would also be required to give significant weight 
   to technical qualifications and past performance of the contractor and  
   major subcontractors or team members of the contractor in complying with
   applicable legal requirements for environmental protection and worker   
   safety.                                                                 
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       The conferees acknowledge the recommendations of the 1998 Report of 
   the Interagency Panel on Ship Scrapping. Consistent with those          
   recommendations, the conferees object to any congressionally mandated   
   restrictions or prohibitions related to domestic or overseas scrapping  
   of naval vessels.                                                       
           Report on inventory and control of military equipment                   

       The Senate amendment contained a provision (sec. 1025) that would   
   require the Department of Defense to perform a thorough review of its   
   inventory of military equipment and submit a report to the Congress     
   outlining the location of this equipment, or the efforts of the         
   Department in locating any equipment that could not be located.         
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                      Report on reduction of infrastructure costs at Brooks Air    
           Force Base, Texas                                                       
       The Senate amendment contained a provision (sec. 1033) that would   
   require the Secretary of the Air Force to submit a report, not later    
   than December 31, 1998, on the options for the reduction of             
   infrastructure costs at Brooks Air Force Base, Texas.                   
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       The conferees agree to include a requirement for the Secretary of   
   Defense to assess the options to reduce infrastructure costs at Brooks  
   Air Force Base, Texas, in section 2814 concerning leasing and other     
   alternative uses of non-excess military property.                       
                      Sense of the Senate regarding declassification of classified 
           information of the Department of Defense and the Department of Energy   
       The Senate amendment contained a provision (sec. 1069) that would   
   set forth the sense of the Senate that the Secretaries of Defense and   
   Energy should request adequate funds in fiscal year 2000 for activities 
   relating to the declassification of information required by Executive   
   Order 12958 and the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.). 
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       The conferees have addressed this issue in a separate section in    
   Title XXXI of this Act.                                                 

                      Sense of the Senate regarding the August 1995 assassination  
           attempt against President Shevardnadze of Georgia                       
       The Senate amendment contained a provision (sec. 1081) that would   
   express the sense of the Senate that the Russian Federation should      
   extradite the alleged perpetrators of the August 5, 1995 assassination  
   attempt on the life of President Shevardnadze to Georgia to stand trial,
   that the Russian Federation and the Russian Minister of Defense should  
   cooperate and ensure that Russian military bases on Georgian territory  
   are not used to facilitate the escape of perpetrators acting against the
   Government and committing acts in violation of the national sovereignty 
   of Georgia, and that the U.S. Government should use all available       
   authorities to provide assistance to ensure the safety of the President 
   of Georgia.                                                             
    The House bill contained no similar provision.                         

       The Senate recedes. However, the conferees do agree that the Russian
   Federation should respect the national sovereignty of Georgia and the   
   Russian Ministry of Defense should cooperate to ensure that its military
   bases located on Georgian territory are not used to facilitate acts of  
   terrorism and violence, nor used to protect and provide escape to       
   perpetrators of terrorism or violence against the Georgian Government or
   its people.                                                             
           Eliminating secret Senate holds                                         

       The Senate amendment contained a provision (sec. 1083) that would   
   state that it is a standing order of the Senate that a Senator who      
   provides notice to leadership of his intention to object to proceeding  
   to a motion or matter shall disclose the objection or hold in the       
   Congressional Record not later than two session days after the date of  
   the notice. The provision also stated that it was adopted as an exercise
   of the rulemaking process of the Senate and with full recognition of the
   constitutional right of the Senate to change its rules at any time.     
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                      Cooperation between the Department of the Army and the       
           Environmental Protection Agency in meeting the Chemical Weapons         
           Convention requirements                                                 
       The Senate amendment contained a provision (sec. 1087) that would   
   require the Department of Defense (DOD), in coordination with the       
   Environmental Protection Agency (EPA), to submit a report to the        
   congressional defense committees by April 1, 1999. The report would     
   address the mutual responsibilities of DOD and EPA with respect to the  
   Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 6901 et seq.)  
   permit process related to fulfilling U.S. international obligations     
   under the Chemical Weapons Convention (CWC).                            
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       The conferees note that compliance with international obligations to
   destroy the U.S. chemical weapons stockpile by April 28, 2007, as       
   required under the CWC, is a national priority. Given the international 
   obligation of the United States under the CWC, the President must ensure
   that DOD and the Army receive all necessary assistance from federal     
   agencies to facilitate the safe and effective destruction of the lethal 
   chemical stockpile.                                                     
       The EPA is a federal agency with specific oversight responsibility  
   for states with authorized hazardous waste programs under RCRA. The     
   conferees expect EPA to exercise its oversight responsibility in a way  
   that supports the DOD and the Army in the execution of CWC obligations. 
   The conferees, however, have been apprised of EPA assertions that it is 
   not adequately funded to meet its federal RCRA permitting               
   responsibilities associated with CWC commitments. The conferees expect  
   that EPA shall work in concert with federal, state, and local government
   entities in the successful resolution of issues related to the          
   destruction of the U.S. chemical weapons stockpile, and that the EPA    
   shall properly budget for these efforts.                                
       The conferees are concerned about the possibility that inadequate   
   EPA planning and budgeting could be used as a justification for         
   authorization of the Army funding of EPA obligations. Such a            
   justification would be inappropriate. In addition, there remains a      
   question about the extent to which EPA must participate in the CWC RCRA 
   permit process, particularly in states with authorized hazardous waste  
   programs. The conferees agree that the level of EPA participation must  
   not exceed the requirements related to federal regulatory oversight     
   under RCRA.                                                             
       The Army received specific authorization to reimburse states for    
   their efforts in permitting chemical demilitarization facilities in the 
   National Defense Authorization Act for Fiscal Year 1986, but there was  
   no provision for EPA reimbursement. There is no statutory authority for 
   the Army to reimburse EPA for federal regulatory oversight activities   
   related to the CWC RCRA permit process.                                 
       The conferees direct the Secretary of Defense and the Administrator 
   of the EPA to submit a report to the congressional defense committees by
   April 1, 1999 that includes the following: (1) a detailed description of
   the federal, state, and local RCRA permitting responsibilities related  
   to CWC obligations to destroy the U.S. chemical stockpile, with         
   particular focus on the federal regulatory role in states with          
   authorized hazardous waste programs; (2) a description of the state     
   authorized hazardous waste programs in those states with existing or    
   projected chemical weapons destruction sites; (3) the level of technical
   assistance provided by EPA to its regional offices and to the state and 
   local governments in the overall RCRA permitting process, the legal     
   basis for such assistance, and how such assistance supports the national
   commitment to destroy U.S. chemical weapons, particularly in states with
   authorized hazardous waste programs; (4) the legal rationale, if any,   
   for the Army to fund EPA technical assistance for EPA regional offices, 
   and for the state and local governments in the RCRA permitting process  
   associated with chemical weapons destruction, particularly in relation  
   to state authorized hazardous waste programs; (5) the legal rationale,  
   if any,                                                                 

                    for the Army to fund EPA attendance of meetings with the      
          National Chemical Agent Demilitarization Workgroup, meetings between the
          Office of Solid Waste and the affected EPA Regional Offices and states, 
          and meetings between the Office of Solid Waste, the Program Manager for 
          Chemical Demilitarization, and DOD; (6) the legal rationale, if any, for
          DOD or the Army to provide funds to EPA for employment of full time     
          equivalents (FTEs) to assist in the formulation of RCRA permits, the    
          projected geographical location of the FTEs, and the projected function 
          of the FTEs in relation to CWC RCRA permit requirements; (7) a complete 
          explanation of the need, if any, for the Army to fund the EPA role with 
          respect to CWC RCRA permit requirements, a complete description of the  
          overall EPA functions and activities that may require Army funding, an  
          identification of the other instances in which the Army has provided    
          funds to EPA for other RCRA permit oversight activities, and the        
          specific authority for the proposed level of EPA participation in CWC   
          RCRA permit process; and (8) the Army and EPA funding levels within the 
          President's budget projected to support the RCRA permit process related 
          to CWC for fiscal year 1999 and the out years.                          
                    TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN  PERSONNEL           

                               LEGISLATIVE PROVISIONS ADOPTED                     

                      Defense Advanced Research Projects Agency experimental       
           personnel management program for technical personnel (sec. 1101)        
       The Senate amendment contained a provision (sec. 1105) that would   
   authorize the Secretary of Defense special personnel management         
   authorities to carry out a five-year experimental personnel management  
   program in which eminent experts in science and engineering fields for  
   research and development projects administered by the Defense Advanced  
   Research Projects Agency could be hired and paid without regard to      
   existing civil service laws concerning appointment and compensation. The
   provision would limit authority to a maximum of five years and would    
   require the Secretary of Defense to submit an annual report to the      
   Congress beginning in fiscal year 1999.                                 
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

                      Maximum pay rate comparability for faculty members of the    
           United States Air Force Institute of Technology (sec. 1102)             
       The Senate amendment contained a provision (sec. 1102) that would   
   permit civilian faculty at the United States Air Force Institute of     
   Technology to be paid at the same level as civilian faculty at other    
   senior military schools and the service academies.                      
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

                      Authority for release to Coast Guard of drug test results of 
           civil service mariners of the Military Sealift Command (sec. 1103)      
       The House bill contained a provision (sec. 1101) that would permit  
   the Secretary of the Navy to release to the Coast Guard the results of a
   drug test of a former employee of the Department of the Navy who was    
   employed as a civil service mariner.                                    
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

           Limitations on back pay awards (sec. 1104)                              

       The House bill contained a provision (sec. 1102) that would clarify 
   that any award of back pay to civil service employees, resulting from a 
   finding of an unjustified personnel action adjudged under section 5596  
   of title 5, United States Code, shall not exceed six years, unless a    
   shorter limitation period applies.                                      
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Restoration of annual leave accumulated by civilian employees
           at installations in the Republic of Panama to be closed pursuant to the 
           Panama Canal Treaty of 1977 (sec. 1105)                                 
       The House bill contained a provision (sec. 1103) that would provide 
   federal employees, working to close installations in the Republic of    
   Panama in accordance with the Panama Canal Treaty Implementation Plan,  
   the same automatic restoration of excess annual leave that is provided  
   to employees at bases closed under current base realignment and closure 
   procedures.                                                             
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Repeal of program providing preference for employment of     
           military spouses in military child care facilities (sec. 1106)          
       The House bill contained a provision (sec. 1104) that would repeal  
   section 1792d of title 10, United States Code, which provides military  
   spouses with an additional hiring preference in the civil service that  
   has proven unnecessary given the other general military spouse          
   preferences provided by section 1784 of title 10, United States Code.   
    The Senate amendment contained a similar provision (sec. 1101).        

    The Senate recedes.                                                    

                      Observance of certain holidays at duty posts outside the     
           United States (sec. 1107)                                               
       The House bill contained a provision (sec. 1106) that would allow   
   civil service employees, working in foreign areas where the regular work
   week is other than Monday through Friday, to observe federal holidays in
   conjunction with a weekend.                                             

    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

           Random drug testing of Department of Defense employees (sec. 1108)      

       The House bill contained a provision (sec. 1025) that would expand  
   the current drug testing program of the Department of Defense by        
   requiring that all civilian employees be subject to random tests, rather
   than just those serving in sensitive positions as required by executive 
   order.                                                                  
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would codify the executive
   order which requires random drug testing of those serving in sensitive  
   positions, and authorize the Secretary of Defense to test any employee  
   of the Department of Defense if there is a reasonable suspicion that the
   employee uses illegal drugs.                                            
                      Department of Defense employee voluntary early retirement    
           authority (sec. 1109)                                                   
       The Senate amendment contained a provision (sec. 1104) that would   
   modify the conditions under which voluntary early retirement would be   
   authorized for civilian employees of the Department of Defense.         
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would change the effective 
   date to October 1, 2000.                                                
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Elimination of retained pay as basis for determining         
           locality-based adjustments                                              
       The House bill contained a provision (sec. 1105) that would         
   eliminate windfall pay adjustments that have been made to some federal  
   employees by requiring that future pay adjustments be measured against  
   the pay rate necessary to retain the employees and eliminate the        
   windfall.                                                               
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

           Four-year extension of voluntary separation incentive pay authority     

       The Senate amendment contained a provision (sec. 1103) that would   
   extend until September 30, 2003, the civilian voluntary separation      
   incentive pay authority established by 5597(e) of Title 5, United States
   Code.                                                                   
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                        TITLE XII--MATTERS RELATING TO OTHER NATIONS              

                               LEGISLATIVE PROVISIONS ADOPTED                     

              SUBTITLE A--UNITED STATES ARMED FORCES IN BOSNIA AND HERZEGOVINA    

           United States armed forces in Bosnia and Herzegovina (secs. 1201 1205)  

       The House bill contained a provision (sec. 1202) that would express 
   the views and concerns of Congress regarding the participation of U.S.  
   armed forces in NATO operations in Bosnia and would require the         
   President to report to Congress on the continued participation of U.S.  
   armed forces in NATO operations in Bosnia and the status of progress    
   achieved in implementing the civilian tasks of the Dayton Accords on an 
   annual basis. The provision would also require the Secretary of Defense 
   to report to Congress by December 15, 1998 on the effects of the        
   military operations in Bosnia on the readiness of U.S. armed forces and 
   the ability of U.S. forces to conduct two nearly simultaneous major     
   regional conflicts.                                                     
       The Senate amendment contained three provisions regarding the       
   continued participation of U.S. ground combat forces in NATO operations 
   in Bosnia. One provision (sec. 1065) would express the sense of Congress
   that the funds sufficient to cover continued U.S. participation in the  
   NATO operation in Bosnia should be included in the defense budget and in
   the Future Years Defense Program above the defense topline contained in 
   the Balanced Budget Agreement of 1997, rather than through              
   reprogrammings or rescissions of existing defense activities. Another   
   provision (sec. 1066) would express concerns that U.S. armed forces     
   should not act as civil police in Bosnia and would require the President
   to submit a report to Congress on the status of establishing a NATO     
   force of gendarmes, to include information on the mission of the force, 
   the composition of the force, and the extent to which, if any, U.S.     
   forces will participate in the force.                                   
       Lastly, the Senate amendment included a provision (sec. 1072) that  
   would express the sense of Congress that U.S. ground combat forces      
   should not remain in Bosnia indefinitely, that a NATO-led follow-on     
   force, without participation of U.S. combat forces, would be suitable to
   continue implementation of the Dayton Agreement if the European Security
   and Defense Identity is not sufficiently established, that our European 
   allies should take steps to establish a European follow-on force, led   
   either by the Western European Union (WEU) or NATO, and that the        
   President should continue to consult closely with Congress on the       
   progress in implementing the Dayton Agreement and in reducing and       
   ultimately withdrawing U.S. ground combat forces from Bosnia. It would  
   also require the President to report to Congress by September 30, 1998  
   on the impact on the security situation in Bosnia that would result from
   a phased reduction of U.S. military forces, and the prospects for       
   establishing a self-sustaining peace and stable government in Bosnia.   
   Finally, it would require the President to submit a report to Congress  
   on the following: the performance objectives, to include the benchmarks 
   reported in the                                                         

                    latest semi-annual report submitted under section 7(b)(2) of  
          the 1998 Supplemental Appropriations and Rescissions Act, and schedule  
          for implementing the Dayton Agreement, to include objectives not        
          specifically covered in the Dayton Agreement and support provided by    
          U.S. forces to the military and non-military objectives. Along with the 
          budget request for fiscal year 2000 and each time the President submits 
          a proposal for funding continued operations of U.S. forces in Bosnia,   
          the provision would require the President to submit a report to Congress
          including information on the mission of U.S. forces, the support        
          provided by U.S. armed forces to military and non-military missions;    
          U.S. armed forces participation in apprehending war criminals and any   
          role in connection with civilian police functions; the role of U.S.     
          armed forces in assisting in the resettlement of refugees and the       
          support of U.S. armed forces in supporting international and local      
          civilian authorities. The report would also include an assessment of the
          cost to the United States by fiscal year of carrying out the            
          aforementioned missions, and a joint assessment by the Secretary of     
          Defense and the Secretary of State on the status of planning for        
          European military and paramilitary forces to take over the remaining    
          military missions in Bosnia, and for the establishment and support of a 
          forward-based U.S. rapid reaction force outside Bosnia that would be    
          capable of responding rapidly to threats posed in Bosnia, and of        
          providing support to a European follow-on force to ensure that it is    
          fully capable of accomplishing the implementation of the Dayton         
          Agreement.                                                              
       The conferees agree to three provisions (secs. 1201 1204) that would
   combine, update, and clarify the provisions contained in the House bill 
   and Senate amendment and to an additional provision (sec. 1205) that    
   would contain definitions for the subtitle containing these provisions. 
                   SUBTITLE B--MATTERS RELATING TO CONTINGENCY OPERATIONS         

                      Report on involvement of Armed Forces in contingency and     
           ongoing operations (sec. 1211)                                          
       The Senate amendment contained a provision (sec. 1030) that would   
   require the Secretary of Defense to submit a report to the congressional
   defense committees outlining: 1) the effects of U.S. involvement in     
   contingency operations on the retention and reenlistment of personnel in
   the armed forces; 2) the extent to which involvement in these operations
   has resulted in shortfalls in personnel and equipment; 3) the cost of   
   these operations and the accounts from which the funds to pay these     
   costs were drawn; and 4) the objectives of the operation and the set of 
   conditions that defines the end of each operation.                      
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Submission of report on objectives of a contingency operation
           with requests for funding for the operation (sec. 1212)                 
       The Senate amendment contained a provision (sec. 1031) that would   
   require the Secretary of Defense to include with the initial funding    
   request for any contingency operation involving the deployment of over  
   500 U.S. military personnel, a report outlining the objectives of the   
   operation, and the conditions or date that defines the end of that      
   operation.                                                              
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                       SUBTITLE C--MATTERS RELATING TO NATO AND EUROPE            

           Limitation on United States share of costs of NATO expansion (sec. 1221)

       The House bill contained a provision (sec. 1211) that would limit   
   the amount spent by the United States as its share of the total cost of 
   enlarging the North Atlantic Treaty Organization NATO) to 10 percent of 
   the cost of expansion, or a total of $2.0 billion, whichever is less,   
   for fiscal years 1999 through 2011.                                     
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would limit the U.S. share
   of the costs of enlarging NATO to include Poland, Hungary, and the Czech
   Republic to 25 percent of the commonly-funded costs, or $2.0 billion,   
   whichever is less, for fiscal years 1999 through 2011.                  
           Report on military capabilities of an expanded NATO alliance (sec. 1222)

       The House bill contained a provision (sec. 1203) that would require 
   the Secretary of Defense to provide a report to Congress by March 15,   
   1999 on the planned future requirements and military capabilities of an 
   enlarged North Atlantic Treaty Organization (NATO).                     
    The Senate amendment contained no similar provision.                   

    The Senate recedes with an amendment.                                  

       The conferees agree that continued U.S. participation in NATO       
   advances U.S. national security interests in the region, as well as     
   around the world. Additionally, the conferees endorse the concerns      
   expressed by the House (H. Rept. 105 532) that information prepared both
   by the United States and NATO military authorities on the costs of      
   enlarging the Alliance to include Poland, Hungary, and the Czech        
   Republic was contradictory. However, the conferees understand that the  
   differing information offered by the Department of Defense, the         
   Congressional Budget Office, RAND, and NATO, in the varying reports     
   submitted on the costs of enlarging the Alliance, as well as on the     
   capabilities of the prospective new Alliance members and the future     
   Alliance military capabilities and requirements, was the result of the  
   use of different criteria and assumptions.                              
    In an effort to compile all the information contained in the           


                    various reports of the DOD and NATO on the military           
          requirements and costs of enlarging the Alliance, the conferees agree to
          a provision that would require the Secretary of Defense to provide a    
          report to Congress by March 15, 1999 that would include information on  
          the planned future military capabilities of an Alliance that includes   
          Poland, Hungary and the Czech Republic, along with an assessment of the 
          tactical, operational and strategic military requirements raised by     
          their inclusion. The report is to include information on the military   
          capabilities of the forces of Poland, Hungary and the Czech Republic,   
          and their ability to achieve the minimum military requirements          
          established by NATO prior to their anticipated accession to the Alliance
          in 1999, as well as the improvements to common Alliance military assets 
          and to the national capabilities of current NATO members as a result of 
          including these new prospective members in the Alliance.                
       In addition, the report is to include information on required       
   improvements to the national military capabilities of prospective new   
   members, and any additional necessary improvements to the common        
   Alliance military assets to carry out both Article V of the Washington  
   Treaty of 1949 and contingency operations.                              
       Lastly, the report should include information on any additional     
   assistance the United States may agree to provide on a bilateral basis  
   to assist Hungary, Poland, and the Czech Republic in meeting additional 
   requirements related to enlarging the Alliance.                         
                      Reports on the development of the European security and      
           defense identity (sec. 1223)                                            
       The Senate amendment contained a provision (sec. 1032) that would   
   require the Secretary of Defense to submit a report to the congressional
   defense committees by December 15, 1998, and thereafter submit a report 
   on a semiannual basis, on the progress achieved in establishing a       
   European Security and Defense Identity (ESDI) within the North Atlantic 
   Treaty Organization (NATO).                                             
    The House bill contained no similar provision.                         

    The House recedes with an amendment.                                   

       Several years ago, the North Atlantic Treaty Organization (NATO)    
   decided to build a European pillar within NATO that would enable the    
   Western European Union (WEU), with the consent of the Alliance, to      
   assume the political control and strategic direction of NATO assets and 
   capabilities. The establishment of an ESDI within the Alliance is a     
   welcome and extremely important development. With the worldwide         
   commitments of the United States, the successful development of an ESDI 
   is very much in our national interests, since it could enable the WEU to
   carry out operations without the participation of U.S. Armed Forces.    
       The conferees agree to a provision that would require the Secretary 
   of Defense to submit an initial report to the congressional defense     
   committees by December 15, 1998 on the plans developed and actions taken
   to establish an ESDI. Thereafter, the report shall be submitted on a    
   semiannual basis and shall include information on the status of progress
   made in developing an ESDI. The submission of semiannual reports on the 
   progress in establishing an ESDI would be terminated when the Secretary 
   of Defense reports that an ESDI has been successfully established.      
                                  SUBTITLE D--OTHER MATTERS                       

                      Limitation on the assignment of United States forces for     
           certain United Nations purposes (sec. 1231)                             
       The House bill contained a provision (sec. 1044) that would prohibit
   the use of Department of Defense funds to assign any member of the armed
   forces to duty with the United Nations Rapidly Deployable Mission       
   Headquarters.                                                           
    The Senate amendment contained no similar provision.                   

    The Senate recedes with an amendment.                                  

       The conferees agree that not more than eight members of the U.S.    
   Armed Forces may be assigned to the United Nations Rapidly Deployable   
   Mission Headquarters during fiscal year 1999. Additionally, the         
   conferees agree that no funds available to the Department of Defense    
   during fiscal year 1999 may be used, either as a contribution to the    
   United Nations to establish a United Nations standing international     
   force, or to assign or detail U.S. Armed Forces to a United Nations     
   Stand By Force.                                                         
                      Kyoto Protocol to the United Nations Framework Convention on 
           Climate Change (sec. 1232)                                              
       The House bill contained a provision (sec. 1210) that would provide 
   that no provision of the Kyoto Protocol to the United Nations Framework 
   Convention on Climate Change, or any related regulation, could restrict 
   the procurement, training, or operation and maintenance of the U.S.     
   Armed Forces.                                                           
    The Senate amendment contained no similar provision.                   

    The Senate recedes with a technical amendment.                         

       The conferees note that the Kyoto Protocol has not yet been         
   submitted to the Senate, and as such, a full Senate debate on the       
   ratification of the Kyoto Protocol has not taken place. It is not the   
   intention of the conferees, through this provision, to predetermine the 
   outcome of the Senate debate on the advice and consent to ratification  
   of the Kyoto Protocol.                                                  
       The conferees are aware that the Department of Defense has          
   undertaken a number of activities to achieve greater efficiency in its  
   operations. These include a broad-based effort to improve the energy    
   efficiency of its buildings and facilities and an effort to improve the 
   fuel efficiency of trucks and combat vehicles for the purpose of        
   reducing the fuel logistics burden associated with the deployment of    
   armed forces. The conferees do not intend to prohibit or discourage such
   efforts, provided that they are undertaken for a purpose other than the 
   implementation of the Kyoto Protocol.                                   
           Defense burdensharing (sec. 1233)                                       


       The Senate amendment contained a provision (sec. 1084) that would   
   amend section 1221 of the National Defense Authorization Act for Fiscal 
   Year 1998, placing more emphasis on increasing allied burdensharing in  
   the area of military contributions to defense and could take one or more
   actions: increase financial contributions to the payment of nonpersonnel
   costs to the U.S. Government for the stationing of U.S. military        
   personnel in a foreign country, increase annual budgetary outlays for   
   national defense, increase the amount of military assets that a country 
   contributes to multinational military activities worldwide, or increase 
   annual budgetary outlays for foreign assistance by September 30, 1999.  
   The Secretary of Defense would be required to report to Congress by     
   March 1, 1999, on the progress achieved in increasing allied defense    
   burdensharing. The Secretary of Defense would also be required to       
   provide an assessment to Congress by March 1, 1999, of forward deployed 
   U.S. forces permanently stationed outside the United States and the     
   national security interests that support the forward deployment of the  
   forces, as well as the cost associated with stationing these elements   
   outside the United States, and potential alternatives to meet national  
   security interests or alliance requirements.                            
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

                      Transfer of excess UH 1 Huey and AH 1 Cobra helicopters to   
           foreign countries (sec. 1234)                                           
       The House bill contained a provision (sec. 1215) that would require 
   the Secretary of Defense to make all reasonable efforts to ensure that  
   any excess UH 1 Huey or AH 1 Cobra helicopters that are to be           
   transferred to a foreign country for flight operations are in the same  
   maintenance condition that such a helicopter would require for          
   operational use by U.S. military forces.                                
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require that any    
   funds that are used for such maintenance be provided from funding       
   sources outside of those available to the Department of Defense.        
           Transfers of naval vessels to certain foreign countries (sec. 1235)     

       The Senate amendment contained a provision (sec. 1013) that would   
   transfer, on a grant, lease, or sale basis, upon notification to the    
   Congress certain ships to foreign countries.                            
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

           Repeal of the landmine moratorium (sec. 1236)                           

       The House bill contained a provision (sec. 1205) that would repeal  
   section 580 of the Foreign Operations Appropriations Act of 1996 (Public
   Law 104 107) which requires a one-year moratorium on the use of         
   anti-personnel landmines by U.S. armed forces on February 12, 1999.     
       The Senate amendment contained a provision (sec. 1074) that would   
   provide the President authority to waive, if deemed to be in the        
   national security interests, the one-year moratorium on the use of      
   anti-personnel landmines by U.S. armed forces as required by section 580
   of the Foreign Operations Appropriations Act of 1996.                   
    The Senate recedes.                                                    

                      Application of authorities under the International Emergency 
           Economic Powers Act to communist Chinese military companies (sec. 1237) 
       The Senate amendment contained provisions (secs. 3601 3602) that    
   would apply certain authorities under the International Emergency       
   Economic Powers Act (50 U.S.C. 1701 et seq .) to business entities      
   controlled by the People's Liberation Army of the People's Republic of  
   China, as well as require the Secretary of Defense to compile and       
   continually update a list, to be published in the Federal Register, of  
   the communist Chinese military companies that are operating, directly or
   indirectly, in the United States.                                       
    The House bill contained no similar provisions.                        

