[DOCID: f:h1119eh.txt]
105th CONGRESS

  1st Session

                               H. R. 1119

_______________________________________________________________________

                                 AN ACT

     To authorize appropriations for fiscal year 1998 for military
activities of the Department of Defense, for military construction, and
   for defense activities of the Department of Energy, to prescribe
personnel strengths for such fiscal year for the Armed Forces, and for
                            other purposes.




























105th CONGRESS
  1st Session
                                H. R. 1119

_______________________________________________________________________

                                 AN ACT


     To authorize appropriations for fiscal year 1998 for military
activities of the Department of Defense, for military construction, and
   for defense activities of the Department of Energy, to prescribe
personnel strengths for such fiscal year for the Armed Forces, and for
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

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

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

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

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

Sec. 121. Limitation on obligation of funds for the Seawolf Submarine
                            program.
Sec. 122. Report on annual budget submission regarding the reserve
                            components.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology program.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Manufacturing technology program.
Sec. 212. Report on Strategic Environmental Research and Development
                            Program.
Sec. 213. Tactical unmanned aerial vehicles.
Sec. 214. Revisions to membership of and appointment authority for
                            National Ocean Research Leadership Council.
Sec. 215. Maintenance and repair of real property at Air Force
                            installations.
Sec. 216. Expansion of eligibility for Defense Experimental Program to
                            Stimulate Competitive Research.
Sec. 217. Bioassay testing of veterans exposed to ionizing radiation
                            during military service.
Sec. 218. Comanche program.
Sec. 219. Land attack standard missile.
Sec. 220. Report on operational field assessments program.
             Subtitle C--Ballistic Missile Defense Programs

Sec. 231. Budgetary treatment of amounts requested for procurement for
                            Ballistic Missile Defense programs.
Sec. 232. Cooperative ballistic missile defense program.
Sec. 233. Deployment dates for core theater missile defense programs
Sec. 234. Annual report on threat posed to the United States by weapons
                            of mass destruction, ballistic missiles,
                            and cruise missiles.
Sec. 235. Director of Ballistic Missile Defense Organization.
Sec. 236. Tactical high energy laser program.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Refurbishment and installation of air search radar.
Sec. 306. Refurbishment of M1-A1 tanks.
Sec. 307. Procurement and electronic commerce technical assistance
                            program.
                 Subtitle B--Military Readiness Issues

Sec. 311. Expansion of scope of quarterly readiness reports.
Sec. 312. Limitation on reallocation of funds within operation and
                            maintenance appropriations.
Sec. 313. Operation of prepositioned fleet, National Training Center,
                            Fort Irwin, California.
Sec. 314. Prohibition of implementation of tiered readiness system.
Sec. 315. Reports on transfers from high-priority readiness
                            appropriations.
Sec. 316. Report on Chairman, Joint Chiefs of Staff Exercise Program
                            and Partnership for Peace program.
Sec. 317. Quarterly reports on execution of operation and maintenance
                            appropriations.
                     Subtitle C--Civilian Personnel

Sec. 321. Pay practices when overseas teachers transfer to general
                            schedule positions.
Sec. 322. Use of approved fire-safe accommodations by Government
                            employees on official business.
Sec. 323. Veterans' preference status for certain veterans who served
                            on active duty during the Persian Gulf War.
                   Subtitle D--Depot-Level Activities

Sec. 331. Extension of authority for aviation depots and naval
                            shipyards to engage in defense-related
                            production and services.
Sec. 332. Exclusion of certain large maintenance and repair projects
                            from percentage limitation on contracting
                            for depot-level maintenance.
Sec. 333. Restrictions on contracts for performance of depot-level
                            maintenance and repair at certain
                            facilities.
Sec. 334. Core logistics functions of Department of Defense.
Sec. 335. Centers of Industrial and Technical Excellence.
Sec. 336. Personnel reductions, Army depots participating in Army
                            Workload and Performance System.
                  Subtitle E--Environmental Provisions

Sec. 341. Revision of membership terms for Strategic Environmental
                            Research and Development Program scientific
                            advisory board.
Sec. 342. Amendments to authority to enter into agreements with other
                            agencies in support of environmental
                            technology certification.
Sec. 343. Authorization to pay negotiated settlement for environmental
                            cleanup at former Department of Defense
                            sites in Canada.
Sec. 344. Modifications of authority to store and dispose of nondefense
                            toxic and hazardous materials.
Sec. 345. Revision of report requirement for Navy program to monitor
                            ecological effects of organotin.
Sec. 346. Partnerships for investment in innovative environmental
                            technologies.
Sec. 347. Pilot program to test an alternative technology for
                            eliminating solid and liquid waste
                            emissions during ship operations.
  Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 361. Reorganization of laws regarding commissaries and exchanges
                            and other morale, welfare, and recreation
                            activities.
Sec. 362. Merchandise and pricing requirements for commissary stores.
Sec. 363. Limitation on noncompetitive procurement of brand-name
                            commercial items for resale in commissary
                            stores.
Sec. 364. Transfer of jurisdiction over exchange, commissary, and
                            morale, welfare, and recreation activities
                            to Under Secretary of Defense
                            (Comptroller).
Sec. 365. Public and private partnerships to benefit morale, welfare,
                            and recreation activities.
Sec. 366. Treatment of certain amounts received by Defense Commissary
                            Agency.
Sec. 367. Authorized use of appropriated funds for relocation of Navy
                            Exchange Service Command.
                       Subtitle G--Other Matters

Sec. 371. Assistance to local educational agencies that benefit
                            dependents of members of the Armed Forces
                            and Department of Defense civilian
                            employees.
Sec. 372. Continuation of Operation Mongoose.
Sec. 373. Inclusion of Air Force depot maintenance as operation and
                            maintenance budget activity group.
Sec. 374. Programs to commemorate 50th anniversary of Marshall Plan and
                            Korean conflict.
Sec. 375. Prohibition on use of Special Operations Command budget for
                            base operation support.
Sec. 376. Continuation and expansion of demonstration program to
                            identify overpayments made to vendors.
Sec. 377. Applicability of Federal printing requirements to Defense
                            Automated Printing Service.
Sec. 378. Base operations support for military installations on Guam.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
                       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.
              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Limitation on number of general and flag officers who may
                            serve in positions outside their own
                            service.
Sec. 502. Exclusion of certain retired officers from limitation on
                            period of recall to active duty.
Sec. 503. Clarification of officers eligible for consideration by
                            selection boards.
Sec. 504. Authority to defer mandatory retirement for age of officers
                            serving as chaplains.
                 Subtitle B--Reserve Component Matters

Sec. 511. Individual Ready Reserve activation authority.
Sec. 512. Termination of Mobilization Income Insurance Program.
Sec. 513. Correction of inequities in medical and dental care and death
                            and disability benefits for reserve members
                            who incur or aggravate an illness in the
                            line of duty.
Sec. 514. Time-in-grade requirements for reserve commissioned officers
                            retired during force drawdown period.
Sec. 515. Authority to permit non-unit assigned officers to be
                            considered by vacancy promotion board to
                            general officer grades.
Sec. 516. Grade requirement for officers eligible to serve on
                            involuntary separation boards.
Sec. 517. Limitation on use of Air Force Reserve AGR personnel for Air
                            Force base security functions.
                    Subtitle C--Military Technicians

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

Sec. 531. Reform of military recruiting systems.
Sec. 532. Improvements in medical prescreening of applicants for
                            military service.
Sec. 533. Improvements in physical fitness of recruits.
              Subtitle E--Military Education and Training

Sec. 541. Independent panel to review military basic training.
Sec. 542. Reform of Army drill sergeant selection and training process.
Sec. 543. Requirement for candidates for admission to United States
                            Naval Academy to take oath of allegiance.
Sec. 544. Reimbursement of expenses incurred for instruction at service
                            academies of persons from foreign
                            countries.
Sec. 545. United States Naval Postgraduate School.
Sec. 546. Air Force Academy cadet foreign exchange program.
Sec. 547. Training in human relations matters for Army drill sergeant
                            trainees.
Sec. 548. Study of feasibility of gender-segregated basic training.
              Subtitle F--Military Decorations and Awards

Sec. 551. Study of new decorations for injury or death in line of duty.
Sec. 552. Purple heart to be awarded only to members of the armed
                            forces.
Sec. 553. Eligibility for Armed Forces Expeditionary Medal for
                            participation in Operation Joint Endeavor
                            or Operation Joint Guard.
Sec. 554. Waiver of time limitations for award of certain decorations
                            to specified persons.
                       Subtitle G--Other Matters

Sec. 561. Suspension of temporary early retirement authority.
Sec. 562. Treatment of educational accomplishments of National Guard
                            Challenge Program participants.
Sec. 563. Authority for personnel to participate in management of
                            certain non-Federal entities.
Sec. 564. Crew requirements of WC-130J aircraft.
Sec. 565. Comptroller General study of Department of Defense civil
                            military programs.
Sec. 566. Treatment of participation of members in Department of
                            Defense civil military programs.
Sec. 567. Continuation of support to senior military colleges.
Sec. 568. Improvement of missing persons authorities applicable to
                            Department of Defense.
Sec. 569. Establishment of sentence of confinement for life without
                            eligibility for parole.
Sec. 570. Limitation on appeal of denial of parole for offenders
                            serving life sentence.
Sec. 571. Establishment of Public Affairs Branch in the Army.
Sec. 572. Report on making United States nationals eligible for
                            participation in Senior Reserve Officers'
                            Training Corps.
Sec. 573. Community College of the Air Force.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1998.
Sec. 602. Annual adjustment of basic pay and protection of member's
                            total compensation while performing certain
                            duty.
Sec. 603. Use of food cost information to determine basic allowance for
                            subsistence.
Sec. 604. Consolidation of basic allowance for quarters, variable
                            housing allowance, and overseas housing
                            allowances.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay
                            authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay
                            authorities for nurse officer candidates,
                            registered nurses, and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of
                            other bonuses and special pays.
Sec. 614. Increase in minimum monthly rate of hazardous duty incentive
                            pay for certain members.
Sec. 615. Availability of multiyear retention bonus for dental
                            officers.
Sec. 616. Increase in variable and additional special pays for certain
                            dental officers.
Sec. 617. Special pay for duty at designated hardship duty locations.
Sec. 618. Selected Reserve reenlistment bonus.
Sec. 619. Selected Reserve enlistment bonus for former enlisted
                            members.
Sec. 620. Special pay or bonuses for enlisted members extending tours
                            of duty overseas.
Sec. 621. Increase in amount of family separation allowance.
Sec. 622. Change in requirements for Ready Reserve muster duty
                            allowance.
Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard
                            Reserve.
            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for dependents of member
                            sentenced by court-martial.
Sec. 632. Dislocation allowance.
    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 641. Time in which certain changes in beneficiary under Survivor
                            Benefit Plan may be made.
                       Subtitle E--Other Matters

Sec. 651. Definition of sea duty for purposes of career sea pay.
Sec. 652. Loan repayment program for commissioned officers in certain
                            health professions.
Sec. 653. Conformance of NOAA commissioned officers separation pay to
                            separation pay for members of other
                            uniformed services.
Sec. 654. Reimbursement of Public Health Service officers for adoption
                            expenses.
Sec. 655. Payment of back quarters and subsistence allowances to World
                            War II veterans who served as guerrilla
                            fighters in the Philippines.
Sec. 656. Space available travel for members of Selected Reserve.
Sec. 657. Study on military personnel at, near, or below the poverty
                            line.
Sec. 658. Implementation of Department of Defense supplemental food
                            program for military personnel outside the
                            United States.
                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Expansion of retiree dental insurance plan to include
                            surviving spouse and child dependents of
                            certain deceased members.
Sec. 702. Provision of prosthetic devices to covered beneficiaries.
                      Subtitle B--TRICARE Program

Sec. 711. Addition of definition of TRICARE program to title 10.
Sec. 712. Plan for expansion of managed care option of TRICARE program.
          Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Implementation of designated provider agreements for
                            Uniformed Services Treatment Facilities.
Sec. 722. Limitation on total payments.
Sec. 723. Continued acquisition of reduced-cost drugs.
   Subtitle D--Other Changes to Existing Laws Regarding Health Care
                               Management

Sec. 731. Waiver or reduction of copayments under overseas dental
                            program.
Sec. 732. Premium collection requirements for medical and dental
                            insurance programs.
Sec. 733. Consistency between CHAMPUS and Medicare in payment rates for
                            services.
Sec. 734. Use of personal services contracts for provision of health
                            care services and legal protection for
                            providers.
Sec. 735. Portability of State licenses for Department of Defense
                            health care professionals.
Sec. 736. Standard form and requirements regarding claims for payment
                            for services.
Sec. 737. Medical personnel conscience clause.
                       Subtitle E--Other Matters

Sec. 741. Continued admission of civilians as students in physician
                            assistant training program of Army Medical
                            Department.
Sec. 742. Emergency health care in connection with overseas activities
                            of On-Site Inspection Agency of Department
                            of Defense.
Sec. 743. Comptroller General study of adequacy and effect of maximum
                            allowable charges for physicians under
                            CHAMPUS.
Sec. 744. Comptroller General study of Department of Defense pharmacy
                            programs.
Sec. 745. Comptroller General study of Navy graduate medical education
                            program.
Sec. 746. Study of expansion of pharmaceuticals by mail program to
                            include additional Medicare-eligible
                            covered beneficiaries.
Sec. 747. Comptroller General study of requirement for military medical
                            facilities in National Capital region.
                    Subtitle F--Persian Gulf Illness

Sec. 751. Definitions.
Sec. 752. Plan for health care services for Persian Gulf veterans.
Sec. 753. Comptroller General study of revised disability criteria for
                            physical evaluation boards.
Sec. 754. Improved medical tracking system for members deployed
                            overseas in contingency or combat
                            operations.
Sec. 755. Report on plans to track location of members in a theater of
                            operations.
Sec. 756. Report on plans to improve detection and monitoring of
                            chemical, biological, and similar hazards
                            in a theater of operations.
Sec. 757. Notice of use of investigational new drugs.
Sec. 758. Report on effectiveness of research efforts regarding Gulf
                            War illnesses.
Sec. 759. Persian Gulf illness clinical trials program.
Sec. 760. Sense of the Congress concerning Gulf War illness.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
                                MATTERS

                     Subtitle A--Acquisition Policy

Sec. 801. Case-by-case waivers of domestic source limitations.
Sec. 802. Expansion of authority to enter into contracts crossing
                            fiscal years to all severable services
                            contracts not exceeding a year.
Sec. 803. Clarification of vesting of title under contracts.
Sec. 804. Exclusion of disaster relief, humanitarian, and peacekeeping
                            operations from restrictions on use of
                            undefinitized contract actions.
Sec. 805. Limitation and report on payment of restructuring costs under
                            defense contracts.
Sec. 806. Authority relating to purchase of certain vehicles.
Sec. 807. Multiyear procurement contracts.
Sec. 808. Domestic source limitation amendments.
Sec. 809. Repeal of expiration of domestic source limitation for
                            certain naval vessel propellers.
Sec. 810. Audit of procurement of goods by military installations in
                            the United States.
                       Subtitle B--Other Matters

Sec. 821. Repeal of certain acquisition reports and requirements.
Sec. 822. Extension of authority for use of test and evaluation
                            installations by commercial entities.
Sec. 823. Requirement to develop and maintain list of firms not
                            eligible for defense contracts.
Sec. 824. Allowability of costs of employee stock ownership plans.
Sec. 825. Expansion of personnel eligible to participate in
                            demonstration project relating to
                            acquisition workforce.
Sec. 826. Time for submission of annual report relating to Buy American
                            Act.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Limitation on operation and support funds for the Office of
                            the Secretary of Defense.
Sec. 902. Components of National Defense University.
Sec. 903. Authorization for the Marine Corps University to employ
                            civilian professors.
Sec. 904. Center for the Study of Chinese Military Affairs.
Sec. 905. White House Communications Agency.
Sec. 906. Revision to required frequency for provision of policy
                            guidance for contingency plans.
Sec. 907. Termination of the Defense Airborne Reconnaissance Office.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of unauthorized fiscal year 1997
                            defense appropriations.
Sec. 1004. Authorization of supplemental appropriations for fiscal year
                            1997.
Sec. 1005. Increase in fiscal year 1996 transfer authority.
Sec. 1006. Fisher House trust funds.
Sec. 1007. Flexibility in financing closure of certain outstanding
                            contracts for which a small final payment
                            is due.
Sec. 1008. United States Man and the Biosphere Program limitation.
                Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Relationship of certain laws to disposal of vessels for
                            export from the Naval Vessel Register and
                            the National Defense Reserve Fleet.
Sec. 1022. Authority to enter into a long-term charter for a vessel in
                            support of the Surveillance Towed-Array
                            Sensor (SURTASS) program.
Sec. 1023. Transfer of two specified obsolete tugboats of the Army.
Sec. 1024. Naming of a DDG-51 class destroyer the U.S.S. Thomas F.
                            Connolly.
Sec. 1025. Congressional review period with respect to transfer of the
                            ex-U.S.S. Midway (CV-41).
                  Subtitle C--Counter-Drug Activities

Sec. 1031. Prohibition on use of National Guard for civil-military
                            activities under State drug interdiction
                            and counter-drug activities plan.
Sec. 1032. Assignment of Department of Defense personnel to assist
                            Immigration and Naturalization Service and
                            Customs Service.
Sec. 1033. Annual report on development and deployment of narcotics
                            detection technologies.
       Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1041. Repeal of miscellaneous obsolete reports required by prior
                            defense authorization Acts.
Sec. 1042. Repeal of annual report requirement relating to training of
                            special operations forces with friendly
                            foreign forces.
Sec. 1043. Report on anti-terrorism activities.
                       Subtitle E--Other Matters

Sec. 1051. Authority for special agents of the Defense Criminal
                            Investigative Service to execute warrants
                            and make arrests.
Sec. 1052. Study of investigative practices of military criminal
                            investigative organizations relating to sex
                            crimes.
Sec. 1053. Technical and clerical amendments.
Sec. 1054. Display of POW/MIA flag.
Sec. 1055. Certification required before observance of moratorium on
                            use by Armed Forces of antipersonnel
                            landmines.
Sec. 1056. Protection of safety-related information voluntarily
                            provided by air carriers.
Sec. 1057. National Guard Challenge Program to create opportunities for
                            civilian youth.
Sec. 1058. Lease of non-excess personal property of the military
                            departments.
Sec. 1059. Commendation of members of the Armed Forces and Government
                            civilian personnel who served during the
                            Cold War.
Sec. 1060. Prohibition of performance of military honors upon death of
                            persons convicted of capital crimes.
Sec. 1061. Study of United States capacitor and resistor industries.
Sec. 1062. Sense of the Congress on deployment of United States Armed
                            Forces abroad for environmental
                            preservation activities.
Sec. 1063. Study of transfer of Modular Airborne Fire Fighting System.
Sec. 1064. Oversight of counter-terrorism and anti-terrorism programs
                            and activities of the United States.
Sec. 1065. Armament Retooling and Manufacturing Support Initiative.
  TITLE XI--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET
                                 UNION

Sec. 1101. Specification of Cooperative Threat Reduction programs.
Sec. 1102. Fiscal year 1998 funding allocations.
Sec. 1103. Prohibition on use of funds for specified purposes.
Sec. 1104. Limitation on use of funds until specified reports are
                            submitted.
Sec. 1105. Limitation on use of funds until submission of
                            certification.
Sec. 1106. Use of funds for chemical weapons destruction facility.
Sec. 1107. Limitation on use of funds for storage facility for Russian
                            fissile material.
Sec. 1108. Limitation on use of funds for weapons storage security.
Sec. 1109. Report to Congress on issues regarding payment of taxes or
                            duties on assistance provided to Russia
                            under Cooperative Threat Reduction
                            programs.
Sec. 1110. Limitation on obligation of funds for a specified period.
Sec. 1111. Availability of funds.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                      Subtitle A--General Matters

Sec. 1201. Reports to Congress relating to United States forces in
                            Bosnia.
Sec. 1202. One-year extension of counterproliferation authorities.
Sec. 1203. Report on future military capabilities and strategy of the
                            People's Republic of China.
Sec. 1204. Temporary use of general purpose vehicles and nonlethal
                            military equipment under acquisition and
                            cross servicing agreements.
Sec. 1205. Defense burdensharing.
Sec. 1206. Presidential certifications concerning detargeting of
                            Russian intercontinental ballistic
                            missiles.
Sec. 1207. Limitation on payments for cost of NATO expansion.
Sec. 1208. Sense of the Congress relating to level of United States
                            military personnel in the Asia and Pacific
                            region.
Sec. 1209. Sense of the Congress on need for Russian openness on the
                            Yamantau Mountain Project.
Sec. 1210. United States Armed Forces in Bosnia.
Sec. 1211. Limitation on support for law enforcement activities in
                            Bosnia.
Sec. 1212. Presidential report on political and military conditions in
                            Bosnia.
   Subtitle B--Matters Relating To Prevention of Technology Diversion

Sec. 1231. Findings.
Sec. 1232. Export approvals for supercomputers.
Sec. 1233. Report on exports of supercomputers.
Sec. 1234. Post-shipment verification of export of supercomputers.
                 TITLE XIII--DEFENSE PERSONNEL REFORMS