    The House recedes with a technical amendment.                          

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

           Cooperative Threat Reduction (CTR) program (secs. 1301 1309)            

       The budget request included $442.4 million for the Cooperative      
   Threat Reduction (CTR) program.                                         
       The House bill contained provisions (secs. 1301 1311) that would    
   authorize $417.4 million for the CTR program for fiscal year 1999, a    
   $25.0 million decrease to the budget request; allocate fiscal year 1999 
   funding for various CTR programs and activities; prohibit the use of    
   funds for specific activities; prohibit the use of funds for the        
   construction of a chemical weapons destruction facility in Russia and   
   reallocate a portion of these funds to additional strategic offensive   
   elimination projects in Russia and Ukraine; limit the availability of   
   CTR funds; require that future budget requests for CTR include a        
   descriptive summary and funding breakout of activities; would limit the 
   use of CTR funds until various reports, notifications and certifications
   are received by Congress; require a report on biological weapons        
   activities in Russia; limit the use of CTR funds for biological         
   proliferation prevention activities in Russia; and limit the use of CTR 
   funds for strategic offensive elimination activities in Russia and      
   Ukraine in excess of the budget request pending the receipt of a report.
       The Senate amendment would authorize $440.4 million, a $2.0 million 
   reduction to the budget request, and contained provisions (secs. 1036   
   and 1041) that would require the Secretary of Defense to report to the  
   congressional defense committees on the need for and the                

                    feasibility of programs to further U.S. nonproliferation      
          objectives regarding former Soviet experts in ballistic missiles and    
          weapons of mass destruction; and would authorize the Secretary of       
          Defense to provide assistance necessary to destroy, remove or obtain    
          from a country, weapons of mass destruction or materials, equipment or  
          technology related to the delivery or development of weapons of mass    
          destruction.                                                            
       The conferees agree to a series of provisions that would authorize  
   $440.4 million for the CTR program, establish sublimits for CTR         
   activities and provide the Secretary of Defense limited authority to    
   exceed established sublimits for fiscal year 1999, pending appropriate  
   Congressional notification.                                             
       In addition, the conferees prohibit CTR funds from being used for   
   activities related to peacekeeping activities with Russia, the provision
   of housing, assistance to promote environmental restoration, to promote 
   job retraining, or for the provision of assistance to Russia or any     
   other state of the former Soviet Union to promote defense conversion.   
   The conferees understand that the provision of housing for              
   decommissioned officers in Russia remains an issue for Russia as it     
   reduces its strategic military forces. Although the conferees reiterate 
   their strong belief that CTR funds should not be used to provide        
   housing, they encourage the appropriate agencies of the U.S. Government 
   with responsibility for this issue to explore the matter of providing   
   additional assistance as appropriate and urge the President to report to
   the Congress on any recommendations. The conferees will continue to     
   review this issue in the future.                                        
       The conferees agree to limit the use of funds for chemical weapons  
   destruction activities in Russia, pending a Presidential certification  
   regarding Russia's chemical weapons program. In addition, the Department
   of Defense is required to submit as part of the Secretary's annual      
   budget request to Congress a descriptive summary of the funds requested 
   for the CTR program, to include the use of prior years CTR funds.       
       With regard to biological proliferation prevention activities in    
   Russia, the conferees direct the Secretary of Defense to report to the  
   congressional defense committees by March 1, 1999 on Russia's compliance
   with international agreements related to biological weapons and to      
   provide an evaluation of the costs and benefits of collaborative        
   research efforts between the United States and Russia. In addition, the 
   conferees agree to limit the use of funds for biological weapons        
   prevention activities in Russia until 15 days after the Secretary of    
   Defense submits a report to the congressional defense committees        
   regarding the use of CTR funds for cooperative research activities at   
   biological research institutes in Russia.                               
       The conferees also agree to require the Secretary of Defense, in    
   consultation with the Secretary of Energy, to provide a report to the   
   congressional defense committees no later than January 1, 1999 on their 
   estimate of the number of individuals in the Former Soviet Union with   
   expertise in weapons of mass destruction and the risks posed by that    
   expertise if transferred to states potentially hostile to the United    
   States. The report would also include a description of the activities   
   conducted by the United States and other nations to assist in the       
   employment of these experts in nonproliferation and non-military related
   endeavors, and an assessment of such activities that should be reduced, 
   maintained or expanded.                                                 
       Lastly, the conferees agree to provide the Secretary of Defense     
   authority to use funds authorized for the CTR program to provide a      
   country of the Former Soviet Union with emergency assistance to remove  
   or obtain from that country weapons of mass destruction or materials,   
   equipment or technology related to the development or delivery of       
   weapons of mass destruction. The conferees agree that no funds          
   authorized for strategic offensive elimination activities in Russia or  
   Ukraine shall be used for this activity. Except in certain limited      
   situations, the Secretary of Defense shall not provide such assistance  
   until 15 days after written notification is received by the             
   congressional defense committees.                                       
           TITLE XIV--DOMESTIC PREPAREDNESS FOR DEFENSE AGAINST WEAPONS OF MASS   
                                   DESTRUCTION                                    
                               LEGISLATIVE PROVISIONS ADOPTED                     

           Defense against weapons of mass destruction (secs. 1401 1405)           

       The Department of Defense forwarded with its fiscal year 1999 budget
   request a number of legislative provisions to expand the ability of the 
   Department of Defense to respond to domestic terrorist activity and the 
   potential use by terrorists of weapons of mass destruction on U.S.      
   territory.                                                              
       The House bill contained a series of provisions (Title XIV) that    
   would express the findings of Congress regarding the threat of terrorist
   use of weapons of mass destruction and the need to enhance domestic     
   preparedness to respond to such incidents (sec. 1402), would direct the 
   President to increase the effectiveness of the domestic emergency       
   preparedness program and to report by January 31, 1999, the actions     
   taken to develop an integrated program for such response (sec. 1411),   
   would provide for an annual report on the program and recommendations   
   for its improvement (sec. 1412); and would require the assessment of the
   threat and risk of terrorist employment of weapons of mass destruction  
   against cities and other local areas (sec. 1413). The House bill would  
   also establish an Advisory Commission to Assess Domestic Response       
   Capabilities for Terrorism Involving Weapons of Mass Destruction to     
   provide recommendations to the President and the Congress for           
   improvements in Federal, State, and local domestic emergency            
   preparedness (secs. 1421 1429).                                         
    The Senate amendment contained no similar provisions.                  

       The conferees agree that there is a need to improve domestic        
   emergency preparedness to respond to the threat of terrorist use of     
   weapons of mass destruction in the United States. The conferees are also
   aware that nearly 40 Federal departments and agencies are involved in   
   combating terrorism (including the Departments of Justice, Defense,     
   Energy, Health and Human Services, and the Federal Emergency Management 
   Agency), and are concerned that the efforts of the Federal              

                    government to enhance domestic preparedness to respond to an  
          incident involving weapons of mass destruction are hampered by          
          incomplete interagency coordination and by the overlapping jurisdictions
          and missions of the various Federal departments and agencies. As a      
          consequence, the conferees are concerned that state and local emergency 
          response agencies are often presented with different and/or competing   
          requirements and program priorities from the responsible Federal        
          agencies.                                                               
       The conferees are also aware of the actions taken by the President  
   in Presidential Decision Directive 62, pursuant to direction contained  
   in section 1441 of the National Defense Authorization Act for Fiscal    
   Year 1997 (Public Law 104 201), to establish the office of the National 
   Coordinator for Security, Infrastructure Protection and                 
   Counter-Terrorism to oversee policies and programs in these areas.      
   However, the conferees are not aware of specific actions that have been 
   taken to insure an integrated, interagency program for improving        
   domestic emergency response to the potential terrorist threat. The      
   conferees are concerned that the Congress is not being kept adequately  
   informed of the activities of the National Coordinator and the status of
   efforts undertaken to implement the responsibilities of the Office,     
   pursuant to direction contained within section 1442 of the National     
   Defense Authorization Act for Fiscal Year 1997. The conferees direct the
   National Coordinator to provide the congressional defense committees    
   with a report by March 1, 1999 on the status of activities and efforts  
   undertaken to coordinate policy and countermeasures against the         
   proliferation of weapons of mass destruction.                           
       The conferees agree to provisions that would require the President  
   (sec. 1411) to increase the effectiveness of the domestic emergency     
   preparedness program at the Federal, State, and local levels by         
   establishing an integrated program built upon the program established   
   under the Defense Against Weapons of Mass Destruction Act of 1996, and  
   to submit a report to Congress by January 31, 1999 that outlines the    
   actions taken in this regard. The conferees also agree to a provision   
   (sec. 1412) that would amend the National Defense Authorization Act for 
   Fiscal Year 1998 (Public Law 105 85) to include an annex to the report  
   on oversight of counterterrorism and antiterrorism activities of the    
   Federal government, submitted by the Director of the Office of          
   Management and Budget, that would include information on the Federal    
   government domestic emergency response program, and any recommendations 
   for improving Federal, state and local domestic emergency response.     
       Further, the conferees agree to a provision (sec. 1413) that would  
   require the Attorney General, in consultation with the Director of the  
   Federal Bureau of Investigation and representatives of other Federal    
   agencies and departments, and state and local agencies, to develop and  
   test methodologies for assessing the threat and risk of terrorist       
   employment of weapons of mass destruction against cities and local      
   areas. Information from such assessments could be used to help determine
   the training and equipment requirements necessary for an effective      
   domestic emergency response program.                                    
       Finally, the conferees agree to a provision (sec. 1421) that would  
   require the Secretary of Defense, in consultation with the Attorney     
   General, the Secretary of Energy, the Secretary of Health and Human     
   Services, and the Director of the Federal Emergency Management Agency to
   enter into a contract with a federally funded research and development  
   center to establish a panel to assess the capabilities for domestic     
   response to terrorism involving weapons of mass destruction and to      
   report to the President and the Congress recommendations for            
   improvements in Federal, state, and local domestic emergency            
   preparedness for such response. The conferees emphasize the guidance in 
   the provision that the membership of the panel be drawn from private    
   citizens with knowledge and expertise in emergency response matters, and
   direct that the recommendations of the local emergency response         
   community be sought in the selection of the members of the panel.       
       Elsewhere in this Act, the conferees have included a provision (sec.
   511) that would provide expanded authority for use of the Reserve       
   Components to respond to domestic emergencies involving the use of      
   weapons of mass destruction.                                            
             TITLE XV--MATTERS RELATING TO ARMS CONTROL, EXPORT CONTROLS, AND     
                              COUNTERPROLIFERATION                                
                               LEGISLATIVE PROVISIONS ADOPTED                     

                              SUBTITLE A--ARMS CONTROL MATTERS                    

                      One-year extension of limitation on retirement or            
           dismantlement of strategic nuclear delivery systems (sec. 1501)         
       The Senate amendment contained a provision (sec. 1043) that would   
   extend by one year section 1302(e) of the National Defense Authorization
   Act for Fiscal Year 1998 (Public Law 105 85).                           
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

                      Transmission of executive branch reports providing Congress  
           with classified summaries of arms control developments (sec. 1502)      
       The House bill contained a provision (sec. 1032) that would direct  
   the Director of the Arms Control and Disarmament Agency (ACDA), or the  
   Secretary of State (if ACDA is merged into the Department of State), to 
   submit reports to Congress on a periodic basis summarizing the status of
   negotiations on arms control matters, and developments in the various   
   arms control forums, in which the United States is a participant. These 
   forums include the Joint Compliance and Inspection Commission, the Joint
   Verification Commission, the Open Skies Consultative Commission, the    
   Standing Consultative Commission, and the Joint Consultative Group.     
    The Senate amendment contained no similar provision.                   

    The Senate recedes with a clarifying amendment.                        


                      Report on adequacy of emergency communications capabilities  
           between the United States and Russia (sec. 1503)                        
       The Senate amendment contained a provision (sec. 1044) that would   
   express the sense of the Congress that a direct line of communications  
   between U.S. and Russian commanders of strategic forces would be a      
   useful confidence building tool, and would require the Secretary of     
   Defense to submit a report to the Committee on Armed Services of the    
   Senate and the House Committee on National Security on the feasibility  
   of initiating discussions between the United States and Russia on such a
   direct line of communication.                                           
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the Secretary
   of Defense to submit a report within three months of enactment of this  
   Act on the status and adequacy of current direct communications         
   capabilities between the governments of the United States and the       
   Russian Federation. The report is to include recommendations for        
   improvements, if necessary, to improve direct communications            
   capabilities. In addition, the report would include an assessment of the
   feasibility and the desirability of establishing communications links   
   between United States commanders in chief and their Russian             
   counterparts.                                                           
           Russian nonstrategic nuclear weapons (sec. 1504)                        

       The Senate amendment contained a provision (sec. 1070) that would   
   express concerns of the Senate that the Russian nonstrategic nuclear    
   arsenal, estimated to include around 7,000 to 12,000 tactical nuclear   
   weapons, may pose a great threat in the world if they are sold or are   
   stolen, and could become strategically destabilizing. Since the end of  
   the Cold War, the United States has unilaterally reduced its tactical   
   nuclear stockpile by almost ninety percent, and the Senate calls on the 
   Russian Federation to live up to its pledges in 1991 and 1992 to        
   implement steep reductions in its tactical nuclear stockpile. The       
   provision would require the Secretary of Defense to submit a report to  
   the Congress by March 15, 1999 on the current Russian Federation        
   tactical nuclear stockpile, including an assessment of the strategic    
   implications of using tactical nuclear weapons in a strategic role, as  
   well as an assessment of the Russian command and control of its tactical
   nuclear stockpile and the threat posed by the possible sale, or theft of
   tactical nuclear weapons, and past, current and planned efforts of the  
   United States to work cooperatively with the Russian Federation to      
   reduce its tactical nuclear stockpile and related fissile material.     
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would express the concerns 
   of the Congress that the vast Russian Federation tactical nuclear       
   stockpile poses a grave threat to the world, and that the Russian       
   Federation should live up to its pledges in 1991 and 1992 to            
   significantly reduce its tactical nuclear stockpile.                    
       In addition, the conferees direct the Secretary of Defense to submit
   a report to the Congress by March 15, 1999, including the views of the  
   Director of Central Intelligence and the commander of the United States 
   Strategic Command, on the current Russian Federation tactical nuclear   
   stockpile, assessing the strategic and destabilizing implications of the
   use of tactical nuclear weapons used in a strategic role. In addition,  
   the report should include an analysis of Russia's command and control of
   its tactical nuclear stockpile, and the threat posed by the theft, sale 
   or unauthorized use of the warheads of these weapons. Lastly, the report
   should include a summary of past, current, and planned U.S. efforts to  
   assist Russia in reducing its stockpile, as well as a summary of how the
   United States would cope militarily if Russia threatens to employ or    
   actually use its tactical nuclear weapons in a regional conflict        
   involving the United States or its allies.                              
                            SUBTITLE B--SATELLITE EXPORT CONTROLS                 

           Satellite export controls (secs. 1511 1516)                             

       The House bill contained provisions (secs. 1206 1209 and 1212)      
   regarding the export of satellites of U.S. origin and their launch on   
   space launch vehicles owned by the People's Republic of China (PRC). The
   provisions would prohibit the participation of U.S. persons in the      
   investigations of satellite launch failures; prohibit the export of     
   missile equipment and technology to the PRC; prohibit the export or     
   reexport of satellites, information, equipment and technology to the    
   PRC; and transfer the jurisdiction for licensing the export of          
   satellites and satellite components to the Department of State.         
    The Senate amendment contained no similar provisions.                  

       The conferees agree to transfer the jurisdiction for the export of  
   satellites to the U.S. Munitions List, administered by the Department of
   State, effective March 15, 1999, and direct the Secretary of State, in  
   consultation with the Secretary of Defense and the Secretary of         
   Commerce, to report to the Congress by January 1, 1999 on steps         
   necessary to implement the transfer in a manner that will permit timely 
   and orderly processing of applications for export licenses, consistent  
   with current law. The conferees understand that the transfer of these   
   advanced technologies to the jurisdiction of the Department of State may
   result in the need for additional personnel to assist in the evaluation 
   of license applications. To provide additional resources for this       
   purpose, the conferees agree to a provision that would amend section 45 
   of the State Department Basic Authorities Act of 1956 to allow the      
   Office of Defense Trade Controls of the Department of State to retain   
   all registration fees, which are to be used for the payment of expenses 
   incurred in acquiring additional personnel to evaluate and process      
   license applications, as well as to improve the monitoring of compliance
   with the terms of the licenses.                                         
       The conferees also agree to a provision that would require the      
   President to certify to Congress in advance of any export to the PRC of 
   missile technology or equipment, as defined in section 74 of the Arms   
   Export Control Act, that the export will not be detrimental to          

                    the U.S. space launch industry and that the export will not   
          measurably improve the missile or space launch capabilities of the PRC. 
          The conferees note that this certification is not, and is not intended  
          to be, a prohibition on the export of U.S. satellites to be launched by 
          the PRC, but is intended to ensure that U.S. national security would not
          be jeopardized by any such export.                                      
       In addition to the transfer of jurisdiction to the U.S. Munitions   
   List, the conferees direct the President to implement a series of       
   actions to improve the national security controls on the export         
   licensing of satellites and their related items not later than 45 days  
   after enactment of this Act. These actions include, among other         
   requirements, ensuring the full reimbursement to the Department of      
   Defense for the costs of providing launch monitoring services, to ensure
   that no unauthorized transfer of technology occurs, by the person or    
   entity receiving such services with respect to a satellite launch in a  
   foreign country. The provision also requires the Secretary of Defense to
   establish a program to recruit, train and maintain a staff of personnel 
   dedicated to monitoring foreign launches of U.S. satellites. The        
   conferees agree to provide an exception to these increased national     
   security controls to countries that are members of NATO or are major    
   non-NATO allies of the United States.                                   
       The President is authorized by section 902 of the Foreign Relations 
   Authorization Act for Fiscal Years 1990 and 1991 to waive certain       
   restrictions regarding the export of satellites to China, but must      
   report to the Congress on the waiver of these restrictions. In addition 
   to the report required by section 902(b), the conferees agree that a    
   detailed justification shall accompany this report setting forth        
   information related to the militarily-sensitive characteristics         
   integrated within or associated with the satellite, an estimate of the  
   number of U.S. personnel necessary in-country to monitor the proposed   
   launch, a description of the U.S. Government's plan to monitor the      
   proposed launch, the estimated cost to the Department of Defense to     
   provide monitors for the launch and the amount to be reimbursed to the  
   Department, and the national security interests for launching the       
   satellite in a foreign country. The conferees direct the President to   
   include information in the report regarding the impact of the export of 
   satellites to the PRC on U.S. employment, including the creation of jobs
   in the United States or, in the event of a denial of an export license, 
   the loss of jobs in the United States. Additionally, the report is to   
   include information related to the balance of trade between the United  
   States and the PRC and the transition of the PRC from a nonmarket       
   economy to a market economy.                                            
       Lastly, the conferees understand that, with transfer of satellites  
   and related items to the U.S. Munitions List, and the enhanced role of  
   the Department of Defense in export control activities, there may be a  
   requirement for additional personnel in the Defense Technology Security 
   Administration (DTSA) (or any successor organization), to assist in the 
   evaluation of license applications, as well as to monitor the foreign   
   launches of U.S. satellites. The conferees expect the Department to     
   include in its report to the congressional defense committees any       
   requirements for additional personnel. Additionally, the conferees      
   believe that the Department may have available through the On-Site      
   Inspection Agency (OSIA) personnel who would be suitable to perform such
   monitoring tasks, as required by this Act, and direct the Department to 
   report on the possibility of using OSIA personnel in the monitoring of  
   foreign launches, as well as in the evaluation of, and compliance with, 
   license applications.                                                   
       The conferees emphasize that the agreement to transfer commercial   
   communication satellites and their related items from the Commerce      
   Control List to the Munitions List is not done with the intention of    
   penalizing or harming an important U.S. industry or the competitive     
   posture of the U.S. satellite industry. Rather, it is the intention of  
   the conferees to affirm the importance of U.S. national security        
   interests in considering the export of advanced technology to foreign   
   countries, which might enhance or contribute to their military          
   capabilities.                                                           
                          SUBTITLE C--OTHER EXPORT CONTROL MATTERS                

                      Authority for export control activities of the Department of 
           Defense (sec. 1521)                                                     
       The House bill contained a provision (sec. 904) that would invest in
   the Under Secretary of Defense for Policy responsibility for the overall
   supervision of activities of the Department of Defense relating to      
   export controls and require a report on the plans of the Secretary of   
   Defense to implement this provision.                                    
    The Senate amendment contained no similar provision.                   

       The conferees agree to a provision that would establish a Deputy    
   Under Secretary of Defense for Technology Security Policy, whose        
   principal responsibilities would include the supervision and direction  
   of activities of the Defense Technology Security Administration, or any 
   successor organization charged with similar responsibilities, and other 
   activities of the Department of Defense related to export controls.     
   Because the position does not require Senate confirmation, the conferees
   express their view that this position be filled by a qualified          
   individual with knowledge of the military implications of technology    
   exports. The Secretary of Defense would be required to report to the    
   congressional defense committees on the plans for implementing this     
   provision, to include any organizational changes to the Department, and 
   a description of the role of the Chairman of the Joint Chiefs of Staff  
   in the export control activities of the Department of Defense.          
                      Release of export information by the Department of Commerce  
           to other agencies for the purpose of national security assessment (sec. 
           1522)                                                                   
       The House bill contained a provision (sec. 1213) that would require 
   the Secretary of Commerce to transmit post-export information to the    
   Director of Central Intelligence, the Secretary of Defense, and the     
   Secretary of Energy for the purpose of conducting national              

                    security risk assessments within five days of receiving a     
          request for such information. The provision would also allow the        
          Director of Central Intelligence, the Secretary of Defense, and the     
          Secretary of Energy to delegate authority to other officials within     
          their respective departments or agencies to request such information    
          from the Department of Commerce.                                        
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the         
   Department of Commerce to respond within 10 days of receiving a request 
   for such information in order to conduct national security risk         
   assessments. The amendment would expand the officials authorized to     
   request information that is necessary to conduct national security risk 
   assessments, to include the Secretary of State.                         
           Nuclear export reporting requirement (sec. 1523)                        

       The House bill contained a provision (sec. 1216) that would require 
   prior congressional notification of the export or retransfer of special 
   nuclear materials or production facilities, as defined by the Atomic    
   Energy Agency Act of 1954, to any country that is not a member of the   
   Organization for Economic Cooperation and Development. The notification 
   would be accompanied by a report describing the details of the proposed 
   export, and would be submitted to the Congress at least 30 days prior to
   the proposed export unless the President determines that an emergency   
   exists which requires its immediate approval.                           
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the         
   President to notify Congress upon the granting of a license for the     
   export or re-export of nuclear material, technology or equipment by the 
   Nuclear Regulatory Commission to countries determined by the President  
   to have detonated nuclear explosive devices and that are not members of 
   the North Atlantic Treaty Organization (NATO).                          
                      Execution of objection authority within the Department of    
           Defense (sec. 1524)                                                     
       The House bill contained a provision (sec. 1214) that would amend   
   section 1211 of the National Defense Authorization Act for Fiscal Year  
   1998 to provide authority to the Secretary of Defense to delegate       
   objection authority to a Department of Defense official at the Assistant
   Secretary level with regard to the export or re-export of digital       
   computers with a composite theoretical performance level of more than   
   2000 millions of theoretical operations per second (MTOPS), or such     
   other composite theoretical performance level that may be subsequently  
   established by the President.                                           
    The Senate amendment contained no similar provision.                   

    The Senate recedes with a technical amendment.                         

                          SUBTITLE D--COUNTERPROLIFERATION MATTERS                

                      One-year extension of counterproliferation authorities for   
           support of United Nations Special Commission on Iraq (sec. 1531)        
       The House bill contained a provision (sec. 1204) that would extend  
   the authority of the Department of Defense to provide support to the    
   United Nations Special Commission on Iraq (UNSCOM) under the Weapons of 
   Mass Destruction Control Act of 1992 for one year.                      
    The Senate amendment contained a similar provision (sec. 1042).        