Sec. 1301. Reduction in personnel assigned to management headquaters
                            and headquarters support activities.
Sec. 1302. Additional reduction in defense acquisition workforce.
Sec. 1303. Availability of funds for separation pay for defense
                            acquisition personnel.
Sec. 1304. Personnel reductions in United States Transportation
                            Command.
             TITLE XIV--DEFENSE BUSINESS PRACTICIES REFORMS

            Subtitle A--Competitive Procurement Requirements

Sec. 1401. Competitive procurement of finance and accounting services.
Sec. 1402. Competitive procurement of services to dispose of surplus
                            defense property.
Sec. 1403. Competitive procurement of functions performed by Defense
                            Information Systems Agency.
Sec. 1404. Competitive procurement of printing and duplication
                            services.
Sec. 1405. Competitive procurement of certain ophthalmic services.
Sec. 1406. Competitive procurement of commercial and industrial type
                            functions by defense agencies.
                Subtitle B--Reform of Conversion Process

Sec. 1411. Development of standard forms regarding performance work
                            statement and request for proposal for
                            conversion of certain operational functions
                            of military installations.
Sec. 1412. Study and notification requirement for conversion of
                            commercial and industrial type functions to
                            contractor performance.
Sec. 1413. Collection and retention of cost information data on
                            contracted out services and functions.
                       Subtitle C--Other Reforms

Sec. 1421. Reduction in overhead costs of inventory control points.
Sec. 1422. Consolidation of procurement technical assistance and
                            electronic commerce technical assistance.
Sec. 1423. Permanent authority regarding conveyance of utility systems.
           TITLE XV--MISCELLANEOUS ADDITIONAL DEFENSE REFORMS

Sec. 1501. Long-term charter contracts for acquisition of auxiliary
                            vessels for the Department of Defense.
Sec. 1502. Fiber-optics based telecommunications linkage of military
                            installations.
Sec. 1503. Repeal of requirement for contractor guarantees on major
                            weapons systems.
Sec. 1504. Requirement relating to micro-purchases of commercial items.
Sec. 1505. Availability of simplified procedures to commercial item
                            procurements.
Sec. 1506. Termination of the Armed Services Patent Advisory Board.
Sec. 1507. Coordination of Department of Defense criminal
                            investigations and audits.
Sec. 1508. Department of Defense boards, commissions, and advisory
                            committees.
Sec. 1509. Advances for payment of public services.
     TITLE XVI--COMMISSION ON DEFENSE ORGANIZATION AND STREAMLINING

Sec. 1601. Establishment of commission.
Sec. 1602. Duties of commission.
Sec. 1603. Reports.
Sec. 1604. Powers.
Sec. 1605. Commission procedures.
Sec. 1606. Personnel matters.
Sec. 1607. Miscellaneous administrative provisions.
Sec. 1608. Funding.
Sec. 1609. Termination of the commission.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.
                            TITLE XXI--ARMY

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

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization of military construction project at Naval Air
                            Station, Pascagoula, Mississippi, for which
                            funds have been appropriated.
                         TITLE XXIII--AIR FORCE

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

Sec. 2401. Authorized Defense Agencies construction and land
                            acquisition projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Correction in authorized uses of funds, McClellan Air Force
                            Base, California.
Sec. 2407. Modification of authority to carry out fiscal year 1995
                            projects.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land
                            acquisition projects.
Sec. 2602. Authorization of military construction projects for which
                            funds have been appropriated.
Sec. 2603. Army Reserve construction project, Salt Lake City, Utah.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be
                            specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1995
                            projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1994
                            projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1993
                            projects.
Sec. 2705. Extension of authorizations of certain fiscal year 1992
                            projects.
Sec. 2706. Extension of availability of funds for construction of Over-
                            the-Horizon Radar in Puerto Rico.
Sec. 2707. Effective date.
                    TITLE XXVIII--GENERAL PROVISIONS

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

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

Sec. 2811. Increase in ceiling for minor land acquisition projects.
Sec. 2812. Administrative expenses for certain real property
                            transactions.
Sec. 2813. Disposition of proceeds from sale of Air Force Plant 78,
                            Brigham City, Utah.
            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Consideration of military installations as sites for new
                            Federal facilities.
Sec. 2822. Prohibition against conveyance of property at military
                            installations to State-owned shipping
                            companies.
                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Land conveyance, James T. Coker Army Reserve Center, Durant,
                            Oklahoma.
Sec. 2832. Land conveyance, Fort A. P. Hill, Virginia.
Sec. 2833. Expansion of land conveyance, Indiana Army Ammunition Plant,
                            Charlestown, Indiana.
Sec. 2834. Modification of land conveyance, Lompoc, California.
Sec. 2835. Modification of land conveyance, Rocky Mountain Arsenal,
                            Colorado.
Sec. 2836. Correction of land conveyance authority, Army Reserve
                            Center, Anderson, South Carolina.
Sec. 2837. Land conveyance, Fort Bragg, North Carolina.
Sec. 2838. Land conveyance, Gibson Army Reserve Center, Chicago,
                            Illinois.
Sec. 2839. Land conveyance, Fort Dix, New Jersey.
                       Part II--Navy Conveyances

Sec. 2851. Correction of lease authority, Naval Air Station, Meridian,
                            Mississippi.
                    Part III--Air Force Conveyances

Sec. 2861. Land transfer, Eglin Air Force Base, Florida.
Sec. 2862. Study of land exchange options, Shaw Air Force Base, South
                            Carolina.
Sec. 2863. Land conveyance, March Air Force Base, California.
Sec. 2864. Land conveyance, Ellsworth Air Force Base, South Dakota.
                       Subtitle E--Other Matters

Sec. 2881. Repeal of requirement to operate Naval Academy dairy farm.
Sec. 2882. Long-term lease of property, Naples Italy.
Sec. 2883. Designation of military family housing at Lackland Air Force
                            Base, Texas, in honor of Frank Tejeda, a
                            former Member of the House of
                            Representatives.
                   TITLE XXIX--SIKES ACT IMPROVEMENT

Sec. 2901. Short title.
Sec. 2902. Definition of Sikes Act for purposes of amendments.
Sec. 2903. Codification of short title of Act.
Sec. 2904. Integrated natural resource management plans.
Sec. 2905. Review for preparation of integrated natural resource
                            management plans.
Sec. 2906. Annual reviews and reports.
Sec. 2907. Transfer of wildlife conservation fees from closed military
                            installations.
Sec. 2908. Federal enforcement.
Sec. 2909. Natural resource management services.
Sec. 2910. Definitions.
Sec. 2911. Cooperative agreements.
Sec. 2912. Repeal of superseded provision.
Sec. 2913. Clerical amendments.
Sec. 2914. Authorizations 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. Environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.
                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction
                            activities.
Sec. 3127. Funds available for all national security programs of the
                            Department of Energy.
Sec. 3128. Authority relating to transfers of defense environmental
                            management funds.
   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Ballistic Missile Defense National Laboratory Program.
                       Subtitle D--Other Matters

Sec. 3141. Plan for stewardship, management, and certification of
                            warheads in the nuclear weapons stockpile.
Sec. 3142. Repeal of obsolete reporting requirements.
Sec. 3143. Study and funding relating to implementation of workforce
                            restructuring plans.
Sec. 3144. Extension of authority for appointment of certain
                            scientific, engineering, and technical
                            personnel.
Sec. 3145. Report on proposed contract for Hanford Tank Waste
                            Vitrification project.
Sec. 3146. Limitation on conduct of subcritical nuclear weapons tests.
Sec. 3147. Limitation on use of certain funds until future use plans
                            are submitted.
Sec. 3148. Plan for external oversight of national laboratories.
Sec. 3149. University-based research center.
Sec. 3150. Stockpile stewardship program.
Sec. 3151. Reports on advanced supercomputer sales to certain foreign
                            nations.
Sec. 3152. Transfers of real and personal property at certain
                            Department of Energy facilities.
Sec. 3153. Requirement to delegate certain authorities to site manager
                            of Hanford Reservation.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
Sec. 3202. Plan for transfer of facilities from jurisdiction of Defense
                            Nuclear Facilities Safety Board to
                            jurisdiction of Nuclear Regulatory
                            Commission.
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of stockpile funds.
Sec. 3302. Disposal of beryllium copper master alloy in National
                            Defense Stockpile.
Sec. 3303. Disposal of titanium sponge in National Defense Stockpile.
Sec. 3304. Conditions on transfer of stockpiled platinum reserves for
                            Treasury use.
Sec. 3305. Restrictions on disposal of certain manganese ferro.
Sec. 3306. Required procedures for disposal of strategic and critical
                            materials.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal
                            year 1998.
Sec. 3403. Termination of assignment of Navy officers to Office of
                            Naval Petroleum and Oil Shale Reserves.
Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves Numbered
                            1 and 3.
                  TITLE XXXV--PANAMA CANAL COMMISSION

     Subtitle A--Authorization of Expenditures From Revolving Fund

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.
          Subtitle B--Facilitation of Panama Canal Transition

Sec. 3511. Short title; references.
Sec. 3512. Definitions relating to Canal transition.
    Part I--Transition Matters Relating to Commission Officers and
                               Employees

Sec. 3521. Authority for the Administrator of the Commission to accept
                            appointment as the Administrator of the
                            Panama Canal Authority.
Sec. 3522. Post-Canal Transfer Personnel Authorities.
Sec. 3523. Enhanced authority of Commission to establish compensation
                            of Commission officers and employees.
Sec. 3524. Travel, transportation, and subsistence expenses for
                            Commission personnel no longer subject to
                            Federal Travel Regulation.
Sec. 3525. Enhanced recruitment and retention authorities.
Sec. 3526. Transition separation incentive payments.
Sec. 3527. Labor-management relations.
Sec. 3528. Availability of Panama Canal Revolving Fund for severance
                            pay for certain employees separated by
                            Panama Canal Authority after Canal Transfer
                            Date.
Part II--Transition Matters Relating to Operation and Administration of
                                 Canal

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

Sec. 3601. Authorization of appropriations for fiscal year 1998.
Sec. 3602. Repeal of obsolete annual report requirement concerning
                            relative cost of shipbuilding in the
                            various coastal districts of the United
                            States.
Sec. 3603. Provisions relating to maritime security fleet program.
Sec. 3604. Authority to utilize replacement vessels and capacity.
Sec. 3605. Authority to convey national defense reserve fleet vessel.
Sec. 3606. Determination of gross tonnage for purposes of tank vessel
                            double hull requirements.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1998
for procurement for the Army as follows:
            (1) For aircraft, $1,535,264,000.
            (2) For missiles, $1,176,516,000.
            (3) For weapons and tracked combat vehicles,
        $1,519,527,000.
            (4) For ammunition, $1,093,802,000.
            (5) For other procurement, $2,640,277,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for
fiscal year 1998 for procurement for the Navy as follows:
            (1) For aircraft, $6,172,950,000.
            (2) For weapons, including missiles and torpedoes,
        $1,214,687,000.
            (3) For shipbuilding and conversion, $7,654,977,000.
            (4) For other procurement, $3,073,432,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated
for fiscal year 1998 for procurement for the Marine Corps in the amount
of $442,807,000.
    (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 $470,355,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1998
for procurement for the Air Force as follows:
            (1) For aircraft, $6,770,900,000.
            (2) For missiles, $2,389,183,000.
            (3) For ammunition, $436,984,000.
            (4) For other procurement, $6,574,096,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1998
for Defense-wide procurement in the amount of $1,836,989,000.

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1998
for procurement of aircraft, vehicles, communications equipment, and
other equipment for the reserve components of the Armed Forces as
follows:
            (1) For the Army National Guard, $102,700,000.
            (2) For the Air National Guard, $117,775,000.
            (3) For the Army Reserve, $90,400,000.
            (4) For the Naval Reserve, $118,000,000.
            (5) For the Air Force Reserve, $167,630,000.
            (6) For the Marine Corps Reserve, $98,600,000.
            (7) For the Coast Guard Reserve, $5,250,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

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

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 1998
the amount of $610,700,000 for--
            (1) the destruction of lethal chemical agents and munitions
        in accordance with section 1412 of the Department of Defense
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of the
        United States that is not covered by section 1412 of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 1998
for the Department of Defense for procurement for carrying out health
care programs, projects, and activities of the Department of Defense in
the total amount of $279,068,000.

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

    Funds are hereby authorized to be appropriated for fiscal year 1998
for the Department of Defense for carrying out the Defense Export Loan
Guarantee Program in the total amount of $1,231,000.

                       Subtitle B--Other Matters

SEC. 121. LIMITATION ON OBLIGATION OF FUNDS FOR THE SEAWOLF SUBMARINE
              PROGRAM.

    (a) Limitation.--The Secretary of the Navy may not obligate more
than 50 percent of the funds appropriated for fiscal year 1998 for
Shipbuilding and Conversion for the Navy that are specified as being
available for the Seawolf submarine program until the Secretary
certifies to the congressional defense committees that the Secretary
will include in the future-years defense program accompanying the
fiscal year 1999 budget for the Department of Defense not less than 50
percent of the amount necessary to fully fund incorporation into each
of the first four vessels in the New Attack Submarine program the
technology insertion opportunities specified in subsection (b).
    (b) Technology Insertion Opportunities.--The technology insertion
opportunities referred to in subsection (a) are those technology
insertion opportunities available for the first four vessels in the New
Attack Submarine program that were presented by the Assistant Secretary
of the Navy (Research, Development, and Acquisition) in testimony
before the Procurement Subcommittee of the Committee on National
Security of the House of Representatives on March 18, 1997.

SEC. 122. REPORT ON ANNUAL BUDGET SUBMISSION REGARDING THE RESERVE
              COMPONENTS.

    (a) In General.--Chapter 1013 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 10544. Budget information
    ``(a) Report.--The Secretary of Defense shall submit to the
congressional committees specified in subsection (d), at the same time
that the President submits the budget for a fiscal year under section
1105(a) of title 31, United States Code, a report on amounts requested
in that budget for the reserve components.
    ``(b) Content.--The report shall include the following:
            ``(1) A description of the anticipated effect that the
        amounts requested (if approved by Congress) will have to
        enhance the capabilities of each of the reserve components.
            ``(2) A listing, with respect to each such component, of
        each of the following:
                    ``(A) The amount requested for each major weapon
                system for which funds are requested in the budget for
                that component.
                    ``(B) The amount requested for each item of
                equipment (other than a major weapon system) for which
                funds are requested in the budget for that component.
    ``(c) Inclusion of Information in Next FYDP.--The Secretary of
Defense shall specifically display in the each future-years defense
program (or program revision) submitted to Congress under section 221
of this title the amounts programmed for procurement of equipment for
each of the reserve components.
    ``(d) Congressional Committees Specified.--The congressional
committees referred to in subsection (a) are the following:
            ``(1) The Committee on Armed Services and the Committee on
        Appropriations of the Senate.
            ``(2) The Committee on National Security and the Committee
        on Appropriations of the House of Representatives.
    ``(e) Exclusion of Coast Guard Reserve.--In this section, the term
`reserve components' does not include the Coast Guard Reserve.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``10544. Budget information.''.

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1998
for the use of the Department of Defense for research, development,
test, and evaluation as follows:
            (1) For the Army, $4,752,913,000.
            (2) For the Navy, $7,946,996,000.
            (3) For the Air Force, $14,659,736,000.
            (4) For Defense-wide activities, $9,914,080,000, of which--
                    (A) $279,683,000 is authorized for the activities
                of the Director, Test and Evaluation; and
                    (B) $23,384,000 is authorized for the Director of
                Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 1998.--Of the amounts authorized to be appropriated
by section 201, $4,131,871,000 shall be available for basic research
and applied research projects.
    (b) Basic Research and Applied Research Defined.--For purposes of
this section, the term ``basic research and applied research'' means
work funded in program elements for defense research and development
under Department of Defense category 6.1 or 6.2.

SEC. 203. DUAL-USE TECHNOLOGY PROGRAM.

    (a) Funding Requirement.--Of the amounts appropriated pursuant to
the authorizations in section 201 for the Department of Defense for
science and technology programs for each of fiscal years 1998 through
2001, at least the following percentages of such amounts shall be
available in the applicable fiscal year only for dual-use projects of
the Department of Defense:
            (1) For fiscal year 1998, 5 percent.
            (2) For fiscal year 1999, 7 percent.
            (3) For fiscal year 2000, 10 percent.
            (4) For fiscal year 2001, 15 percent.
    (b) Senior Official for Dual-Use Program.--The person responsible
for developing policy relating to, and ensuring effective
implementation of, the dual-use technology program of the Department of
Defense is the senior official designated by the Secretary of Defense
under section 203(b) of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2451).
    (c) Limitation on Obligations.--(1) Except as provided in paragraph
(2), funds made available pursuant to subsection (a) may not be
obligated until the senior official referred to in subsection (b)
approves the obligation.
    (2) Paragraph (1) does not apply with respect to funds made
available pursuant to subsection (a) to the Defense Advanced Research
Projects Agency.
    (3) Funds made available pursuant to subsection (a) may be used for
a dual-use project only if the contract, cooperative agreement, or
other transaction by which the project is carried out is entered into
through the use of competitive procedures.
    (d) Transfer Authority.--In addition to the transfer authority
provided in section 1001, the Secretary of Defense may transfer funds
made available pursuant to subsection (a) for a dual-use project from a
military department or defense agency to another military department or
defense agency to ensure efficient implementation of the dual-use
technology program. The Secretary may delegate the authority provided
in the preceding sentence to the senior official referred to in
subsection (b).
    (e) Federal Cost Share.--(1) The share contributed by the Secretary
of a military department or the head of a defense agency for the cost
of a dual-use project during fiscal years 1998, 1999, 2000, and 2001
may not be greater than 50 percent of the cost of the project for that
fiscal year.
    (2) In calculating the share of the costs of a dual-use program
contributed by a military department or a non-Government entity, the
Secretaries of the military departments may not consider in-kind
contributions.
    (f) Definitions.--In this section, the terms ``dual-use technology
program'', ``dual-use project'', and ``science and technology program''
have the meanings provided by section 203(h) of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat.
2452).

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. MANUFACTURING TECHNOLOGY PROGRAM.

    Section 2525 of title 10, United States Code, is amended by adding
at the end the following new subsection:
    ``(e) Funding Requirement.--(1) Subject to paragraph (2), the
Secretary of Defense shall make available each fiscal year for the
Manufacturing Technology Program the greater of the following amounts:
            ``(A) 0.25 percent of the amount available for the fiscal
        year concerned for the demonstration and validation,
        engineering and manufacturing development, operational systems
        development, and procurement programs of the military
        departments and Defense Agencies.
            ``(B) The amount authorized to be appropriated by law for
        the fiscal year concerned for projects of the military
        departments and Defense Agencies under the Manufacturing
        Technology Program.
    ``(2) Paragraph (1) applies to fiscal years 1998, 1999, and 2000.
    ``(f) Transfer Authority.--The Secretary of Defense may transfer
funds made available pursuant to subsection (e) from a military
department or Defense Agency to another military department or Defense
Agency to ensure efficient implementation of the Manufacturing
Technology Program. The Secretary may delegate the authority provided
in the preceding sentence to the Under Secretary of Defense for
Acquisition and Technology. Authority to transfer funds under this
subsection is in addition to any other authority provided by law to
transfer funds (whether enacted before, on, or after the date of the
enactment of this section) and is not subject to any dollar limitation
or notification requirement contained in any other such authority to
transfer funds.
    ``(g) Report.--(1) At the same time the President submits to
Congress the budget for fiscal year 1999 pursuant to section 1105(a) of
title 31, the Secretary of Defense shall submit to Congress a report
that--
            ``(A) specifies the plans of the Secretary for expenditures
        under the program during fiscal years 1998, 1999, and 2000; and
            ``(B) assesses the effectiveness of the program.
    ``(2) The Secretary shall submit an updated version of such report
at the same time the President submits the budget for each fiscal year
after fiscal year 1999 during which the program is in effect shall
include--
            ``(A) an assessment of whether the funding of the program,
        as provided pursuant to the funding requirement of subsection
        (e), is sufficient; and
            ``(B) any recommendations considered appropriate by the
        Secretary for changes in, or an extension of, the funding
        requirement of subsection (e).''.

SEC. 212. REPORT ON STRATEGIC ENVIRONMENTAL RESEARCH AND DEVELOPMENT
              PROGRAM.

    (a) Report.--Not later than February 28, 1998, the Secretary of
Defense shall submit to Congress a report containing, for each project
or activity of the Strategic Environmental Research and Development
Program--
            (1) an explanation of why the project or activity is not
        duplicative of environmentally related research, development,
        and demonstration activities of other departments and agencies
        of the Federal Government, of State and local governments, or
        of other organizations engaged in such activities; and
            (2) an explanation of why the project or activity is
        uniquely related to and necessary for the mission of the
        Department of Defense.
    (b) Limitation on Use of Funds Pending Submission of Report.--Not
more than 50 percent of the funds appropriated for the Strategic
Environmental Research and Development Program pursuant to the
authorization of appropriations in section 201(4) may be expended until
the Secretary of Defense submits the report required under this
section.

SEC. 213. TACTICAL UNMANNED AERIAL VEHICLES.

    (a) Prohibition on Funding for Outrider ACTD Program.--No funds
authorized to be appropriated under section 201 may be obligated for
the Outrider Advanced Concept Technology Demonstration (ACTD) program.
    (b) Funding Requirements.--Of the funds authorized to be
appropriated for tactical unmanned aerial vehicles (TUAV) under section
201--
            (1) $10,000,000 shall be available to carry out a
        competition for an unmanned aerial vehicle capable of vertical
        takeoff and landing; and
            (2) $11,500,000 shall be available to provide a Predator
        Unmanned Aerial Vehicle system equipped with synthetic aperture
        radar and associated equipment to facilitate the development of
        a common Tactical Control System for unmanned aerial vehicles.