    The Senate recedes with a clarifying amendment.                        

       The conferees support the extension of this authority given efforts 
   by Iraq to preserve a weapons of mass destruction capability and its    
   interference with the work of the Special Commission. The conferees     
   raise concerns that the weapons inspection process has been hampered by 
   Iraq's flagrant violation of its obligations under the United Nations   
   Security Council resolutions and its efforts to seek modifications to   
   the inspections regime through the expulsion of U.S. inspectors and the 
   suspension of the monitoring program.                                   
       The conferees endorse concerns expressed in the House report (H.    
   Rept. 105 532) regarding continued provision of support by the          
   Department of Defense for UNSCOM activities. The conferees agree that   
   the United States should more vigorously undertake efforts to negotiate 
   an agreement with the United Nations to reimburse the Department of     
   Defense for expenses incurred in providing support to UNSCOM.           
       The conferees direct the Secretary of Defense, in consultation with 
   the Secretary of State, to submit a report to the congressional defense 
   committees by December 1, 1998 describing the efforts undertaken by the 
   Department of Defense to seek reimbursement, the specific support       
   activities for which reimbursement would be requested, and the results  
   of discussions with United Nations officials on the request of the      
   United States Government.                                               
           Sense of Congress on Nuclear Tests in South Asia (sec. 1532)            

       The Senate amendment contained a provision (sec. 1071) that would   
   express the sense of the Senate with regard to condemning India and     
   Pakistan for testing nuclear devices and calling for cessation of       
   nuclear testing, steps to prevent the transfer of technology that could 
   further exacerbate the arms race in South Asia, U.S. and international  
   mediation to promote peace and stability in South Asia and to resolve   
   the dispute over Kashmir, the reevaluation of U.S. bilateral relations  
   with both nations, and for India and Pakistan to establish active       
   dialogue on differences to minimize the potential for future conflict.  
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would update and clarify   
   the provision as a sense of Congress.                                   
                      Report on requirements for response to increased missile     
           threat in Asia-Pacific region (sec. 1533)                               
       The Senate amendment contained a provision (sec. 1086) that would   
   require the Secretary of Defense to conduct a study of architecture     
   requirements for the establishment and operation of a theater ballistic 
   missile defense system in the Asia-Pacific region that would have the   
   capability to protect key regional allies of the United States.         
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

       The conferees understand the phrase ``key regional allies of the    
   United States'' to include Japan, South Korea, and Taiwan.              
                      DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS            

                                 OVERVIEW                                

       The budget request for fiscal year 1999 included $7,778,074,000 for 
   military construction and family housing.                               
       The House bill would authorize $8,228,074,000 for military          
   construction and family housing.                                        
    The Senate amendment would provide $8,463,940,000 for this purpose.    

       The conferees recommend authorization of appropriations of          
   $8,443,742,000 for military construction and family housing, including  
   general reductions and termination of prior year projects.              

   Offset Folios 1405 to 1422 insert here                                  




   1999 Amended Budget Estimates--FY 1999 BRAC Military Construction Projects   
                            [In thousands of dollars]                           

Component/State/Project Description                         BRAC round       Amount  

    NAVY BRAC III CONSTRUCTION, FISCAL YEAR 1999                                         
 Nevada:                                                                             
 Naval Air Station, Fallon:                                                           
Bachelor Office Quarters Phase II (P XX1T)                  III              11,100  
                                                            ------------  ---------  
Subtotal Navy Nevada                                                         11,100  
Total for Navy Construction, FY 1999                                         11,100  
    ARMY BRAC IV CONSTRUCTION, FISCAL YEAR 1999                                          
 Alaska:                                                                             
 Fort Greely:                                                                         
Munitions Storage Facility (PN 47461)                       IV                1,550  
                                                            ------------  ---------  
Subtotal Army Alaska                                                          1,550  
 Colorado:                                                                           
 Fitzsimons Army Medical Center:                                                      
Warehouse Addition (PN 47653)                               IV                1,550  
Reserve Center (PN 50296)                                   IV                2,750  
                                                            ------------  ---------  
Subtotal Army Colorado                                                        4,300  
 Indiana:                                                                            
 Crane Army Ammunition Activity:                                                      
Surveillance Test Facility (PN 50057)                       IV                1,850  
                                                            ------------  ---------  
Subtotal Army Indiana                                                         1,850  
 Maryland:                                                                           
 Fort Detrick:                                                                        
Physical Fitness Center (PN 48153)                          IV                3,050  
 Fort Meade:                                                                          
Administrative Facility DIS (PN 46307)                      IV               12,000  
Administrative Facility ESSD Renovation (PN 47770)          IV                2,900  
SDC W Renovation--Pershing Hall (PN 47237)                  IV                6,300  
                                                            ------------  ---------  
Subtotal Army Maryland                                                       24,250  
 New York:                                                                           
 Fort Totten:                                                                         
Storage Facility (PN 46258)                                 IV                1,900  
                                                            ------------  ---------  
Subtotal Army New York                                                        1,900  
 Pennsylvania:                                                                       
 Letterkenny Army Depot:                                                              
Enclave Fencing (PN 49714)                                  IV                1,150  
                                                            ------------  ---------  
Subtotal Army Pennsylvania                                                    1,150  
 Virginia:                                                                           
 Fort Pickett:                                                                        
Reserve Center (PN 46354)                                   IV                3,100  
 Fort Lee:                                                                            
WAC Museum (PN 50091)                                       IV                2,400  
                                                            ------------  ---------  
Subtotal Army Virginia                                                        5,500  
 Various Locations:                                         IV                2,350  
                                                            ------------  ---------  
Subtotal Army Various                                                         2,350  
Total for Army BRAC IV Construction, FY 1999                                 42,850  
    ARMY BRAC IV FAMILY HOUSING CONSTRUCTION, FY 1999                                    
 Alaska:                                                                             
 Fort Wainwright:                                                                     
Family Housing (PN 47530)                                   IV                1,700  
                                                            ------------  ---------  
Subtotal Army Family Housing Alaska                                           1,700  
Total Army Family Housing Construction, FY 1999                               1,700  
    NAVY BRAC IV CONSTRUCTION, FY 1999                                                   
 California:                                                                         
 Naval Air Weapons Station, Point Mugu:                                               
Aviation Support Facilities (260U)                          IV                1,500  
Maintenance and Training Facilities (261U)                  IV               12,800  
                                                            ------------  ---------  
Subtotal Navy California                                                     14,300  
 District of Columbia:                                                               
 Naval District of Washington:                                                        
NAVSEASYSCOM Headquarters Building Relocation (009U)        IV               71,543  
Subtotal Navy District of Columbia                                           71,543  
 Hawaii:                                                                             
 Naval Telecommunications Center, Makalapa:                                           
Building Addition (411U)                                    IV                  920  
                                                            ------------  ---------  
Subtotal Navy Hawaii                                                            920  
 New Jersey:                                                                         
 McGuire AFB:                                                                         
Defense Courier Service Building (935U)                     IV                  850  
                                                            ------------  ---------  
Subtotal Navy New Jersey                                                        850  
 Tennessee:                                                                          
 Naval Support Activity, Memphis:                                                     
Building Renovation (329U)                                  IV                4,200  
                                                            ------------  ---------  
Subtotal Navy Tennessee                                                       4,200  
 Texas:                                                                              
 Naval Air Station, Corpus Christi:                                                   
Sled Ramp Facility and Land Acquisition (421U)              IV               13,313  
                                                            ------------  ---------  
Subtotal Navy Texas                                                          13,313  
 Virginia:                                                                           
 Naval Station, Norfolk:                                                              
Building Renovations and Alterations (317U)                 IV                3,970  
 Naval Air Station, Oceana:                                                           
Strike Fighter Weapons School Additions (163U)              IV                4,073  
                                                            ------------  ---------  
Subtotal Navy Virginia                                                        8,430  
Total for Navy BRAC IV Construction, FY 1999                                131,169  
    AIR FORCE BRAC IV CONSTRUCTION, FY 1999                                              
 New York:                                                                           
 Stewart International Airport:                                                       
Communications Training Complex (WHAY 959635)               IV                6,000  
                                                            ------------  ---------  
Subtotal Air Force New York                                                   6,000  
 Oklahoma:                                                                           
 Tinker AFB:                                                                          
Alter Product Management (WWYK990032)                       IV                2,300  
Alter Engine Test Cell (WWYK993200)                         IV                3,800  
ADAL Fuel Air Facility (WWYK993201A)                        IV                1,300  
                                                            ------------  ---------  
Subtotal Air Force Oklahoma                                                   7,400  
 Texas:                                                                              
 Kelly AFB:                                                                           
Security Fence/Gates (MBPB 993205R1)                        IV                  400  
Vehicle OPS/Maintenance Complex (MBPB 993213R1)             IV                6,200  
Fuel Operations Facility (MBPB 993214R1)                    IV                1,200  
Reconfigure Utility Systems (MBPB 993230)                   IV                2,500  
                                                            ------------  ---------  
Subtotal Air Force Texas                                                     10,300  
 Utah:                                                                               
 Hill AFB:                                                                            
GTE Test Cell (KRSM 993009)                                 IV                2,100  
Alter Product Management/Composites (KRSM983102)            IV                5,300  
 117 Radar Facility (KRSM 983002)                           IV                1,100  
                                                            ------------  ---------  
Subtotal Air Force Utah                                                       8,500  
 Various Locations:                                                                  
Planning and Design (BCL 99RD4)                             IV                  700  
                                                            ------------  ---------  
Subtotal Air Force Various                                                      700  
Total Air Force BRAC IV Construction, FY 1999                                32,900  
    DEFENSE LOGISTICS AGENCY BRAC IV CONSTRUCTION, FY 1999                               
 Utah:                                                                               
 Defense Distribution Region West Defense Depot Hill, UT:                             
Deployable Medical Systems Warehouse                        IV               31,000  
                                                            ------------  ---------  
Subtotal Defense Logistics Agency Utah                                       31,000  
Total Defense Logistics Agency Construction, FY 1999                         31,000  


                                      TITLE XXI--ARMY                             

                                      FISCAL YEAR 1999                            

           Overview                                                                

       The House bill would authorize $2,010,036,000 for Army military     
   construction and family housing programs for fiscal year 1999.          
    The Senate amendment would authorize $2,037,965,000 for this purpose.  

       The conferees recommend authorization of appropriations of          
   $2,098,713,000 for Army military construction and family housing for    
   fiscal year 1999.                                                       
       The conferees agree to general reductions of $13,639,000 in the     
   authorization of appropriations for the Army military construction and  
   military family housing accounts. The reductions are to be offset by    
   savings from favorable bids, reduced overhead costs, and cancellations  
   due to force structure changes. The general reductions shall not cancel 
   any military construction authorized by title XXI of this Act.          
                        ITEMS OF SPECIAL INTEREST                        

           Improvements of Military Family Housing, Army                           

       The conferees recommend that, within authorized amounts for         
   improvements to military family housing and facilities, the Secretary of
   the Army execute the following projects: $7,400,000 for Whole           
   Neighborhood Revitalization (40 units) at Fort Richardson, Alaska;      
   $8,800,000 for Whole Neighborhood Revitalization Phase II (104 units) at
   Fort Campbell, Kentucky; and $3,650,000 for Whole Neighborhood          
   Revitalization (36 units) at White Sands Missile Range, New Mexico.     
                               LEGISLATIVE PROVISIONS ADOPTED                     

           Authorized Army construction and land acquisition projects (sec. 2101)  

       The House bill contained a provision (sec. 2101) that would         
   authorize Army construction projects for fiscal year 1999. The          
   authorized amounts are listed on an installation-by-installation basis. 
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

       The authorized amounts are listed on a installation-by-installation 
   basis. The state list contained in this report is intended to be the    
   binding list of the specific projects authorized at each location.      
           Family housing (sec. 2102)                                              

       The House bill included a provision (sec. 2102) that would authorize
   new construction and planning and design of family housing units for the
   Army for fiscal year 1999. The authorized amounts are listed on an      
   installation-by-installation basis.                                     
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

       The authorized amounts are listed on a installation-by-installation 
   basis. The state list contained in this report is intended to be the    
   binding list of the specific projects authorized at each location.      
           Improvements to military family housing units (sec. 2103)               

       The House bill contained a provision (sec. 2103) that would         
   authorize improvements to existing units of family housing for fiscal   
   year 1999.                                                              
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

           Authorization of appropriations, Army (sec. 2104)                       

       The House bill contained a provision (sec. 2104) that would         
   authorize specific appropriations for each line item contained in the   
   Army's budget for fiscal year 1999. This section would also provide an  
   overall limit on the amount the Army may spend on military construction 
   projects.                                                               
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

                      Modification of authority to carry out fiscal year 1998      
           projects (sec. 2105)                                                    
       The House bill contained a provision (sec. 2105) that would amend   
   the table in section 2101 of the Military Construction Authorization Act
   for Fiscal Year 1998 (division B of Public Law 105-85) to provide for an
   increase in the amount authorized for the construction of an aerial     
   gunnery range at Fort Drum, New York, and a whole barracks complex      
   renewal at Fort Sill, Oklahoma.                                         
       The Senate amendment contained a provision (sec. 2105) that would   
   provide for an increase in the amount authorized for the construction of
   the whole barracks complex renewal at Fort Sill, Oklahoma, due to a     
   change in scope.                                                        
    The Senate recedes with a technical amendment.                         

                                      TITLE XXII--NAVY                            

                                      FISCAL YEAR 1999                            

           Overview                                                                

       The House bill would authorize $1,776,726,000 for Navy military     
   construction and family housing programs for fiscal year 1999.          
    The Senate amendment would authorize $1,762,298,000 for this purpose.  


       The conferees recommend authorization of appropriations of          
   $1,812,476,000 for Navy military construction and family housing for    
   fiscal year 1999.                                                       
       The conferees agree to general reductions of $16,323,000 in the     
   authorization of appropriations for the Navy military construction and  
   military family housing accounts. The reductions are to be offset by    
   savings from favorable bids, reduction in overhead costs, and           
   cancellation of projects due to force structure changes. The general    
   reductions shall not cancel any military construction authorized by     
   title XXII of this Act.                                                 
                        ITEMS OF SPECIAL INTEREST                        

           Improvements of military family housing, Navy                           

       The conferees recommend that, within authorized amounts for         
   improvements to military family housing and facilities, the Secretary of
   the Navy execute the following projects: $10,000,000 for family housing 
   improvements (171 units) at Marine Corps Base, Camp Pendleton,          
   California; and $5,800,000 for family housing improvements (80 units) at
   Naval Air Station, Whidbey Island, Washington.                          
                               LEGISLATIVE PROVISIONS ADOPTED                     

           Authorized Navy construction and land acquisition projects (sec. 2201)  

       The House bill contained a provision (sec. 2201) that would         
   authorize Navy construction projects for fiscal year 1999. The          
   authorized amounts are listed on an installation-by-installation basis. 
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

       The authorized amounts are listed on a installation-by-installation 
   basis. The state list contained in this report is intended to be the    
   binding list of the specific projects authorized at each location.      
           Family housing (sec. 2202)                                              

       The House bill contained a provision (sec. 2202) that would         
   authorize new construction and planning and design of family housing    
   units for the Navy for fiscal year 1999. The authorized amounts are     
   listed on an installation-by-installation basis.                        
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

       The authorized amounts are listed on a installation-by-installation 
   basis. The state list contained in this report is intended to be the    
   binding list of the specific projects authorized at each location.      
           Improvements to military family housing units (sec. 2203)               

       The House bill contained a provision (sec. 2303) that would         
   authorize improvements to existing units of family housing for fiscal   
   year 1999. The authorized amounts are listed on an                      
   installation-by-installation basis.                                     
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

           Authorization of appropriations, Navy (sec. 2204)                       

       The House bill contained a provision (sec. 2204) that would         
   authorize specific appropriations for each line item in the Navy's      
   budget for fiscal year 1999. This section would also provide an overall 
   limit on the amount the Navy may spend on military construction         
   projects.                                                               
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

                      Authorization to accept road construction project, Marine    
           Corps Base, Camp Lejeune, North Carolina (sec. 2205)                    
       The House bill contained a provision (sec. 2205) that would         
   authorize the Secretary of the Navy to accept a road construction       
   project valued at $2,000,000 from the State of North Carolina at Marine 
   Corps Base, Camp Lejeune, North Carolina.                               
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                                   TITLE XXIII--AIR FORCE                         

                                      FISCAL YEAR 1999                            

           Overview                                                                

       The House bill would authorize $1,577,264,000 for Air Force military
   construction and family housing programs for fiscal year 1999.          
      The Senate amendment would authorize $1,729,050,000 for this purpose.

       The conferees recommend authorization of appropriations of          
   $1,679,978,000 for Air Force military construction and family housing   
   for fiscal year 1999.                                                   
       The conferees agree to general reductions of $24,584,000 in the     
   authorization of appropriations for the Air Force military construction 
   and military family housing accounts. The reductions are to be offset by
   savings from favorable bids, reduction in overhead costs, and           
   cancellation of projects due to force structure changes. The general    
   reductions shall not cancel any military construction authorized by     
   title XXIII of this Act.                                                
                        ITEMS OF SPECIAL INTEREST                        


           Improvements of military family housing, Air Force                      

       The conferees recommend that, within authorized amounts for         
   improvements to military family housing and facilities, the Secretary of
   the Air Force execute the following projects: $5,220,000 for family     
   housing improvements (68 units) at Moody Air Force Base, Georgia;       
   $8,000,000 for family housing improvements (70 units) at Seymour Johnson
   Air Force Base, North Carolina; and $9,110,000 for family housing       
   improvements (94 units) at Charleston Air Force Base, South Carolina.   
                               LEGISLATIVE PROVISIONS ADOPTED                     

                      Authorized Air Force construction and land acquisition       
           projects (sec. 2301)                                                    
       The House bill contained a provision (sec. 2301) that would         
   authorize Air Force construction projects for fiscal year 1999. The     
   authorized amounts are listed on an installation-by-installation basis. 
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

       The authorized amounts are listed on a installation-by-installation 
   basis. The state list contained in this report is intended to be the    
   binding list of the specific projects authorized at each location.      
           Family housing (sec. 2302)                                              

       The House bill contained a provision (sec. 2302) that would         
   authorize new construction and planning and design of family housing    
   units for the Air Force for fiscal year 1999.                           
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

       The authorized amounts are listed on a installation-by- installation
   basis. The state list contained in this report is intended to be the    
   binding list of the specific projects authorized at each location.      
           Improvements to military family housing units (sec. 2303)               

       The House bill contained a provision (sec. 2303) that would         
   authorize improvements to existing units of family housing for fiscal   
   year 1999.                                                              
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

           Authorization of appropriations, Air Force (sec. 2304)                  

       The House bill contained a provision (sec. 2304) that would         
   authorize specific appropriations for each line item in the Air Force's 
   budget for fiscal year 1999. This section would also provide an overall 
   limit on the amount the Air Force may spend on military construction    
   projects.                                                               
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

                                TITLE XXIV--DEFENSE AGENCIES                      

                                      FISCAL YEAR 1999                            

           Overview                                                                

       The House bill would authorize $648,664,000 for Defense Agencies    
   military construction and family housing programs for fiscal year 1999. 
   The bill would also authorize $1,730,704,000 for base closure           
   activities.                                                             
       The Senate amendment would authorize $607,919,000 for this purpose. 
   The amendment would also authorize $1,725,704,000 for base closure      
   activities.                                                             
       The conferees recommend authorization of appropriations of          
   $585,358,000 for Defense Agencies military construction and family      
   housing for fiscal year 1999. The conferees also recommend authorization
   of appropriations of $1,630,902,000 for base closure activities.        
       The conferees agree to a general reduction of $13,300,000 in the    
   authorization of appropriations for the Defense Agencies military       
   construction account. The general reduction is to be offset by savings  
   from favorable bids and reduction in overhead costs. The conferees      
   further agree to a general reduction of $50,500,000 in the authorization
   of appropriations for the chemical demilitarization program. The        
   reduction to the entire chemical demilitarization program is based on   
   unobligated prior year funds and delays in obtaining the required       
   environmental and construction permits. The general reductions shall not
   cancel any military construction projects authorized by title XXIV of   
   this Act.                                                               
       The conferees agree to terminate $5,000,000 in prior year           
   authorization for the Military Unaccompanied Housing Improvement Fund.  
   The termination is due to the absence of specific project activity under
   this account.                                                           
       The conferees agree to a general reduction of $33,102,000 in the    
   authorization of appropriations for the Base Closure and Realignment    
   Accounts based on approved cost variations which accelerated six        
   construction projects from fiscal year 1999 to fiscal year 1998. The    
   conferees agree to an additional general reduction of $31,000,000 based 
   on revised economic assumptions. The conferees are aware that the       
   military departments have collected $35,700,000 more in proceeds from   
   land sales and leases at closing or realigning bases than reported in   
   the fiscal year 1999 budget request and recommend an adjustment in the  
   accounts to accommodate these revenues.                                 
                               LEGISLATIVE PROVISIONS ADOPTED                     


                      Authorized Defense Agencies construction and land acquisition
           projects (sec. 2401)                                                    
       The House bill contained a provision (sec. 2401) that would         
   authorize defense agencies construction projects for fiscal year 1999.  
   The authorized amounts are listed on an installation-by-installation    
   basis.                                                                  
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

       The authorized amounts are listed on a installation-by-installation 
   basis. The state list contained in this report is intended to be the    
   binding list of the specific projects authorized at each location.      
           Improvements to military family housing units (sec. 2402)               

       The House bill contained a provision (sec. 2402) that would         
   authorize the Secretary of Defense to make improvements to existing     
   units of family housing for fiscal year 1999.                           
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

           Energy conservation projects (sec. 2403)                                

       The House bill contained a provision (sec. 2403) that would         
   authorize the Secretary of Defense to carry out energy conservation     
   projects.                                                               
    The Senate amendment contained an identical provision.                 

    The conference agreement includes this provision.                      

           Authorization of appropriations, Defense Agencies (sec. 2404)           

       The House bill contained a provision (sec. 2404) that would         
   authorize specific appropriations for each line item in the Defense     
   Agencies' budget for fiscal year 1999. This section would also provide  
   an overall limit on the amount the Defense Agencies may spend on        
   military construction projects.                                         
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

                      Repeal of fiscal year 1997 authorization of appropriations   
           for certain military housing improvement program (sec. 2405)            
       The conferees include a provision which would amend section 2406(a) 
   of the Military Construction Authorization Act for Fiscal Year 1997     
   (division B of Public Law 104 201) to reduce the funding for the        
   Department of Defense Military Unaccompanied Housing Improvement Fund by
   $5,000,000. The amendment would also make certain conforming changes to 
   section 2404 of that Act.                                               
                      Modification of authority to carry out certain fiscal year   
           1995 projects (sec. 2406)                                               
       The House bill contained a provision (sec. 2405) that would amend   
   the table in section 2401 of the Military Construction Authorization Act
   for Fiscal Year 1995 (division B of Public Law 103 337), as amended, to 
   provide for an increase in the amount authorized for military           
   construction projects to support chemical weapons and munitions         
   destruction at Pine Bluff Arsenal, Arkansas, and Umatilla Army Depot,   
   Oregon.                                                                 
    The Senate amendment contained a similar provision.                    

    The House recedes.                                                     

                      Modification of authority to carry out fiscal year 1990      
           project (sec. 2407)                                                     
       The House bill contained a provision (sec. 2406) that would amend   
   the table in section 2401 of the Military Construction Authorization Act
   for Fiscal Years 1990 and 1991 (division B of Public Law 100 189) to    
   provide for an increase in the amount authorized for the construction of
   a replacement hospital at Naval Hospital, Portsmouth, Virginia.         
    The Senate amendment contained a similar provision.                    

    The Senate recedes with a clarifying amendment.                        

             TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT    
                                     PROGRAM                                      
                                      FISCAL YEAR 1999                            

           Overview                                                                

       The House bill would authorize $169,000,000 for the U.S.            
   contribution to the NATO Security Investment Program for fiscal year    
   1999.                                                                   
    The Senate amendment would authorize $158,000,000 for this purpose.    

       The conferees agree to authorize $154,000,000 million for the U.S.  
   contribution to the NATO Security Investment Program.                   
                               LEGISLATIVE PROVISIONS ADOPTED                     

                      Authorized North Atlantic Treaty Organization (NATO)         
           construction and land acquisition projects (sec. 2501)                  
       The House bill contained a provision (sec. 2501) that would         
   authorize the Secretary of Defense to make contributions to the North   
   Atlantic Treaty Organization Security Investment program in an amount   
   equal to the sum of the amount specifically authorized in section 2502  
   of H.R. 3616 and the amount of recoupment due to the United States for  
   construction previously financed by the United States.                  
    The Senate amendment contained an identical provision.                 

    The conference agreement includes this provision.                      


           Authorization of appropriations, NATO (sec. 2502)                       

       The House bill contained a provision (sec. 2502) that would         
   authorize appropriations of $169,000,000 as the United States           
   contribution to the North Atlantic Treaty Organization (NATO) Security  
   Investment Program.                                                     
    The Senate would authorize $158,000,000 for this purpose.              

       The conferees agree to authorize $154,000,000 for the United States 
   contribution to the NATO Security Investment Program.                   
                      TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES             

                                      FISCAL YEAR 1999                            

           Overview                                                                

       The House bill would authorize $309,025,000 for military            
   construction and land acquisition for fiscal year 1999 for the Guard and
   Reserve components.                                                     
    The Senate amendment would authorize $443,622,000 for this purpose.    

       The conferees recommend authorization of appropriations of          
   $480,315,000 for military construction and land acquisition for fiscal  
   year 1999. This authorization would be distributed as follows:          




          Army National Guard            $142,403,000



          Army Reserve                   102,119,000



          Naval and Marine Corps Reserve                31,621,000



          Air National Guard             169,801,000



          Air Force Reserve              34,371,000



       The conferees agree to a general reduction of $2,000,000 in the     
   authorization of appropriations for the Army National Guard military    
   construction account and $4,000,000 in the authorization of             
   appropriations for the Air National Guard military construction account.
   The general reductions are to be offset by savings from favorable bids, 
   reduction in overhead costs, and cancellation of projects due to force  
   structure changes. The general reductions shall not cancel any military 
   construction authorized by title XXVI of this Act.                      
                               LEGISLATIVE PROVISIONS ADOPTED                     

                      Authorized Guard and Reserve construction and land           
           acquisition projects (sec. 2601)                                        
       The House bill contained a provision (sec. 2601) that would         
   authorize appropriations for military construction for the guard and    
   reserve by service component for fiscal year 1999.                      
    The Senate amendment contained a similar provision.                    

    The conference agreement includes a similar provision.                 

       The state list contained in this report is intended to be the       
   binding list of the specific projects authorized at each location.      
                      Modification of authority to carry out fiscal year 1998      
           project (sec. 2602)                                                     
       The House bill contained a provision (sec. 2602) that would         
   authorize the Secretary of the Army to accept financial or in-kind      
   contributions from the State of Utah in connection with the construction
   of a reserve center and organizational maintenance shop in Salt Lake    
   City, Utah. The provision would also terminate the authorization for a  
   similar military construction project at Camp Williams, Utah authorized 
   in section 2601 of the Military Construction Authorization Act for      
   Fiscal Year 1998 (division B of Public Law 105 85).                     
    The Senate amendment contained a similar provision.                    

    The House and Senate recede.                                           

       The conferees include a provision that amends section 2603 of the   
   Military Construction Authorization Act for Fiscal Year 1998 (division B
   of Public Law 105 85) to direct the Secretary of the Army to enter into 
   an agreement under which the State of Utah agrees to provide financial  
   or in-kind contributions with regard to the construction of a reserve   
   center and organizational maintenance shop at an appropriate site in, or
   in the vicinity of, Salt Lake City, Utah.                               
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           National Guard Military Educational Facility, Fort Bragg, North Carolina

       The Senate amendment contained a provision (sec. 2603) that would   
   authorize $1,000,000 from the funds authorized for appropriations by    
   section 2601(1)(A) for the purpose of planning and design of a military 
   educational facility for the Army National Guard at Fort Bragg, North   
   Carolina.                                                               
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       The conferees note that this military educational facility requires 
   no additional funding for planning and design and urge the Secretary of 
   the Army to make every effort to include this construction requirement  
   in the fiscal year 2000 future years defense program.                   
                  TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS         

                               LEGISLATIVE PROVISIONS ADOPTED                     

                      Expiration of authorizations and amounts required to be      
           specified by law (sec. 2701)                                            
    The House bill contained a provision (sec. 2701) that would            


                    provide that authorizations for military construction         
          projects, repair of real property, land acquisition, family housing     
          projects and facilities, contributions to the North Atlantic Treaty     
          Organization Security Investment Program, and guard and reserve projects
          will expire on October 1, 2001, or the date of enactment of an Act      
          authorizing funds for military construction for fiscal year 2002,       
          whichever is later. This expiration would not apply to authorizations   
          for which appropriated funds have been obligated before October 1, 2001,
          or the date of enactment of an Act authorizing funds for these projects,
          whichever is later.                                                     
    The Senate amendment contained an identical provision.                 

    The conference agreement includes this provision.                      

                      Extension of authorizations of certain fiscal year 1996      
           projects (sec. 2702)                                                    
       The House bill contained a provision (sec. 2702) that would provide 
   for selected extension of certain fiscal year 1996 military construction
   authorizations until October 1, 1999, or the date of the enactment of an
   Act authorizing funds for military construction for fiscal year 2000,   
   whichever is later.                                                     
    The Senate amendment contained a similar provision.                    

    The House recedes with a technical amendment.                          

           Extension of authorization of fiscal year 1995 project (sec. 2703)      

       The House bill contained a provision (sec. 2703) that would provide 
   for selected extension of certain fiscal year 1995 military construction
   authorizations until October 1, 1999, or the date of the enactment of   
   the Act authorizing funds for military construction for fiscal year     
   2000, whichever is later.                                               
    The Senate amendment contained an identical provision.                 

    The conference agreement includes this provision.                      

           Effective date (sec. 2704)                                              

       The House bill contained a provision (sec. 2704) that would provide 
   that Titles XXI, XXII, XXIII, XXIV, XV, and XXVI of this bill shall take
   effect on October 1, 1998, or the date of the enactment of this Act,    
   whichever is later.                                                     
    The Senate amendment contained an identical provision.                 

    The conference agreement includes this provision.                      

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Authorization of additional military construction and        
           military family housing projects                                        
       The Senate amendment contained a provision (sec. 2704) that would   
   authorize for appropriation $200,000,000 in additional military         
   construction and military family housing projects for fiscal year 1999. 
    The House bill contained no similar provision.                         

    The House recedes and the Senate recedes.                              

       The conferees note that the disposition of the military construction
   projects contained in the Senate amendment is addressed by title XXI,   
   title XXII, and title XXIII of this Act where appropriate.              
                              TITLE XXVIII--GENERAL PROVISIONS                    

                               LEGISLATIVE PROVISIONS ADOPTED                     

            SUBTITLE A--MILITARY CONSTRUCTION AND MILITARY FAMILY HOUSING CHANGES 

                      Architectural and engineering services and construction      
           design (sec. 2801)                                                      
       The Senate amendment contained a provision (sec. 2801) that would   
   amend section 2807 (a) and (d) of title 10, United States Code, to      
   clarify the authority to use design funds after a project has been      
   authorized and to use design funds for the design portion of a          
   design-build contract. The provision would also clarify that            
   ``planning'' and ``study'' efforts associated with military construction
   projects are not authorized uses of design funds. The provision would   
   also amend 2807(b) of title 10, United States Code, to increase the     
   threshold for congressional notification for payment of architectural   
   and engineering services and construction design from $300,000 to       
   $500,000.                                                               
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would strike paragraph (a) 
   of the Senate amendment modifying section 2807(a) of title 10, United   
   States Code, regarding covered projects.                                
           Expansion of Army overseas family housing lease authority (sec. 2802)   

       The Senate amendment contained a provision (sec. 2802) that would   
   amend section 2828(e) of title 10, United States Code, to authorize the 
   Secretary of the Army to increase, by no more than 500 family housing   
   units in Italy and no more than 800 family housing units in Korea, the  
   number of leases for which the maximum amount is $25,000 per unit per   
   year.                                                                   
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Definition of ancillary supporting facilities under the      
           alternative authority for acquisition and improvement of military       
           housing (sec. 2803)                                                     
       The House bill contained a provision (sec. 2801) that would amend   
   section 2871 of title 10, United States Code, to clarify that the       
   development of ancillary supporting facilities in military housing      

                    projects undertaken under the authority of subchapter IV,     
          chapter 169 of title 10, United States Code, may include the development
          of educational facilities to support the needs of dependents of military
          personnel.                                                              
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Purchase of build-to-lease family housing at Eielson Air     
           Force Base, Alaska (sec. 2804)                                          
       The Senate amendment contained a provision (sec. 2831) that would   
   authorize the Secretary of the Air Force to purchase a 366-unit military
   family housing development at Eielson Air Force Base, Alaska,           
   constructed and leased by the Secretary under the authority provided by 
   section 801 of the Military Construction Authorization Act for Fiscal   
   Year 1984 (Public Law 98 115). The purchase price of the housing        
   development would be an amount equal to the amount of the outstanding   
   indebtedness of the developer for the project which would remain at the 
   time of the purchase if the developer had paid down the indebtedness to 
   the lender according to the original payment schedule for the project.  
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Report relating to improvement of housing for unaccompanied  
           members (sec. 2805)                                                     
       The Senate amendment contained a provision (sec. 2834) that would   
   require the Secretary of Defense to submit a report on the costs and    
   benefits of implementing the initiative to build single occupancy       
   barracks rooms with shared bath, generally known as the ``one-plus-one''
   barracks initiative. The provision would prohibit the Secretary from    
   requesting additional funding for the ``one-plus-one'' barracks         
   initiative unless he certifies that it is necessary to assure retention,
   in adequate numbers, of first-term enlisted members of the Armed Forces.
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would broaden the scope of 
   the report to include the plans of the military departments to improve  
   unaccompanied military personnel housing, a cost comparison of          
   implementing the ``one-plus-one'' initiative versus improving existing  
   facilities, and an assessment of the authorities provided by subchapter 
   IV of chapter 169 of title 10, United States Code. The report would     
   include the views of the chiefs and senior enlisted members of each of  
   the military services regarding the impact of the quality of            
   unaccompanied military housing on readiness and retention of enlisted   
   members of the Armed Forces. The amendment would also strike the        
   requirement for the Secretary to certify that the ``one-plus-one''      
   initiative assures the retention of first-term enlisted members in      
   sufficient numbers.                                                     
                   SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION        

                      Exceptions to real property transaction reporting            
           requirements for war and certain emergency and other operations (sec.   
           2811)                                                                   
       The Senate amendment contained a provision (sec. 2812) that would   
   amend section 2662 of title 10, United States Code, to waive the        
   reporting requirements for certain real estate transactions. The        
   provision would modify the reporting requirements in the event of a     
   declaration of war, a national emergency, a natural disaster, a         
   contingency operation, or a civil disturbance. In the event the         
   secretary of a military department enters into a real property agreement
   under these conditions, the secretary would be required to submit a     
   report on the agreement to the Committee on the Armed Services of the   
   Senate and the National Security Committee of the House of              
   Representatives, not later than 30 days after entering into the         
   agreement.                                                              
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

                      Restoration of Department of Defense lands used by another   
           federal agency (sec. 2812)                                              
       The House bill contained a provision (sec. 2811) that would amend   
   section 2662 of title 10, United States Code, to provide the authority  
   for the secretary of a military department to require, as a condition of
   a lease, permit, license, or other grant of access to lands under the   
   control of the secretary to another federal agency, the removal of any  
   improvements or the taking of any corrective action necessary to restore
   the land used by another federal agency to the condition the land was in
   prior to such use.                                                      
       The Senate amendment contained a similar provision (sec. 2814) that 
   would amend section 2691 of title 10, United States Code, to authorize  
   the secretary of the military department concerned to require users of  
   Department of Defense lands to restore lands upon expiration of their   
   use or to reimburse the military department for performing the          
   restoration.                                                            
    The House recedes.                                                     

                      Outdoor recreation development on military installations for 
           disabled veterans, military dependents with disabilities, and other     
           persons with disabilities (sec. 2813)                                   
       The House bill contained a provision (sec. 2812) that would amend   
   section 103 of the Sikes Act (10 U.S.C. 670c) to ensure, to the maximum 
   extent practicable, that opportunities for outdoor recreation on        
   military installations would be equally available without substantial   
   modification of the natural environment, to disabled veterans, military 
   dependents with disabilities, and other persons with disabilities.      

    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would limit donations to  
   items of real or personal property.                                     
       The conferees expect the Secretary of Defense to fund the           
   requirements of this provision without increasing amounts previously    
   planned for activities under the Sikes Act.                             
                      Report on leasing and other alternative uses of non-excess   
           military property (sec. 2814)                                           
       The Senate amendment contained a provision (sec. 2836) that would   
   require the Secretary of Defense to submit, not later than February     
   1999, a report on the Department of Defense's use of the authority      
   provided by section 2667 of title 10, United States Code. The report    
   would address the number and purpose of leases entered into under       
   section 2667, the type and amount of payments received, the cost, if    
   any, foregone as a result of the leases, the positive and negative      
   aspects of leasing, the efforts to promote these type leases to the     
   private sector, any legislative proposal to enhance the Department's    
   capability to lease to the private sector, an estimate of income that   
   could potentially be accrued as a result of enhanced leasing capability,
   and a discussion on retaining any income from these leases at the       
   installation.                                                           
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the Secretary
   of Defense to submit a report regarding the authority of the military   
   departments and Defense Agencies to lease to the private sector         
   non-excess real and personal property. The report would be prepared in  
   consultation with the secretaries of the military departments and the   
   Director of the Office of Management and Budget. The amendment would    
   include an assessment of the proposal by the Secretary of the Air Force 
   to reduce infrastructure costs at Brooks Air Force Base, Texas, and the 
   proposal of the Secretary of the Navy regarding the potential for the   
   development of Ford Island as part of Naval Complex, Pearl Harbor,      
   Hawaii. The Secretary of Defense shall, as he considers appropriate,    
   also include proposed general legislative authority or authority to     
   conduct pilot projects based on the assessment made of the proposals for
   Brooks Air Force Base and Ford Island. The amendment would also make    
   certain technical and conforming changes.                               
                      Report on implementation of utility system conveyance        
           authority (sec. 2815)                                                   
       The House bill contained a provision (sec. 2813) that would require 
   the secretary of each military department to submit to Congress, not    
   later than March 1, 1999, a report with a description of the criteria to
   be used by the secretary in the selection of utility systems and related
   real property for conveyance pursuant to the authority provided by      
   section 2688 of title 10, United States Code, a description of the      
   manner in which the secretary will ensure that any such conveyance would
   not adversely affect the national security of the United States and a   
   list of utility systems which are likely to be conveyed.                
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would delete the          
   requirement for a report containing a list of the utility systems likely
   to be conveyed. The amendment would also direct the secretary of each   
   military department to assess the advisability of including associated  
   real property with the utility system to be conveyed.                   
                      SUBTITLE C--DEFENSE BASE CLOSURE AND REALIGNMENT            

                      Applicability of property disposal laws to leases at         
           installations to be closed or realigned under base closure laws (sec.   
           2821)                                                                   
       The Senate amendment contained a provision (sec. 2813) that would   
   amend section 2667(f)(1) of title 10, United States Code, to clarify    
   that the Federal Property and Administrative Services Act of 1949, does 
   not apply to the lease of excess property at closing or realigned       
   installations if the secretary of a military department determines that 
   such lease would facilitate state or local economic adjustment efforts. 
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

                      Elimination of waiver authority regarding prohibition against
           certain conveyances of property at Naval Station, Long Beach, California
           (sec. 2822)                                                             
       The House bill contained a provision (sec. 2822) that would amend   
   section 2826 of the Military Construction Authorization Act for Fiscal  
   Year 1998 (division B of Public Law 105 85) to eliminate the authority  
   of the President to waive the prohibition against the direct or indirect
   conveyance, by sale, lease, or other method, of real property at the    
   former Naval Station, Long Beach, California, under the authority       
   provided by the Defense Base Closure and Realignment Act of 1990 (part A
   of title XXIX of Public Law 101 510) to the China Ocean Shipping Company
   or any successor of that organization.                                  
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                      Payment of stipulated penalties assessed under CERCLA in     
           connection with McClellan Air Force Base, California (sec. 2823)        
       The House bill contained a provision (sec. 2821) that would         
   authorize the use of funds from the base realignment and closure account
   for the payment of a $15,000 stipulated penalty assessed under the      
   Comprehensive Environmental Response, Compensation and Liability Act of 
   1980 in connection with the closure of McClellan Air Force Base,        
   California.                                                             
    The Senate amendment contained a similar provision (sec. 324).         

    The Senate recedes.                                                    


                                SUBTITLE D--LAND CONVEYANCES                      

                                  PART I--ARMY CONVEYANCES                        

                      Modification of land conveyance, Army Reserve Center,        
           Youngstown, Ohio (sec. 2831)                                            
       The Senate amendment contained a provision (sec. 2830B) that would  
   authorize the Secretary of the Army to convey, without consideration, to
   the City of Youngstown, Ohio, a parcel of real property, including      
   improvements thereon, that is located at 399 Miller Street and contains 
   the Kefurt Army Reserve Center. The property is to be used for          
   educational purposes. The provision would also repeal section 2861 of   
   the Military Construction Authorization Act for Fiscal Year 1996        
   (division B of Public Law 104 106), which authorized a similar          
   conveyance for a different purpose.                                     
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would modify section       
   2861(b) of the Military Construction Authorization Act for Fiscal Year  
   1996 to authorize the conveyance for educational purposes.              
                      Release of interests in real property, former Kennebec       
           Arsenal, Augusta, Maine (sec. 2832)                                     
       The Senate amendment contained a provision (sec. 2824) that would   
   authorize the Secretary of the Army to release, without consideration,  
   all right, title, and interest of the United States in and to a parcel  
   of real property consisting of approximately 40 acres located in        
   Augusta, Maine, and formerly known as the Kennebec Arsenal. The         
   provision would remove conditions on the conveyance of the property to  
   permit the State of Maine and the City of Augusta to redevelop the      
   property in support of a museum and for commercial activities.          
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Release waiver, or conveyance of interests in real property, 
           former Redstone Army Arsenal property, Alabama (sec. 2833)              
       The House bill contained a provision (sec. 2837) that would         
   authorize the Secretary of the Army to release, without consideration   
   and to such extent necessary to protect the interests of the United     
   States, the reversionary interests of the United States in a parcel of  
   real property conveyed to the Alabama Space Science Exhibit Commission  
   pursuant to Public Law 90 276, section 813 of the Military Construction 
   Authorization Act, 1980 (Public Law 96 125), and section 813 of the     
   Military Construction Authorization Act, 1984 (Public Law 98 115).      
    The Senate amendment contained no similar provision.                   

    The Senate recedes with a clarifying amendment.                        

                      Conveyance of utility systems, Lone Star Army Ammunition     
           Plant, Texas (sec. 2834)                                                
       The Senate amendment contained a provision (sec. 2830C) that would  
   authorize the conveyance, at fair market value, of all or part of the   
   utility systems at the Lone Star Army Ammunition Plant, Texas, to the   
   Redevelopment Authority for the Red River Army Depot in conjunction with
   the disposal of property at the Depot under the Defense Base Closure and
   Realignment Act of 1990 (part A of title XXIX of Public Law 101 510).   
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the fair     
   market value of the conveyed utility systems and any associated real    
   property to be determined by an independent appraisal. The amendment    
   would also make certain technical corrections.                          
                      Conveyance of water rights and related interests, Rocky      
           Mountain Arsenal, Colorado, for purposes of acquisition of perpetual    
           contracts for water (sec. 2835)                                         
       The Senate amendment contained a provision (sec. 2828) that would   
   authorize the Secretary of the Army to convey, with consideration, water
   rights at Rocky Mountain Arsenal, Colorado to the City and County of    
   Denver, Colorado. The provision would authorize the Secretary to replace
   the current unreliable water source at the Arsenal with a constant water
   supply, consistent with an agreement entered into by the Secretary to   
   provide water to local communities affected by environmental            
   contamination caused by the operation of the Arsenal. The provision     
   would also provide for a permanent water supply for the wildlife refuge 
   located at the Arsenal and water storage facilities.                    
    The House bill contained no similar provision.                         

    The House recedes.                                                     

           Land conveyance, Army Reserve Center, Massena, New York (sec. 2836)     

       The House bill contained a provision (sec. 2831) that would         
   authorize the Secretary of the Army to convey, without consideration, a 
   parcel of real property with improvements in Massena, New York, to the  
   Village of Massena. The property is to be used for recreational,        
   educational, or other public purposes. The cost of any surveys necessary
   for the conveyance would be borne by the Village.                       
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require a           
   reversionary interest of the United States for a five year period,      
   beginning on the date the Secretary makes the conveyance.               
           Land conveyance, Army Reserve Center, Ogdensburg, New York (sec. 2837)  

       The House bill contained a provision (sec. 2832) that would         
   authorize the Secretary of the Army to convey, without consideration, a 
   parcel of real property with improvements in Ogdensburg, New York, to   
   the Town of Ogdensburg. The property is to be used for                  

                    recreational, educational, or other public purposes. The cost 
          of any surveys necessary for the conveyance would be borne by the Town. 
      The Senate amendment contained no similar provision.                 

       The Senate recedes with an amendment that would require a           
   reversionary interest of the United States for a five year period,      
   beginning on the date the Secretary makes the conveyance.               
           Land conveyance, Army Reserve Center, Jamestown, Ohio (sec. 2838)       

       The House bill contained a provision (sec. 2833) that would         
   authorize the Secretary of the Army to convey, without consideration, a 
   parcel of real property with improvements in Jamestown, Ohio, to the    
   Greeneview Local School District. The property is to be used for        
   educational purposes. The cost of any surveys necessary for the         
   conveyance would be borne by the District.                              
      The Senate amendment contained no similar provision.                 

       The Senate recedes with an amendment that would require a           
   reversionary interest of the United States for a five year period,      
   beginning on the date the Secretary makes the conveyance. The amendment 
   would also make certain technical corrections.                          
           Land conveyance, Army Reserve Center, Peoria, Illinois (sec. 2839)      

       The Senate amendment contained a provision (sec. 2830) that would   
   authorize the Secretary of the Army to convey, without consideration, a 
   parcel of real property with improvements to Peoria School District     
   #150, Peoria, Illinois. The purpose of the conveyance would be for      
   education, training, maintenance, and transportation facilities. The    
   provision would contain a reversionary clause in the event that the     
   Secretary of the Army determines that the property is not used in       
   accordance with the condition of conveyance.                            
      The House bill contained no similar provision.                       

       The House recedes with an amendment that would limit the            
   reversionary interest of the United States to a five year period,       
   beginning on the date the Secretary makes the conveyance. The amendment 
   would also make certain technical corrections.                          
           Land conveyance, Army Reserve Center, Bridgton, Maine (sec. 2840)       

       The Senate amendment contained a provision (sec. 2822) that would   
   authorize the Secretary of the Army to convey, without consideration, a 
   parcel of excess real property with improvements consisting of          
   approximately 3.65 acres to the Town of Bridgton, Maine. The purpose of 
   the conveyance would be for public benefit to facilitate the expansion  
   of a municipal office complex. The provision would include a            
   reversionary clause in the event that the Secretary determines that the 
   conveyed property is not in accordance with the condition of conveyance.
      The House bill contained no similar provision.                       

       The House recedes with an amendment that would limit the            
   reversionary interest of the United States to a five year period        
   beginning on the date the Secretary makes the conveyance. The amendment 
   would also make certain technical corrections.                          
           Land conveyance, Fort Sheridan, Illinois (sec. 2841)                    

       The House bill contained a provision (sec. 2838) that would         
   authorize the Secretary of the Army to convey, at fair market value, to 
   the City of Lake Forest, Illinois, approximately 14 acres, including    
   improvement, known as the northern Army reserve enclave. The Secretary  
   of the Army would be authorized, subject to appropriations, to use the  
   proceeds from the conveyance to provide for the construction of         
   replacements facilities and for the relocation costs for reserve units  
   and activities affected by the conveyance.                              
      The Senate amendment contained no similar provision.                 

       The Senate recedes with an amendment that would require the         
   Secretary of the Army to submit a report to the congressional defense   
   committees certifying that the relocation of reserve units and          
   activities impacted by the conveyance is consistent with an approved    
   master plan for the consolidation of reserve activities in the vicinity 
   of Chicago, Illinois. The Secretary may not convey the property until 21
   days after the date he submits the report.                              
           Land conveyance, Skaneateles, New York (sec. 2842)                      

       The Senate amendment contained a provision (sec. 2830A) that would  
   authorize the Secretary of the Army to convey, without consideration, a 
   parcel of real property with improvements consisting of approximately   
   147 acres to the Town of Skaneateles, New York. The purpose of the      
   conveyance would be for recreational and educational purposes. The      
   provision would contain a reversionary clause in the event that the     
   Secretary of the Army determines that the property is not used in       
   accordance with the condition of conveyance.                            
      The House bill contained no similar provision.                       

       The House recedes with an amendment that would limit the            
   reversionary interest of the United States to a five year period,       
   beginning on the date the Secretary makes the conveyance. The amendment 
   would also make certain technical corrections.                          
                      Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
           Indiana (sec. 2843)                                                     
       The House bill contained a provision (sec. 2835) that would         
   authorize the Secretary of the Army to convey a parcel of real property 
   with improvements, consisting of approximately 4,660 acres at the       
   Indiana Army Ammunition Plant, Charlestown, Indiana, to the Indiana Army
   Ammunition Plant Reuse Authority. The property is to be used for        
   economic development purposes. As consideration for the conveyance, the 
   Authority would pay to the United States an amount equal to the fair    
   market value of the property at the end of the ten year period,         
   beginning on the date the conveyance is completed. The cost of any      
   surveys necessary for the conveyance, and any additional administrative 
   expenses, would be borne by the Authority. This                         

                    section would also amend section 2858(a) of the Military      
          Construction Authorization Act for Fiscal Year 1996 (division B of      
          Public Law 104 106), as amended, to authorize the Secretary of the Army 
          to convey, without consideration, an additional parcel of real property 
          consisting of approximately 2,000 acres at the Indiana Army Ammunition  
          Plant, Charlestown, Indiana, to the State of Indiana. The property is to
          be used for recreational purposes.                                      
      The Senate amendment contained a similar provision (sec. 2821).      

      The Senate recedes with a technical amendment.                       

                      Land conveyance, Volunteer Army Ammunition Plant,            
           Chattanooga, Tennessee (sec. 2844)                                      
       The House bill contained a provision (sec. 2836) that would         
   authorize the Secretary of the Army to convey a parcel of real property 
   with improvements, consisting of approximately 1,033 acres at the       
   Volunteer Army Ammunition Plant, Chattanooga, Tennessee, to Hamilton    
   County, Tennessee. The property is to be used for economic development  
   purposes. As consideration for the conveyance, the County would pay to  
   the United States an amount equal to the fair market value of the       
   property at the end of the ten year period, beginning on the date the   
   conveyance is completed. The cost of any surveys necessary for the      
   conveyance, and any additional administrative expenses, would be borne  
   by the County.                                                          
      The Senate amendment contained a similar provision (sec. 2823).      