SEC. 214. REVISIONS TO MEMBERSHIP OF AND APPOINTMENT AUTHORITY FOR
              NATIONAL OCEAN RESEARCH LEADERSHIP COUNCIL.

    (a) Membership Revisions.--Section 7902(b) of title 10, United
States Code, is amended--
            (1) by striking out paragraph (11); and
            (2) in paragraph (17), by striking out ``One member'' and
        inserting in lieu thereof ``Not more than four members''.
    (b) Appointment Authority Revisions.--Section 7902 of such title is
amended--
            (1) in paragraphs (14), (15), (16), and (17) of subsection
        (b), by striking out ``chairman'' each place it appears and
        inserting in lieu thereof ``President''; and
            (2) by adding at the end the following new subsection:
    ``(j) Delegation of Appointment Authority.--The President may
delegate the authority to make appointments under subsection (b) to the
head of a department, without authority to redelegate.''.
    (c) Conforming Amendments.--(1) Section 7902 of such title is
further amended--
            (A) in subsection (b), by redesignating paragraphs (12),
        (13), (14), (15), (16), and (17) as paragraphs (11), (12),
        (13), (14), (15), and (16), respectively; and
            (B) in subsection (d), by striking out ``(14), (15), (16),
        or (17)'' and inserting in lieu thereof ``(13), (14), (15), or
        (16)''.
    (2) Section 282 of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2473) is amended by
striking out subsection (c).

SEC. 215. MAINTENANCE AND REPAIR OF REAL PROPERTY AT AIR FORCE
              INSTALLATIONS.

    (a) In General.--Chapter 949 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 9782. Maintenance and repair of real property
    ``(a) Allocation of Funds.--The Secretary of the Air Force shall
allocate funds authorized to be appropriated by a provision described
in subsection (c) and a provision described in subsection (d) for
maintenance and repair of real property at military installations of
the Department of the Air Force without regard to whether the
installation is supported with funds authorized by a provision
described in subsection (c) or (d).
    ``(b) Mixing of Funds Prohibited on Individual Projects.--The
Secretary of the Air Force may not combine funds authorized to be
appropriated by a provision described in subsection (c) and funds
authorized to be appropriated by a provision described in subsection
(d) for an individual project for maintenance and repair of real
property at a military installation of the Department of the Air Force.
    ``(c) Research, Development, Test, and Evaluation Funds.--The
provision described in this subsection is a provision of a national
defense authorization Act that authorizes funds to be appropriated for
a fiscal year to the Air Force for research, development, test, and
evaluation.
    ``(d) Operation and Maintenance Funds.--The provision described in
this subsection is a provision of a national defense authorization Act
that authorizes funds to be appropriated for a fiscal year to the Air
Force for operation and maintenance.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

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

SEC. 216. EXPANSION OF ELIGIBILITY FOR DEFENSE EXPERIMENTAL PROGRAM TO
              STIMULATE COMPETITIVE RESEARCH.

    Section 257 of the National Defense Authorization Act for Fiscal
Year 1995 (Public Law 103-337; U.S.C. 2358 note) is amended by adding
at the end of subsection (d) the following new paragraph:
            ``(3) In this section, the term `State' means a State of
        the United States, the District of Columbia, the Commonwealth
        of Puerto Rico, Guam, the Virgin Islands, American Samoa, and
        the Commonwealth of the Northern Mariana Islands.''.

SEC. 217. BIOASSAY TESTING OF VETERANS EXPOSED TO IONIZING RADIATION
              DURING MILITARY SERVICE.

        Of the amount provided in section 201(4), $300,000 shall be
available for the Nuclear Test Personnel Review Program conducted by
the Defense Special Weapons Agency.

SEC. 218. COMANCHE PROGRAM.

    The Congress supports the Army in its Comanche program technology
transfer and acquisition efforts, which--
            (1) offer potential RAH-66 Air Vehicle and T800 engine
        cost, schedule, and technical risk reduction; and
            (2) include cooperative efforts with other Government
        agencies such as the National Guard (UH-1H engine technology
        insertion), the Defense Advanced Research Projects Agency, and
        other research and development programs of the military
        departments.

SEC. 219. LAND ATTACK STANDARD MISSILE.

    Of the amount provided in section 201(2) for research, development,
test, and evaluation for the Navy--
            (1) the amount available for program element 63795N for the
        Land Attack Technology program is increased by $10,000,000, to
        be available for flight test demonstration and risk reduction
        activities for the Land Attack Standard Missile;
            (2) the amount available for program element 62317N (Air
        Systems and Weapons Advance Technology) is reduced by
        $5,000,000; and
            (3) the amount available for program element 63508N (Ship
        Hull Mechanical and Electrical Technology) is reduced by
        $5,000,000.

SEC. 220. REPORT ON OPERATIONAL FIELD ASSESSMENTS PROGRAM.

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

             Subtitle C--Ballistic Missile Defense Programs

SEC. 231. BUDGETARY TREATMENT OF AMOUNTS REQUESTED FOR PROCUREMENT FOR
              BALLISTIC MISSILE DEFENSE PROGRAMS.

    (a) Requirement for Inclusion in Budget of BMDO.--(1) Chapter 9 of
title 10, United States Code, is amended by inserting after section 222
the following new section:
``Sec. 224. Ballistic missile defense programs: amounts for procurement
    ``(a) Requirement.--Any amount in the budget submitted to Congress
under section 1105 of title 31 for any fiscal year for procurement for
the National Missile Defense program or for any system that is part of
the core theater missile defense program shall be set forth under the
account of the Department of Defense for Defense-wide procurement and,
within that account, under the subaccount (or other budget activity
level) for the Ballistic Missile Defense Organization.
    ``(b) Core Theater Ballistic Missile Defense Program.--For purposes
of this section, the core theater missile defense program consists of
the systems specified in section 234 of the Ballistic Missile Defense
Act of 1995 (10 U.S.C. 2431 note).''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
222 the following new item:

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

SEC. 232. COOPERATIVE BALLISTIC MISSILE DEFENSE PROGRAM.

    (a) Requirement for New Program Element.--The Secretary of Defense
shall establish a program element for the Ballistic Missile Defense
Organization, to be referred to as the ``Cooperative Ballistic Missile
Defense Program'', to support technical and analytical cooperative
efforts between the United States and other nations that contribute to
United States ballistic missile defense capabilities. All international
cooperative ballistic missile defense programs of the Department of
Defense shall be budgeted and administered through that program
element.
    (b) Relationship to Other Program Elements.--The program element
established pursuant to subsection (a) is in addition to the program
elements for activities of the Ballistic Missile Defense Organization
required under section 251 of the National Defense Authorization Act
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 233; 10 U.S.C. 221
note).

SEC. 233. DEPLOYMENT DATES FOR CORE THEATER MISSILE DEFENSE PROGRAMS.

    (a) Change in Deployment Dates.--Section 234(a) of the Ballistic
Missile Defense Act of 1995 (subtitle C of title II of Public Law 104-
106; 110 Stat. 229; 10 U.S.C. 2431 note) is amended--
            (1) in the matter preceding paragraph (1), by striking out
        ``, to be carried out so as to achieve the specified
        capabilities'';
            (2) in paragraph (1), by striking out ``, with a first unit
        equipped (FUE) during fiscal year 1998'';
            (3) in paragraph (2), by striking out ``Navy Lower Tier
        (Area) system'' and all that follows through ``fiscal year
        1999'' and inserting in lieu thereof ``Navy Area Defense
        system'';
            (4) in paragraph (3)--
                    (A) by striking out ``with a'' and inserting in
                lieu thereof ``to be carried out so as to achieve a'';
                and
                    (B) by striking out ``fiscal year 1998'' and
                ``fiscal year 2000'' and inserting in lieu thereof
                ``fiscal year 2000'' and ``fiscal year 2004'',
                respectively; and
            (5) in paragraph (4), by striking out ``Navy Upper Tier
        (Theater Wide) system, with'' and inserting in lieu thereof
        ``Navy Theater Wide system, to be carried out so as to
        achieve''.
    (b) Conforming Amendments for Program Element Name Changes.--
Section 251(a) of the National Defense Authorization Act for Fiscal
Year 1996 (Public Law 104-106; 110 Stat. 233; 10 U.S.C. 221 note) is
amended--
            (1) in paragraph (2), by striking out ``Navy Lower Tier
        (Area) system'' and inserting in lieu thereof ``Navy Area
        Defense system''; and
            (2) in paragraph (4), by striking out ``Navy Upper Tier
        (Theater Wide) system'' and inserting in lieu thereof ``Navy
        Theater Wide system''.

SEC. 234. ANNUAL REPORT ON THREAT POSED TO THE UNITED STATES BY WEAPONS
              OF MASS DESTRUCTION, BALLISTIC MISSILES, AND CRUISE
              MISSILES.

    (a) Annual Report.--The Secretary of Defense shall submit to
Congress by January 30 of each year a report on the threats posed to
the United States and allies of the United States--
            (1) by weapons of mass destruction, ballistic missiles, and
        cruise missiles; and
            (2) by the proliferation of weapons of mass destruction,
        ballistic missiles, and cruise missiles.
    (b) Consultation.--Each report submitted under subsection (a) shall
be prepared in consultation with the Director of Central Intelligence.
    (c) Matters To Be Included.--Each report submitted under subsection
(a) shall include the following:
            (1) Identification of each foreign country and non-State
        organization that possesses weapons of mass destruction,
        ballistic missiles, or cruise missiles, and a description of
        such weapons and missiles with respect to each such foreign
        country and non-State organization.
            (2) A description of the means by which any foreign country
        and non-State organization that has achieved capability with
        respect to weapons of mass destruction, ballistic missiles, or
        cruise missiles has achieved that capability, including a
        description of the international network of foreign countries
        and private entities that provide assistance to foreign
        countries and non-State organizations in achieving that
        capability.
            (3) An examination of the doctrines that guide the use of
        weapons of mass destruction in each foreign country that
        possesses such weapons.
            (4) An examination of the existence and implementation of
        the control mechanisms that exist with respect to nuclear
        weapons in each foreign country that possesses such weapons.
            (5) Identification of each foreign country and non-State
        organization that seeks to acquire or develop (indigenously or
        with foreign assistance) weapons of mass destruction, ballistic
        missiles, or cruise missiles, and a description of such weapons
        and missiles with respect to each such foreign country and non-
        State organization.
            (6) An assessment of various possible timelines for the
        achievement by foreign countries and non-State organizations of
        capability with respect to weapons of mass destruction,
        ballistic missiles, and cruise missiles, taking into account
        the probability of whether the Russian Federation and the
        People's Republic of China will comply with the Missile
        Technology Control Regime, the potential availability of
        assistance from foreign technical specialists, and the
        potential for independent sales by foreign private entities
        without authorization from their national Governments.
            (7) For each foreign country or non-State organization that
        has not achieved the capability to target the United States or
        its territories with weapons of mass destruction, ballistic
        missiles, or cruise missiles as of the date of the enactment of
        this Act, an estimate of how far in advance the United States
        is likely to be warned before such foreign country or non-State
        organization achieves that capability.
            (8) For each foreign country or non-State organization that
        has not achieved the capability to target members of the United
        States Armed Forces deployed abroad with weapons of mass
        destruction, ballistic missiles, or cruise missiles as of the
        date of the enactment of this Act, an estimate of how far in
        advance the United States is likely to be warned before such
        foreign country or non-State organization achieves that
        capability.
    (d) Classification.--Each report under subsection (a) shall be
submitted in classified and unclassified form.

SEC. 235. DIRECTOR OF BALLISTIC MISSILE DEFENSE ORGANIZATION.

    (a) In General.--Subchapter II of chapter 8 of title 10, United
States Code, is amended by adding at the end the following new section:
``Sec. 203. Director of Ballistic Missile Defense Organization
    ``(a) Grade.--The position of Director of the Ballistic Missile
Defense Organization--
            ``(1) may only be held by an officer of the armed forces on
        the active-duty list; and
            ``(2) shall be designated under section 601 of this title
        as a position of importance and responsibility to carry the
        grade of general or admiral or lieutenant general or vice
        admiral.
    ``(b) Line of Authority to Secretary of Defense.--The Director of
the Ballistic Missile Defense Organization reports directly to the
Secretary of Defense and (if so directed by the Secretary) the Deputy
Secretary of Defense, without intervening review or approval by any
other officer of the Department of Defense, with respect to all matters
pertaining to the management of ballistic missile defense programs for
which the Director has responsibility (including matters pertaining to
the status of those programs and the budgets for those programs).''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such subchapter is amended by adding at the end the following new item:

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

SEC. 236. TACTICAL HIGH ENERGY LASER PROGRAM.

    (a) Transfer of Program.--The Secretary of Defense shall transfer
the Tactical High Energy Laser program from the Secretary of the Army
to the Director of the Ballistic Missile Defense Organization, to be
carried out under the Cooperative Ballistic Missile Defense Program
established pursuant to section 232(a).
    (b) Authorization.--Of the amount authorized to be appropriated in
section 201, $38,200,000 is authorized for the Tactical High Energy
Laser program.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 1998
for the use of the Armed Forces and other activities and agencies of
the Department of Defense for expenses, not otherwise provided for, for
operation and maintenance, in amounts as follows:
            (1) For the Army, $17,185,034,000.
            (2) For the Navy, $21,372,699,000.
            (3) For the Marine Corps, $2,381,245,000.
            (4) For the Air Force, $18,745,985,000.
            (5) For Defense-wide activities, $10,030,057,000.
            (6) For the Army Reserve, $1,202,891,000.
            (7) For the Naval Reserve, $849,711,000.
            (8) For the Marine Corps Reserve, $110,366,000.
            (9) For the Air Force Reserve, $1,629,120,000.
            (10) For the Army National Guard, $2,266,432,000.
            (11) For the Air National Guard, $2,985,969,000.
            (12) For the Defense Inspector General, $136,580,000.
            (13) For the United States Court of Appeals for the Armed
        Forces, $6,952,000.
            (14) For Environmental Restoration, Army, $377,337,000.
            (15) For Environmental Restoration, Navy, $277,500,000.
            (16) For Environmental Restoration, Air Force,
        $378,900,000.
            (17) For Environmental Restoration, Defense-wide,
        $27,900,000.
            (18) For Environmental Restoration, Formerly Used Defense
        Sites, $202,300,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid
        programs, $50,000,000.
            (20) For Drug Interdiction and Counter-drug Activities,
        Defense-wide, $661,671,000.
            (21) For the Kaho'olawe Island Conveyance, Remediation, and
        Environmental Restoration Trust Fund, $10,000,000.
            (22) For Medical Programs, Defense, $9,975,382,000.
            (23) For Cooperative Threat Reduction programs,
        $284,700,000.
            (24) For Overseas Contingency Operations Transfer Fund,
        $1,467,500,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1998
for the use of the Armed Forces and other activities and agencies of
the Department of Defense for providing capital for working capital and
revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, $971,952,000.
            (2) For the National Defense Sealift Fund, $1,181,626,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

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

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

    (a) Transfer Authority.--To the extent provided in appropriations
Acts, not more than $150,000,000 is authorized to be transferred from
the National Defense Stockpile Transaction Fund to operation and
maintenance accounts for fiscal year 1998 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.
    (b) Treatment of Transfers.--Amounts transferred under this
section--
            (1) shall be merged with, and be available for the same
        purposes and the same period as, the amounts in the accounts to
        which transferred; and
            (2) may not be expended for an item that has been denied
        authorization of appropriations by Congress.
    (c) Relationship to Other Transfer Authority.--The transfer
authority provided in this section is in addition to the transfer
authority provided in section 1001.

SEC. 305. REFURBISHMENT AND INSTALLATION OF AIR SEARCH RADAR.

    Of the amount authorized to be appropriated pursuant to section
301(2) for operation and maintenance for the Navy, $6,000,000 shall be
available only for the refurbishment and installation of the AN/SPS-48E
air search radar for the Ship Self Defense System at the Integrated
Ship Defense Systems Engineering Center, Naval Surface Warfare Center,
Wallops Islands, Virginia.

SEC. 306. REFURBISHMENT OF M1-A1 TANKS.

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

SEC. 307. PROCUREMENT AND ELECTRONIC COMMERCE TECHNICAL ASSISTANCE
              PROGRAM.

    (a) Authorization.--Subject to subsection (c), of the amount
authorized to be appropriated under section 301(5), $15,000,000 shall
be available for carrying out the provisions of chapter 142 of title
10, United States Code.
    (b) Prohibition.--Subject to subsection (c), the Secretary of
Defense may not obligate or expend any funds available for research,
development, test, and evaluation to establish or operate a resource
center or program to provide technical assistance relating to
electronic commerce.
    (c) Limitation.--Subsections (a) and (b) apply only in the event of
the consolidation of the procurement technical assistance program and
the electronic commerce resource program as a single technical
assistance program funded with amounts available for operation and
maintenance.

                 Subtitle B--Military Readiness Issues

SEC. 311. EXPANSION OF SCOPE OF QUARTERLY READINESS REPORTS.

    (a) Expanded Reports Required.--Section 482 of title 10, United
States Code, is amended to read as follows:
``Sec. 482. Quarterly readiness reports
    ``(a) Quarterly Reports Required.--Not later than 30 days after the
end of each calendar-year quarter, the Secretary of Defense shall
submit to the Committee on Armed Services of the Senate and the
Committee on National Security of the House of Representatives a report
on military readiness. The report for a quarter shall contain the
information required by subsections (b) (d), and (e).
    ``(b) Readiness Problems and Remedial Actions.--Each report shall
specifically describe--
            ``(1) readiness problems or deficiencies identified using
        the assessments considered under subsection (c);
            ``(2) planned remedial actions; and
            ``(3) the key indicators and other relevant information
        related to the identified problem or deficiency.
    ``(c) Consideration of Readiness Assessments.--The information
required under subsection (b) to be included in the report for a
quarter shall be based on readiness assessments that are provided
during that quarter--
            ``(1) to any council, committee, or other body of the
        Department of Defense--
                    ``(A) that has responsibility for readiness
                oversight; and
                    ``(B) whose membership includes at least one
                civilian officer in the Office of the Secretary of
                Defense at the level of Assistant Secretary of Defense
                or higher;
            ``(2) by senior civilian and military officers of the
        military departments and the commanders of the unified and
        specified commands; and
            ``(3) as part of any regularly established process of
        periodic readiness reviews for the Department of Defense as a
        whole.
    ``(d) Comprehensive Readiness Indicators.--Each report shall also
include information regarding each military department (and an
evaluation of such information) with respect to each of the following
readiness indicators:
            ``(1) Personnel strength.--
                    ``(A) Individual personnel status.
                    ``(B) Historical and projected personnel trends.
            ``(2) Personnel turbulence.--
                    ``(A) Recruit quality.
                    ``(B) Borrowed manpower.
                    ``(C) Personnel stability.
            ``(3) Other personnel matters.--
                    ``(A) Personnel morale.
                    ``(B) Medical and dental readiness.
                    ``(C) Recruit shortfalls.
            ``(4) Training.--
                    ``(A) Training unit readiness and proficiency.
                    ``(B) Operations tempo.
                    ``(C) Training funding.
                    ``(D) Training commitments and deployments.
            ``(5) Logistics--equipment fill.--
                    ``(A) Deployed equipment.
                    ``(B) Equipment availability.
                    ``(C) Equipment that is not mission capable.
                    ``(D) Age of equipment.
                    ``(E) Condition of nonpacing items.
            ``(6) Logistics--equipment maintenance.--
                    ``(A) Maintenance backlog.
            ``(7) Logistics--supply.--
                    ``(A) Availability of ordnance and spares.
    ``(e) Unit Readiness Indicators.--Each report shall also include
information regarding the readiness of each unit of the armed forces at
the battalion, squadron, or an equivalent level (or a higher level)
that received a readiness rating of C-3 (or below) for any month of the
calendar-year quarter covered by the report. With respect to each such
unit, the report shall separately provide the following information:
            ``(1) The unit designation and level of organization.
            ``(2) The overall readiness rating for the unit for the
        quarter and each month of the quarter.
            ``(3) The resource area or areas (personnel, equipment and
        supplies on hand, equipment condition, or training) that
        adversely affected the unit's readiness rating for the quarter.
            ``(4) If the unit received a readiness rating below C-1 in
        personnel for the quarter, the primary reason for the lower
        rating, by reason code and definition.
            ``(5) If the unit received a readiness rating below C-1 in
        equipment and supplies on hand for the quarter, the primary
        reason for the lower rating, by reason code and definition.
            ``(6) If the unit received a readiness rating below C-1 in
        equipment condition for the quarter, the primary reason for the
        lower rating, by reason code and definition.
            ``(7) If the unit received a readiness rating below C-1 in
        training for the quarter, the primary reason for the lower
        rating, by reason code and definition.
    ``(f) Classification of Reports.--A report under this section shall
be submitted in unclassified form. To the extent the Secretary of
Defense determines necessary, the report may also be submitted in
classified form.''.
    (b) Implementation Plan to Examine Readiness Indicators.--Not later
than January 15, 1998, the Secretary of Defense shall submit to the
congressional defense committees a plan--
            (1) specifying the manner in which the Secretary will
        implement the additional reporting requirement of subsection
        (d) of section 482 of title 10, United States Code, as added by
        this section; and
            (2) specifying the criteria proposed to be used to evaluate
        the readiness indicators identified in such subsection (d).
    (c) Limitation Pending Receipt of Implementation Plan.--Of the
amount available for fiscal year 1998 for operation and support
activities of the Office of the Secretary of Defense, 10 percent may
not be obligated until after the date on which the implementation plan
required by subsection (b) is submitted.
    (d) First Report; Transition.--The first report required under
section 482 of title 10, United States Code, as amended by subsection
(a), shall be submitted not later than October 31, 1997. Until the
report required for the third quarter of 1998 is submitted, the
Secretary of Defense may omit the information required by subsection
(d) of such section if the Secretary determines that it is
impracticable to comply with such subsection with regard to the
preceding reports.