      The House recedes.                                                   

                      Land conveyance, Stewart Army Sub-Post, New Windsor, New York
           (sec. 2845)                                                             
       The House bill contained a provision (sec. 2834) that would         
   authorize the Secretary of the Army to convey, without consideration, a 
   parcel of real property with improvements, consisting of approximately  
   391 acres, to the Town of New Windsor, New York. The property is to be  
   used for economic development purposes. The cost of any surveys         
   necessary for the conveyance would be borne by the Town.                
      The Senate amendment contained no similar provision.                 

       The Senate recedes with an amendment that would specify that the    
   purpose of the conveyance would be for economic development. The        
   amendment would include as a condition of conveyance that the Town agree
   to provide connections to local waste water and sewage treatment systems
   for existing and future improvements to property retained by the Army   
   Reserve and the Marine Corps. The Town would also provide waste water   
   and sewage services at rates established by the appropriate Federal or  
   State regulatory authority.                                             
                                  PART II--NAVY CONVEYANCES                       

                      Conveyance of easement, Marine Corps Base, Camp Pendleton,   
           California (sec. 2851)                                                  
       The House bill contained a provision (sec. 2841) that would         
   authorize the Secretary of the Navy to grant an easement in perpetuity  
   over a parcel of real property, consisting of approximately 340 acres,  
   to the Foothill/Eastern Transportation Corridor Agency. The easement is 
   to be used to permit the construction, operation, and maintenance of a  
   restricted access highway. As consideration for the easement, the Agency
   would pay to the United States an amount equal to the fair market value 
   of the easement. The cost of any surveys necessary for the easement     
   would be borne by the Agency.                                           
      The Senate amendment contained no similar provision.                 

      The Senate recedes with a technical amendment.                       

                      Land exchange, Naval Reserve Readiness Center, Portland,     
           Maine (sec. 2852)                                                       
       The House bill contained a provision (sec. 2842) that would         
   authorize the Secretary of the Navy to convey a parcel of real property,
   with improvements, consisting of approximately 3.72 acres, to the Gulf  
   of Maine Aquarium Development Corporation. As consideration for the     
   conveyance, the Corporation would pay to the United States an amount    
   equal to the fair market value of the property. The Secretary would use 
   the funds paid by the Corporation for the design, construction, or      
   acquisition of facilities suitable for use by the Naval Reserve.        
       The Senate amendment contained a similar provision (sec. 2825) that 
   would authorize the Secretary of the Navy to convey a parcel of real    
   property consisting of approximately 3.72 acres, including adjacent     
   submerged lands, and the Naval Reserve Readiness Center, in Portland,   
   Maine, to the Gulf of Maine Aquarium Development Corporation, Portland, 
   Maine, for the purpose of establishing an aquarium and research         
   facility. In exchange for the conveyance, the corporation would provide 
   replacement facilities for the Naval Reserve, as the Secretary          
   determines appropriate.                                                 
       The House recedes with an amendment that would require the Secretary
   of the Navy to provide a report to the congressional defense committees 
   on the terms and conditions of the agreement between the Secretary and  
   the Corporation. The Secretary may not convey the property until 21 days
   after the date he submits the report.                                   
                      Land conveyance, Naval and Marine Corps Reserve facility,    
           Youngstown, Ohio (sec. 2853)                                            
       The House bill contained a provision (sec. 2843) that would         
   authorize the Secretary of the Navy to convey, without consideration, a 
   parcel of real property with improvements in Youngstown, Ohio, to the   
   City of Youngstown, Ohio. The purpose of the conveyance would be for    
   educational purposes. The cost of any survey necessary for the          
   conveyance would be borne by the city.                                  
      The Senate amendment contained no similar provision.                 

       The Senate recedes with an amendment that would require a           
   reversionary interest of the United States for a five year period,      
   beginning on the date the Secretary makes the conveyance. The           

          amendment would also make certain technical corrections.                

                      Land conveyance, Naval Air Reserve Center, Minneapolis,      
           Minnesota (sec. 2854)                                                   
       The Senate amendment contained a provision (sec. 2829) that would   
   authorize the Secretary of the Navy to convey or lease a parcel of real 
   property, with improvements consisting of approximately 32 acres,       
   comprising the Naval Air Reserve Center, Minneapolis, Minnesota, to the 
   Minneapolis-St. Paul Metropolitan Airports Commission. The purpose of   
   the conveyance would be for expansion of the Minneapolis-St. Paul       
   International Airport. In consideration, the Commission shall provide a 
   replacement facility, acceptable to the Secretary of the Navy, to be    
   used as a Naval Air Reserve Center. The provision would also require the
   Commission to assume the relocation expenses.                           
      The House bill contained no similar provision.                       

       The House recedes with an amendment that would modify the           
   alternative lease authority. The amendment would also include a         
   notice-and-wait provision and make certain technical corrections.       
                               PART III--AIR FORCE CONVEYANCES                    

                      Modification of land conveyance authority, Eglin Air Force   
           Base, Florida (sec. 2861)                                               
       The Senate amendment contained a provision (sec. 2827) that would   
   amend the Military Construction Authorization Act, 1979 (Public Law 95  
   356), as amended by the Military Construction Authorization Act, 1989   
   (division B of Public Law 100 456), to authorize the conveyance, at fair
   market value, of an additional parcel of real property consisting of    
   approximately four acres at Eglin Air Force Base, Florida, to the Air   
   Force Enlisted Men's Widows and Dependents Home Foundation, Inc.        
      The House bill contained no similar provision.                       

      The House recedes.                                                   

                      Modification of land conveyance, Finley Air Force Station,   
           North Dakota (sec. 2862)                                                
       The Senate amendment contained a provision (sec. 2830D) that would  
   amend section 2835 of the Military Construction Authorization Act for   
   Fiscal Year 1995 (division B of Public Law 103 337) to authorize the    
   Secretary of the Air Force to convey, without consideration, to the City
   of Finley, North Dakota, three parcels of real property with            
   improvements consisting of approximately 77 acres. The purpose of the   
   conveyance would be for economic development. The provision would       
   contain a reversionary clause in the event that the Secretary of the Air
   Force determines that the property is not used in accordance to the     
   condition of conveyance. The Secretary would be authorized to abate any 
   hazardous substance in the improvements to be conveyed.                 
      The House bill contained no similar provision.                       

       The House recedes with an amendment that would limit the            
   reversionary interest of the United States to a five year period,       
   beginning on the date the Secretary makes the conveyance. The amendment 
   would also strike section (c) regarding authority to conduct abatement  
   of hazardous substances. The conferees note that the Secretary of the   
   Air Force, under existing statute, has the authority and responsibility 
   to abate hazardous materials.                                           
           Land conveyance, Lake Charles Air Force Station, Louisiana (sec. 2863)  

       The House bill contained a provision (sec. 2851) that would         
   authorize the Secretary of the Air Force to convey, without             
   consideration, a parcel of real property with improvements, consisting  
   of approximately 4.38 acres, at Lake Charles Air Force Station,         
   Louisiana, to McNeese State University. The property is to be used for  
   educational purposes and for agricultural research. The cost of any     
   surveys necessary for the conveyance would be borne by the University.  
       The Senate amendment contained a similar provision (sec. 2826). The 
   provision would condition the conveyance upon the acceptance by the     
   University of the property subject to such easements or rights of way as
   the Secretary considers appropriate. The provision would include a      
   reversion clause in the event that the Secretary determines that the    
   conveyed property is not used in accordance with the condition of       
   conveyance.                                                             
       The Senate recedes with an amendment that would require a           
   reversionary interest of the United States for a five year period,      
   beginning on the date the Secretary makes the conveyance.               
                      Land conveyance, Air Force Housing facility, La Junta,       
           Colorado (sec. 2864)                                                    
       The House bill contained a provision (sec. 2852) that would         
   authorize the Secretary of the Air Force to convey, without             
   consideration, a parcel of real property with improvements, consisting  
   of approximately 28 acres, to the City of La Junta, Colorado. The       
   property is to be used for housing and educational purposes. The cost of
   any surveys necessary for the conveyance would be borne by the City.    
      The Senate amendment contained no similar provision.                 

       The Senate recedes with an amendment that would require a           
   reversionary interest of the United States for a five year period,      
   beginning on the date the Secretary makes the conveyance. The amendment 
   would also make certain technical corrections.                          
                                  SUBTITLE E--OTHER MATTERS                       

                      Modification of authority relating to Department of Defense  
           laboratory revitalization demonstration program (sec. 2871)             

       The Senate amendment contained a provision (sec. 2833) that would   
   extend the authority relating to the Department of Defense Laboratory   
   Revitalization Demonstration Program authorized by section 2892 of the  
   Military Construction Authorization Act for Fiscal Year 1996 (division B
   of Public Law 104 106) for a five year period, ending on September 30,  
   2003. The provision would require the Secretary of Defense to submit a  
   report, not later than February 1, 2003, on the desirability of making  
   the program permanent.                                                  
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Repeal of prohibition on joint use of Gray Army Airfield,    
           Fort Hood, Texas, with civil aviation (sec. 2872)                       
       The House bill contained a provision (sec. 2861) that would repeal  
   the prohibition on joint military-civilian use of Gray Army Airfield.   
    The Senate amendment contained a similar provision.                    

    The Senate recedes.                                                    

                      Modification of demonstration project for purchase of fire,  
           security, police, public works, and utility services from local         
           government agencies (sec. 2873)                                         
       The House bill contained a provision (sec. 2864) that would amend   
   section 816(b) of the National Defense Authorization Act for Fiscal Year
   1995 (Public Law 103 337), as amended, to extend the period under which 
   a demonstration project is authorized for the purchase of fire,         
   security, police, public works, and utility services from local         
   government at specified locations in Monterey, California.              
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would amend section 816 of
   the National Defense Authorization Act for Fiscal Year 1995, as amended,
   by adding new section that would terminate the demonstration project    
   effective September 30, 2000.                                           
                      Designation of building containing Navy and Marine Corps     
           Reserve Center, Augusta, Georgia (sec. 2874)                            
       The House bill contained a provision (sec. 2862) that would         
   designate the building housing the Navy and Marine Corps Reserve Center 
   in Augusta, Georgia, as the A. James Dyess Building.                    
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Expansion of Arlington National Cemetery                                

       The House bill contained a provision (sec. 2863) that would         
   authorize the transfer of real property and exchange of jurisdiction    
   between the Secretary of Defense and the Secretary of the Army to       
   provide for an expansion of Arlington National Cemetery, Virginia. The  
   property to be transferred to the administrative jurisdiction of the    
   Secretary of the Army consists of three parcels, totaling approximately 
   36.5 acres, located at the Navy Annex of the Pentagon. The provision    
   would also require the Secretary of the Army to modify the boundary of  
   Arlington National Cemetery to include two parcels of real property,    
   totaling approximately eight acres, situated in Fort Myer, Virginia,    
   contiguous to the Cemetery.                                             
    The Senate amendment contained no similar provisions.                  

    The House recedes.                                                     

       The conferees note that Arlington National Cemetery may be able to  
   accommodate ground burials through approximately the year 2025. The     
   conferees further note that this circumstance may not permit the        
   accommodation of veterans who served in the armed forces during the     
   Vietnam era. The conferees direct the Secretary of the Army, in         
   coordination with the Secretary of Defense and in consultation with the 
   Commonwealth of Virginia, the County of Arlington, Virginia, and        
   appropriate federal agencies, to assess the land requirements, through  
   either acquisition, exchange, or transfer, that would permit an         
   expansion of Arlington National Cemetery to accommodate ground burials  
   beyond the current estimated useful life of the cemetery. The conferees 
   direct the Secretary of the Army to assess the adequacy of the master   
   planning process for the cemetery. The Secretary shall submit a report  
   on the Department's findings, including any recommendations, to the     
   Congress no later than April 1, 1999. The conferees further direct the  
   Secretary to report periodically, as circumstances warrant, on options  
   to enhance Arlington National Cemetery.                                 
                      Increase in thresholds for reporting requirements relating to
           real property transactions                                              
       The Senate amendment contained a provision (sec. 2811) that would   
   amend section 2662 of title 10, United States Code, to increase the     
   threshold for congressional notification for real property transactions 
   from $200,000 to $500,000. The transactions requiring notification      
   include the purchase, lease, transfer, and disposal of real property.   
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

           Beach replenishment, San Diego, California                              

       The Senate amendment contained a provision (sec. 2832) that would   
   authorize the Secretary of the Navy to use funds remaining from the     
   Naval Air Station North Island, California, dredging project authorized 
   in section 2204(a)(1) of the Military Construction Authorization Act for
   Fiscal Year 1997 (division B of Public Law 105 85) to carry out beach   
   replenishment in and around San Diego, California. The provision would  
   authorize the secretary to merge any funds contributed to the cost of   
   that project by the State of California and by local governments under  
   the agreement under section                                             

                    2205 of the Military Construction Authorization Act for Fiscal
          Year 1997. The provision would prohibit any obligation of funds to carry
          out the beach replenishment project until 30 days after the date on     
          which the Secretary submits to the congressional defense committees a   
          report.                                                                 
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       Upon completion of the dredging project at Naval Air Station, North 
   Island, California, authorized by section 2204(a)(1) of the Military    
   Construction Authorization Act for Fiscal Year 1997, and any associated 
   beach replenishment activity otherwise authorized by law, the conferees 
   direct the Secretary of the Navy to submit a report to the congressional
   defense committees detailing the total cost of the dredging project, the
   cost of any beach replenishment activity conducted by the Secretary, and
   the contributions, if any, provided by the State of California and local
   government agencies for beach replenishment activities associated with  
   activities conducted by the Secretary.                                  
           Development of Ford Island, Hawaii                                      

       The Senate amendment contained a provision (sec. 2835) that would   
   require the Secretary of Defense to submit, not later than December 1,  
   1998, a report regarding the potential for development of Ford Island   
   within the Pearl Harbor Naval Complex, Oahu, Hawaii. The report would   
   consider innovative resource development measures, including but not    
   limited to, an enhanced-use leasing program similar to that of the      
   Department of Veterans Affairs, as well as the sale or other disposal of
   land in Hawaii under the control of the Navy as part of an overall      
   program for Ford Island development. The report would include proposed  
   legislation for carrying out the measures recommended.                  
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       The conferees agree to include a requirement for the Secretary of   
   Defense to assess the proposal of the Secretary of the Navy regarding   
   the potential for the development of Ford Island, and to submit any     
   proposed legislation deemed appropriate, in section 2814 concerning     
   leasing and other alternative uses of non-excess military property.     
           Repairs and stabilization measures at Walter Reed Army Medical Center   

       The Senate amendment contained a provision (sec. 2837) that would   
   authorize $2.0 million for repairs and stabilization efforts at Walter  
   Reed Army Medical Center.                                               
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       The conferees urge the Department of the Army to allocate sufficient
   real property maintenance funding to provide for the repair and         
   stabilization of the Forest Glen Annex.                                 
                      Modification of limitations on general authority relating to 
           base closures and realignments                                          
       The Senate amendment contained a provision (sec. 2851) that would   
   amend section 2687 of title 10, United States Code, to further restrict 
   the general authority of the Department of Defense regarding the closure
   and realignment of military installations. The provision would reduce   
   the current ceiling for closure actions from 300 civilian personnel to  
   225, and reduce the current ceiling for realignments from 1,000         
   civilians, or 50 percent of the total civilian employment at a base to  
   750 or 40 percent respectively.                                         
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                      Prohibition on closure of a base within four years after a   
           realignment of the base                                                 
       The Senate amendment contained a provision (sec. 2852) that would   
   amend chapter 159 of title 10, United States Code, to prohibit the      
   Department of Defense from obligating or expending any funds to close a 
   military installation that has been realigned within four years after   
   the completion of any realignment that would reduce the number of       
   civilian personnel employed at that installation below 225.             
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

           Sense of Congress on further rounds of base closures                    

       The Senate amendment contained a provision (sec. 2853) that would   
   express the sense of Congress that Congress should not authorize further
   rounds of base closure and realignment until all actions resulting from 
   the 1995 round are completed and that the Department of Defense should  
   submit forthwith the report required by section 2815 of the National    
   Defense Authorization Act for Fiscal Year 1995 (Public Law 103 337),    
   concerning the effects of base closures on the ability of the armed     
   forces to remobilize.                                                   
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                         TITLE XXIX--JUNIPER BUTTE RANGE WITHDRAWAL               

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Juniper Butte Range withdrawal (secs. 2901 2919)                        

       The Senate amendment contained title XXIX (secs. 2901 2919) that    
   would provide for the withdrawal and reservation of approximately 12,000
   acres of public lands, known as the Juniper Butte Range, Idaho, to      
   support enhanced military training at Mountain Home Air Force Base,     
   Idaho.                                                                  
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would ensure that          
   environmental remediation of relinquished withdrawn lands conforms to   
   existing legal requirements, strike the sense of the Senate regarding   

                    the monitoring of withdrawn lands, provide for indemnification
          of the United States against any liability related to mining activities,
          and make certain technical corrections.                                 
       The conferees direct the Department of the Air Force to develop a   
   cooperative effort with the Bureau of Land Management, the State of     
   Idaho, and Owyhee County, Idaho, to monitor the impact of military      
   activities on the natural, cultural, and other resources of the lands   
   withdrawn and reserved by this title, as well as other federal and state
   lands affected by military activities associated with the Juniper Butte 
   Range. The Secretary of the Air Force shall ensure that budgetary       
   planning includes sufficient funds to provide for the participation of  
   the Department of the Air Force in such a federal, state, and local     
   cooperative monitoring effort. The conferees expect that the budgetary  
   planning of the Department of the Air Force will be consistent with the 
   commitment made by the Secretary of the Air Force, in a letter dated    
   June 11, 1998.                                                          
           DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND  
                              OTHER AUTHORIZATIONS                                
                TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS       

           Overview                                                                

       The budget request for fiscal year 1999 contained an authorization  
   of $12,280.2 million for the Defense Nuclear Activities. The House bill 
   would authorize $11,879.5 million. The Senate amendment would authorize 
   $11,920.9 million. The conferees recommended an authorization of        
   $11,950.2 million. Unless noted explicitly in the statement of managers,
   all changes are made without prejudice.                                 

   Offset Folios 1457 to 1467 insert here                                  



                               LEGISLATIVE PROVISIONS ADOPTED                     

                    SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS         

           Weapons activities (sec. 3101)                                          

       The House bill contained a provision (sec. 3101) that would         
   authorize $4.5 billion for weapons activities and an offset of $340.9   
   million to account for available uncosted, unobligated prior year funds.
       The Senate bill contained a similar provision (sec. 3101) that would
   authorize $4.5 billion for weapons activities and an offset of $145.0   
   million to account for available uncosted, unobligated prior year funds.
    The House recedes in part and the Senate recedes in part.              

       The conferees recommend authorization of $4.5 billion for atomic    
   energy defense weapons activities of the Department of Energy, a        
   reduction of $2.0 million from the requested amount of $4.5 billion. The
   amount authorized is for the following activities: $2.1 billion for     
   stockpile stewardship, a reduction of $40.0 million; $2.1 billion for   
   stockpile management activities, an increase of $62.1 million; and      
   $250.0 million for program direction, a reduction of $10.5 million. The 
   conferees recommend an undistributed reduction of $13.6 million to      
   stockpile stewardship and stockpile management construction projects.   
   The conferees further recommend an undistributed reduction of $178.9    
   million to operating and management and program direction funds to be   
   offset by available uncosted, unobligated prior year funds.             
            Stockpile stewardship programs                                          

       The conferees recommend $487.0 million for the Accelerated Strategic
   Computing Initiative (ASCI) and Stockpile Computing program, a reduction
   of $30.0 million. The conferees note that even at this reduced level of 
   funding, the ASCI program will experience significant growth over fiscal
   year 1998 funding levels.                                               
       The conferees believe that the Department has not fully justified   
   the rapid growth requested for this program or the pace of acquisition  
   of added computational capacities. The conferees believe that the       
   proposed reduction will have no significant impact on the Department's  
   stockpile stewardship and management programs. The conferees strongly   
   encourage the Department to slow the rate of growth in this program in  
   future fiscal years.                                                    
       The conferees support the Secretary of Energy's commitment to fund  
   cooperative efforts with the Pittsburgh Supercomputing Center. The      
   conferees note, however, that the utilization rate of existing DOE-owned
   supercomputers is very low. The conferees direct the Secretary of Energy
   to report to the congressional defense committees on the justification  
   for such leases, and whether any such leased capabilities can better    
   meet the Department's supercomputing needs in lieu of planned           
   acquisitions proposed within the ASCI program.                          

            Stockpile management programs                                           

       Of the funds available for stockpile management, the conferees      
   recommend an increase of $58.5 million for weapons production plants, to
   be allocated as follows: $25.0 million for the Pantex Plant to support  
   scheduled workload requirements associated with weapons dismantlement   
   activities and for skills retention; $15.5 million for the Kansas City  
   Plant to support advanced manufacturing efforts such as the Advanced    
   Development Program and for skills retention; $13.0 million for the Y 12
   Plant to support maintenance of core stockpile management capabilities; 
   and $5.0 million for the Savannah River Site to support infrastructure  
   and maintenance activities.                                             
       The Senate report (S. Rpt. 105 189) encouraged the Assistant        
   Secretary for Defense Programs to create a stockpile stewardship and    
   management council to advise the Assistant Secretary on programmatic and
   budget issues related to the Department's weapons missions. The         
   conferees address this issue in a separate provision in this title.     
       Consistent with the Senate report, the conferees direct the         
   Secretary of Energy and Secretary of Defense to prepare a long range    
   plan identifying pit production requirements, including quantities by   
   warhead type, schedules, costs, and siting options. The report should   
   also identify the military requirements and assumptions underlying each 
   option and include options that reflect various potential stockpile     
   levels. The report should be submitted to the Committee on Armed        
   Services of the Senate and the Committee on National Security of the    
   House of Representatives in both unclassified and classified form not   
   later than March 1, 1999.                                               
            Technology transfer and education                                       

       The conferees recommend $59.0 million for technology transfer and   
   education activities. Of this amount, the conferees recommend $10.0     
   million for the American Textiles Partnership project.                  
            Program direction                                                       

       The conferees recommend a $10.5 million reduction to the budget     
   request for program direction. The conferees believe that the reduction 
   can be achieved through continued efficiency savings to be gained from  
   realignment efforts described in the Institute for Defense Analysis     
   report on the Department's management structure for weapons activities. 
            Construction projects                                                   

       The conferees recommend a reduction of $30.0 million to stockpile   
   stewardship and stockpile management construction projects, to be       
   allocated as follows: a reduction of $11.0 million from the chemistry   
   and metallurgy research facility renovation project (95 D 102) to       
   reflect continued delays and suspended operations at that facility; a   
   reduction of $5.4 million from the nuclear material storage facility    
   renovation project (97 D 122) to reflect delays in final design and     
   deferral of planned construction activities; and an undistributed       
   reduction of $13.6 million.                                             
       The conferees compliment the Director of Los Alamos National        
   Laboratory on the establishment of an external evaluation team to review
   laboratory construction projects, including laboratory management       
   practices, management tools, organization, and training. The conferees  
   understand that the external team will make recommendations to the      
   Director for systematic improvements to current practices. The conferees
   endorse this approach.                                                  
            Tritium production                                                      

       The conferees do not believe the Department's fiscal year 1999      
   budget request of $157.0 million for tritium production to be credible. 
   The conferees note that the requirement to deliver new tritium by the   
   year 2005 for the light water reactor and the year 2007 for the         
   accelerator, as identified in the Nuclear Weapons Stockpile Memorandum, 
   has not changed. The conferees believe that the Department's            
   unwillingness to include funding for the acquisition of a new tritium   
   source in its proposed out year funding plan is unacceptable. Further,  
   the conferees note that the fiscal year 1999 budget request does not    
   appear to be sufficient to complete the Department's own dual track     
   tritium strategy. The conferees are very concerned that the Department  
   did not request sufficient funds to continue evaluation of both         
   technologies being considered under the dual track approach. The        
   conferees recommend an increase of $20.0 million for design and research
   associated with the accelerator production of tritium option.           
       The conferees direct the Secretary of Energy to submit to the       
   congressional defense committees a plan regarding how all fiscal year   
   1999 tritium funds will be allocated. The plan shall be submitted not   
   later than 45 days after enactment of this Act.                         
            Inertial confinement fusion                                             

       The budget request included $213.8 million for the inertial         
   confinement fusion (ICF) program. The conferees believe that work by the
   University of Rochester's Laboratory for Laser Energetics with the Omega
   laser is an essential element of the ICF program. The conferees         
   recommend the requested amount and direct that, within the amount       
   available, the $29.0 million be allocated for the Laboratory for Laser  
   Energetics.                                                             
           Defense environmental restoration and waste management (sec. 3102)      

       The House bill contained a provision (sec. 3102) that would         
   authorize $5.8 billion for defense environmental restoration and waste  
   management activities (also known as the Environmental Management       
   program), including defense environmental management privatization, and 
   an offset of $94.1 million to account for available uncosted,           
   unobligated prior year funds, for a total reduction of $76.4 million to 
   the budget request.                                                     

       The Senate amendment contained a similar provision (sec. 3102) that 
   would authorize $5.3 billion for defense environmental restoration and  
   waste management activities, excluding defense environmental management 
   privatization, and an offset of $21.0 million to account for available  
   uncosted, unobligated prior year funds, for a total increase of $36.0   
   million to the budget request.                                          
    The House recedes in part and the Senate recedes in part.              