SEC. 312. LIMITATION ON REALLOCATION OF FUNDS WITHIN OPERATION AND
              MAINTENANCE APPROPRIATIONS.

    (a) Limitation.--Whenever the Secretary of Defense proposes to
reallocate funds within an O&M budget activity in a manner described in
subsection (b), the reallocation may be made only--
            (1) after the Secretary submits to the congressional
        defense committees notice of the proposed reallocation; and
            (2) if the procedures generally applicable to transfers of
        funds between appropriations of the Department of Defense have
        been followed with respect to such reallocation.
    (b) Covered Reallocations.--Subsection (a) applies in the case of
any reallocation of funds from a subactivity of an O&M budget activity
to another subactivity within the same O&M budget activity or to
another O&M budget activity within the same operation and maintenance
appropriation if the amount to be reallocated, when added to any
previous amounts reallocated from that subactivity for that fiscal
year, is in excess of $10,000,000.
    (c) O&M Budget Activity Defined.--For purposes of this section, the
term ``O&M budget activity'' means a budget activity within an
operation and maintenance appropriation of the Department of Defense
for a fiscal year.
    (d) Covered Fiscal Years.--This section applies with respect to
funds appropriated for fiscal years 1998, 1999, and 2000.

SEC. 313. 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. 314. PROHIBITION OF IMPLEMENTATION OF TIERED READINESS SYSTEM.

    (a) Prohibition.--The Secretary of a military department may not
implement, or be required to implement, a readiness system for units of
the Armed Forces under the jurisdiction of that Secretary under which a
military unit would be categorized into one of several categories (or
``tiers'') according to the likelihood that the unit will be required
to respond to a military conflict and the time in which the unit will
be required to respond, if that system would have the effect of
changing the methods used as of October 1, 1996, by the Armed Forces
under the jurisdiction of that Secretary for determining the priorities
for allocating to such military units funding, personnel, equipment,
equipment maintenance, and training resources, and the associated
levels of readiness of those units that result from those priorities.
    (b) Report to Congress Requesting Waiver.--If the Secretary of
Defense determines that implementation, for one or more of the Armed
Forces, of a tiered readiness system that is otherwise prohibited by
subsection (a) would be in the national security interests of the
United States, the Secretary shall submit to the Committee on Armed
Services of the Senate and the Committee on National Security of the
House of Representatives a report setting forth that determination of
the Secretary, together with the rationale for that determination, and
a request for the enactment of legislation to allow implementation of
such a system.

SEC. 315. REPORTS ON TRANSFERS FROM HIGH-PRIORITY READINESS
              APPROPRIATIONS.

    (a) Annual and Quarterly Reports Required.--Chapter 23 of title 10,
United States Code, is amended by adding at the end the following new
section:
``Sec. 483. Reports on transfers from high-priority readiness
              appropriations
    ``(a) Annual Reports.--Not later than the date on which the
President submits the budget for a fiscal year to Congress pursuant to
section 1105 of title 31, the Secretary of Defense shall submit to the
Committee on Armed Services and the Committee on Appropriations of the
Senate and the Committee on National Security and the Committee on
Appropriations of the House of Representatives a report on transfers
during the preceding fiscal year from funds available for each covered
budget activity.
    ``(b) Quarterly Reports.--Not later than 30 days after the end of
each quarter of a fiscal year, the Secretary of Defense shall submit to
the congressional committees specified in subsection (a) a report on
transfers, during that fiscal year quarter, from funds available for
each covered budget activity.
    ``(c) Matters To Be Included.--In each report under subsection (a)
or (b), the Secretary of Defense shall include for each covered budget
activity the following:
            ``(1) A statement, for the period covered by the report,
        of--
                    ``(A) the total amount of transfers into funds
                available for that activity;
                    ``(B) the total amount of transfers from funds
                available for that activity; and
                    ``(C) the net amount of transfers into, or out of,
                funds available for that activity.
            ``(2) A detailed explanation of the transfers into, and out
        of, funds available for that activity during the period covered
        by the report.
    ``(d) Covered Budget Activity Defined.--In this section, the term
`covered budget activity' means each of the following:
            ``(1) The budget activity groups (known as `subactivities')
        within the Operating Forces budget activity of the annual
        Operation and Maintenance, Army, appropriation that are
        designated as follows:
                    ``(A) All subactivities under the category of Land
                Forces.
                    ``(B) Land Forces Depot Maintenance.
                    ``(C) Base Support.
                    ``(D) Maintenance of Real Property.
            ``(2) The Air Operations budget activity groups (known as
        `subactivities') within the Operating Forces budget activity of
        the annual Operation and Maintenance, Navy, appropriation that
        are designated as follows:
                    ``(A) Mission and Other Flight Operations.
                    ``(B) Fleet Air Training.
                    ``(C) Aircraft Depot Maintenance.
                    ``(D) Base Support.
                    ``(E) Maintenance of Real Property.
            ``(3) The Ship Operations budget activity groups (known as
        `subactivities') within the Operating Forces budget activity of
        the annual Operation and Maintenance, Navy, appropriation that
        are designated as follows:
                    ``(A) Mission and Other Ship Operations.
                    ``(B) Ship Operational Support and Training.
                    ``(C) Ship Depot Maintenance.
                    ``(D) Base Support.
                    ``(E) Maintenance of Real Property.
            ``(4) The Expeditionary Forces budget activity groups
        (known as `subactivities') within the Operating Forces budget
        activity of the annual Operation and Maintenance, Marine Corps,
        appropriation that are designated as follows:
                    ``(A) Operational Forces.
                    ``(B) Depot Maintenance.
                    ``(C) Base Support.
                    ``(D) Maintenance of Real Property.
            ``(5) The Air Operations and Combat Related Operations
        budget activity groups (known as `subactivities') within the
        Operating Forces budget activity of the annual Operation and
        Maintenance, Air Force, appropriation that are designated as
        follows:
                    ``(A) Primary Combat Forces.
                    ``(B) Primary Combat Weapons.
                    ``(C) Air Operations Training.
                    ``(D) Depot Maintenance.
                    ``(E) Base Support.
                    ``(F) Maintenance of Real Property.
            ``(6) The Mobility Operations budget activity group (known
        as a `subactivity') within the Mobilization budget activity of
        the annual Operation and Maintenance, Air Force, appropriation
        that is designated as Airlift Operations.
    ``(e) Termination.--The requirements specified in subsections (a)
and (b) shall terminate upon the submission of the annual report under
subsection (a) covering fiscal year 2000.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

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

SEC. 316. REPORT ON CHAIRMAN, JOINT CHIEFS OF STAFF EXERCISE PROGRAM
              AND PARTNERSHIP FOR PEACE PROGRAM.

    (a) Report.--Not later than February 16, 1998, the Secretary of
Defense shall submit to the Committee on Armed Services of the Senate
and the Committee on National Security of the House of Representatives
a report on the military exercises conducted by the Department of
Defense during fiscal years 1995, 1996, and 1997 and the military
exercises planned to be conducted during fiscal years 1998, 1999, and
2000, under the training exercises program known as the ``CJCS Exercise
Program'' and under the training exercises program known as the
Partnership for Peace program.
    (b) Information on Exercises Conducted or To Be Conducted.--The
report under subsection (a) shall include the following information for
each such exercise, which shall be set forth by fiscal year and shown
within fiscal year by the sponsoring command:
            (1) Name of the exercise.
            (2) Type, description, duration, and objectives of the
        exercise
            (3) Command sponsoring the exercise.
            (4) Participating units, including the number of personnel
        participating in each unit.
            (5) For each participating unit, the percentage of the
        tasks on that unit's specification of tasks knows as a Mission
        Essential Task List (or comparable specification, in the case
        of any of the Armed Forces that do not maintain a Mission
        Essential Task List designation) scheduled to be performed as
        part of the exercise.
            (6) The cost of the exercise to the Chairman of the Joint
        Chiefs of Staff and the cost to each of the Armed Forces
        participating in the exercise, with a description of the
        categories of activities for which those costs are incurred in
        each such case.
            (7) The priority of the exercise in relation to all other
        exercises planned by the sponsoring command to be conducted
        during that fiscal year.
            (8) In the case of an exercise conducted under the
        Partnership for Peace program, the country with which each the
        exercise was conducted.
    (c) Assessment.--The report shall include--
            (1) an assessment of the ability of each of the Armed
        Forces to meet requirements of the CJCS Exercise Program and
        the Partnership for Peace program with available assets;
            (2) an assessment of the training value of each exercise
        covered in the report to each unit participating in the
        exercise, including for each such unit an assessment of the
        value of the percentage under subsection (b)(5) as an indicator
        of the training value of the exercise for that unit; and
            (3) options to minimize the negative effects on operational
        and personnel tempo resulting from the CJCS Exercise Program
        and the Partnership for Peace program.
    (d) Funding Limitation Pending Receipt of Report.--Of the funds
available for fiscal year 1998 for the conduct of the CJSC Exercise
Program, not more than 50 percent may be expended before the report
under subsection (a) is submitted.

SEC. 317. QUARTERLY REPORTS ON EXECUTION OF OPERATION AND MAINTENANCE
              APPROPRIATIONS.

    (a) Report Required.--Chapter 23 of title 10, United States Code,
is amended by inserting after section 483, as added by section 315, the
following new section:
``Sec. 484. Quarterly reports on execution of operation and maintenance
              appropriations
    ``(a) Report Required.--Not later than 60 days after the end of
each quarter of a fiscal year, the Secretary of Defense shall submit to
the Committee on Armed Services and the Committee on Appropriations of
the Senate and the Committee on National Security and the Committee on
Appropriations of the House of Representatives a report containing
budget execution data for each budget activity group (known as a
`subactivity') within the annual operation and maintenance
appropriations for the period covered by the report. A report shall
cover all preceding quarters of the fiscal year involved.
    ``(b) Manner of Presenting Data.--The budget execution data
required under subsection (a) shall be displayed for the fiscal year
involved in the same manner used in the operation and maintenance
tables contained in the budget justification document entitled `O-1
Exhibit' submitted to Congress in support of the budget of the
Department of Defense, as included in the budget of the President
submitted under section 1105 of title 31.
    ``(c) Required Information.--The following information shall be
provided for each budget activity group:
            ``(1) Amounts authorized to be appropriated.
            ``(2) Amounts appropriated.
            ``(3) Direct obligations.
            ``(4) Total obligational authority.
            ``(5) Amounts related to unbudgeted contingency operations.
            ``(6) Direct obligations related to unbudgeted contingency
        operations.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
483, as added by section 315, the following new item:

``484. Quarterly reports on execution of operation and maintenance
                            appropriations.''.

                     Subtitle C--Civilian Personnel

SEC. 321. PAY PRACTICES WHEN OVERSEAS TEACHERS TRANSFER TO GENERAL
              SCHEDULE POSITIONS.

    Section 5334(d) of title 5, United States Code, is amended by
striking out ``is deemed increased by 20 percent'' and inserting in
lieu thereof ``shall be increased by such amount as may be authorized,
if any, under regulations issued by the Secretary of Defense, but not
to exceed 20 percent,''.

SEC. 322. USE OF APPROVED FIRE-SAFE ACCOMMODATIONS BY GOVERNMENT
              EMPLOYEES ON OFFICIAL BUSINESS.

    (a) Percentage Use Requirement.--Section 5707a of title 5, United
States Code, is amended--
            (1) by redesignating subsections (a) through (d) as
        subsections (b) through (e), respectively; and
            (2) by inserting after the section heading the following
        new subsection:
    ``(a)(1) For the purpose of making payments under this chapter for
lodging expenses incurred in a State, each agency shall ensure that not
less than 90 percent of the commercial-lodging room nights for
employees of that agency for a fiscal year are booked in approved
places of public accommodation.
    ``(2) Each agency shall establish explicit procedures to satisfy
the percentage requirement of paragraph (1).''.
    (b) Definitions.--Such section is further amended by adding at the
end the following new subsection:
    ``(f) For purposes of this section:
            ``(1) The term `agency' does not include the government of
        the District of Columbia.
            ``(2) The term `approved places of public accommodation'
        means hotels, motels, and other places of public accommodation
        that are listed by the Federal Emergency Management Agency as
        meeting the requirements of the fire prevention and control
        guidelines described in section 29 of the Federal Fire
        Prevention and Control Act of 1974 (15 U.S.C. 2225).
            ``(3) The term `State' means any State, the District of
        Columbia, the Commonwealth of Puerto Rico, the Commonwealth of
        the Northern Mariana Islands, the Trust Territory of the
        Pacific Islands, the Virgin Islands, Guam, American Samoa, or
        any other territory or possession of the United States.''.
    (c) Conforming Amendments.--Such section is further amended--
            (1) in subsection (b), as redesignated by subsection
        (a)(1)--
                    (A) by striking out ``places of public
                accommodation that meet the requirements of the fire
                prevention and control guidelines described in section
                29 of the Federal Fire Prevention and Control Act of
                1974'' and inserting in lieu thereof ``approved places
                of public accommodation''; and
                    (B) by striking out ``as defined in section 4 of
                the Federal Fire Prevention and Control Act of 1974'';
            (2) in subsection (c), as redesignated by subsection
        (a)(1), by striking out ``does not meet the requirements of the
        fire prevention and control guidelines described in section 29
        of the Federal Fire Prevention and Control Act of 1974'' and
        inserting in lieu thereof ``is not an approved place of public
        accommodation''; and
            (3) in subsection (e), as redesignated by subsection
        (a)(1)--
                    (A) by striking out ``encourage'' and inserting in
                lieu thereof ``facilitate the ability of''; and
                    (B) by striking out ``places of public
                accommodation that meet the requirements of the fire
                prevention and control guidelines described in section
                29 of the Federal Fire Prevention and Control Act of
                1974'' and inserting in lieu thereof ``approved places
                of public accommodation''.
    (d) Report on Implementation.--Not later than March 31, 1998, the
Administrator of General Services, after consultation with the agencies
covered by section 5707a of title 5, United States Code, shall submit
to Congress a report describing the procedures established by each
agency to satisfy the percentage requirement imposed by subsection (a)
of such section, as amended by this section.

SEC. 323. VETERANS' PREFERENCE STATUS FOR CERTAIN VETERANS WHO SERVED
              ON ACTIVE DUTY DURING THE PERSIAN GULF WAR.

    (a) Definition of Veteran for Purposes of Preference Eligible
Status.--Section 2108 of title 5, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``or'' at the end of subparagraph
                (A);
                    (B) by inserting ``or'' at the end of subparagraph
                (B); and
                    (C) by inserting after subparagraph (B) the
                following new subparagraph:
                    ``(C) served on active duty as defined by section
                101(21) of title 38 in the armed forces during the
                period beginning on August 2, 1990, and ending on
                January 2, 1992;''; and
            (2) in paragraph (3)(B), by inserting ``or (C)'' after
        ``paragraph (1)(B)''.
    (b) Additional Points.--Section 3309(2) of such title is amended by
striking ``2108(3)(A)'' and inserting ``2108(3)(A)-(B)''.
    (c) Technical Amendments.--Section 2108(1)(B) of such title is
further amended--
            (1) by striking ``the date of enactment of the Veterans'
        Education and Employment Assistance Act of 1976,'' and
        inserting ``October 15, 1976,''; and
            (2) by striking ``511(d) of title 10'' and inserting
        ``12103(d) of title 10''.

                   Subtitle D--Depot-Level Activities

SEC. 331. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL
              SHIPYARDS TO ENGAGE IN DEFENSE-RELATED PRODUCTION AND
              SERVICES.

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

SEC. 332. EXCLUSION OF CERTAIN LARGE MAINTENANCE AND REPAIR PROJECTS
              FROM PERCENTAGE LIMITATION ON CONTRACTING FOR DEPOT-LEVEL
              MAINTENANCE.

    Section 2466 of title 10, United States Code, is amended by
inserting after subsection (a) the following new subsection:
    ``(b) Treatment of Certain Large Projects.--If a maintenance or
repair project concerning an aircraft carrier or submarine that is
contracted for performance by non-Federal Government personnel and that
accounts for five percent or more of the funds made available in a
fiscal year to a military department or a Defense Agency for depot-
level maintenance and repair workload, the project and the funds
necessary for the project shall not be considered when applying the
percentage limitation specified in subsection (a) to that military
department or Defense Agency.''.

SEC. 333. RESTRICTIONS ON CONTRACTS FOR PERFORMANCE OF DEPOT-LEVEL
              MAINTENANCE AND REPAIR AT CERTAIN FACILITIES.

    (a) Depot-Level Maintenance and Repair Defined.--(1) Chapter 146 of
title 10, United States Code, is amended by inserting before section
2461 the following new section:
``Sec. 2460. Definition of depot-level maintenance and repair
    ``(a) In General.--In this chapter, the term `depot-level
maintenance and repair' means material maintenance or repair requiring
the overhaul, upgrading, or rebuilding of parts, assemblies, or
subassemblies, and the testing and reclamation of equipment as
necessary, regardless of the source of funds for the maintenance or
repair. The term includes all aspects of software maintenance and such
portions of interim contractor support, contractor logistics support,
or any similar contractor support for the performance of services that
are described in the preceding sentence.
    ``(b) Exception.--The term does not include the procurement of a
major weapon system modification or upgrade, except where the changes
to the system are primarily for safety reasons, to correct a
deficiency, or to improve program performance.''.
    (2) The table of sections at the beginning of such chapter is
amended by inserting before the item relating to section 2461 the
following new item:

``2460. Definition of depot-level maintenance and repair.''.
    (b) Restriction on Certain Contracts.--Section 2469 of title 10,
United States Code, is amended--
            (1) in subsections (a) and (b), by striking out ``or
        repair'' and inserting in lieu thereof ``and repair''; and
            (2) by adding at the end the following new subsection:
    ``(d) Restriction on Contracts at Certain Facilities.--
            ``(1) Restriction.--The Secretary of Defense may not enter
        into any contract for the performance of depot-level
        maintenance and repair of weapon systems or other military
        equipment of the Department of Defense, or for the performance
        of management functions related to depot-level maintenance and
        repair of such systems or equipment, at any military
        installation where a depot-level maintenance and repair
        facility was approved in 1995 for closure 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). In the preceding
        sentence, the term `military installation' includes a former
        military installation closed under the Act that was a military
        installation when it was approved for closure under the Act.
            ``(2) Exception.--Paragraph (1) shall not apply with
        respect to an installation or former installation described in
        such paragraph if the Secretary of Defense certifies to
        Congress, not later than 45 days before entering into a
        contract for depot-level maintenance and repair at the
        installation or former installation, that--
                    ``(A) not less than 80 percent of the capacity at
                each of the depot-level maintenance and repair
                activities of the military department concerned is
                being utilized on an ongoing basis to perform
                industrial operations in support of the depot-level
                maintenance and repair of weapon systems and other
                military equipment of the Department of Defense;
                    ``(B) the Secretary has determined, on the basis of
                a detailed analysis (which the Secretary shall submit
                to Congress with the certification), that the total
                amount of the costs of the proposed contract to the
                Government, both recurring and nonrecurring and
                including any costs associated with planning for and
                executing the proposed contract, would be less than the
                costs that would otherwise be incurred if the depot-
                level maintenance and repair to be performed under the
                contract were performed using equipment and facilities
                of the Department of Defense;
                    ``(C) all of the information upon which the
                Secretary determined that the total costs to the
                Government would be less under the contract is
                available for examination; and
                    ``(D) none of the depot-level maintenance and
                repair to be performed under the contract was
                considered, before July 1, 1995, to be a core logistics
                capability of the military department concerned
                pursuant to section 2464 of this title.
            ``(3) Capacity of depot-level activities.--For purposes of
        paragraph (2)(A), the capacity of depot-level maintenance and
        repair activities shall be considered to be the same as the
        maximum potential capacity identified by the Defense Base
        Closure and Realignment Commission for purposes of the
        selection in 1995 of military installations for closure or
        realignment under the Defense Base Closure and Realignment Act
        of 1990, without regard, after 1995, to any limitation on the
        maximum number of Federal employees (expressed as full time
        equivalent employees or otherwise), Federal employment levels,
        or the actual availability of equipment to support depot-level
        maintenance and repair.
            ``(4) GAO review.--At the same time that the Secretary
        submits the certification and analysis to Congress under
        paragraph (2), the Secretary shall submit a copy of the
        certification and analysis to the Comptroller General. The
        Comptroller General shall review the analysis and the
        information referred to in subparagraph (C) of paragraph (2)
        and, not later than 30 days after Congress receives the
        certification, submit to Congress a report containing a
        statement regarding whether the Comptroller General concurs
        with the determination of the Secretary included in the
        certification pursuant to subparagraph (B) of that paragraph.
            ``(5) Application.--This subsection shall apply with
        respect to any contract described in paragraph (1) that is
        entered into, or proposed to be entered into, after January 1,
        1997.''.