       The conferees recommend authorization of $5.4 billion for defense   
   environmental management activities, excluding defense environmental    
   management privatization, an increase of $85.9 million to the budget    
   request. The amount authorized is for the following activities: $1.0    
   billion for closure projects, an increase of $32.0 million; $1.0 billion
   for site and project completion, an increase of $20.0 million; $2.7     
   billion for post-2006 completion, an increase of $71.0 million; $250.0  
   million for technology development, an increase of $57.0 million; $346.2
   million for program direction, the amount of the budget request. The    
   conferees recommend an undistributed reduction of $94.1 million to be   
   offset by available uncosted, unobligated prior year funds.             
            Post-2006 completion                                                    

       Of the amounts authorized for post-2006 completion, the conferees   
   recommend an increase of $5.0 million to the National Spent Fuel Program
   to address regulatory and repository issues associated with Department  
   of Energy owned spent nuclear fuel, an increase of $10.0 million to     
   accelerate research and treatment of high level nuclear wastes at the   
   Idaho National Engineering and Environmental Laboratory, an increase of 
   $18.0 million to drain single shell tanks at the Hanford site, an       
   increase of $30.0 million for augmentation of the Defense Waste         
   Processing Facility operations and modification of in-tank precipitation
   process equipment at the Savannah River Site to address problems        
   associated with the release of explosive benzene, and an increase of    
   $8.0 million to assist the State of New Mexico with completion of a     
   bypass around Santa Fe to accomodate shipments of materials to the Waste
   Isolation Pilot Plant. The conferees recommend full funding for the     
   F-canyon and H-canyon materials processing facilities.                  
            Site and project completion                                             

       Of the amounts authorized for site and project completion, the      
   conferees recommend an increase of $20.0 million for the heavy water    
   processing project at the Savannah River Site. The conferees understand 
   that this project will result in net revenues to the government over the
   next five years.                                                        
            Technology development                                                  

       The conferees are concerned that the budget request for the Office  
   of Science and Technology is inadequate. Recent departmental testimony  
   to the Committee on Armed Services of the Senate and findings in the    
   ``Accelerating Cleanup--Pathways to Closure'' report have identified    
   that the Department cannot meet its accelerated closure goals without   
   aggressive application of new technologies. The conferees agree with the
   Department's assessment of the need for increased use of innovative     
   technology at DOE facilities. The conferees encourage the Department to 
   revise its performance measures for facility managers to include the    
   application of new technology in site cleanup activities.               
       The conferees encourage DOE to continue cooperative efforts with    
   Federal and State regulators and non-profit organizations to facilitate 
   the rapid deployment of innovative technologies at DOE sites. This      
   effort should include cooperative efforts to assist the implementation  
   of more uniform technology verification and regulatory acceptance       
   criteria to DOE-developed technologies.                                 
       The conferees direct the Secretary of Energy to submit a report to  
   Congress on the proposed uses of the $57.0 million increase in this     
   account.                                                                
       No funds authorized to be appropriated pursuant to this section are 
   available to support, or enter into cooperative efforts in support of,  
   the Russian Nuclear Cities Initiative, or any other foreign assistance  
   program. The conferees continue to support cooperative programs with    
   international partners that facilitate environmental cleanup or waste   
   management activities at Department of Energy sites.                    
            Off-site disposal of low level waste                                    

       The conferees are concerned that the Department has only one        
   commercial low-level waste disposal option available. Although this     
   facility has a satisfactory operating record and has proven to be a cost
   effective option for waste disposal, it remains the Department's sole   
   large-scale commercial disposal option. The conferees encourage the     
   Department to move forward with a national procurement, as announced by 
   the Secretary of Energy, to initiate open competition for the           
   Department's off-site waste disposal contracts.                         
           Other defense activities (sec. 3103)                                    

       The budget request included $1.667 billion for Other Defense        
   Activities for the Department of Energy (DOE) for fiscal year 1999,     
   which included an offset to user organizations of $20.0 million.        
       The House bill contained a provision (sec. 3103) that would         
   authorize a $33.6 million increase to the budget request.               
       The Senate amendment contained a provision (sec. 3103) that would   
   authorize a $5.0 million increase to the budget request.                
       The conferees recommend authorization of $1.716 billion for other   
   defense activities, an increase of $27.0 million to the budget request, 
   for the following activities: $679.3 million for nonproliferation and   
   national security activities, of which $503.5 million is for            
   verification and control technology activities; $168.9 million for      
   fissile materials control and disposition; $89.0 million for            
   environment, safety and health activities; $35.0 million for            
   international nuclear safety activities; and $681.5 million for naval   

                    reactors. The amount authorized is offset by $20.0 million to 
          account for user organizations, and is further offset by $2.0 million in
          uncosted and unobligated prior year funds.                              
            Nonproliferation and verification and control technology                

       The conferees agree to a $3.0 million increase to the budget request
   for intelligence activities. The conferees also express their continued 
   support for the broad participation of the Department of Energy national
   laboratories, including the Pacific Northwest Laboratory, Idaho National
   Laboratory, the Savannah River Site and industry in the research and    
   development of forensic analytical technologies to detect and respond to
   radiological and nuclear threats and international nuclear smuggling    
   events. Additionally, the conferees direct that the Department ensure   
   that all research and development activities in the area of chemical and
   biological detection and defense be coordinated with the Department of  
   Defense.                                                                
            Russian reactor core conversion program                                 

       The conferees endorse the recommendation contained in the Senate    
   report (S. Rept. 105 189) that the Department of Energy keep the        
   congressional defense committees informed on the status of the Reactor  
   Shutdown Agreement between the United States and the Russian Federation.
            Nuclear smuggling and counterterrorism                                  

       The conferees direct the Department of Energy to report to the      
   congressional defense committees not later than 30 days after the date  
   of enactment of this Act on the use of funds made available in the      
   National Defense Authorization Act for Fiscal Year 1998 (Public Law 105 
   85) to plan and conduct exercises to prepare Federal, state, and local  
   entities to respond to domestic terrorist use of nuclear materials and  
   devices. Additionally, the conferees direct the Department of Energy to 
   report to the congressional defense committees not later than November  
   1, 1998 on the status of the investigations of the sale of high         
   performance computers to Russia and China, and steps taken by the       
   Department of Energy and other federal agencies and department of the   
   U.S. Government to recover such high performance computers.             
            Emergency management                                                    

       The conferees agree to authorize the budget request of $23.7 million
   for emergency management activities to strengthen and expand the        
   Department's support for domestic crisis and consequence management in  
   combatting weapons of mass destruction terrorism and nuclear smuggling  
   and nuclear material trafficking as well as to provide comprehensive,   
   integrated emergency planning, preparedness, response, and management   
   throughout the Department of Energy. The conferees agree that no funds  
   authorized for the Department are to be used to provide support to state
   and local authorities for activities unrelated to providing appropriate 
   emergency responses to natural and man-made disasters involving         
   radiological hazards and threats.                                       
            Fissile materials control and disposition                               

       The conferees recommend the budget request of $168.9 million for    
   fissile materials control and disposition. The conferees are pleased    
   with the approach being pursued by the Department in the fissile        
   materials disposition program. The conferees authorize full funding for 
   title I design for new materials disposition facilities. The conferees  
   direct the Secretary to continue planning and design of such facilities.
       The conferees agree that $25.0 million, as requested in the budget  
   for the fissile materials control and disposition program, for          
   cooperative efforts with the Russian Federation is adequate for this    
   activity. With the exception of achieving agreement on a joint testing  
   program, the conferees believe there has has been insufficient progress 
   achieved in negotiating the bilateral agreement with the Russian        
   Federation. The conferees encourage the Department to continue its      
   efforts to achieve an agreement with the Russian Federation on this     
   program. In the interim, the conferees direct the Department to report  
   periodically to the congressional defense committees on the status of   
   efforts to achieve agreement on this program, as well as on the         
   estimated cost and how the Russian Federation proposes to finance the   
   program.                                                                
            Security investigations                                                 

       The conferees understand that the costs of conducting security      
   investigations is borne principally by individual departmental program  
   elements. The conferees further understand that the amount requested by 
   the Department in the security investigations account includes funds    
   that are also included in individual Departmental program element       
   budgets and are, therefore, double counted. In order to reflect the true
   costs of such activities, the conferees decreased the amount authorized 
   by section 3103(a)(1)(C) by $20.0 million to reflect those funds that   
   are included in program element budgets.                                
            Worker and community transition                                         

       The conferees recommend a reduction of $5.0 million to the worker   
   and community transition budget request.                                
            Environment, safety and health--defense                                 

       The conferees recommend an increase of $15.0 million to the budget  
   request for defense environment, safety and health for health studies.  
            Naval reactors                                                          

    The conferees recommend an increase of $16.0 million to the budget     


                    request for the Office of Naval Reactors to expedite          
          decommissioning and decontamination activities at surplus prototype     
          plant facilities.                                                       
           Defense nuclear waste disposal (sec. 3104)                              

       The House bill contained a provision (sec. 3104) that would         
   authorize $190.0 million for the Department of Energy fiscal year 1998  
   defense contribution to the defense nuclear waste fund.                 
    The Senate amendment contained an identical provision (sec. 3104).     

    The conference agreement includes this provision.                      

           Defense environmental management privatization (sec. 3105)              

       The Senate amendment contained a provision (sec. 3105) that would   
   provide $273.9 million for defense environmental management             
   privatization projects to be allocated as follows: $113.5 million for   
   the tank waste remediation system project, phase I (Richland); $20.0    
   million for spent nuclear fuel dry storage (Idaho); $87.3 million for   
   advanced mixed waste treatment (Idaho); $19.6 million for remote handled
   transuranic waste transportation (Carlsbad); and $33.5 million for      
   environmental management/waste management disposal (Oak Ridge). The     
   Senate amendment further authorized the use of $32.0 million in         
   unobligated, uncosted, and undistributed prior year defense             
   environmental management privatization funds.                           
       The House bill contained a similar provision (section 3102) that    
   addressed all defense environmental management funds, including $286.8  
   million for defense environmental management privatization projects.    
       The House recedes with an amendment that would provide $286.9       
   million for defense environmental management privatization projects to  
   be allocated as follows: $100.0 million for the tank waste remediation  
   system project, phase I (Richland); $30.0 million for spent nuclear fuel
   dry storage (Idaho); $87.3 million for advanced mixed waste treatment   
   (Idaho); $19.6 million for remote handled transuranic waste             
   transportation (Carlsbad); and $50.0 million for environmental          
   management/waste management disposal (Oak Ridge). The conferees agree to
   offset this amount through the use of $32.0 million in unobligated,     
   uncosted, and undistributed prior year defense environmental management 
   privatization funds. The conferees direct that the offset be achieved   
   through the use of: $15.0 million in fiscal year 1997 unobligated,      
   uncosted balances to reflect the cancellation of the broad spectrum low 
   activity mixed waste treatment privatization project (Oak Ridge); $10.0 
   million in fiscal year 1997 unobligated, uncosted balances to reflect   
   cancellation of the waste water treatment plant privatization project   
   (Rocky Flats); and $7.0 million in fiscal year 1998 unobligated,        
   uncosted and undistributed balances.                                    
       The conferees note that the Senate report endorsed the transfer of  
   responsibility for the Hanford Tank Waste Remediation System (TWRS)     
   project to the Assistant Secretary of Energy for Environmental          
   Management. The conferees address this issue in a separate section of   
   this title.                                                             
                          SUBTITLE B--RECURRING GENERAL PROVISIONS                

           Reprogramming (sec. 3121)                                               

       The House bill contained a provision (sec. 3121) that would prohibit
   the reprogramming of funds in excess of 110 percent of the amount       
   authorized for the program, or in excess of $1.0 million above the      
   amount authorized for the program, until the Secretary of Energy submits
   a report to the congressional defense committees and a period of 30     
   calendar days has elapsed after the date on which the report is         
   received.                                                               
    The Senate amendment contained an identical provision (sec. 3121).     

    The conference agreement includes this provision.                      

           Limits on general plant projects (sec. 3122)                            

       The House bill contained a provision (sec. 3122) that would         
   authorize the Secretary of Energy to carry out any construction project 
   authorized under general plant projects if the total estimated cost does
   not exceed $5.0 million. The provision would require the Secretary to   
   submit a report to the congressional defense committees if the cost of  
   the project is revised to exceed $5.0 million. Such a report would      
   include the reasons for the cost variation.                             
    The Senate amendment contained an identical provision (sec. 3122).     

    The conference agreement includes this provision.                      

           Limits on construction projects (sec. 3123)                             

       The House bill contained a provision (sec. 3123) that would permit  
   any construction project to be initiated and continued only if the      
   estimated cost for the project does not exceed 125 percent of the higher
   of: (1) the amount authorized for the project or (2) the most recent    
   total estimated cost presented to the Congress as justification for such
   project. The Secretary of Energy may not exceed such limits until 30    
   legislative days after the Secretary submits to the congressional       
   defense committees a detailed report setting forth the reasons for the  
   increase. This provision would also specify that the 125 percent        
   limitation would not apply to projects estimated to cost under $5.0     
   million.                                                                
    The Senate amendment contained an identical provision (sec. 3123).     

    The conference agreement includes this provision.                      

           Fund transfer authority (sec. 3124)                                     

       The House bill contained a provision (sec. 3124) that would permit  
   funds authorized by this Act to be transferred to other agencies of the 
   government for performance of work for which the funds were authorized  
   and appropriated. The provision would permit the merger of such         
   transferred funds with the authorizations of the agency to which they   
   are transferred. The provision would also limit, to not more than five  
   percent of the account, the amount of such funds that may be            

                    transferred between authorization accounts in the Department  
          of Energy that were authorized pursuant to this Act.                    
    The Senate amendment contained an identical provision (sec. 3124).     

    The conference agreement includes this provision.                      

           Authority for conceptual and construction design (sec. 3125)            

       The House bill contained a provision (sec. 3125) that would limit   
   the Secretary of Energy's authority to request construction funding     
   until the Secretary has completed a conceptual design. This limitation  
   would apply to construction projects with a total estimated cost greater
   than $5.0 million. If the estimated cost to prepare the construction    
   design exceeds $600,000, the provision would require the Secretary to   
   obtain a specific authorization to obligate such funds. If the estimated
   cost to prepare the conceptual design exceeds $3.0 million, the         
   provision would require the Secretary to request funds for the          
   conceptual design before requesting funds for construction. The         
   provision would further require the Secretary to submit to Congress a   
   report on each conceptual design completed under this provision. The    
   provision would also provide an exception to these requirements in the  
   case of an emergency.                                                   
    The Senate amendment contained an identical provision (sec. 3125).     

    The conference agreement includes this provision.                      

                      Authority for emergency planning, design, and construction   
           activities (sec. 3126)                                                  
       The House bill contained a provision (sec. 3126) that would permit  
   the Secretary of Energy to perform planning and design with any funds   
   available to the Department of Energy pursuant to this title, including 
   those funds authorized for advance planning and construction design,    
   whenever the Secretary determines that the design must proceed          
   expeditiously to protect the public health and safety, to meet the needs
   of national defense, or to protect property.                            
    The Senate amendment contained an identical provision (sec. 3126).     

    The conference agreement includes this provision.                      

                      Funds available for all national security programs of the    
           Department of Energy (sec. 3127)                                        
       The House bill contained a provision (sec. 3127) that would         
   authorize, subject to section 3121 of this Act, amounts appropriated for
   management and support activities and for general plant projects to be  
   made available for use in connection with all national security programs
   of the Department of Energy.                                            
    The Senate amendment contained an identical provision (sec. 3127).     

    The conference agreement includes this provision.                      

           Availability of funds (sec. 3128)                                       

       The House bill contained a provision (sec. 3128) that would         
   authorize amounts appropriated for operating expenses or for plant and  
   capital equipment for the Department of Energy to remain available until
   expended. Program Direction funds would remain available until the end  
   of fiscal year 2000.                                                    
       The Senate amendment contained a similar provision (sec. 3128) that 
   would authorize Program Direction funds to remain available until the   
   end of fiscal year 2001.                                                
    The House recedes.                                                     

           Transfers of defense environmental management funds (sec. 3129)         

       The House bill contained a provision (sec. 3129) that would provide 
   the manager of each field office of the Department of Energy with       
   limited authority to transfer up to $5.0 million in fiscal year 1999    
   defense environmental management funds from one program or project under
   the jurisdiction of the office to another such program or project, once 
   in a fiscal year. The provision would extend the authority granted by   
   section 3139 of the National Defense Authorization Act for Fiscal Year  
   1997 by allowing transfers of funds among programs and projects in the  
   Site and Project Completion, Post-2006 Completion, and Science and      
   Technology accounts.                                                    
       The Senate amendment contained a similar provision (sec. 3129) that 
   would allow transfers of funds between programs and projects in the Site
   Closure Project, and Project Completion, and Post-2006 Completion       
   accounts.                                                               
       The Senate recedes with an amendment that would allow transfers of  
   funds between programs and projects in the Site and Project Completion  
   and Post-2006 Completion accounts.                                      
              SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS   

                      Permanent extension of funding prohibition relating to       
           international cooperative stockpile stewardship (sec. 3131)             
       The House bill contained a provision (sec. 3132) that would amend   
   section 3133(a) of the National Defense Authorization Act for Fiscal    
   Year 1998 (P.L. 105 85) to establish a permanent prohibition on         
   expenditures of funds for cooperative stockpile stewardship efforts with
   any nation except for France or the United Kingdom, or, as specifically 
   authorized with nations of the former Soviet Union.                     
       The Senate amendment contained a similar provision (sec. 3131) that 
   would prohibit use of fiscal year 1999 or prior year funds to conduct   
   such international cooperative stockpile stewardship activities.        
    The Senate recedes.                                                    

                      Support of ballistic missile defense activities of the       
           Department of Defense (sec. 3132)                                       
       The House bill contained a provision (sec. 3133) that would require 
   the Secretary of Energy to make available, from funds authorized for    
   Department of Energy atomic energy weapons activities, no less than     

                    $60.0 million for missile defense technology development in   
          cooperation with the Ballistic Missile Defense Organization (BMDO) for  
          the purpose of developing, demonstrating, and testing hit-to-kill       
          interceptor vehicles for theater missile defense systems.               
       The Senate amendment contained a provision (sec. 3132) that would   
   prohibit the use of any funds authorized by title XXXI to support       
   ballistic missile defense research, development, demonstration, testing,
   and evaluation. The prohibition would include studies and assessments.  
   The provision would also prohibit use of Laboratory Directed Research   
   and Development and laboratory overhead funds for such purposes.        
       The Senate recedes with an amendment that would make available $30.0
   million for technology development, concept demonstration, and          
   integrated testing to improve reliability and reduce risk in hit-to-kill
   interceptors; science and engineering teams to address technical        
   problems identified by the Director of BMDO which are critical to the   
   acquisition of a theater missile defense capability; and other research,
   development and demonstration activities that support the mission of    
   BMDO. The provision would require that any such activities conform to   
   the joint memorandum of understanding between the Secretaries of Energy 
   and Defense required by section 3131 of the National Defense            
   Authorization Act for Fiscal Year 1998 (Public Law 105 85). The         
   provision would allow the covered activities to be funded through direct
   contributions or waiver of a Federal administrative charge, overhead    
   costs, or other indirect costs of the Department of Energy or its       
   contractors.                                                            
           Nonproliferation activities (sec. 3133)                                 

       The Senate amendment contained a provision (sec. 3139) that would   
   make $30.0 million available for the Initiatives for Proliferation      
   Prevention (IPP) program and $30.0 million available to implement the   
   initiative known as the ``Nuclear Cities Initiative'' (NCI) program     
   pursuant to the March 1998 agreement between the United States and the  
   Russian Federation.                                                     
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would make up to $20.0     
   million available for the IPP program. Additionally, the provision would
   require the Secretary of Energy to submit a report to the congressional 
   defense committees on the Nuclear Cities Initiative program and wait a  
   period of 20 legislative days after the date on which the report is     
   received prior to the obligation and expenditure of any funds.          
       The amendment would also require the report of the Secretary on the 
   NCI program to include among other items, the objectives of the NCI     
   program and the process and method by which the program will be         
   implemented (to include the status of bilateral agreements), a timeline 
   of the program and milestones to be achieved, and the funding           
   requirements through the completion of the program. In addition, the    
   report should include any information on the participation of other     
   federal agencies and departments in the NCI program, as well as the     
   participation of U.S. industry.                                         
                      Licensing of certain mixed oxide fuel fabrication and        
           irradiation facilities (sec. 3134)                                      
       The Senate amendment contained a provision (sec. 3133) that would   
   require any person constructing or operating a new or operating an      
   existing facility to fabricate mixed oxide (MOX) fuel for use in a      
   commercial nuclear reactor to be subject to licensing by the Nuclear    
   Regulatory Commission (NRC). The provision would also require the       
   occupational safety and health of employees working at such facilities  
   to be subject to regulation by the Department of Labor. The provision   
   would exempt the Department of Energy MOX-related demonstration,        
   testing, and research activities from such licensing requirements.      
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

       The conferees do not endorse the wholesale external regulation of   
   Department of Energy defense nuclear facilities and remain skeptical of 
   the potential benefits associated with implementing new regulatory      
   regimes at other new or existing DOE defense nuclear facilities.        
                      Continuation of processing, treatment, and disposition of    
           legacy nuclear materials (sec. 3135)                                    
       The Senate amendment contained a provision (sec. 3134) that would   
   require the Secretary of Energy to maintain a high state of readiness at
   the F-canyon and H-canyon facilities at the Savannah River Site.        
    The House bill contained no similar provision.                         

    The House recedes.                                                     

       The conferees note that this action was recommended by the Defense  
   Nuclear Facilities Safety Board and is consistent with direction        
   provided by previous authorization acts.                                
                      Authority for Department of Energy federally funded research 
           and development centers to participate in merit-based technology        
           research and development programs (sec. 3136)                           
       The Senate amendment contained a provision (sec. 3135) that would   
   amend the National Defense Authorization Act for Fiscal Year 1995       
   (Public Law 103 337) to grant Department of Energy (DOE) sponsored      
   federally funded research and development centers (FFRDCs) the same     
   ability to compete for contracts as Department of Defense (DOD)         
   sponsored FFRDCs.                                                       
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would limit the authority  
   to those activities conducted under contract with, or on behalf, of the 
   Department of Defense.                                                  
       The conferees do not support the concept of DOE FFRDCs competing    
   directly or indirectly with the private sector. In implementing this    
   authority, the conferees expect DOE FFRDCs to comply fully with all DOD 
   and DOE policy guidance and regulations governing FFRDCs. The conferees 
   expect DOE FFRDCs to focus on their core competencies, expertise, or    
   unique facilities.                                                      

           Activities of Department of Energy facilities (sec. 3137)               

       The Senate amendment contained a provision (sec. 3140) that would   
   establish a uniform Federal administrative charge of three percent on   
   all contract research activities carried out for non-Department of      
   Energy (DOE) entities at DOE contractor operated facilities. The        
   provision would eliminate the Secretary of Energy's current authority to
   waive the Federal administrative charge, except that the Secretary would
   be authorized to continue existing waivers, if the Secretary so         
   determines, and would be authorized to waive charges for small          
   businesses, institutions of higher education, non-profit entities, and  
   state and local governments. The provision would authorize the Secretary
   to enter into a five-year pilot program at selected facilities to       
   develop reduced overhead charges designed to recover all costs generated
   by external entities who may not utilize the full range of services at a
   DOE facility for which overhead costs may be charged. The provision     
   would encourage the Secretary to establish a new small business         
   technology partnership program to make DOE expertise and capabilities   
   more accessible to small businesses, and would encourage the Secretary  
   to pursue partnerships and interactions with universities and private   
   businesses.                                                             
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would allow the Secretary  
   to waive the Federal administrative charge at all DOE facilities. The   
   conferees did not include the small business technology partnership or  
   partnerships and interactions provisions.                               
       The conferees encourage the Secretary to continue the establishment 
   of cooperative partnerships and interactions with universities and      
   private industry at contractor-operated facilities where such           
   interaction will help the Department better carry out its national      
   security missions. The conferees further encourage the Secretary to     
   create small business technology partnership programs at                
   contractor-operated facilities where such interaction will help the     
   Department better carry out its national security missions. The         
   Secretary is encouraged to designate small funding pools at DOE sites to
   carry out such programs. The Secretary should include annually with the 
   President's budget request a report on the effectiveness and            
   applicability of any such programs to the missions of the Department of 
   Energy.                                                                 
           Hanford overhead and service center costs (sec. 3138)                   

       The House bill contained a provision (sec. 3135) that would prohibit
   the use of certain fiscal year 1999 funds at the Hanford Site until the 
   Secretary of Energy certifies to Congress that the Department does not  
   intend to pay overhead costs of more than 33 percent of total contract  
   overhead costs at that Site. The provision would prohibit the obligation
   of $12.0 million for reactor decontamination and decommissioning and    
   $18.0 million for drainage of single-shell waste tanks at the Hanford   
   Site until the Secretary completes the certification. The provision     
   would further require that any savings that result from compliance with 
   this section be retained for use at the Hanford Site to ensure full     
   compliance with the Hanford Federal Facility Agreement and Consent Order
   and the recommendations of the Defense Nuclear Facilities Safety Board. 
   In addition, the provision conveyed the sense of the Congress that      
   overhead costs for contractors performing cleanup work at DOE facilities
   is out of control, that some increased overhead costs are a result of   
   unnecessary regulation, and that the Department should take action to   
   minimize any such unnecessary regulation.                               
       The Senate amendment contained a related provision (sec. 3148) that 
   would require the General Accounting Office (GAO) to conduct a review of
   Department of Energy (DOE) overhead costs, including the methods used to
   calculate direct and indirect overhead costs at DOE cleanup sites and   
   the methods used to allocate and report such overhead costs. The GAO    
   would be required to submit a report to Congress not later than January 
   31, 1999, to include the findings of the review and any resulting       
   recommendations for standardizing the methods used to allocate and      
   report overhead costs at DOE cleanup sites.                             
       The Senate recedes with an amendment that would require the         
   Secretary to establish a target for fiscal year 1999 contract overhead  
   costs at the Hanford Site and utilize any savings that result from lower
   overhead costs to perform additional cleanup activities at the Site and 
   to comply with the Hanford Tri-party Agreement. The Senate amendment    
   would further require the Defense Contract Audit Agency (DCAA) to       
   conduct an assessment of overhead, service center, and other related    
   costs assessed by the Project Hanford Management Contractor at the      
   Hanford Site. The DCAA assessment would be submitted to Congress not    
   later than March 1, 1999.                                               
           Hanford waste tank cleanup program reforms (sec. 3139)                  

       The House bill contained a provision (sec. 3136) that would direct  
   the Secretary of Energy to establish an Office of River Protection at   
   the Department of Energy's Hanford Site. The office would be headed by a
   senior official of the Department of Energy who would be responsible for
   managing all aspects of Hanford tank farm operations, including the Tank
   Waste Remediation System project. The provision would create a          
   five-member advisory committee to provide advice to the new office. The 
   provision would require the Secretary to submit within 90 days of the   
   date of enactment of this Act an integrated management plan for all     
   aspects of the tank farm operations, including the roles and            
   responsibilities and reporting relationships of the Office of River     
   Protection. The plan would address whether the office should be         
   physically and administratively separate from the DOE Richland          
   Operations Office. The provision would further require the Secretary,   
   two years after the creation of the office, to report on any progress   
   and management improvements that result from this provision. The Office 
   of River Protection would terminate in five years, unless the Secretary 
   determines that the office should continue.                             
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the office  
   to report directly to the Assistant Secretary for Environmental         

                    Management, but be physically located at the Hanford Site in  
          Richland, Washington. The amendment also would eliminate the creation of
          the five-member advisory committee. The conferees believe the existing  
          advisory structure at the site is adequate.                             
           Hanford Health Information Network (sec. 3140)                          

       The Senate amendment contained a provision (sec. 3138) that would   
   authorize the Secretary of Energy to utilize $2.5 million within        
   existing Hanford Site funding for the Hanford Health Information        
   Network.                                                                
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would authorize the use of 
   $1.5 million within existing Hanford Site funding for the Hanford Health
   Information Network.                                                    
                      Hazardous Materials Management and Emergency Response        
           training program (sec. 3141)                                            
       The House bill contained a provision (sec. 3155) that would         
   authorize the Hazardous Materials Management and Emergency Response     
   (HAMMER) training facility in Richland, Washington to accept payments in
   kind in exchange for services.                                          
    The Senate amendment contained a similar provision (sec. 3137).        

    The Senate recedes.                                                    

                      Support for public education in the vicinity of Los Alamos   
           National Laboratory, New Mexico (sec. 3142)                             
       The Senate amendment contained a provision (sec. 3136) that would   
   authorize the Department of Energy (DOE) to make a $5.0 million payment 
   to a not-for-profit education foundation in the area around the Los     
   Alamos National Laboratory to enrich educational activities of the local
   school system. The provision would require the foundation to place DOE  
   contributions in an endowment fund, the corpus of which would remain in 
   trust and the annual revenue used to support the local school system.   
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

       This provision would extend the authority granted to the Secretary  
   of Energy by section 3167 of the National Defense Authorization Act for 
   Fiscal Year 1998 (Public Law 105 85). The conferees expect the Secretary
   of Energy to make no more than five total annual payments to this fund  
   for a total contribution not to exceed $25.0 million. The conferees note
   that the Secretary was authorized to make the first of such payments in 
   fiscal year 1998. The conferees expect, that upon making the fifth      
   payment or meeting the $25.0 million cap, all DOE assistance to the     
   local school system will end.                                           
                      Relocation of National Atomic Museum, Albuquerque, New Mexico
           (sec. 3143)                                                             
       The Senate amendment contained a provision (sec. 3140A) that would  
   require the Secretary of Energy to submit a plan on the design,         
   construction and relocation of the National Atomic Museum located in    
   Albuquerque, New Mexico.                                                
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would direct the Secretary 
   of Energy to submit a plan to relocate the museum. This provision does  
   not authorize the Secretary to proceed with a conceptual design of a new
   National Atomic Museum or to obligate any funds to implement any plan.  
           Tritium production (sec. 3144)                                          

       The House bill contained a provision (sec. 3154) that would modify  
   the Atomic Energy Act of 1954 (42 U.S.C. 2077(e)) to prohibit the use of
   tritium produced in commercial nuclear reactors for nuclear explosive   
   purposes.                                                               
       The Senate amendment contained a related provision (sec. 3150) that 
   would require the Secretary of Energy to select a tritium production    
   technology after completion of an interagency review regarding the      
   proliferation ramifications of using a commercial light water reactor to
   produce tritium for nuclear explosive purposes, but not later than      
   December 31, 1998. The provision would direct the Secretary of Energy to
   make the decision notwithstanding any provision of the Atomic Energy Act
   of 1954 (42 U.S.C. 2011, et. seq.), but consistent with the laws,       
   regulations and procedures of the Department of Energy.                 
       The conferees agree to include a provision that would prohibit use  
   of any funds available during fiscal year 1999, including prior year    
   funds, to implement any tritium technology decision made pursuant to    
   section 3135 of the National Defense Authorization Act for Fiscal Year  
   1998 (Public Law 105 85). This prohibition includes any construction or 
   related activities. Nothing in this provision shall be interpreted to   
   preclude the Secretary of Energy from continuing planned research and   
   design activities on both technology options currently under            
   consideration.                                                          
       The conferees strongly support the Department of Energy's efforts to
   restore on a timely basis tritium production to maintain the viability  
   of the U.S. nuclear deterrent. The conferees note that tritium is not a 
   special nuclear material as defined by the Atomic Energy Act of 1954,   
   and thus, unlike plutonium and highly enriched uranium, is not capable  
   of sustaining a nuclear chain reaction. It is, however, a radioactive   
   material that is vital to the performance of U.S. nuclear warheads.     
       The conferees endorse the United States' long-standing policy       
   requiring the separation of civilian and military uses of nuclear       
   energy. Concerns have been raised that the use of a commercial light    
   water reactor to produce tritium might establish a precedent for other  
   nations to use government-owned civilian reactors to produce materials  
   for nuclear weapons programs. The conferees note that the Interagency   
   Review of Nonproliferation Implications of Alternative Tritium          
   Technologies transmitted to Congress by the Department of Energy in July
   1998, as required by the National Defense Authorization Act for         

                    Fiscal Year 1998 (Public Law 105 85), concluded that the      
          nonproliferation risks associated with the commercial light water       
          reactor option are ``manageable.'' Implicit in this conclusion, is a    
          recognition that the commercial reactor option could pose nuclear       
          proliferation risks that might harm U.S. national security interests.   
       The conferees expect the Secretary of Energy to consider whether, or
   to what extent, the selection of a light water reactor would violate    
   U.S. policy and might encourage other nations to divert nuclear         
   materials from government-owned civilian reactors into nuclear weapons  
   programs. In addition, the conferees expect the Secretary to assess any 
   nuclear proliferation risk that any such outcome could pose for the     
   United States.                                                          
       The conferees direct the Secretary of Energy to select a tritium    
   technology option consistent with the requirements of section 3135 of   
   the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
   105 85). The decision criteria shall include the ability to meet the    
   national defense requirements of the United States, nuclear             
   proliferation implications, and cost.                                   
       In addition, the conferees direct the Secretary to submit to the    
   Committee on Armed Services of the Senate and the National Security     
   Committee of the House of Representatives, a comprehensive plan to      
   implement the technology option selected. The plan should be submitted  
   with the President's fiscal year 2000 budget and include a proposed     
   implementation schedule, annual funding requirements for the life of the
   project, any legislation needed to implement the technology selected,   
   and an assessment of the viability of purchasing tritium, if necessary  
   for national security purposes, on an interim basis.                    
                                  SUBTITLE D--OTHER MATTERS                       

                      Study and plan relating to worker and community transition   
           assistance (sec. 3151)                                                  
       The House bill contained a provision (sec. 3151) that would repeal  
   the requirements of section 3161 of the National Defense Authorization  
   Act for Fiscal Year 1993 (Public Law 102 484). Section 3161 required the
   implementation of a worker and community transition program to          
   restructure the Department of Energy (DOE) private contractor workforce 
   at the end of the Cold War. This section would also prohibit the        
   expenditure of funds for the DOE Worker and Community Transition program
   after September 30, 1999.                                               
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the         
   Secretary to develop a plan describing how the Office of Worker and     
   Community Transition would be terminated and how the authority of that  
   office would be transferred to Department of Energy program offices. The
   Secretary shall submit the plan to the Congressional defense committees 
   not later than July 1, 1999. The amendment would also require the       
   General Accounting Office to conduct a study on the effects of DOE      
   workforce restructuring plans from fiscal years 1995 through 1998.      
                      Extension of authority for appointment of certain scientific,
           engineering, and technical personnel (sec. 3152)                        
       The Senate amendment contained a provision (sec. 3144) that would   
   extend for one year the authority granted to the Secretary of Energy by 
   the National Defense Authorization Act for Fiscal Year 1995 (Public Law 
   103 337) to appoint certain scientific, engineering, and technical      
   personnel in areas of nuclear safety and environmental clean up.        
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Requirement for plan to modify employment system used by     
           Department of Energy in defense environmental management programs (sec. 
           3153)                                                                   
       The House bill contained a provision (sec. 3152) that would prohibit
   the use of more than 75 percent of Defense Environmental Restoration and
   Waste Management program direction funds for fiscal year 1999 until the 
   Secretary of Energy submits a plan for improvement of the Department of 
   Energy federal employment system. The plan would address strategies to  
   recruit and hire individuals for the Environmental Management program   
   who are highly skilled and who have experience as project and           
   construction managers. The plan would further identify any provisions of
   Federal law that must be altered to allow its implementation.           
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the         
   Secretary to submit the plan to Congress not later than February 1,     
   1999, and would remove the prohibition on use of program direction      
   funds.                                                                  
           Department of Energy nuclear materials couriers (sec. 3154)             

       The Senate amendment contained several provisions (secs. 3161 3172) 
   that would allow nuclear materials couriers at the Department of Energy 
   (DOE) to retire with full federal benefits after 20 years of service.   
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would apply eligibility for
   early retirement benefits only to those couriers who retire after fiscal
   year 1998.                                                              
                      Increase in maximum rate of pay for scientific, engineering, 
           and technical personnel responsible for safety at defense nuclear       
           facilities (sec. 3155)                                                  
       The Senate amendment contained a provision (sec. 3142) that would   
   raise the pay level for the excepted service authority provided in the  
   National Defense Authorization Act for Fiscal Year 1995 (Public Law 103 
   337) from Level IV to III of the Executive Schedule.                    
    The House bill contained no similar provision.                         


    The House recedes with a clarifying amendment.                         

       The conferees expect this enhanced authority to assist the          
   Department of Energy in attracting and retaining senior scientific,     
   engineering, and technical personnel who possess the skills to perform  
   critical nuclear health and safety activities at the Department's       
   defense nuclear facilities. The conferees note that, in recent years,   
   the Level IV pay cap has limited the Department's ability to attract and
   retain the highest qualified scientific and technical talent.           
                      Extension of authority of Department of Energy to pay        
           voluntary separation incentive payments (sec. 3156)                     
       The Senate amendment contained a provision (sec. 3145) that would   
   extend for one year authority granted to the Secretary of Energy by the 
   Treasury, Postal Service, and General Government Appropriations Act,    
   1997 (Public Law 104 208) to pay voluntary separation incentive payments
   to certain Federal employees.                                           
    The House bill contained no similar provision.                         

    The House recedes.                                                     

       The conferees expect this authority to be used to continue          
   reductions in federal staffing levels in an effort to decrease costs and
   increase program efficiencies. The conferees do not intend this         
   authority to be used for broad, untargeted staff reductions. The        
   conferees expect the Secretary of Energy to utilize this authority, in  
   conjunction with other authorities, to eliminate selectively those job  
   classifications and positions that are no longer needed to carry out the
   missions of the Department of Energy. The conferees expect the authority
   to allow the Department to save money over the long term and reorient   
   the DOE federal workforce to focus on the Department's most pressing    
   problems.                                                               
                      Repeal of fiscal year 1998 statement of policy on stockpile  
           stewardship program (sec. 3157)                                         
       The Senate amendment contained a provision (sec. 3141) that would   
   repeal section 3156 of the National Defense Authorization Act for Fiscal
   Year 1998 (Public Law 105 85).                                          
    The House bill contained no similar provision.                         

    The House recedes.                                                     

       Section 3156 of the National Defense Authorization Act for Fiscal   
   Year 1998 addressed findings and current policies regarding the         
   stockpile stewardship program of the Department of Energy. This repeal  
   action does not represent a change in policy and is taken without       
   prejudice. The conferees note that the findings and policy statements   
   expressed in section 3156 are consistent with the activities of the     
   stockpile stewardship program focused on ensuring that the United States
   possesses a safe, secure, effective, and reliable nuclear stockpile     
   consistent with our national security requirements and treaty           
   commitments. The conferees do not believe that such policy statements   
   need to be set forth in law.                                            
           Report on stockpile stewardship criteria (sec. 3158)                    

       The House bill contained a provision (sec. 3153) that would require 
   the Secretary of Energy to submit a report to the Committee on Armed    
   Services of Senate and the National Security Committee of the House of  
   Representatives by March 1, 1999, on DOE efforts to develop a clear set 
   of criteria pertaining to the technical performance of science based    
   stockpile stewardship program tools and their relationship to key       
   nuclear weapons technologies. The provision would require the Secretary 
   to identify the performance criteria that, if met, would offer          
   sufficient certainty that the U.S. stockpile is safe and reliable.      
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the report  
   to be submitted not later than March 1, 2000, and be coordinated with   
   the Secretary of Defense.                                               
                      Panel to assess the reliability, safety, and security of the 
           United States nuclear stockpile (sec. 3159)                             
       The Senate amendment contained a provision (sec. 1073) that would   
   establish a six member commission to assess the reliability, safety, and
   security of the U.S. nuclear deterrent. The commission would review the 
   safety, security, and reliability of the U.S. nuclear deterrent and the 
   annual nuclear warhead certification process carried out by the         
   Department of Energy weapons laboratory directors, the Commander in     
   Chief of the United States Strategic Command, and the Secretary of      
   Defense. Commission members would be appointed as follows: two members  
   each by the Majority Leader of the Senate and Speaker of the House of   
   Representatives and one member each by the Minority Leaders of the      
   Senate and House of Representatives. The chairman of the commission     
   would be designated by the Majority Leader of the Senate. The cost of   
   the commission would be borne equally by the Departments of Energy and  
   Defense. The commission would terminate three years after the date of   
   the appointment of the chairman.                                        
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the Secretary
   of Defense, in consultation with the Secretary of Energy, to contract   
   with a Federally Funded Research and Development Center (FFRDC) to      
   establish a panel to assess the reliability, safety, and security of the
   U.S. nuclear stockpile. The panel would examine the annual nuclear      
   warhead certification documents, the processes and assumptions upon     
   which the certification is based, and the stockpile stewardship and     
   management criteria to be established by the Secretary of Energy        
   pursuant to section 3158 of this Act.                                   
       The conferees believe that in order to ensure an independent        
   assessment, no employees of the FFRDC should be appointed as panel      
   members.                                                                
           International cooperative information exchange (sec. 3160)              

       The House bill contained a provision (sec. 3156) that would express 
   the sense of Congress that the President should instruct the Secretary  
   of Energy to consult with the Secretary of Defense, the Administrator   

                    of the Environmental Protection Agency, and other appropriate 
          officials, and submit to the Committee on Armed Services of the Senate  
          and the Committee on National Security of the House of Representatives  
          an assessment of whether the United States should consider favorably the
          ``Advanced Technology Research Project'' proposal which recommends      
          establishment of an international project to facilitate the exchange of 
          information on advanced nuclear waste technologies. The assessment      
          should include a discussion of whether the proposal could be funded     
          privately and administered by an international nongovernmental          
          organization. The Secretary would also be required to identify any      
          legislation required to carry out any such a project.                   
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would express the sense of
   the Congress that the Secretary of Energy, in consultation with the     
   Secretary of Defense, the Administrator of the Environmental Protection 
   Agency, and the Director of the Agency for International Development,   
   should prepare a report on those programs that currently facilitate     
   sharing of information on international nuclear waste problems, and any 
   recommendations to expand or consolidate such activities under a single 
   international cooperative program.                                      
                      Protection against inadvertent release of restricted data and
           formerly restricted data (sec. 3161)                                    
       The Senate amendment contained a provision (sec. 3146) that would   
   amend section 3155 of the National Defense Authorization Act for Fiscal 
   Year 1996 (Public Law 104 106) by requiring all federal agencies,       
   including the National Archives and Records Administration, to conduct a
   visual inspection of all records over 25 years old to ascertain that    
   such records contain no information classified as restricted data or    
   formerly restricted data. The provision would require that any records  
   found to contain such classified information be set aside pending       
   completion of a review by the Department of Energy.                     
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would require the Secretary
   of Energy and the Archivist of the United States, after consultation    
   with members of the National Security Council, and, in consultation with
   the Secretary of Defense and the heads of appropriate federal agencies, 
   to develop a plan to prevent records containing restricted data or      
   formerly restricted data from being inadvertently released under        
   Executive Order 12958. The plan would include the following elements:   
   (1) actions that will be taken to ensure that only records series that  
   are highly unlikely to contain restricted data or formerly restricted   
   data are released without a page-by-page review; (2) the criteria by    
   which documents will be determined to be highly unlikely to contain     
   restricted data or formerly restricted data; (3) steps to be taken to   
   ensure proper training, evaluation, and supervision of declassification 
   personnel to recognize restricted data and formerly restricted data; (4)
   the extent to which automated declassification technologies will be used
   to protect restricted data and formerly restricted data; (5) procedures 
   for periodic Department of Energy review and evaluation of agency       
   compliance with the plan; (6) procedures for resolving disagreements    
   among agencies regarding declassification procedures and decisions; (7) 
   identification of funding, personnel, and other resources required to   
   carry out the plan; and (8) a timetable to implement the plan. Summaries
   of the periodic review of agency compliance would be provided to the    
   President's National Security Advisor and to the Committee on Armed     
   Services of the Senate and the National Security Committee of the House 
   of Representatives. The amendment would halt the use of bulk            
   declassification of any document covered by this provision until 60 days
   after the plan is submitted to the Committee on Armed Services of the   
   Senate and the National Security Committee of the House of              
   Representatives, and the Assistant to the President for National        
   Security Affairs.                                                       
       The conferees support current efforts to reduce the volume of       
   information retained as classified. The conferees are, however,         
   concerned that Executive Order 12958 does not ensure adequate protection
   of information classified as restricted data or formerly restricted     
   data. This provision is intended to ensure greater review and scrutiny  
   of those federal records that may contain information classified as     
   restricted data or formerly restricted data prior to the bulk           
   declassification and subsequent release of such records. The conferees  
   do not intend this provision to slow down much needed efforts to reduce 
   the amount of classified material maintained in federal archives.       
       The conferees believe that the President must ensure that each      
   Executive Branch agency with custodial responsibility for the records   
   described in the provision has available sufficient funds to carry out  
   the requirements of this provision.                                     
                      Sense of Congress regarding treatment of Formerly Utilized   
           Sites Remedial Action Program under a non-defense discretionary budget  
           function (sec. 3162)                                                    
       The Senate amendment contained a provision (sec. 3143) that would   
   express the sense of the Senate that the Office of Management and Budget
   should transfer funding for the Formerly Utilized Sites Remedial Action 
   Program into a non-defense discretionary portion of the Federal budget  
   in future years.                                                        
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would modify the provision 
   to be a sense of Congress.                                              
           Reports relating to tritium production (sec. 3163)                      

       The House bill contained a provision (sec. 3134) that would delay   
   the date by which the Secretary of Energy must select a primary         
   technology for the production of tritium from December 31, 1998 to      
   December 31, 1999. The Secretary would be prohibited from selecting a   
   primary technology until the date that is the later of 30 days following
   completion of the test at the Watts Bar nuclear plant and the date that 
   the Secretary submits to the congressional defense                      

                    committees a report on the results of that test. The report   
          would provide information regarding the amount of tritium produced, data
          on the leakage of tritium from the test, and any other technical        
          findings resulting from the test.                                       
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require the         
   Secretary of Energy to submit a report on the results of the test       
   currently being carried out at the Watts Bar nuclear plant. The report  
   would include data on the performance of the tritium test rods, the     
   performance of the reactor, any leakage of tritium from the test rods,  
   the amount of tritium produced, and any other technical findings        
   resulting from the test. The Secretary would be required to submit to   
   the congressional defense committees a preliminary report on the test   
   program not later than 60 days after the test rods are removed from the 
   Watts Bar reactor.                                                      
       The amendment would also direct the Secretary of Defense, in        
   consultation with the Secretary of Energy, to establish a task force of 
   the Defense Science Board to examine the risks associated with each     
   tritium production technology, the nuclear weapons proliferation        
   implications of each technology, the ability of each technology to meet 
   the national security requirements of the United States, and any other  
   factors that the Secretaries of Defense and Energy consider appropriate.
   The Secretaries of Energy and Defense would be required to provide the  
   task force report to the congressional defense committees not later than
   June 30, 1999.                                                          
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Prohibition on Federal loan guarantees for defense           
           environmental management privatization projects                         
       The House bill contained a provision (sec. 3131) that would prohibit
   the use of Federal government loan guarantees for Department of Energy  
   defense environmental management privatization projects.                
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

       The conferees remain deeply concerned that the use of Federal loan  
   guarantees are inconsistent with the concept of privatization in        
   Department of Energy (DOE) environmental remediation projects. The      
   conferees note that the Federal Credit Reform Act of 1990 requires that 
   a large portion of the costs of Federal loan guarantees be appropriated 
   in the fiscal year in which the project is initiated. This requirement  
   would draw into question the cost effectiveness and desirability of any 
   DOE privatization project that would rely upon such instruments.        
       The conferees note, however, that a recent General Accounting Office
   report on the DOE privatization program recommended a wide variety of   
   contracting and project financing tools be made available to DOE to     
   carry out privatized cleanup projects. Nevertheless, the conferees      
   cannot envision many instances where Federal loan guarantees would prove
   beneficial to the Federal government.                                   
       The conferees intend to scrutinize any proposed use of Federal loan 
   guarantees in DOE privatization projects to ensure that the concept of  
   privatization is not violated. The conferees do not intend to authorize 
   funding in future years for those projects that include a Federal loan  
   guarantee, if utilizing a loan guarantee either removes the consequences
   of failure for the contractor or increases the cost of the privatization
   project.                                                                
       The conferees direct that any use of Federal loan guarantees for    
   privatization projects be made only in those circumstances where the    
   Secretary of Energy certifies that (1) the loan guarantee is necessary  
   for the contractor to obtain a private sector loan, and (2) the         
   percentage of the loan amount covered by the loan guarantee does not    
   harm the incentive for success.                                         
                      Sense of the Senate regarding memoranda of understanding with
           the State of Oregon relating to Hanford                                 
       The Senate amendment contained a provision (sec. 3147) that would   
   set forth the sense of the Senate that the Department of Energy (DOE)   
   and the State of Washington should seek to implement existing memoranda 
   of understanding regarding cleanup activities at the Hanford Site in    
   ways that permit continued information sharing and participation by the 
   State of Oregon in those decisions at the Site that affect the public   
   health or safety of the citizens of Oregon.                             
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

       The conferees encourage the State of Washington and the Department  
   of Energy to continue those cooperative efforts with the State of Oregon
   that speed the pace of cleanup at the site and ensure appropriate       
   participation by all external stakeholders, including the State of      
   Oregon. The conferees note that the State of Oregon has executed        
   memoranda of understanding with the State of Washington and with the    
   Department of Energy. The conferees further note that the State of      
   Oregon holds two seats on the Hanford Site Specific Advisory Board      
   (SSAB), a group of regulators, stakeholders, and tribes that reviews    
   clean up progress at the site and makes recommendations to DOE. The     
   conferees believe that Oregon's participation in the Hanford SSAB and   
   the increased access to information provided via memoranda of           
   understanding with DOE and the State of Washington, provide Oregon with 
   appropriate participation in Hanford cleanup programs.                  
                      Sense of Congress on funding requirements for the            
           nonproliferation science and technology activities of the Department of 
           Energy                                                                  
       The Senate amendment contained a provision (sec. 3149) that would   
   express the sense of Congress that the budget for nonproliferation      
   science and technology activities for fiscal years 2000 through fiscal  
   year 2008 should be increased each year over the preceding year by at   
   least one percent above the rate of inflation.                          
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    


                    TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD          

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Defense Nuclear Facilities Safety Board (sec. 3201)                     

       The House bill contained a provision (sec. 3201) that would         
   authorize $17.5 million for the Defense Nuclear Facilities Safety Board 
   (DNFSB) for fiscal year 1999.                                           
    The Senate amendment contained an identical provision (sec. 3201).     

    The conference agreement includes this provision.                      

       The conferees anticipate that the report required by section 3202 of
   the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
   105 85) regarding which Department of Energy (DOE) facilities should    
   remain under the jurisdiction of the DNFSB will be submitted on time.   
       The conferees are concerned that the implementation of an additional
   external regulation approach could draw scarce resources away from high 
   priority, compliance driven cleanup actions and critical national       
   security activities. The conferees believe no decisions should be made  
   or actions taken until the findings of the DNFSB and the comments of the
   Secretary of Energy and the Chairman of the Nuclear Regulatory          
   Commission have been provided to the Congress as required by section    
   3202 of the National Defense Authorization Act for Fiscal Year 1998     
   (Public Law 105 85) and the on-going external regulation pilot programs 
   are completed and evaluated.                                            
                          TITLE XXXIII--NATIONAL DEFENSE STOCKPILE                

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Definitions (sec. 3301)                                                 

       The House bill contained a provision (sec. 3301) that would define  
   the National Defense Stockpile and the National Defense Stockpile       
   Transaction Fund.                                                       
    The Senate amendment contained an identical provision.                 