SEC. 334. CORE LOGISTICS FUNCTIONS OF DEPARTMENT OF DEFENSE.

    Section 2464(a) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking out ``a logistics
        capability (including personnel, equipment, and facilities)''
        and inserting in lieu thereof ``a core logistics capability
        that is Government-owned and Government-operated (including
        Government personnel and Government-owned and Government-
        operated equipment and facilities)'';
            (2) in paragraph (2), by striking out ``the logistics'' and
        inserting in lieu thereof ``the core logistics''; and
            (3) by adding at the end the following new paragraphs:
    ``(3) Those core logistics activities identified under paragraphs
(1) and (2) shall include the capability, facilities, and equipment to
maintain and repair all types of weapon systems and other military
equipment that are identified by the Secretary, in consultation with
the Joint Chiefs of Staff, as necessary to enable the armed forces to
fulfill the national military strategy, including the capability and
capacity to maintain and repair any new mission-essential weapon system
or materiel within four years after the system or materiel achieves
initial operational capability.
    ``(4) The Secretary of Defense shall require the performance of
core logistics activities identified under paragraphs (1), (2), and (3)
at Government-owned, Government-operated facilities of the Department
of Defense (including Government-owned, Government-operated facilities
of a military department) and shall assign such facilities sufficient
workload to ensure cost efficiency and technical proficiency in
peacetime while preserving the surge capacity and reconstitution
capabilities necessary to meet the military contingencies provided for
in the national military strategy.''.

SEC. 335. CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

    (a) Designation and Purpose.--(1) Chapter 146 of title 10, United
States Code, is amended by adding at the end the following new section:
``Sec. 2474. Centers of Industrial and Technical Excellence:
              designation; public-private partnerships
    ``(a) Designation.--(1) The Secretary of Defense shall designate
each depot-level activity of the military departments and the Defense
Agencies (other than facilities approved for closure or major
realignment under the Defense Base Closure and Realignment Act of 1990
(part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note)) as a
Center of Industrial and Technical Excellence in the recognized core
competencies of the activity.
    ``(2) The Secretary shall establish a policy to encourage the
Secretary of each military department and the head of each Defense
Agency to reengineer industrial processes and adopt best-business
practices at their depot-level activities in connection with their core
competency requirements, so as to serve as recognized leaders in their
core competencies throughout the Department of Defense and in the
national technology and industrial base (as defined in section 2500(1)
of this title).
    ``(b) Public-Private Partnerships.--The Secretary of Defense shall
enable Centers of Industrial and Technical Excellence to form public-
private partnerships for the performance of depot-level maintenance and
repair and shall encourage the use of such partnerships to maximize the
utilization of the capacity at such Centers.
    ``(c) Additional Work.--The policy required under subsection (a)
shall include measures to enable a private sector entity that enters
into a partnership arrangement under subsection (b) or leases excess
equipment and facilities at a Center of Industrial and Technical
Excellence pursuant to section 2471 of this title to perform additional
work at the Center, subject to the limitations outlined in subsection
(b) of such section, outside of the types of work normally assigned to
the Center.''.
    (2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``2474. Centers of Industrial and Technical Excellence: designation;
                            public-private partnerships.''.
    (b) Reporting Requirement.--Not later than March 1, 1998, the
Secretary of Defense shall submit to Congress a report on the policies
established by the Secretary pursuant to section 2474 of title 10,
United States Code, to implement the requirements of such section. The
report shall include--
            (1) the details of any public-private partnerships entered
        into as of that date under subsection (b) of such section;
            (2) the details of any leases entered into as of that date
        under section 2471 of such title with authorized entities for
        dual-use (military and nonmilitary) purposes; and
            (3) the effect that the partnerships and leases had on
        capacity utilization, depot rate structures, and readiness.

SEC. 336. PERSONNEL REDUCTIONS, ARMY DEPOTS PARTICIPATING IN ARMY
              WORKLOAD AND PERFORMANCE SYSTEM.

    The Secretary of the Army may not carry out a reduction in force of
civilian employees at the five Army depots participating in the
demonstration and testing of the Army Workload and Performance System
until after the date on which the Secretary submits to Congress a
report certifying that--
            (1) the Army Workload and Performance System is fully
        operational; and
            (2) the manpower audits being performed by the Comptroller
        General, the Army Audit Agency, and the Inspector General of
        the Army as of the date of the enactment of this Act have been
        completed.

                  Subtitle E--Environmental Provisions

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

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

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

    (a) Authority To Enter Into Agreements With Indian Tribes.--Section
327 of the National Defense Authorization Act for Fiscal Year 1997
(Public Law 104-201; 110 Stat. 2483) is amended--
            (1) in subsection (a), by inserting ``, or with an Indian
        tribe,'' after ``with an agency of a State or local
        government'';
            (2) by redesignating subsection (e) as subsection (f); and
            (3) by inserting after subsection (d) the following new
        subsection:
    ``(e) Definition.--In this section, the term `Indian tribe' has the
meaning given that term by section 101(36) of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 (42
U.S.C. 9601(36)).''.
    (b) Elimination of Certain Limitation on Authority.--Subsection
(b)(1) of such section is amended by striking out ``in carrying out its
environmental restoration activities''.

SEC. 343. AUTHORIZATION TO PAY NEGOTIATED SETTLEMENT FOR ENVIRONMENTAL
              CLEANUP AT FORMER DEPARTMENT OF DEFENSE SITES IN CANADA.

    (a) Authorization.--To the extent provided in appropriations Acts,
the Secretary of Defense may pay an amount to the Government of Canada
of not more than $100,000,000 (in fiscal year 1996 constant dollars),
for purposes of implementing the October 1996 negotiated settlement
between the United States and Canada relating to environmental cleanup
at various sites in Canada that were formerly used by the Department of
Defense.
    (b) Method of Payment.--The amount authorized by subsection (a)
shall be paid in 10 annual payments, with the first payment made in
fiscal year 1998.
    (c) Fiscal Year 1998 Payment.--The payment under this section for
fiscal year 1998 shall be made from amounts appropriated pursuant to
section 301(5).

SEC. 344. MODIFICATIONS OF AUTHORITY TO STORE AND DISPOSE OF NONDEFENSE
              TOXIC AND HAZARDOUS MATERIALS.

    (a) Authority To Store Materials Owned by Members of the Armed
Forces.--Section 2692(a) of title 10, United States Code, is amended--
            (1) by inserting ``either'' before ``by the Department'';
        and
            (2) by inserting before the period at the end the
        following: ``or by a member of the armed forces (or a dependent
        of the member) assigned to or provided military housing on the
        installation''.
    (b) Additional Exception to Limitation on Storage and Disposal.--
Section 2692(b) of such title is amended--
            (1) by redesignating paragraphs (1) through (9) as
        paragraphs (2) through (10), respectively; and
            (2) by inserting before paragraph (2) (as so redesignated)
        the following new paragraph (1):
            ``(1) the storage, treatment, or disposal of materials that
        will be or have been used in connection with an activity of the
        Department of Defense or in connection with a service to be
        performed on an installation of the Department for the benefit
        of the Department;''.
    (c) Modification to Exception Relating to Storage or Disposal of
Explosives To Assist Law Enforcement Agencies.--Section 2692(b) of such
title is amended in paragraph (3) (as redesignated by subsection (b))--
            (1) by striking out ``Federal law enforcement'' and
        inserting in lieu thereof ``Federal, State, or local law
        enforcement''; and
            (2) by striking out ``Federal agency'' and inserting in
        lieu thereof ``Federal, State, or local agency''.
    (d) Modification to Exception Relating to Storage of Material in
Connection With Use of a Defense Facility.--Section 2692(b) of such
title is amended in paragraph (9) (as redesignated by subsection (b))--
            (1) by striking out ``by a private person in connection
        with the authorized and compatible use by that person of an
        industrial-type'' and inserting in lieu thereof ``in connection
        with the authorized use of a''; and
            (2) by striking out ``; and'' at the end and inserting in
        lieu thereof the following: ``including the use of such a
        facility for testing materiel and training personnel;''.
    (e) Modification to Exception Relating to Treatment and Disposal of
Material in Connection With Use of a Defense Facility.--Section 2692(b)
of such title is amended in paragraph (10) (as redesignated by
subsection (b))--
            (1) by striking out ``by a private person in connection
        with the authorized and compatible commercial use by that
        person of an industrial-type'' and inserting in lieu thereof
        ``in connection with the authorized use of a'';
            (2) by striking out ``with that person'' and inserting in
        lieu thereof ``or agreement with the prospective user'';
            (3) by striking out ``for that person's'' in subparagraph
        (B) and inserting in lieu thereof ``for the prospective
        user's''; and
            (4) by striking out the period at the end and inserting in
        lieu thereof ``; and''.
    (f) Additional Exception Relating to Space Launch Facilities.--
Section 2692(b) of such title is further amended by adding at the end
the following new paragraph:
            ``(11) the storage of any material that is not owned by the
        Department of Defense if the Secretary of the military
        department concerned determines that the material is required
        or generated in connection with the use of a space launch
        facility located on an installation of the Department of
        Defense or on other land controlled by the United States.''.
    (g) Technical Amendments.--(1) Section 2692(a)(1) of such title is
amended by striking out ``storage'' and inserting in lieu thereof
``storage, treatment,''.
    (2) The heading for section 2692 of such title is amended to read
as follows:
``Sec. 2692. Storage, treatment, and disposal of nondefense toxic and
              hazardous materials''.
    (3) The item relating to section 2692 in the table of sections at
the beginning of chapter 159 of such title is amended to read as
follows:

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

SEC. 345. REVISION OF REPORT REQUIREMENT FOR NAVY PROGRAM TO MONITOR
              ECOLOGICAL EFFECTS OF ORGANOTIN.

    Section 333(e) of the National Defense Authorization Act for Fiscal
Year 1997 (Public Law 104-201; 110 Stat. 2486) is amended--
            (1) by striking out ``June 1'' and inserting in lieu
        thereof ``October 30'';
            (2) by striking out paragraphs (1) and (2);
            (3) by redesignating paragraphs (3) and (4) as paragraphs
        (1) and (2), respectively; and
            (4) by adding at the end the following new paragraph:
            ``(3) A description of the present and future use, if any,
        of antifouling paints containing organotin on naval vessels.''.

SEC. 346. PARTNERSHIPS FOR INVESTMENT IN INNOVATIVE ENVIRONMENTAL
              TECHNOLOGIES.

    (a) Authority.--Subject to subsection (b), the Secretary of Defense
may enter into a partnership with one or more private sector entities
to demonstrate and validate innovative environmental technologies.
    (b) Limitations.--The Secretary of Defense may enter into a
partnership with respect to an environmental technology under
subsection (a)--
            (1) subject to such terms and conditions as the Secretary
        considers appropriate and in the national interest; and
            (2) only if the Secretary determines that the technology
        has clear potential to be of significant value to the
        Department of Defense in carrying out its environmental
        activities.
    (c) Funding.--Under a partnership entered into under subsection
(a), the Secretary may provide funds to the partner or partners from
appropriations available to the Department of Defense for environmental
activities, for a period of up to five years.
    (d) Report.--In the annual report required under section 2706(a) of
title 10, United States Code, the Secretary of Defense shall include
the following information with respect to partnerships entered into
under this section:
            (1) The number of such partnerships.
            (2) A description of the nature of the technology involved
        in each such partnership.
            (3) A list of all partners in such partnerships.
    (e) Coordination.--The Secretary of Defense shall ensure that the
Department of Defense coordinates with the Administrator of the
Environmental Protection Agency in any verification sponsored by the
Department of technologies demonstrated and validated by a partnership
entered into under this section.
    (f) Termination of Authority.--The authority to enter into
agreements under subsection (a) shall terminate three years after the
date of the enactment of this Act.

SEC. 347. PILOT PROGRAM TO TEST AN ALTERNATIVE TECHNOLOGY FOR
              ELIMINATING SOLID AND LIQUID WASTE EMISSIONS DURING SHIP
              OPERATIONS.

    (a) Determination by Secretary of the Navy.--(1) The Secretary of
the Navy shall make a determination whether the alternative technology
described in paragraph (2) has the clear potential for significant
benefit to the Navy.
    (2) The technology referred to in paragraph (1) is an alternative
technology designed to thermally treat on shipboard all kinds of liquid
and solid wastes generated on an operating ship by means of a plasma
arc melter system that is compact, stationary, and uses a high alumina
refractory hearth.
    (b) Pilot Program.--If the determination made under subsection
(a)(1) is in the affirmative, the Secretary shall establish a pilot
program to test the alternative technology. In conducting the test, the
Secretary shall seek to demonstrate whether the technology is valid,
cost-effective, and in compliance with environmental laws and
regulations.
    (c) Funding.--From funds appropriated pursuant to the authorization
in section 301(2), the Secretary of the Navy may use not more than
$4,000,000 to carry out the pilot program.
    (d) Report.--(1) If the determination made under subsection (a)(1)
is in the affirmative, upon completion of the test conducted under the
pilot program the Secretary shall submit to the Committee on Armed
Services of the Senate and the Committee on National Security of the
House of Representatives a report setting forth in detail the results
of the test. The report shall include recommendations on whether the
alternative technology merits implementation on naval vessels and such
other recommendations as the Secretary considers appropriate.
    (2) If the determination made under subsection (a)(1) is in the
negative, the Secretary shall submit to the committees referred to in
paragraph (1) a report containing the analysis and data used by the
Secretary in making the determination and such other recommendations as
the Secretary considers appropriate.

  Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 361. REORGANIZATION OF LAWS REGARDING COMMISSARIES AND EXCHANGES
              AND OTHER MORALE, WELFARE, AND RECREATION ACTIVITIES.

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

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

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

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

``2686. Utilities and services: sale; expansion and extension of
                            systems and facilities.''.
    (3) The table of sections at the beginning of subchapter III of
chapter 169 of such title is amended by adding at the end the following
new items:

``2867. Sale of electricity from alternate energy and cogeneration
                            production facilities.
``2868. Utility services: furnishing for certain buildings.''.
    (4) The table of sections at the beginning of subchapter I of
chapter 148 of such title is amended by striking out the item relating
to section 2491 and inserting in lieu thereof the following new item:

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

SEC. 362. MERCHANDISE AND PRICING REQUIREMENTS FOR COMMISSARY STORES.

    (a) Authorized Commissary Merchandise Categories.--Subsection (b)
of section 2486 of title 10, United States Code, is amended--
            (1) by striking out the matter preceding paragraph (1) and
        inserting in lieu thereof the following: ``(b) Authorized
        Commissary Merchandise Categories.--Merchandise sold in, at, or
        by commissary stores may include items only in the following
        categories:''; and
            (2) by striking out paragraph (11) and inserting in lieu
        thereof the following new paragraph:
            ``(11) Subject to the congressional notification
        requirements of subsection (f), such other merchandise
        categories as the Secretary of Defense may prescribe.''.
    (b) Alteration of Uniform Sales Price Surcharge or Adjustment.--
Subsection (c) of such section is amended--
            (1) by inserting ``Uniform Sales Price Surcharge or
        Adjustment.--'' after ``(c)'';
            (2) by striking out ``in commissary stores.'' and inserting
        in lieu thereof ``in, at, or by commissary stores.''; and
            (3) by adding at the end the following new sentence: ``The
        uniform percentage in effect on the date of the enactment of
        the National Defense Authorization Act for Fiscal Year 1998 may
        not be changed except by a law enacted after such date.''.
    (c) Establishment of Sales Price.--Subsection (d) of such section
is amended to read as follows:
    ``(d) Sales Price Establishment.--The Secretary of Defense shall
establish the sales price of each item of merchandise sold in, at, or
by commissary stores at the level that will recoup the actual product
cost of the item (consistent with this section and sections 2484 and
2685 of this title).''.
    (d) Congressional Notification; Special Rules.--Such section is
further amended by adding at the end the following new subsections:
    ``(f) Congressional Notification.--(1) Any change in the pricing
policies for merchandise sold in, at, or by commissary stores, and any
addition of a merchandise category under subsection (a)(11), shall not
take effect until the Secretary of Defense submits written notice of
the proposed change or addition to Congress and a period of 90 days of
continuous session of Congress expires following the date on which
notice was received.
    ``(2) For purposes of this subsection, the continuity of a session
of Congress is broken only by an adjournment of the Congress sine die,
and the days on which either House is not in session because of an
adjournment or recess of more than three days to a day certain are
excluded in a computation of such 90-day period.
    ``(g) Special Rule for Certain Merchandise.--(1) Notwithstanding
the general requirement that merchandise sold in, at, or by commissary
stores be commissary store inventory, the Secretary of Defense may
authorize the sale of items in the merchandise categories specified in
paragraph (2) as noncommissary store inventory. Subsections (c) and (d)
shall not apply to the pricing of such items of merchandise.
    ``(2) The merchandise categories referred to in paragraph (1) are
as follows:
            ``(A) Magazines and other periodicals.
            ``(B) Tobacco products.''.
    (e) Clerical and Conforming Amendments.--Such section is further
amended--
            (1) in subsection (a), by inserting ``In General.--'' after
        ``(a)''; and
            (2) in subsection (e)--
                    (A) by inserting ``Special Rule for Brand-Name
                Commercial Items.--'' after ``(e)''; and
                    (B) by striking out ``in commissary stores'' both
                places it appears and inserting in lieu thereof ``in,
                at, or by commissary stores''.
    (f) Effect of Amendment.--(1) In the case of merchandise categories
authorized, before the date of the enactment of this Act, for sale in,
at, or by commissary stores pursuant to regulations prescribed under
subsection (b)(11) of section 2486 of title 10, United States Code, as
in effect before such date, the Secretary of Defense may continue to
authorize the sale of such merchandise categories in, at, or by
commissary stores after such date notwithstanding the amendment made by
subsection (a)(2). However, the sale in commissary store of such
merchandise categories shall be subject to the other requirements of
such section 2486.
    (2) Not later than 30 days after the date of the enactment of this
Act, the Secretary of Defense shall submit to Congress a report
specifying the commissary merchandise categories covered by paragraph
(1).

SEC. 363. LIMITATION ON NONCOMPETITIVE PROCUREMENT OF BRAND-NAME
              COMMERCIAL ITEMS FOR RESALE IN COMMISSARY STORES.

    Section 2486(e) of title 10, United States Code, as amended by
section 362(e)(2), is further amended by adding at the end the
following new sentence: ``In determining whether a brand name
commercial item is regularly sold outside of commissary stores, the
Secretary shall consider only sales of the item on a regional or
national basis by commercial grocery or other retail operations
consisting of multiple stores.''.

SEC. 364. TRANSFER OF JURISDICTION OVER EXCHANGE, COMMISSARY, AND
              MORALE, WELFARE, AND RECREATION ACTIVITIES TO UNDER
              SECRETARY OF DEFENSE (COMPTROLLER).

    (a) Comptroller Jurisdiction.--Section 135(c) of title 10, United
States Code, is amended--
            (1) by striking out ``and'' at the end of paragraph (4);
            (2) by striking out the period at the end of paragraph (5)
        and inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(6) in the areas of exchange, commissary, and
        nonappropriated fund instrumentalities regarding morale,
        welfare, and recreation activities.''.
    (b) Conforming Amendment.--Section 136(b) of title 10, United
States Code, is amended by striking out ``exchange, commissary, and
nonappropriated fund activities,''.

SEC. 365. PUBLIC AND PRIVATE PARTNERSHIPS TO BENEFIT MORALE, WELFARE,
              AND RECREATION ACTIVITIES.

    (a) Partnerships Authorized.--Chapter 147 of title 10, United
States Code, as amended by section 361, is further amended by inserting
before section 2482 the following new section:
``Sec. 2481. Morale, welfare, and recreation activities: leases and
              other contracts to benefit
    ``(a) Leases and Other Contracts Authorized.--The Secretary of
Defense may authorize a nonappropriated fund instrumentality to enter
into leases, licensing agreements, concession agreements, and other
contracts with private persons and State or local governments involving
real property (and related personal property) under the control of the
nonappropriated fund instrumentality in order to facilitate the
provision of facilities, goods, or services to authorized patrons of
the nonappropriated fund instrumentality.
    ``(b) Conditions.--A nonappropriated fund instrumentality may enter
into an authorized lease or other contract under subsection (a) only if
the nonappropriated fund instrumentality determines, in consultation
with the Secretary of Defense, that--
            ``(1) the use of the property subject to the lease or
        contract will provide appropriate space, or contribute to the
        provision of goods and services, for a morale, welfare, or
        recreation activity of the nonappropriated fund
        instrumentality;
            ``(2) the lease or contract will not be inconsistent with
        and will not adversely affect the mission of the Department or
        the nonappropriated fund instrumentality; and
            ``(3) the lease or contract will enhance the use of the
        property subject to the lease or contract.
    ``(c) Access to Resulting Facilities, Goods, or Services.--The use
of a lease or contract under subsection (a) to provide facilities,
goods, or services shall not be construed to permit the use of the
resulting facilities, goods, or services by persons who are not
authorized patrons of the nonappropriated fund instrumentality that is
a party to the lease or contract.
    ``(d) Lease and Contract Terms.--Subsection (b) of section 2667 of
this title shall apply to a lease or contract under subsection (a),
except that references to the Secretary concerned shall be deemed to
mean the nonappropriated fund instrumentality that is a party to the
lease or contract.
    ``(e) Money Rentals.--Money rentals received pursuant to a lease or
contract under subsection (a) shall be treated in the same manner as
other receipts of the nonappropriated fund instrumentality that is a
party to the lease or contract, except that use of the rentals shall be
restricted to the installation at which the property covered by the
lease or contract is located.
    ``(f) Definition.--In this section, the term `nonappropriated fund
instrumentality' means the Army and Air Force Exchange Service, Navy
Exchange Service Command, Marine Corps exchanges, or any other
instrumentality of the United States under the jurisdiction of the
armed forces which is conducted for the comfort, pleasure, contentment,
or physical or mental improvement of members of the armed forces.''.
    (b) Clerical Amendments.--The table of sections at the beginning of
chapter 147 of such title, as amended by section 361, is further
amended by inserting before the item relating to section 2482 the
following new item:

``2481. Morale, welfare, and recreation activities: leases and other
                            contracts to benefit.''.