    The conference agreement includes this provision.                      

           Authorized uses of stockpile funds (sec. 3302)                          

       The House bill contained a provision (sec. 3302) that would         
   authorize the obligation of $82.6 million for the operation of the      
   National Defense Stockpile.                                             
    The Senate amendment contained a similar provision.                    

    The Senate recedes.                                                    

                      Authority to dispose of certain materials in the national    
           defense stockpile (sec. 3303)                                           
       The Senate amendment contained a provision (sec. 3303) that would   
   authorize the disposal of certain materials from the National Defense   
   Stockpile and require that sufficient materials are sold to generate    
   receipts to the United States in the amount of $103.0 million by the end
   of fiscal year 1999 and $377.0 million by the end of fiscal year 2003.  
    The House bill had no similar provision.                               

       The House recedes with an amendment that would modify the quantity  
   of materials authorized for disposal in order to generate receipts of   
   $105.0 million by the end of fiscal year 1999 and $590.0 million by the 
   end of fiscal year 2005.                                                
       The conferees expect that any sales of tungsten ores and            
   concentrates contained in the National Defense Stockpile shall be made  
   at a price that is no less than the market value at the time of the     
   proposed sale (taking into account any specific location and as-is sale 
   adjustments), and that the Department of Defense will fully consider the
   views of the Market Impact Committee concerning any projected domestic  
   economic effect by the sale of these materials. The conferees also      
   expect that the Market Impact Committee, in developing recommendations  
   for the sale of tungsten ores and concentrates, will consult with       
   representatives of producers, processors, and consumers of these        
   materials.                                                              
                      Use of stockpile funds for certain environmental remediation,
           restoration, waste management, and compliance activities (sec. 3304)    
       The Senate amendment contained a provision (sec. 3304) that would   
   authorize the use of funds from the National Defense Stockpile          
   Transaction Fund to be used for environmental remediation, restoration, 
   waste management, or compliance activities that are required under a    
   federal law or are undertaken by the Federal Government under an        
   administrative decision or negotiated agreement.                        
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                           TITLE XXXIV--NAVAL PETROLEUM RESERVES                  

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Definitions (sec. 3401)                                                 

       The House bill contained a provision (sec. 3401) that would provide 
   definitions for naval petroleum reserves, Naval Petroleum Reserve Number
   2, Naval Petroleum Reserve Number 3, Oil Shale Reserve Number 2,        
   antitrust laws, general land laws, and petroleum.                       
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would include definitions 
   for each of these terms, except general land laws.                      
           Authorization of appropriations (sec. 3402)                             


       The House bill contained a provision (sec. 3402) that would         
   authorize $22.5 million for the operations of the naval petroleum and   
   oil shale reserves.                                                     
    The Senate amendment contained a similar provision.                    

    The Senate recedes.                                                    

           Disposal of Naval Petroleum Reserve Numbered 2 (sec. 3403)              

       The House bill contained a provision (sec. 3404) that would require 
   the Secretary of Energy to dispose of that portion of the Naval         
   Petroleum Reserve Numbered 2 located within the town lots in Ford City, 
   California, by competitive sale or lease consistent with commercial     
   practices, by transfer to another Federal agency or a public or private 
   entity, or by any other means. The provision would further require the  
   Secretary of Energy to transfer to the Secretary of Interior,           
   administrative jurisdiction and control over the remaining lands within 
   Naval Petroleum Reserve Numbered 2 after the Secretary of Energy makes a
   determination to abandon oil and gas operations.                        
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would permit, rather than 
   require, the disposal of this property.                                 
           Disposal of Naval Petroleum Reserve Numbered 3 (sec. 3404)              

       The House bill contained a provision (sec. 3405) that would         
   authorize the disposal of Naval Petroleum Reserve Numbered 3 by sale,   
   lease, transfer, or other means.                                        
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would authorize the       
   disposal of this property by sale, lease, or transfer to another federal
   agency.                                                                 
           Disposal of Oil Shale Reserve Numbered 2 (sec. 3405)                    

       The House bill contained a provision (sec. 3406) that would require 
   the Secretary of Energy to transfer to the Secretary of Interior        
   administrative jurisdiction and control over all public lands included  
   in Oil Shale Reserve Numbered 2 by September 30, 1999.                  
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would authorize, rather   
   than require, the transfer of this property.                            
           Administration (sec. 3406)                                              

       The House bill contained a provision (sec. 3407) that would         
   establish administrative requirements for the disposal of property      
   within the Naval Petroleum and Oil Shale Reserves, as would otherwise be
   authorized in H.R. 3616.                                                
    The Senate amendment contained no similar provision.                   

    The Senate recedes with a technical amendment.                         

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Price requirement on price of certain petroleum during fiscal year 1999 

       The House bill contained a provision (sec. 3403) that would require 
   that the sale of any of the U.S. share of petroleum produced from Naval 
   Petroleum Reserve Numbered 2, or Naval Petroleum Reserve Numbered 3,    
   shall be made at a price not less than 90 percent of the current sales  
   price of comparable petroleum.                                          
    The Senate amendment contained no similar provision.                   

    The House recedes.                                                     

                      Treatment of State of California claim regarding Naval       
           Petroleum Reserve Numbered 1                                            
       The House bill contained a provision (sec. 3408) that would         
   eliminate the requirement for an appropriation before funds resulting   
   from the sale of the Naval Petroleum Reserve Numbered 1 at Elk Hills can
   be distributed to the State of California in accordance with the        
   Settlement Agreement entered into between the State of California and   
   the Department of Energy.                                               
    The Senate amendment had no similar provision.                         

    The House recedes.                                                     

                            TITLE XXXV--PANAMA CANAL COMMISSION                   

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Short title; references to Panama Canal Act of 1979 (sec. 3501)         

       The House bill contained a provision (sec. 3501) that would provide 
   a short title to the amendments to the Panama Canal Act of 1979 (22     
   U.S.C. 3601 et seq.) contained in this Act, and state that, unless      
   otherwise noted, such amendments relate to the Panama Canal Act.        
    The Senate amendment contained an identical provision (sec. 3501).     

    The conference agreement includes this provision.                      

           Authorization of expenditures (sec. 3502)                               

       The House bill contained a provision (sec. 3502) that would         
   authorize the Panama Canal Commission to make expenditures from its     
   revolving fund, subject to certain ceilings, for fiscal year 1999.      
    The Senate amendment contained an identical provision (sec. 3502).     

       The conference agreement includes this provision, and an increase of
   $10,000 in the ceiling for the representation and reception expenses of 
   the Administrator of the Panama Canal Commission.                       
           Purchase of vehicles (sec. 3503)                                        

    The House bill contained a provision (sec. 3503) that would            


                    authorize the Panama Canal Commission to purchase vehicles    
          built in the United States.                                             
       The Senate amendment contained a similar provision (sec. 3503) that 
   excluded the requirement for the vehicles to be built in the United     
   States.                                                                 
    The House recedes.                                                     

       The conferees note that the Commission has previously purchased only
   vehicles built in the United States and encourage the continuation of   
   that practice.                                                          
           Expenditures only in accordance with treaties (sec. 3504)               

       The House bill contained a provision (sec. 3504) that would ensure  
   amounts authorized for expenditure by the Panama Canal Commission for   
   fiscal year 1999 be spent only in accordance with the terms of the      
   Panama Canal Treaties of 1977 and U.S. laws implementing those treaties.
    The Senate amendment contained an identical provision (sec. 3504).     

    The conference agreement includes this provision.                      

           Donations to the Commission (sec. 3505)                                 

       The House bill contained a provision (sec. 3505) that would         
   authorize the Panama Canal Commission to seek and to accept donations   
   from private and public entities for the purpose of funding its         
   promotional activities subject to guidelines to be established by the   
   Commission.                                                             
    The Senate amendment contained an identical provision (sec. 3505).     

    The conference agreement includes this provision.                      

                      Agreements for United States to provide post-transfer        
           administrative services for certain employee benefits (sec. 3506)       
       The Senate amendment contained a provision (sec. 3506) that would   
   allow the Secretary of State to enter into agreements to provide        
   administrative services for certain Panama Canal-related employee       
   benefits after December 31, 1999.                                       
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Sunset of United States overseas benefits just before        
           transfer (sec. 3507)                                                    
       The House bill contained a provision (sec. 3506) that would sunset  
   certain benefits to certain U.S. citizens employed by the Panama Canal  
   Commission to clarify the conditions of employment intended to be       
   continued by the Government of Panama after the transfer of the Canal on
   December 31, 1999.                                                      
    The Senate amendment contained an identical provision (sec. 3507).     

    The conference agreement includes this provision.                      

           Central Examining Office (sec. 3508)                                    

       The House bill contained a provision (sec. 3507) that would repeal  
   an obsolete provision of law relating to the Central Examining Office.  
    The Senate amendment contained an identical provision (sec. 3508).     

       The conference agreement includes this provision with a technical   
   amendment.                                                              
           Liability for vessel accidents (sec. 3509)                              

       The House bill contained a provision (sec. 3508) that would provide 
   the Panama Canal Commission with a degree of immunity against claims for
   damages occurring while vessels transiting the Canal are under the      
   direction of pilots employed by the Commission. The provision is        
   intended to lower the costs of Canal operations by instituting a        
   liability regime that would prevent claims against the Commission for   
   $1.0 million or less in damages.                                        
    The Senate amendment contained an identical provision (sec. 3509).     

       The conference agreement includes a provision that would allow the  
   Panama Canal Commission to prescribe regulations that limit its exposure
   to liability to those damages that exceed a specified threshold amount, 
   provided that such threshold amount does not exceed $1.0 million, by    
   requiring claimants to look to their insurers for compensation for      
   damages below the threshold amount.                                     
       The conferees believe that a regulatory approach will allow greater 
   flexibility for the Commission to implement any changes through         
   procedures and on a timetable that will allow for consideration of      
   maritime industry concerns. The adopted provision would also allow the  
   Commission to set the insurance requirement, and thereby its immunity   
   against claims, at a lower threshold if a level less than $1.0 million  
   is determined, through consultation with interested parties, to be in   
   the best interests of the Panama Canal and world shipping.              
       In light of expectations that the Panama Canal Authority, the       
   successor agency to the Commission, will implement such a               
   liability-limiting regime after it assumes stewardship of Canal         
   operations, this provision is pursuant to the U.S. treaty commitment to 
   facilitate transition to Panamanian control. The conferees expect that  
   if damages during Canal transits increase significantly under any new   
   liability regime, that the Commission, or its successor Panamanian      
   entity, will consider a revised liability regime that minimizes costs   
   for world commerce as well as for Canal operations.                     
           Panama Canal Board of Contract Appeals (sec. 3510)                      

       The House bill contained a provision (sec. 3509) that would         
   authorize the Panama Canal Commission to establish the salaries of      
   members of the Panama Canal Board of Contract Appeals.                  
    The Senate amendment contained a similar provision (sec. 3511).        

    The House recedes.                                                     

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

       The Senate amendment contained a provision (sec. 3513) that would   
   ensure the Secretary of Defense's designee on the Panama Canal          
   Commission Supervisory Board be an officer of the Department of Defense 
   (DOD), rather than an individual who was a DOD officer at the time of   
   his designation and subsequently left his position in the Department.   
    The House bill contained no similar provision.                         

    The House recedes with a clarifying amendment.                         

           Technical amendments (sec. 3512)                                        

       The House bill contained a provision (sec. 3510) that would make    
   certain technical and conforming amendments to the Panama Canal Act of  
   1979 (22 U.S.C. 3601 et seq.).                                          
    The Senate amendment contained a similar provision (sec. 3512).        

    The House recedes.                                                     

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

                      Placement of United States citizens in positions with the    
           United States Government                                                
       The Senate amendment contained a provision (sec. 3510) that would   
   provide placement priority for involuntarily separated employees of the 
   Panama Canal Commission who are U.S. citizens and were hired after the  
   Panama Canal Treaty of 1977 that is on par with priority for other      
   federal employees who are involuntarily separated.                      
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    

                            TITLE XXXVI--MARITIME ADMINISTRATION                  

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Authorization of appropriations for fiscal year 1999 (sec. 3601)        

       The House bill contained a provision (sec. 3601) that would         
   authorize $90.6 million for fiscal year 1999, as included in the budget 
   request, for the United States Maritime Administration.                 
    The Senate amendment contained no similar provision.                   

    The Senate recedes.                                                    

           Authority to convey National Defense Reserve Fleet vessel (sec. 3602)   

       The House bill contained a provision (sec. 3602) that would         
   authorize the Secretary of Transportation to convey a National Defense  
   Reserve Fleet surplus vessel, M/V Bayamon, to the Trade Fair Ship       
   Company.                                                                
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require that the    
   Secretary dispose of the vessel using competitive procedures.           
                      Authority to convey certain National Defense Reserve Fleet   
           vessels (sec. 3603)                                                     
       The House bill contained a provision (sec. 3603) that would         
   authorize the Secretary of Transportation to sell, at fair market value,
   two surplus TAO class vessels that were partially built and then        
   transferred to the National Defense Reserve Fleet.                      
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would require that the    
   Secretary dispose of the vessels using competitive procedures.          
           Clearinghouse for maritime information (sec. 3604)                      

       The House bill contained a provision (sec. 3604) that would         
   authorize the establishment of a clearinghouse for maritime information 
   by providing an online trade information database at a state maritime   
   academy. The provision would require the $75,000 funding needed for this
   effort be derived from funds authorized for operations of the Maritime  
   Administration.                                                         
    The Senate amendment contained no similar provision.                   

       The Senate recedes with an amendment that would make the provision  
   of funds for a clearinghouse for maritime information discretionary.    
           Conveyance of NDRF vessel ex-USS Lorain County (sec. 3605)              

       The House bill contained a provision (sec. 3605) that would         
   authorize the Secretary of Transportation to convey, at no cost to the  
   government, a surplus National Defense Reserve Fleet ship, ex-USS Lorain
   County, to a not-for-profit organization for use as a memorial to Ohio  
   veterans.                                                               
    The Senate amendment contained a similar provision (sec. 1015).        

    The Senate recedes.                                                    

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

                               LEGISLATIVE PROVISIONS ADOPTED                     

                      Increased monitoring of products made with forced labor      
           (secs. 3701 3703)                                                       
       The Senate amendment contained provisions (secs. 3701 3704) related 
   to the monitoring of products derived from forced labor.                
    The House bill contained no similar provisions.                        

       The House recedes with an amendment that would eliminate a provision
   containing findings, which emphasized products derived from forced labor
   from the People's Republic of China, strike direct references to        
   indentured labor, including child labor (secs. 3701 3703), and eliminate
   a specific reference to mining products (sec. 3702).                    

       The conferees note that forced labor includes convict labor, forced 
   labor, and indentured labor, as such terms are used in section 307 of   
   the Tariff Act of 1930 (19 U.S.C. 1301 et seq.). Accordingly, the       
   conferees understand that indentured labor, to include child labor, is a
   category of labor included in the definition of forced labor as         
   established in the Tariff Act of 1930, which thereby prohibits the      
   importation of products made through the use of indentured or child     
   labor. The conferees further recognize the importance of strong and     
   enforceable laws relating to products derived from child labor, and     
   emphasize that such laws should be enforced to the maximum extent       
   practicable by the U.S. Customs Service.                                
                       TITLE XXXVIII--FAIR TRADE IN AUTOMOTIVE PARTS              

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Fair trade in automotive parts (secs. 3801 3805)                        

       The Senate amendment contained provisions (sec. 3801 3805) that     
   would deal with trade in automotive parts. Section 3801 would provide   
   that the title could be cited as the ``Fair Trade in Automotive Parts   
   Act of 1998.'' Section 3802 would define certain terms. Section 3803    
   would direct the Secretary of Commerce to re-establish an initiative to 
   increase the sale of U.S.-made auto parts to Japanese markets, and      
   prescribe the functions of the Secretary in this regard. Section 3804   
   would direct the Secretary to establish a special advisory committee    
   from the automotive parts industry. Section 3805 would provide that the 
   authority under the Act shall expire on December 31, 2003.              
    The House bill contained no similar provision.                         

    The House recedes with technical amendments.                           

                                TITLE XXXIX--RADIO FREE ASIA                      

                               LEGISLATIVE PROVISIONS ADOPTED                     

           Short title (sec. 3901)                                                 

       The Senate amendment contained a provision (sec. 3901) that would   
   provide that the provisions in this title related to international      
   broadcasting activities to China may be cited as the Radio Free Asia Act
   of 1998.                                                                
    The House bill contained no similar provision.                         

    The House recedes.                                                     

                      Authorization of appropriations for increased funding for    
           Radio Free Asia and Voice of America broadcasting to China (sec. 3902)  
       The Senate amendment contained a provision (sec. 3903) that would   
   authorize $30.0 million for fiscal year 1998 and $22.0 million for      
   fiscal year 1999 for the purpose of funding Radio Free Asia broadcasting
   to the People's Republic of China and Tibet, $5.0 million for fiscal    
   year 1998 and $3.0 million for fiscal year 1999 for Voice of America    
   broadcasting to China and Tibet, and an additional $10.0 million for    
   fiscal year 1998 and $2.0 million for fiscal year 1999 for radio        
   construction in support of such broadcasting. The provision would       
   reserve $100,000 of the funds authorized for Voice of America           
   broadcasting for broadcasts in the Hmong language.                      
    The House bill contained no similar provision.                         

       The House recedes with an amendment that would delete the           
   authorizations for fiscal year 1998, eliminate the requirement that     
   certain broadcasts be in the Hmong language, and specify that the       
   additional authorizations for fiscal year 1999 are with respect to      
   appropriations for the U.S. Information Agency.                         
           Reporting requirement (sec. 3903)                                       

       The Senate amendment contained a provision (sec. 3904) that would   
   require the Broadcasting Board of Governors to submit a report on their 
   efforts to increase Radio Free Asia and Voice of America broadcasts to  
   China and Tibet, as well as an analysis of the control by the Government
   of the People's Republic of China of the media in China, to the         
   Committees on Foreign Relations and Appropriations of the Senate and the
   Committees on International Relations and Appropriations of the House of
   Representatives.                                                        
    The House bill contained no similar provision.                         

    The House recedes with a technical amendment.                          

                             LEGISLATIVE PROVISIONS NOT ADOPTED                   

           Findings                                                                

       The Senate amendment contained a provision (sec. 3902) that would   
   make certain findings with respect to freedom of information in the     
   People's Republic of China.                                             
    The House bill contained no similar provision.                         

    The Senate recedes.                                                    


      From the Committee on National Security, for consideration of the    
   House bill and the Senate amendment, and modifications committed to     
   conference:                                                             

    Floyd Spence,                                                           

    Bob Stump,                                                              

    Duncan Hunter,                                                          

    John R. Kasich,                                                         

    Herbert H. Bateman,                                                     

    James V. Hansen,                                                        

    Curt Weldon,                                                            

    Joel Hefley,                                                            

    Jim Saxton,                                                             

    Steve Buyer,                                                            

    Tillie K. Fowler,                                                       

    John M. McHugh,                                                         

    J.C. Watts,  Jr.,                                                       

    William M. Thornberry,                                                  

    Saxby Chambliss,                                                        

    Walter B. Jones,                                                        

    Michael Pappas,                                                         

    Bob Riley,                                                              

    Ike Skelton,                                                            

    Norman Sisisky,                                                         

    John M. Spratt,  Jr.,                                                   

    Solomon P. Ortiz,                                                       

    Owen Pickett,                                                           

    Lane Evans,                                                             

    Gene Taylor,                                                            

    Neil Abercrombie,                                                       

    Martin T. Meehan,                                                       

    Jane Harman,                                                            

    Paul McHale,                                                            

    Patrick J. Kennedy,                                                     

    Thomas H. Allen,                                                        

    Vic Snyder,                                                             

    James H. Maloney,                                                       

      As additional conferees from the Permanent Select Committee on       
   Intelligence, for consideration of matters within the jurisdiction of   
   that committee under clause 2 of rule XLVIII:                           
    Porter J. Goss,                                                         

    Jerry Lewis,                                                            

    Norm Dicks,                                                             

      As additional conferees from the Committee on Banking and Financial  
   Services, for consideration of section 1064 of the Senate amendment:    
    Jim Leach,                                                              

    Michael N. Castle,                                                      

    John J. LaFalce,                                                        

      As additional conferees from the Committee on Commerce for           
   consideration of sections 601, 3136, 3151, 3154, 3201, 3401, 3403, 3404,
   3405, 3406, and 3407 of the House bill, and sections 321, 601, 1062,    
   3133, 3140, 3142, 3144, 3201, and title XXXVIII of the Senate amendment,
   and modifications committed to conference:                              
    Thomas J. Bliley,  Jr.,                                                 

    Dan Schaefer,                                                           

    John D. Dingell,                                                        

      Provided that Mr. Oxley is appointed in lieu of Mr. Dan Schaefer for 
   consideration of section 321 of the Senate amendment.                   
    Michael G. Oxley,                                                       


      Provided that Mr. Bilirakis is appointed in lieu of Mr. Dan Schaefer 
   for consideration of section 601 of the House bill, and section 601 of  
   the Senate amendment.                                                   
    Mike Bilirakis,                                                         

      Provided that Mr. Tauzin is appointed in lieu of Mr. Dan Schaefer for
   consideration of section 1062 and Title XXXVIII of the Senate amendment.
    Billy Tauzin,                                                           

      As additional conferees from the Committee on Education and the      
   Workforce, for consideration of sections 361, 364, 551, and 3151 of the 
   House bill, and sections 522, 643, and 1055 of the Senate amendment, and
   modifications committed to conference:                                  
    Tom Petri,                                                              

    Frank Riggs,                                                            

    Tim Roemer,                                                             

      As additional conferees from the Committee on Government Reform and  
   Oversight, for consideration of sections 368, 729, 1025, 1042, and 1101 
   1106 of the House bill, and sections 346, 623, 707, 805, 806, 813, 814, 
   815, 816, 1101 1105, 3142, 3144, 3145, 3162 3172 and 3510 of the Senate 
   amendment, and modifications committed to conference:                   
    Dan Burton,                                                             

    John L. Mica,                                                           

      Provided that Mr. Horn is appointed in lieu of Mr. Mica for          
   consideration of section 368 of the House bill and sections 346, 623,   
   707, 805, 806, 813, 814, 815, and 816 of the Senate amendment.          
    Stephen Horn,                                                           


      As additional conferees from the Committee on International          
   Relations, for consideration of sections 233, 1021, 1043, 1044, 1201,   
   1204, 1205, 1210, 1211, 1213, 1216, and Title XIII of the House bill,   
   and sections 326, 332, 1013, 1041, 1042, 1074, 1084, 3506, 3601, 3602,  
   and 3901 3904 of the Senate amendment, and modifications committed to   
   conference:                                                             
    Benjamin A. Gilman,                                                     

    Doug Bereuter,                                                          

    Lee H. Hamilton,                                                        

      As additional conferees from the Committee on International          
   Relations, for consideration of sections 1207, 1208, 1209, and 1212 of  
   the House bill, and modifications committed to conference:              
    Benjamin A. Gilman,                                                     

    Doug Bereuter,                                                          

    Christopher H. Smith,                                                   

    Dan Burton,                                                             

    Dana Rohrabacher,                                                       

    Lee H. Hamilton,                                                        

    Tom Lantos,                                                             

      As additional conferees from the Committee on the Judiciary for      
   consideration of sections 1045 and 2812 of the House bill and section   
   1077 of the Senate amendment, and modifications committed to conference:
    Henry J. Hyde,                                                          

    Ed Bryant,                                                              

      As additional conferees from the Committee on Resources, for         
   consideration of sections 601, 2812, and 3404 3407 of the House bill,   
   and sections 601, 2828, and Title XXIX of the Senate amendment and      
   modifications committed to conference:                                  
    Don Young,                                                              

    Billy Tauzin,                                                           

      As additional conferees from the Committee on Science, for           
   consideration of sections 3135 and 3140 of the Senate amendment, and    
   modifications committed to conference:                                  

    F. James Sensenbrenner,  Jr.,                                           

    Ken Calvert,                                                            

    George E. Brown,  Jr.,                                                  

      As additional conferees from the Committee on Transportation and     
   Infrastructure, for consideration of sections 552, 601, 1411, and 1413  
   of the House bill, and sections 323, 601, 604, and 1080 of the Senate   
   amendment, and modifications committed to conference:                   
    Bud Shuster,                                                            

    Sherwood Boehlert,                                                      

    Bob Clement,                                                            

      As additional conferees from the Committee on Veterans' Affairs for  
   consideration of sections 556 and 1046 of the House bill, and sections  
   618, 619, 644, and 1082 of the Senate amendment, and modifications      
   committed to conference:                                                
    Christopher H. Smith,                                                   

    Mike Bilirakis,                                                         

    Ciro D. Rodriguez,                                                      

      As additional conferees from the Committee on Ways and Means, for    
   consideration of Titles XXXVII and XXXVIII of the Senate amendment, and 
   modifications committed to conference:                                  
    Philip M. Crane,                                                        

    Bill Thomas,                                                            

    Robert T. Matsui,                                                       

        Managers on the Part of the House.                                      


    Strom Thurmond,                                                         

    John Warner,                                                            

    John McCain,                                                            

    Dan Coats,                                                              

    Bob Smith,                                                              

    Dirk Kempthorne,                                                        

    Jim Inhofe,                                                             

    Rick Santorum,                                                          

    Olympia J. Snowe,                                                       

    Pat Roberts,                                                            

    Carl Levin,                                                             

    Edward M. Kennedy,                                                      

    Jeff Bingaman,                                                          

    John Glenn,                                                             

    Robert C. Byrd,                                                         

    Chuck Robb,                                                             

    Joseph I. Lieberman,                                                    

    Max Cleland,                                                            

        Managers on the Part of the Senate.