SEC. 366. TREATMENT OF CERTAIN AMOUNTS RECEIVED BY DEFENSE COMMISSARY
              AGENCY.

    Section 2482 of title 10, United States Code, is amended by adding
at the end the following new subsection:
    ``(c) Treatment of Certain Receipts.--(1) The Defense Commissary
Agency shall deposit amounts received from the sources specified in
paragraph (2) into the same account in which the proceeds from the
adjustment of, or surcharge on, commissary store prices authorized by
subsection (a) of section 2685 of this title are deposited. In such
amounts as provided in appropriations Acts, the amounts deposited under
this paragraph shall be available for the purposes described in
subsection (b) of such section.
    ``(2) Paragraph (1) shall apply with respect to amounts received by
the Defense Commissary Agency from--
            ``(A) the sale of items for recycling;
            ``(B) the disposal of excess property;
            ``(C) license fees, royalties, incentive allowances, and
        management and other fees; and
            ``(D) a nonappropriated fund instrumentality of the United
        States.''.

SEC. 367. AUTHORIZED USE OF APPROPRIATED FUNDS FOR RELOCATION OF NAVY
              EXCHANGE SERVICE COMMAND.

    The Navy Exchange Service Command is not required to reimburse the
United States for appropriated funds allotted to the Navy Exchange
Service Command during fiscal years 1994, 1995, and 1996 to cover costs
incurred by the Navy Exchange Service Command to relocate to Virginia
Beach, Virginia, and to lease headquarters space in Virginia Beach.

                       Subtitle G--Other Matters

SEC. 371. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT
              DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT
              OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Continuation of Department of Defense Program for Fiscal Year
1998.--Of the amount authorized to be appropriated pursuant to section
301(5) for operation and maintenance for Defense-wide activities--
            (1) $30,000,000 shall be available for providing
        educational agencies assistance (as defined in subsection
        (d)(1)) to local educational agencies; and
            (2) $5,000,000 shall be available for making educational
        agencies payments (as defined in subsection (d)(2)) to local
        educational agencies.
    (b) Notification.--Not later than June 30, 1998, the Secretary of
Defense shall--
            (1) notify each local educational agency that is eligible
        for educational agencies assistance for fiscal year 1998 of
        that agency's eligibility for such assistance and the amount of
        such assistance for which that agency is eligible; and
            (2) notify each local educational agency that is eligible
        for an educational agencies payment for fiscal year 1998 of
        that agency's eligibility for such payment and the amount of
        the payment for which that agency is eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall disburse
funds made available under paragraphs (1) and (2) of subsection (a) not
later than 30 days after the date on which notification to the eligible
local educational agencies is provided pursuant to subsection (b).
    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' means
        assistance authorized under section 386(b) of the National
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (2) The term ``educational agencies payments'' means
        payments authorized under section 386(d) of the National
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (3) The term ``local educational agency'' has the meaning
        given that term in section 8013(9) of the Elementary and
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).
    (e) Technical Correction Relating to Original Assistance
Authority.--Section 386(c)(1) of the National Defense Authorization Act
for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 7703 note) is
amended--
            (1) by striking out ``section 8003(a)'' and inserting in
        lieu thereof ``section 8003(a)(1)''; and
            (2) by striking out ``(20 U.S.C. 7703(a))'' and inserting
        in lieu thereof ``(20 U.S.C. 7703(a)(1))''.

SEC. 372. CONTINUATION OF OPERATION MONGOOSE.

    Section 135 of title 10, United States Code, is amended by adding
at the end the following new subsection:
    ``(f) The Under Secretary of Defense (Comptroller) shall be
responsible for investigating evidence of fraud, waste, and abuse
uncovered as a result of the Department of Defense program (known as
Operation Mongoose) established to identify and prevent fraud, waste,
and abuse within the Department of Defense, particularly fraud, waste,
and abuse regarding finance and accounting matters. The program shall
continue through fiscal year 2003.''.

SEC. 373. INCLUSION OF AIR FORCE DEPOT MAINTENANCE AS OPERATION AND
              MAINTENANCE BUDGET ACTIVITY GROUP.

    For fiscal year 1999 and each fiscal year thereafter, Air Force
depot-level maintenance of materiel shall be displayed as one or more
budget activity groups (known as ``subactivities'') within the
authorization request for Operation and Maintenance, Air Force, in the
proposed budget for that fiscal year submitted to Congress pursuant to
section 1105 of title 31, United States Code.

SEC. 374. PROGRAMS TO COMMEMORATE 50TH ANNIVERSARY OF MARSHALL PLAN AND
              KOREAN CONFLICT.

    (a) Commemorative Programs.--(1) The Secretary of Defense may
conduct a program to commemorate the 50th anniversary of the Marshall
Plan that provided for the reconstruction of the economies of Western
Europe following World War II.
    (2) The Secretary may conduct a program to commemorate the 50th
anniversary of the Korean conflict.
    (3) In conducting such commemorative programs, the Secretary may
coordinate, support, and facilitate other programs and activities of
the Federal Government, State and local governments, and other persons
in commemoration of the Marshall Plan or the Korean conflict.
    (b) Marshall Plan Commemorative Activities.--The commemorative
programs authorized by subsection (a)(1) may include activities and
ceremonies--
            (1) to honor George C. Marshall, who developed the Marshall
        Plan, for a lifetime of service to the United States as a
        commissioned officer of the Army (including service during
        World War II as Chief of Staff of the Army with the rank of
        General of the Army) and as Secretary of Defense and Secretary
        of State at the beginning of the Cold War; and
            (2) to provide the people of the United States with a clear
        understanding and appreciation of the significance of Marshall
        Plan.
    (c) Korean Conflict Commemorative Activities.--The commemorative
programs authorized by subsection (a)(2) may include activities and
ceremonies--
            (1) to provide the people of the United States with a clear
        understanding and appreciation of the lessons and history of
        the Korean conflict;
            (2) to thank and honor veterans of the Korean conflict and
        their families;
            (3) to pay tribute to the sacrifices and contributions made
        on the home front by the people of the United States during the
        Korean conflict;
            (4) to highlight advances in technology, science, and
        medicine related to military research conducted during the
        Korean conflict;
            (5) to recognize the contributions and sacrifices made by
        the allies of the United States in the Korean conflict; and
            (6) to highlight the role of the Armed Forces of the United
        States, then and now, in maintaining world peace through
        strength.
    (d) Names and Symbols.--The Secretary of Defense shall have the
sole and exclusive right to use the names ``The Department of Defense
50th Anniversary of the Marshall Plan'', ``50th Anniversary of the
Marshall Plan'', and ``The Korean Conflict Commemoration'', and such
seal, emblems, and badges incorporating such names as the Secretary may
lawfully adopt. Nothing in this section may be construed to supersede
rights that are established or vested before the date of the enactment
of this Act.
    (e) Commemorative Account.--(1) There is established in the
Treasury an account to be known as the ``Department of Defense 50th
Anniversary of the Marshall Plan and Korean Conflict Commemoration
Account'', which shall be administered by the Secretary of Defense as a
single account. There shall be deposited into the account all proceeds
derived from the Secretary's use of the exclusive rights described in
subsection (d). The Secretary may use funds in the account only for the
purpose of conducting the commemorative programs authorized by
subsection (a).
    (2) Not later than 60 days after completion of all activities and
ceremonies conducted as part of the commemorative programs, the
Secretary shall submit to Congress a report containing an accounting of
all the funds deposited into and expended from the account or otherwise
expended under this section, and of any funds remaining in the account.
Unobligated funds remaining in the account on that date shall be held
in the account until transferred by law.
    (f) Acceptance of Voluntary Services.--(1) Notwithstanding section
1342 of title 31, United States Code, the Secretary of Defense may
accept from any person voluntary services to be provided in furtherance
of the commemorative programs authorized by subsection (a).
    (2) A person providing voluntary services under this subsection
shall be considered to be a Federal employee for purposes of chapter 81
of title 5, United States Code, relating to compensation for work-
related injuries. The person shall also be considered a special
governmental employee for purposes of standards of conduct and sections
202, 203, 205, 207, 208, and 209 of title 18, United states Code. A
person who is not otherwise employed by the Federal Government shall
not be considered to be a Federal employee for any other purpose by
reason of the provision of voluntary services under this subsection.
    (3) The Secretary may provide for reimbursement of incidental
expenses incurred by a person providing voluntary services under this
subsection. The Secretary shall determine which expenses are eligible
for reimbursement under this paragraph.

SEC. 375. PROHIBITION ON USE OF SPECIAL OPERATIONS COMMAND BUDGET FOR
              BASE OPERATION SUPPORT.

    Section 167(f) of title 10, United States Code, is amended.--
            (1) by redesignating paragraphs (1) and (2) as
        subparagraphs (A) and (B), respectively;
            (2) by inserting ``(1)'' before ``In addition''; and
            (3) by adding at the end the following new paragraph:
    ``(2) Funds provided for the special operations command as part of
the budget for the special operations command under paragraph (1) may
not be used to cover base operation support expenses incurred at a
military installation.''.

SEC. 376. CONTINUATION AND EXPANSION OF DEMONSTRATION PROGRAM TO
              IDENTIFY OVERPAYMENTS MADE TO VENDORS.

    (a) Scope of Program.--Section 354 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat.
268; 10 U.S.C. 2461 note) is amended--
            (1) in subsection (a), by striking out the second sentence;
        and
            (2) in subsection (b)(1), by striking out ``of the Defense
        Logistics Agency that relate to (at least) fiscal years 1993,
        1994, and 1995'' and inserting in lieu thereof ``relating to
        fiscal years after fiscal year 1993 of the working-capital
        funds and industrial, commercial, and support type activities
        managed through the Defense Business Operations Fund, except
        the Defense Logistics Agency to the extent such records have
        already been audited''.
    (b) Collection Method; Contractor Payments.--Such section is
further amended by striking out subsections (d) and (e) and inserting
in lieu thereof the following new subsections:
    ``(d) Collection Method.--In the case of an overpayment to a vendor
identified under the demonstration program, the Secretary shall require
the use of the procedures specified in section 32.611 of the Federal
Acquisition Regulation, regarding a setoff against existing invoices
for payment to the vendor, as the first method by which the Department
shall seek to recover the amount of the overpayment (and any applicable
interest and penalties) from the vendor.
    ``(e) Fees for Contractor.--The Secretary shall pay to the
contractor under the contract entered into under the demonstration
program an amount not to exceed 25 percent of the total amount
recovered by the Department (through the collection of overpayments and
the use of setoffs) solely on the basis of information obtained as a
result of the audits performed by the contractor under the program.
When an overpayment is recovered through the use of a setoff, amounts
for the required payment to the contractor shall be derived from funds
available to the working-capital fund or industrial, commercial, or
support type activity for which the overpayment is recovered.''.

SEC. 377. APPLICABILITY OF FEDERAL PRINTING REQUIREMENTS TO DEFENSE
              AUTOMATED PRINTING SERVICE.

    (a) Subchapter I of chapter 8 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 195. Defense Automated Printing Service: applicability of
              Federal printing requirements
    ``The Defense Automated Printing Service shall comply fully with
the requirements of chapter 5 of title 44 relating to the production
and procurement of printing, binding, and blank-book work.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such subchapter is amended by adding at the end the following new item:

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

SEC. 378. BASE OPERATIONS SUPPORT FOR MILITARY INSTALLATIONS ON GUAM.

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

                   TITLE IV--PERSONNEL AUTHORIZATIONS

                       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, 1998, as follows:
            (1) The Army, 495,000.
            (2) The Navy, 395,000.
            (3) The Marine Corps, 174,000.
            (4) The Air Force, 381,000.

                       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, 1998, as follows:
            (1) The Army National Guard of the United States, 366,516.
            (2) The Army Reserve, 208,000.
            (3) The Naval Reserve, 94,294.
            (4) The Marine Corps Reserve, 42,000.
            (5) The Air National Guard of the United States, 107,377.
            (6) The Air Force Reserve, 73,431.
            (7) The Coast Guard Reserve, 8,000.
    (b) Waiver Authority.--The Secretary of Defense may vary the end
strength authorized by subsection (a) by not more than 2 percent.
    (c) Adjustments.--The end strengths prescribed by subsection (a)
for the Selected Reserve of any reserve component 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,
1998, the following number of Reserves to be serving on full-time
active duty or full-time duty, in the case of members of the National
Guard, for the purpose of organizing, administering, recruiting,
instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 22,310.
            (2) The Army Reserve, 11,500.
            (3) The Naval Reserve, 16,136.
            (4) The Marine Corps Reserve, 2,559.
            (5) The Air National Guard of the United States, 10,616.
            (6) The Air Force Reserve, 748.

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

    (a) Authorization for Fiscal Year 1998.--The minimum number of
military technicians (dual status) as of the last day of fiscal year
1998 for the reserve components of the Army and the Air Force
(notwithstanding section 129 of title 10, United States Code) shall be
the following:
            (1) For the Army Reserve, 5,503.
            (2) For the Army National Guard of the United States,
        23,125.
            (3) For the Air Force Reserve, 9,802.
            (4) For the Air National Guard of the United States,
        22,853.
    (b) Requests for Future Fiscal Years.--Section 115(g) of title 10,
United States Code, is amended by adding at the end the following new
sentence: ``In each budget submitted by the President to Congress under
section 1105 of title 31, the end strength requested for military
technicians (dual status) for each reserve component of the Army and
Air Force shall be specifically set forth.''.

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

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



------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps
------------------------------------------------------------------------
Major or Lieutenant Commander.......    3,219   1,071     673      140
Lieutenant Colonel or Commander.....    1,524     520     672       90
Colonel or Navy Captain.............     437      188     274     30''.
------------------------------------------------------------------------

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



------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps
------------------------------------------------------------------------
E-9.................................     627     202      371       20
E-8.................................   2,585     429      900     94''.
------------------------------------------------------------------------

              Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of
Defense for military personnel for fiscal year 1998 a total of
$69,539,862,000. The authorization in the preceding sentence supersedes
any other authorization of appropriations (definite or indefinite) for
such purpose for fiscal year 1998.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

    (a) In General.--Chapter 41 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 721. General and flag officers: limitation on appointments,
              assignments, details, and duties outside an officer's own
              service
    ``(a) Limitation.--An officer described in subsection (b) may not
be appointed, assigned, or detailed for a period in excess of 90 days
to a position external to that officer's armed force if, immediately
following such appointment, assignment, or detail, the number of
officers described in subsection (b) serving in positions external to
such officers' armed force for a period in excess of 90 days would be
in excess of 24.5 percent of the total number of such officers.
    ``(b) Covered Officers.--The officers covered by subsection (a),
and to be counted for the purposes of the limitation in that
subsection, are the following:
            ``(1) Any general or flag officer counted for purposes of
        section 526(a) of this title.
            ``(2) Any general or flag officer serving in a joint duty
        assignment position designated by the Chairman of the Joint
        Chiefs of Staff under section 526(b) of this title.
            ``(3) Any colonel or Navy captain counted for purposes of
        section 777(d)(1) of this title.
    ``(c) External Positions.--For purposes of this section, the
following positions shall be considered to be external to an officer's
armed force:
            ``(1) Any position (including a position in joint
        education) that is a joint duty assignment for purposes of
        chapter 38 of this title.
            ``(2) Any position in the Office of the Secretary of
        Defense, a Defense Agency, or a Department of Defense Field
        Activity.
            ``(3) Any position in the Joint Chiefs of Staff, the Joint
        Staff, or the headquarters of a combatant command (as defined
        in chapter 6 of this title).
            ``(4) Any position in the National Guard Bureau.
            ``(5) Any position outside the Department of Defense,
        including any position in the headquarters of the North
        Atlantic Treaty Organization or any other international
        military command, any combined or multinational command, or
        military mission.
    ``(d) Assignments, Etc. For Periods in Excess of 90 Days.--For
purposes of this section, the appointment, assignment, or detail of an
officer to a position shall be considered to be for a period in excess
of 90 days unless the appointment, assignment, or detail specifies that
it is made a period of 90 days or less.
    ``(e) Waiver During Period of War or National Emergency.--The
President may suspend the operation of this section during any period
of war or of national emergency declared by Congress or the
President.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

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

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

    Effective October 1, 1997, section 688(e) of title 10, United
States Code, is amended--
            (1) by inserting ``(1)'' before ``A member''; and
            (2) adding at the end the following new paragraph:
    ``(2) Paragraph (1) shall not apply to the following officers:
            ``(A) A chaplain who is assigned to duty as a chaplain for
        the period of active duty to which ordered.
            ``(B) A health care professional (as characterized by the
        Secretary concerned) who is assigned to duty as a health care
        professional for the period of active duty to which ordered.
            ``(C) An officer assigned to duty with the American Battle
        Monuments Commission for the period of active duty to which
        ordered.''.

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

    (a) Officers on the Active-Duty List.--Section 619(d) of title 10,
United States Code, is amended--
            (1) by striking out ``grade--'' in the matter preceding
        paragraph (1) and inserting in lieu thereof ``grade any of the
        following officers:'';
            (2) in paragraph (1)--
                    (A) by striking out ``an officer'' and inserting in
                lieu thereof ``An officer''; and
                    (B) by striking out ``; or'' at the end and
                inserting in lieu thereof a period; and
            (3) by redesignating paragraph (2) as paragraph (3) and in
        that paragraph striking out ``an officer'' and inserting in
        lieu thereof ``An officer''; and
            (4) by inserting after paragraph (1) the following new
        paragraph (2):
            ``(2) An officer who is recommended for promotion to that
        grade in the report of an earlier selection board convened
        under that section, in the case of such a report that has not
        yet been approved by the President.''.
    (b) Officers on the Reserve Active-Status List.--Section 14301(c)
of such title is amended--
            (1) by striking out ``grade--'' in the matter preceding
        paragraph (1) and inserting in lieu thereof ``grade any of the
        following officers:'';
            (2) by striking out ``an officer'' in each of paragraphs
        (1), (2), and (3) and inserting in lieu thereof ``An officer'';
            (3) by striking out the semicolon at the end of paragraph
        (1) and inserting in lieu thereof a period;
            (4) by striking out ``; or'' at the end of paragraph (2)
        and inserting in lieu thereof a period;
            (5) by redesignating paragraphs (2) and (3), as so amended,
        as paragraphs (3) and (4), respectively, and in each such
        paragraph striking out ``the next higher grade'' and inserting
        in lieu thereof ``that grade''; and
            (6) by inserting after paragraph (1) the following new
        paragraph (2):
            ``(2) An officer who is recommended for promotion to that
        grade in the report of an earlier selection board convened
        under a provision referred to in paragraph (1), in the case of
        such a report that has not yet been approved by the
        President.''.
    (c) Clarifying Amendments.--Paragraphs (3) and (4) of section
14301(c) of such title, as redesignated and amended by subsection (b),
are each amended by inserting before the period at the end the
following: ``, if that nomination is pending before the Senate''.

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

    (a) Authority for Deferral of Retirement for Chaplains Providing
Direct Support to Units or Installations.--Subsection (c) of section
1251 of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs
        (3) and (4), respectively; and
            (2) by inserting after paragraph (1) the following new
        paragraph (2):
    ``(2) The Secretary concerned may defer the retirement under
subsection (a) of an officer who is appointed or designated as a
chaplain if during the period of the deferment the officer will be
performing duties consisting primarily of providing direct support as a
chaplain to units or installations.''.
    (b) Authority for Deferral of Retirement for Chief and Deputy Chief
of Chaplains.--Such section is further amended by adding at the end the
following new subsection:
    ``(d) The Secretary concerned may defer the retirement under
subsection (a) of an officer who is the Chief of Chaplains or Deputy
Chief of Chaplains of that officer's armed force. Such a deferment may
not extend beyond the first day of the month following the month in
which the officer becomes 68 years of age.''.
    (c) Qualification for Service as Navy Chief of Chaplains or Deputy
Chief of Chaplains.--(1) Section 5142(b) of such title is amended by
striking out ``, who are not on the retired list,''.
    (2) Section 5142a of such title is amended by striking out ``, who
is not on the retired list,''.

                 Subtitle B--Reserve Component Matters

SEC. 511. INDIVIDUAL READY RESERVE ACTIVATION AUTHORITY.

    (a) IRR Members Subject To Order to Active Duty Other Than During
War or National Emergency.--Section 10144 of title 10, United States
Code, is amended--
            (1) by inserting ``(a)'' before ``Within the Ready
        Reserve''; and
            (2) by adding at the end the following new subsection:
    ``(b)(1) Within the Individual Ready Reserve of each reserve
component there is a category of members, as designated by the
Secretary concerned, who are subject to being ordered to active duty
involuntarily in accordance with section 12304 of this title. A member
may not be placed in that mobilization category unless--
            ``(A) the member volunteers for that category; and
            ``(B) the member is selected for that category by the
        Secretary concerned, based upon the needs of the service and
        the grade and military skills of that member.
    ``(2) A member of the Individual Ready Reserve may not be carried
in such mobilization category of members after the end of the 24-month
period beginning on the date of the separation of the member from
active service.
    ``(3) The Secretary shall designate the grades and military skills
or specialities of members to be eligible for placement in such
mobilization category.
    ``(4) A member in such mobilization category shall be eligible for
benefits (other than pay and training) as are normally available to
members of the Selected Reserve, as determined by the Secretary of
Defense.''.
    (b) Criteria for Ordering to Active Duty.--Subsection (a) of
section 12304 of title 10, United States Code, is amended by inserting
after ``of this title),'' the following: ``or any member in the
Individual Ready Reserve mobilization category and designated as
essential under regulations prescribed by the Secretary concerned,''.
    (c) Maximum Number.--Subsection (c) of such section is amended--
            (1) by inserting ``and the Individual Ready Reserve'' after
        ``Selected Reserve''; and
            (2) by inserting ``, of whom not more than 30,000 may be
        members of the Individual Ready Reserve'' before the period at
        the end.
    (d) Conforming Amendments.--Such section is further amended--
            (1) in subsection (f), by inserting ``or Individual Ready
        Reserve'' after ``Selected Reserve'';
            (2) in subsection (g), by inserting ``, or member of the
        Individual Ready Reserve,'' after ``to serve as a unit''; and
            (3) by adding at the end the following new subsection:
    ``(i) For purposes of this section, the term `Individual Ready
Reserve mobilization category' means, in the case of any reserve
component, the category of the Individual Ready Reserve described in
section 10144(b) of this title.''.
    (e) Clerical Amendments.--(1) The heading of such section is
amended to read as follows:
``Sec. 12304. Selected Reserve and certain Individual Ready Reserve
              members; order to active duty other than during war or
              national emergency''.
    (2) The item relating to section 12304 in the table of sections at
the beginning of chapter 1209 of such title is amended to read as
follows:

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

SEC. 512. TERMINATION OF MOBILIZATION INCOME INSURANCE PROGRAM.

    (a) In General.--Chapter 1214 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 12533. Termination of program
    ``(a) In General.--The Secretary shall terminate the insurance
program in accordance with this section.
    ``(b) Termination of New Enrollments.--The Secretary may not enroll
a member of the Ready Reserve for coverage under the insurance program
after the date of the enactment of this section.
    ``(c) Termination of Coverage.--(1) The enrollment under the
insurance program of insured members other than insured members
described in paragraph (2) is terminated as of the date of the
enactment of this section. The enrollment of an insured member
described in paragraph (2) is terminated as of the date of the
termination of the period of covered service of that member described
in that paragraph.
    ``(2) An insured member described in this paragraph is an insured
member who on the date of the enactment of this section is serving on
covered service for a period of service, or has been issued an order
directing the performance of covered service, that satisfies or would
satisfy the entitlement-to-benefits provisions of this chapter.
    ``(d) Termination of Payment of Benefits.--The Secretary may not
make any benefit payment under the insurance program after the date of
the enactment of this section other than to an insured member who on
that date (1) is serving on an order to covered service, (2) has been
issued an order directing performance of covered service, or (3) has
served on covered service before that date for which benefits under the
program have not been paid to the member.
    ``(e) Termination of Insurance Fund.--The Secretary shall close the
Fund not later than 60 days after the date on which the last benefit
payment from the Fund is made. Any amount remaining in the Fund when
closed shall be covered into the Treasury as miscellaneous receipts.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``12533. Termination of program.''.

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

    (a) Medical and Dental Care for Dependents.--Section 1076(a)(2) of
title 10, United States Code, is amended--
            (1) by striking out ``or'' at the end of subparagraph (A);
            (2) by striking out the period at the end of subparagraph
        (B) and inserting in lieu thereof ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(C) who incurs or aggravates an injury or illness in the
        line of duty while serving on active duty for a period of 30
        days or less and whose orders are subsequently modified to
        extend the period of active duty to a period of more than 30
        days.''.
    (b) Medical and Dental Care.--Section 1074a(a)(3) of such title is
amended by inserting ``while remaining overnight immediately before the
commencement of inactive-duty training, or'' after ``in the line of
duty''.
    (c) Eligibility for Disability Retirement.--Section 1204(2)(C) of
such title is amended by inserting ``while remaining overnight
immediately before the commencement of inactive-duty training, or''
after ``aggravated''.
    (d) Eligibility for Disability Separation.--Section 1206 of such
title is amended--
            (1) by redesignating paragraphs (2), (3), and (4) as
        paragraphs (3), (4), and (5) respectively; and
            (2) by inserting after paragraph (1) the following new
        paragraph:
            ``(2) the disability was incurred in the line of duty as a
        result of--
                    ``(A) performing active duty or inactive-duty
                training;
                    ``(B) traveling directly to or from the place at
                which such duty is performed; or
                    ``(C) an injury, illness, or disease incurred or
                aggravated while remaining overnight immediately before
                the commencement of inactive-duty training, or while
                remaining overnight between successive periods of
                inactive-duty training, at or in the vicinity of the
                site of the inactive-duty training, if the site is
                outside reasonable commuting distance of the member's
                residence;''.
    (e) Recovery, Care, and Disposition of Remains.--Section
1481(a)(2)(D) of such title is amended by inserting ``remaining
overnight immediately before the commencement of inactive-duty
training, or'' after ``(D)''.
    (f) Entitlement to Basic Pay.--Section 204 of title 37, United
States Code, is amended by inserting ``while remaining overnight
immediately before the commencement of inactive-duty training, or'' in
subsections (g)(1)(D) and (h)(1)(D) after ``in line of duty''.
    (g) Compensation for Inactive-Duty Training.--Section 206(a)(3)(C)
of such title is amended by inserting ``while remaining overnight
immediately before the commencement of inactive-duty training, or''
after ``in line of duty''.

SEC. 514. TIME-IN-GRADE REQUIREMENTS FOR RESERVE COMMISSIONED OFFICERS
              RETIRED DURING FORCE DRAWDOWN PERIOD.

    (a) Authority Comparable to Active-Duty List Officers.--Subsection
(d)(3) of section 1370 of title 10, United States Code, is amended by
adding at the end the following new subparagraph:
    ``(F) The Secretary of Defense may authorize the Secretary of a
military department to reduce the three-year period specified in
subparagraph (A) to a period of not less than two years in the case of
retirements effective during the period beginning on the date of the
enactment of this subparagraph and ending on September 30, 1999. The
number of officers in an armed force in a 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 authorized reserve active status strength for that
fiscal year for officers of that armed force in that grade.''.
    (b) Technical Amendments.--Such section is further amended--
            (1) in subsection (a)(2)(A), by inserting ``of'' after
        ``reduce such period to a period''; and
            (2) in subsection (d)(1), by striking out ``chapter 1225''
        and inserting in lieu thereof ``chapter 1223''.

SEC. 515. AUTHORITY TO PERMIT NON-UNIT ASSIGNED OFFICERS TO BE
              CONSIDERED BY VACANCY PROMOTION BOARD TO GENERAL OFFICER
              GRADES.

    (a) Convening of Selection Boards.--Section 14101(a)(2) of title
10, United States Code, is amended by striking out ``(except in the
case of a board convened to consider officers as provided in section
14301(e) of this title).''.
    (b) Eligibility for Consideration of Certain Army Officers.--
Section 14301 of such title is amended--
            (1) by striking out subsection (e); and
            (2) by redesignating subsections (f) and (g) as subsections
        (e) and (f), respectively.
    (c) General Officer Promotions.--Section 14308 of such title is
amended--
            (1) in subsection (e)(2), by inserting ``a grade below
        colonel in'' after ``(2) an officer in''; and
            (2) in subsection (g)--
                    (A) by inserting ``or the Air Force'' in the first
                sentence after ``of the Army'' the first place it
                appears;
                    (B) by striking out ``in that grade'' in the first
                sentence and all that follows through ``Secretary of
                the Army'' and inserting in lieu thereof ``in the Army
                Reserve or the Air Force Reserve, as the case may be,
                in that grade''; and
                    (C) by striking out the second sentence.
    (d) Vacancy Promotions.--Section 14315(b)(1) of such title is
amended by striking out ``the duties'' in clause (A) and all that
follows through ``as a unit,'' and inserting in lieu thereof ``duties
of a general officer of the next higher reserve grade in the Army
Reserve,''.

SEC. 516. GRADE REQUIREMENT FOR OFFICERS ELIGIBLE TO SERVE ON
              INVOLUNTARY SEPARATION BOARDS.

    Section 14906(a)(2) of title 10, United States Code, is amended by
striking out ``a grade above lieutenant colonel or commander'' and
inserting in lieu thereof ``the grade of lieutenant colonel or
commander or a higher grade''.

SEC. 517. LIMITATION ON USE OF AIR FORCE RESERVE AGR PERSONNEL FOR AIR
              FORCE BASE SECURITY FUNCTIONS.

    (a) Limitation.--The Secretary of the Air Force may not use members
of the Air Force Reserve who are AGR personnel for the performance of
force protection, base security, or security police functions at an Air
Force facility in the United States until six months after the date on
which the Secretary submits to Congress a report on such use of AGR
personnel.
    (b) Matters To Be Included in Report.--The report under subsection
(a) shall include the following:
            (1) A statement of the planned scope, including each
        planned location, of such use of AGR personnel during the year
        in which the report is submitted and each of the five
        subsequent years.
            (2) A detailed rationale for, and evaluation of, the cost
        effectiveness of the use of AGR personnel to perform such
        functions at Air Force facilities in the United States compared
        to the use of Department of Defense civilian personnel or
        contractor personnel for the performance of these functions at
        those facilities.
            (3) A plan, including a cost estimate, for the
        reemployment, conversion to AGR status, or retirement of
        civilian employees and military technicians who are displaced
        by the use of Air Force Reserve AGR personnel to perform those
        functions.
    (c) AGR Personnel Defined.--For the purposes of this section, the
term ``AGR personnel'' means members of the Air Force Reserve who are
on active duty (other than for training) in connection with organizing,
administering, recruiting, instructing, or training the Air Force
Reserve.

                    Subtitle C--Military Technicians

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

    (a) Retention.--Section 14702(a) of title 10, United States Code,
is amended--
            (1) by striking out ``section 14506 or 14507'' and
        inserting in lieu thereof ``section 14506, 14507, or 14508'';
        and
            (2) by striking out ``or colonel'' and inserting in lieu
        thereof ``colonel, or brigadier general''.
    (b) Technical Amendment.--Section 14508(c) of such title is amended
by striking out ``not later than the date on which the officer becomes
60 years of age'' and inserting in lieu thereof ``not later than the
last day of the month in which the officer becomes 60 years of age''.

SEC. 522. MILITARY TECHNICIANS (DUAL STATUS).

    (a) Definition.--Subsection (a) of section 10216 of title 10,
United States Code, is amended to read as follows:
    ``(a) In General.--(1) For purposes of this section and any other
provision of law, a military technician (dual status) is a Federal
civilian employee who--
            ``(A) is employed under section 3101 of title 5 or section
        709 of title 32;
            ``(B) is required as a condition of that employment to
        maintain membership in the Selected Reserve; and
            ``(C) is assigned to a position as a technician in the
        administration and training of the Selected Reserve or in the
        maintenance and repair of supplies or equipment issued to the
        Selected Reserve or the armed forces.
    ``(2) Military technicians (dual status) shall be authorized and
accounted for as a separate category of civilian employees.''.
    (b) Unit Membership and Dual-Status Requirement.--Subsection (d) of
such section is amended to read as follows:
    ``(d) Unit Membership Requirement.--(1) Unless specifically
exempted by law, each individual who is hired as a military technician
(dual status) after December 1, 1995, shall be required as a condition
of that employment to maintain membership in--
            ``(A) the unit of the Selected Reserve by which the
        individual is employed as a military technician; or
            ``(B) a unit of the Selected Reserve that the individual is
        employed as a military technician to support.
    ``(2) Paragraph (1) does not apply to a military technician (dual
status) who is employed by the Army Reserve in an area other than Army
Reserve troop program units.
    ``(e) Dual-Status Requirement.--(1) Funds appropriated for the
Department of Defense may not (except as provided in paragraph (2)) be
used for compensation as a military technician of any individual hired
as a military technician after February 10, 1996, who is no longer a
member of the Selected Reserve.
    ``(2) The Secretary concerned may pay compensation described in
paragraph (1) to an individual described in that paragraph who is no
longer a member of the Selected Reserve for a period not to exceed six
months following the individual's loss of membership in the Selected
Reserve if the Secretary determines such loss of membership was not due
to the failure of that individual to meet military standards.''.
    (c) National Guard Dual-Status Requirement.--Section 709(b) of
title 32, United States Code, is amended by striking out ``Except as
prescribed by the Secretary concerned, a technician'' and inserting in
lieu thereof ``A technician''.
    (d) Plan for Clarification of Statutory Authority of Military
Technicians.--(1) The Secretary of Defense shall submit to Congress, as
part of the budget justification materials submitted in support of the
budget for the Department of Defense for fiscal year 1999, a
legislative proposal to provide statutory authority and clarification
under title 5, United States Code--
            (A) for the hiring, management, promotion, separation, and
        retirement of military technicians who are employed in support
        of units of the Army Reserve or Air Force Reserve; and
            (B) for the transition to the competitive service of an
        individual who is hired as military technician in support of a
        unit of the Army Reserve or Air Force Reserve and who (as
        determined by the Secretary concerned) fails to maintain
        membership in the Selected Reserve through no fault of the
        individual.
    (2) The legislative proposal under paragraph (1) shall be developed
in consultation with the Director of the Office of Personnel
Management.
    (e) Conforming Repeal.--Section 8106 of Public Law 104-61 (109
Stat. 654; 10 U.S.C. 10101 note) is repealed.
    (f) Cross-Reference Corrections.--Section 10216(c)(1) of title 10,
United States Code, is amended by striking out ``subsection (a)(1)'' in
subparagraphs (A), (B), (C), and (D) and inserting in lieu thereof
``subsection (b)(1)''.
    (g) Conforming Amendments to Section 10216.--Section 10216 of title
10, United States Code, is further amended as follows:
            (1) The heading of subsection (b) is amended by inserting
        ``(Dual Status)'' after ``Military Technicians''.
            (2) Subsection (b)(1) is amended--
                    (A) by inserting ``(dual status)'' after ``for
                military technicians'';
                    (B) by striking out ``dual status military
                technicians'' and inserting in lieu thereof ``military
                technicians (dual status)'';
                    (C) by inserting ``(dual status)'' after ``military
                technicians'' in subparagraph (C).
            (3) Subsection (b)(2) is amended by inserting ``(dual
        status)'' after ``military technicians'' both places it
        appears.
            (4) Subsection (b)(3) is amended by inserting ``(dual
        status)'' after ``Military technician''.
            (5) Subsection (c) is amended--
                    (A) in the matter preceding paragraph (1)(A), by
                inserting ``(dual status)'' after ``military
                technicians'';
                    (B) in paragraph (1), by striking out ``dual status
                technicians'' in subparagraphs (A), (B), (C), and (D)
                and inserting in lieu thereof ``military technicians
                (dual status)'';
                    (C) in paragraph (2)(A), by inserting ``(dual
                status)'' after ``military technician''; and
                    (D) in paragraph (2)(B), by striking out
                ``delineate--'' and all that follows through ``or other
                reasons'' in clause (ii) and inserting in lieu thereof
                ``delineate the specific force structure reductions''.
    (h) Clerical Amendments.--(1) The heading of section 10216 of such
title is amended to read as follows:
``Sec. 10216. Military technicians (dual status)''.
    (2) The item relating to such section in the table of sections at
the beginning of chapter 1007 of such title is amended to read as
follows:

``10216. Military technicians (dual status).''.
    (i) Other Conforming Amendments.--(1) Section 115(g) of such title
is amended by inserting ``(dual status)'' in the first sentence after
``military technicians'' and in the second sentence after ``military
technician''.
    (2) Section 115a(h) of such title is amended--
            (A) by inserting ``(displayed in the aggregate and
        separately for military technicians (dual status) and non-dual
        status military technicians)'' in the matter preceding
        paragraph (1) after ``of the following''; and
            (B) by striking out paragraph (3).

SEC. 523. NON-DUAL STATUS MILITARY TECHNICIANS.

    (a) In General.--(1) Chapter 1007 of title 10, United States Code,
is amended by adding at the end the following new section:
``Sec. 10217. Non-dual status military technicians
    ``(a) Definition.--For the purposes of this section and any other
provision of law, a non-dual status military technician is a civilian
employee of the Department of Defense who--
            ``(1) was hired as a military technician before the date of
        the enactment of the National Defense Authorization Act for
        Fiscal Year 1998 under any of the authorities specified in
        subsection (d); and
            ``(2) as of the date of the enactment of that Act is not a
        member of the Selected Reserve or after such date ceases to be
        a member of the Selected Reserve.
    ``(b) Fiscal Year 1998 Limitation.--As of September 30 1998, the
number of civilian employees of a military department who are non-dual
status military technicians may not exceed the following:
            ``(1) For the Army Reserve, 1,200.
            ``(2) For the Army National Guard of the United States,
        2,260.
            ``(3) For the Air Force Reserve, 0.
            ``(4) For the Air National Guard of the United States, 395.
    ``(c) Reductions for Future Years.--For each of the 10 fiscal years
beginning with fiscal year 1999, the Secretary of the military
department concerned shall reduce the number of non-dual status
military technicians under the jurisdiction of that Secretary, as of
the end of that fiscal year, from the authorized number for the
preceding fiscal year by not less--
            ``(1) 120, for the Army Reserve;
            ``(2) 226, for the Army National Guard of the United
        States; and
            ``(3) 39, for the Air National Guard of the United States.
    ``(d) Employment Authorities.--The authorities referred to in
subsection (a) are the following:
            ``(1) Section 10216 of this title.
            ``(2) Section 709 of title 32.
            ``(3) The requirements referred to in section 8401 of title
        5.
            ``(4) Section 8016 of the Department of Defense
        Appropriations Act, 1996 (Public Law 104-61; 109 Stat. 654),
        and any comparable provision provided on an annual basis in the
        Department of Defense Appropriations Acts for fiscal years 1984
        through 1995.
            ``(5) Any memorandum of agreement between the Department of
        Defense and the Office of Personnel Management providing for
        the hiring of military technicians.''.
    (2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``10217. Non-dual status military technicians.''.
    (b) Plan for Non-Dual Status Technicians.--Not later than March 31,
1998, the Secretary of Defense shall submit to Congress a report
setting forth recommendations of the Secretary (including proposals for
such legislative changes as may be necessary to implement the
recommendations of the Secretary) for eliminating non-dual status
military technician positions. In developing the plan, the Secretary
shall consider (among other alternatives) the feasibility and cost of
each of the following:
            (1) Elimination or consolidation of functions and
        positions.
            (2) Contracting for performance by contractor personnel of
        functions currently performed by personnel in those positions.
            (3) Conversion of those technicians and positions, in the
        case of technicians of the Army National Guard of the United
        States or the Air National Guard of the United States, to State
        employment and positions or competitive service employment
        positions under title 5, United States Code.
            (4) Conversion of those technicians or positions to
        employment and positions in the competitive service under title
        5, United States Code, in the case of technicians of the Army
        Reserve.
            (5) Use of incentives to facilitate the reductions required
        under subsection (c) of section 10217 of title 10, United
        States Code, as added by subsection (a).

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

    (a) Report Required.--Not later than January 1, 1998, the Secretary
of Defense shall submit to Congress a report on the feasibility and
desirability of conversion of AGR personnel to military technicians
(dual-status). The report shall--
            (1) identify advantages and disadvantages of such a
        conversion;
            (2) identify possible savings if such a conversion were to
        be carried out; and
            (3) set forth the recommendation of the Secretary as to
        whether such a conversion should be made.
    (b) AGR Personnel Defined.--For purposes of subsection (a), the
term ``AGR personnel'' means members of the Army or Air Force reserve
components who are on active duty (other than for training) in
connection with organizing, administering, recruiting, instructing, or
training their respective reserve components.

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

SEC. 531. REFORM OF MILITARY RECRUITING SYSTEMS.

    (a) In General.--The Secretary of Defense shall carry out reforms
in the recruiting systems of the Army, Navy, Air Force, and Marine
Corps in order to improve the quality of new recruits and to reduce
attrition among recruits.
    (b) Specific Reforms.--As part of the reforms in military
recruiting systems to be undertaken under subsection (a), the Secretary
shall take the following steps:
            (1) Improve the system of separation codes used for
        recruits who are separated during recruit training by (A)
        revising and updating those codes to allow more accurate and
        useful data collection about those separations, and (B)
        prescribing regulations to ensure that those codes are
        interpreted in a uniform manner by the military services.
            (2) Develop a reliable database for (A) analyzing service-
        wide data on reasons for attrition of new recruits, and (B)
        undertaking service-wide measures to control and manage such
        attrition.
            (3) Require that the Secretary of each military department
        (A) adopt or strengthen incentives for recruiters to thoroughly
        prescreen potential candidates for recruitment, and (B) link
        incentives for recruiters, in part, to the ability of a
        recruiter to screen out unqualified candidates before
        enlistment.
            (4) Require that the Secretary of each military department
        include as a measurement of recruiter performance the
        percentage of persons enlisted by a recruiter who complete
        initial combat training or basic training.
            (5) Assess trends in the number and use of waivers over the
        1991-1997 period that were issued to permit applicants to
        enlist with medical or other conditions that would otherwise be
        disqualifying.
            (6) Require the Secretary of each military department to
        implement policies and procedures (A) to ensure the prompt
        separation of recruits who are unable to successfully complete
        basic training, and (B) to remove those recruits from the
        training environment while separation proceedings are pending.
    (c) Report.--The Secretary shall submit to Congress a report of the
trends assessed under subsection (b)(5). The information on those
trends provided in the report shall be shown by armed force and by
category of waiver. The report shall include recommendations of the
Secretary for changing, revising, or limiting the use of waivers
referred to in that subsection and shall be submitted not later than
March 31, 1998.

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

    (a) In General.--The Secretary of Defense shall improve the medical
prescreening of applicants for entrance into the Army, Navy, Air Force,
or Marine Corps.
    (b) Specific Steps.--As part of those improvements, the Secretary
shall take the following steps:
            (1) Require that each applicant for service in the Army,
        Navy, Air Force, or Marine Corps (A) provide to the Secretary
        the name of the applicant's medical insurer and the names of
        past medical providers, and (B) sign a release allowing the
        Secretary to request and obtain medical records of the
        applicant.
            (2) Require that the forms and procedures for medical
        prescreening of applicants that are used by recruiters and by
        Military Entrance Processing Commands be revised so as to
        ensure that medical questions are specific, unambiguous, and
        tied directly to the types of medical separations most common
        for recruits during basic training and follow-on training.
            (3) Add medical screening tests to the examinations of
        recruits carried out by Military Entrance Processing Station,
        provide more thorough medical examinations to selected groups
        of applicants, or both, to the extent that the Secretary
        determines that to do so could be cost effective in reducing
        attrition at basic training.
            (4) Assign the responsibility for evaluating medical
        conditions of a recruit that are missed during accession
        processing to an agency or contractor other than the Military
        Entrance Processing Command which carried out the accession
        processing of that recruit (such command being the organization
        responsible for accession medical exams).
            (5) Require that the Secretary of each military department
        test an applicant for entrance into the Armed Forces for use of
        illegal drugs at the Military Entrance Processing Station which
        carries out the accession processing of that recruit (in
        addition to any subsequent drug testing that may be required).

SEC. 533. IMPROVEMENTS IN PHYSICAL FITNESS OF RECRUITS.

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

              Subtitle E--Military Education and Training

SEC. 541. INDEPENDENT PANEL TO REVIEW MILITARY BASIC TRAINING.

    (a) Establishment.--There is hereby established a panel to review
the basic training programs of the Army, Navy, Air Force, and Marine
Corps and to make recommendations on improvements to those programs.
    (b) Composition.--(1) The panel shall be composed of seven members,
appointed as follows:
            (A) Three members shall be appointed jointly by the
        chairman and ranking minority party member of the Committee on
        National Security of the House of Representatives.
            (B) Three members shall be appointed jointly by the
        chairman and ranking minority party member of the Committee on
        Armed Services of the Senate.
            (C) One member shall be appointed by the Secretary of
        Defense.
    (2) The members of the panel shall choose one of the members to
chair the panel.
    (c) Qualifications.--Members of the panel shall be appointed from
among private United States citizens with knowledge and expertise in
one or more of the following:
            (1) Training of military personnel.
            (2) Social and cultural matters affecting entrance into the
        Armed Forces and affecting military service, military training,
        and military readiness, such knowledge and expertise to have
        been gained through recognized research, policy making and
        practical experience, as demonstrated by retired military
        personnel, representatives from educational organizations, and
        leaders from civilian industry and other Government agencies.
            (3) Factors that define appropriate military job
        qualifications, including physical, mental, and educational
        factors.
            (4) Combat or other theater of war operations.
    (d) Panel Functions Relating to Basic Training Programs
Generally.--The panel shall review the course objectives, structure,
and length of the basic training programs of the Army, Navy, Air Force,
and Marine Corps. As part of that review, the panel shall (with respect
to each of those services) take the following measures:
            (1) Determine the current end-state objectives established
        for graduates of basic training, particularly in regard to--
                    (A) physical conditioning;
                    (B) technical and physical skills proficiency;
                    (C) knowledge;
                    (D) military socialization, including the
                inculcation of service values and attitudes; and
                    (E) basic combat operational requirements.
            (2) Assess whether those current end-state objectives, and
        basic training itself, should be modified (in structure,
        length, focus, program of instruction, training methods or
        otherwise) based, in part, on the following:
                    (A) An assessment of the perspectives of
                operational units on the quality and qualifications of
                the initial entry training graduates being assigned to
                those units, considering in particular whether the
                basic training system produces graduates who arrive in
                operational units with an appropriate level of skills,
                physical conditioning, and degree of military
                socialization to meet unit requirements and needs.
                    (B) An assessment of the demographics, backgrounds,
                attitudes, experience, and physical fitness of new
                recruits entering basic training, considering in
                particular the question of whether, given the entry
                level demographics, education, and background of new
                recruits, the basic training systems and objectives are
                most efficiently and effectively structured and
                conducted to produce graduates who meet service needs.
                    (C) An assessment of the perspectives of personnel
                who conduct basic training with regard to measures
                required to improve basic training.
    (e) Panel Functions Relating to Gender-Integrated and Gender-
Segregated Basic Training.--The panel shall review the basic training
policies of each of the Army, Navy, Air Force, and Marine Corps with
regard to gender-integrated and gender-segregated basic training. As
part of that review, the panel shall (with respect to each of those
services) take the following measures:
            (1) Determine the historical rationales for the
        establishment and disestablishment of gender-integrated or
        gender-segregated basic training.
            (2) Examine the current rationales for the use of gender-
        integrated or gender-segregated basic training and, as part of
        such examination, evaluate whether at the time any of the
        services made a decision to integrate, or to segregate, basic
        training by gender, the Secretary of the military department
        concerned had substantive reason to believe, or has since
        developed data to support, any of the following:
                    (A) That gender-integrated basic training, or
                gender-segregated basic training, improves the
                readiness or performance of operational units
                    (B) That the entry level of new recruits with
                regard to physical condition, attitudes, and values is
                so different from that required and expected in the
                military services in general, and in operational units
                in particular, that an intense period of focused
                training is required, free from the additional
                challenges of training males and females together.
                    (C) That a significant percentage of women entering
                basic training experienced sexual abuse or assault
                before entering military service and that gender-
                segregated basic training (with same-sex drill
                instructors) provides the best opportunity for such
                women to have positive military female role models as
                mentors and to enter gender-integrated operational
                forces from a position of confidence, strength, and
                knowledge.
            (3) Assess whether the concept of ``training as you will
        fight'' is a valid rationale for gender-integrated basic
        training or whether the training requirements and objectives
        for basic training are sufficiently different from those of
        operational unit so that such concept, when balanced against
        other factors relating to basic training, might not be a
        sufficient rationale for gender-integrated basic training.
            (4) Assess the degree to which different standards have
        been established, or if not established are in fact being
        implemented, for males and females in basic training for
        matters such as physical fitness, physical performance (such as
        confidence and obstacle courses), military skills (such as
        marksmanship and hand-grenade qualifications), and nonphysical
        tasks required of individuals and, to the degree that differing
        standards exist or are in fact being implemented, assess the
        effect of the use of those differing standards.
            (5) Assess the degree to which performance standards in
        basic training are based on military readiness.
            (6) Review Department of Defense and military department
        efforts to objectively measure or evaluate the effectiveness of
        gender-integrated basic training, as compared to gender-
        segregated basic training, particularly with regard to the
        adequacy and scope of the efforts and with regard to the
        relevancy of findings to operational unit requirements.
            (7) Compare the pattern of attrition in gender-integrated
        basic training units with the pattern of attrition in gender-
        segregated basic training units and assess the relevancy of the
        findings of such comparison.
            (8) Compare the level of readiness and morale of gender-
        integrated basic training units with the level of readiness and
        morale of gender-segregated units and assess the relevancy of
        the findings of such comparison.
    (f) Recommendations.--The panel shall prepare--
            (1) an evaluation of gender-integrated and gender-
        segregated basic training programs, based upon the review under
        subsection (e); and
            (2) recommendations for such changes to the current system
        of basic training as the panel considers warranted.
    (g) Reports.--(1) Not later than six months after the members of
the panel are appointed, the panel shall submit an interim report on
its findings and conclusions to the Secretary of Defense.
    (2) Not later than one year after establishment of the panel, the
panel shall submit a final report to the Secretary of Defense. The
final report shall include recommendations for legislative and
administrative changes to basic training programs to improve the
readiness and performance of initial entry training graduates and to
reduce attrition, both during training and in the first term of
enlistment.
    (h) Submission of Reports to Congress.--Not later than one month
after receipt of the panel's interim report and one month after receipt
of the panel's final report, the Secretary of Defense shall submit the
report to Congress together with the views of the Secretary regarding
the report and the matter covered in the report.
    (i) Pay and Expenses of Members.--(1) Each member of the panel who
is not an employee of the Government shall be paid at a rate equal to
the daily equivalent of the annual rate of basic pay payable for level
IV of the Executive Schedule under section 5315 of title 5, United
States Code, for each day (including travel time) during which the
member is engaged in the performance of the duties of the panel.
    (2) The members of the panel shall be allowed travel expenses,
including per diem in lieu of subsistence, at rates authorized for
employees of agencies under subchapter I of chapter 57 of title 5,
United States Code, while away from their homes or regular places of
business in the performance of services for the panel.
    (j) Administrative Support.--(1) Upon the request of the chairman
of the panel, the Secretary of Defense may detail to the panel, on a
nonreimbursable basis, personnel of the Department of Defense to assist
the panel in carrying out its duties.
    (2) The Secretary of Defense shall furnish to the panel such
administrative and support services as may be requested by the chairman
of the panel.
    (k) Funding.--The Secretary of Defense shall, upon the request of
the panel, make available to the panel such amounts as the panel may
require to carry out its duties under this title.
    (l) Termination of the Panel.--The panel shall terminate 60 days
after the date on which it submits its final report under subsection
(g).
    (m) Subsequent Consideration by Congress.--After submission of the
final report of the panel to Congress, the Congress shall, based upon
the results of the study (and such other matters as Congress considers
appropriate), consider whether to require by law that the Secretaries
of the military departments conduct basic training on a gender-
segregated basis.

SEC. 542. REFORM OF ARMY DRILL SERGEANT SELECTION AND TRAINING PROCESS.

    (a) In General.--The Secretary of the Army shall reform the process
for selection and training of drill sergeants for the Army.
    (b) Measures To Be Taken.--As part of such reform, the Secretary
shall undertake the following measures (unless, in the case of any such
measure, the Secretary determines that that measure would not result in
improved effectiveness and efficiency in the drill sergeant selection
and training process):
            (1) Review the overall process used by the Department of
        the Army for selection of drill sergeants to determine--
                    (A) if that process is providing drill sergeant
                candidates in sufficient quantity and quality to meet
                the needs of the training system; and
                    (B) whether duty as a drill sergeant is a career-
                enhancing assignment (or is seen by potential drill
                sergeant candidates as a career-enhancing assignment)
                and what steps could be taken to ensure that such duty
                is in fact a career-enhancing assignment.
            (2) Incorporate into the selection process for all drill
        sergeants the views and recommendations of the officers and
        senior noncommissioned officers in the chain of command of each
        candidate for selection (particularly those of senior
        noncommissioned officers) regarding the candidate's suitability
        and qualifications to be a drill sergeant.
            (3) Establish a requirement for psychological screening for
        each drill sergeant candidate.
            (4) Reform the psychological screening process for drill
        sergeant candidates to improve the quality, depth, and rigor of
        that screening process.
            (5) Revise the evaluation system for drill sergeants in
        training to provide for a so-called ``whole person'' assessment
        that gives insight into the qualifications and suitability of a
        drill sergeant candidate beyond the candidate's ability to
        accomplish required performance tasks.
            (6) Revise the Army military personnel records system so
        that, under specified conditions and circumstances, a drill
        sergeant trainee who fails to complete the training to be a
        drill sergeant and is denied graduation will not have the fact
        of that failure recorded in those records. The conditions and
        circumstances under which the authority provided in the
        preceding sentence may be shall be prescribed by the Secretary
        in regulations.
            (7) Provide each drill sergeant in training with the
        opportunity, before or during that training, to work with new
        recruits in initial entry training and to be evaluated on that
        opportunity.
    (c) Report.--Not later than March 31, 1998, the Secretary shall
submit to the Committee on National Security of the House of
Representatives and the Committee on Armed Services of the Senate a
report of the reforms adopted pursuant to this section or, in the case
of any measure specified in any of paragraphs (1) through (7) of
subsection (b) that was not adopted, the rationale why that measure was
not adopted.

SEC. 543. REQUIREMENT FOR CANDIDATES FOR ADMISSION TO UNITED STATES
              NAVAL ACADEMY TO TAKE OATH OF ALLEGIANCE.

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

SEC. 544. REIMBURSEMENT OF EXPENSES INCURRED FOR INSTRUCTION AT SERVICE
              ACADEMIES OF PERSONS FROM FOREIGN COUNTRIES.

    (a) United States Military Academy.--Section 4344(b) of title 10,
United States Code, is amended--
            (1) in paragraph (2), by striking out the period at the end
        and inserting in lieu thereof the following: ``, except that
        the reimbursement rates may not be less than the cost to the
        United States of providing such instruction, including pay,
        allowances, and emoluments, to a cadet appointed from the
        United States.''; and
            (2) by adding at the end the following new paragraph:
    ``(3) The amount of reimbursement waived under paragraph (2) may
not exceed 25 percent of the per-person reimbursement amount otherwise
required to be paid by a foreign country under such paragraph, except
in the case of not more than five persons receiving instruction at the
Academy under this section at any one time.''.
    (b) Naval Academy.--Section 6957(b) of such title is amended--
            (1) in paragraph (2), by striking out the period at the end
        and inserting in lieu thereof the following: ``, except that
        the reimbursement rates may not be less than the cost to the
        United States of providing such instruction, including pay,
        allowances, and emoluments, to a midshipman appointed from the
        United States.''; and
            (2) by adding at the end the following new paragraph:
    ``(3) The amount of reimbursement waived under paragraph (2) may
not exceed 25 percent of the per-person reimbursement amount otherwise
required to be paid by a foreign country under such paragraph, except
in the case of not more than five persons receiving instruction at the
Naval Academy under this section at any one time.''.
    (c) Air Force Academy.--Section 9344(b) of such title is amended--
            (1) in paragraph (2), by striking out the period at the end
        and inserting in lieu thereof the following: ``, except that
        the reimbursement rates may not be less than the cost to the
        United States of providing such instruction, including pay,
        allowances, and emoluments, to a cadet appointed from the
        United States.''; and
            (2) by adding at the end the following new paragraph:
    ``(3) The amount of reimbursement waived under paragraph (2) may
not exceed 25 percent of the per-person reimbursement amount otherwise
required to be paid by a foreign country under such paragraph, except
in the case of not more than five persons receiving instruction at the
Academy under this section at any one time.''.

SEC. 545. UNITED STATES NAVAL POSTGRADUATE SCHOOL.

    (a) Authority to Admit Enlisted Members as Students.--Section 7045
of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' after ``(a)''; and
                    (B) by adding at the end the following new
                paragraph:
    ``(2) The Secretary may permit an enlisted member of the armed
forces who is assigned to the Naval Postgraduate School or to a nearby
command to receive instruction at the Naval Postgraduate School.
Admission of enlisted members for instruction under this paragraph
shall be on a space-available basis.'';
            (2) in subsection (b)--
                    (A) by striking out ``the students'' and inserting
                in lieu thereof ``officers''; and
                    (B) by adding at the end the following new
                sentence: ``In the case of an enlisted member permitted
                to receive instruction at the Postgraduate School, the
                Secretary of the Navy shall charge that member only for
                such costs and fees as the Secretary considers
                appropriate (taking into consideration the admission of
                enlisted members on a space-available basis).''; and
            (3) in subsection (c)--
                    (A) by striking out ``officers'' both places it
                appears and inserting in lieu thereof ``members''; and
                    (B) by striking out ``the same regulations'' and
                inserting in lieu thereof ``regulations, as determined
                appropriate by the Secretary of the Navy,''.
    (b) Expansion of Authority to Admit Civilians as Students.--Section
7047 of such title is amended to read as follows:
``Sec. 7047. Civilian students at institutions of higher education:
              admission
    ``(a) Admission on Tuition-Free, Exchange Basis.--(1) The Secretary
of the Navy may enter into an agreement with an accredited institution
of higher education (or a consortium of such institutions) under which
students described in subsection (c) who are enrolled at that
institution (or an institution in such consortium) are permitted to
receive instruction at the Naval Postgraduate School on a space-
available, tuition-free basis in exchange for which the institution of
higher education (or each institution in the consortium) agrees to
enroll, on a tuition-free basis, officers of the armed forces or other
persons properly admitted for instruction at the Naval Postgraduate
School.
    ``(2) Exchange of students under paragraph (1) need not be on a
one-for-one basis.
    ``(3) An exchange under such an agreement shall be on the basis of
in-kind reimbursement, with the total value of the instruction provided
during a year by the Naval Postgraduate School to civilian students
from the institutions that are parties to the agreement being at least
as great as the value of instruction provided by those institutions to
students from the Naval Postgraduate School.
    ``(4) In determining the value of the in-kind reimbursement for the
instruction provided by the Naval Postgraduate School, the Secretary
shall use the same amount charged by the Secretary for the provision of
the same instruction to a Federal employee who is not a Department of
Defense employee.
    ``(5) The authority of the Secretary to accept an offer of in-kind
reimbursement under this subsection may not be delegated below the
level of Assistant Secretary of the Navy.
    ``(b) Admission on Cost-Reimbursable Basis.--(1) The Secretary of
the Navy may permit a student described in subsection (c) who is
enrolled at an accredited institution of higher education that is a
party to an agreement under subsection (a) to receive instruction at
the Naval Postgraduate School on a cost-reimbursable, space-available
basis.
    ``(2) The Secretary shall ensure that the value of any
reimbursement received under this subsection in the case of any such
student is not less than the amount charged by the Secretary for the
provision of the same instruction to a Federal employee who is not a
Department of Defense employee.
    ``(c) Eligible Students.--A student enrolled at an accredited
institution of higher education that is party to an agreement under
subsection (a) may be admitted to the Naval Postgraduate School under
subsection (a) or (b) if the student--
            ``(1) is a citizen of the United States or is lawfully
        admitted for permanent residence in the United States;
            ``(2) has a demonstrated ability, as determined by the
        Secretary of the Navy, in a field of study designated by the
        Secretary as related to naval warfare, armed conflict, or
        national security; and
            ``(3) meets the academic requirements for the course or
        courses for which the student seeks admission to the Naval
        Postgraduate School.
    ``(d) Standards of Conduct.--Except as the Secretary of the Navy
otherwise determines necessary, a person receiving instruction under
this section is subject to the same regulations governing attendance,
discipline, dismissal, and standards of study as apply to students who
are officers of the naval service.
    ``(e) Retention of Funds Received.--Amounts received under
subsection (b) to reimburse the Naval Postgraduate School for the costs
of providing instruction to students permitted to attend the Naval
Postgraduate School under this section shall be credited to the current
appropriation supporting the operation and maintenance of the Naval
Postgraduate School.''.
    (c) Clerical Amendments.--(1) The heading of section 7045 of such
title is amended to read as follows:
``Sec. 7045. Officers of the other armed forces; enlisted members:
              admission''.
    (2) The table of sections at the beginning of chapter 605 of such
title is amended--
            (A) by striking out the item relating to section 7045 and
        inserting in lieu thereof the following:

``7045. Officers of the other armed forces; enlisted members:
                            admission.'';
        and
            (B) by striking out the item relating to section 7047 and
        inserting in lieu thereof the following:

``7047. Civilian students at institutions of higher education:
                            admission.''.
    (d) Amendment To Reflect Revised Civil Service Grade Structure.--
Section 7043(b) of such title is amended by striking out ``grade GS-18
of the General Schedule under section 5332 of title 5'' and inserting
in lieu thereof ``level IV of the Executive Schedule''.

SEC. 546. AIR FORCE ACADEMY CADET FOREIGN EXCHANGE PROGRAM.

    (a) Exchange Program Authorized.--Chapter 903 of title 10, United
States Code, is amended by inserting after section 9344 the following
new section:
``Sec. 9345. Exchange program with foreign military academies
    ``(a) Exchange Program Authorized.--The Secretary of the Air Force
may permit a student enrolled at a military academy of a foreign
country to receive instruction at the Air Force Academy in exchange for
an Air Force cadet receiving instruction at that foreign military
academy pursuant to an exchange agreement entered into between the
Secretary and appropriate officials of the foreign country. Students
receiving instruction at the Academy under the exchange program shall
be in addition to persons receiving instruction at the Academy under
section 9344 of this title.
    ``(b) Limitations on Number and Duration of Exchanges.--An exchange
agreement under this section between the Secretary and a foreign
country shall provide for the exchange of students on a one-for-one
basis each fiscal year. Not more than 10 Air Force cadets and a
comparable number of students from all foreign military academies
participating in the exchange program may be exchanged during any
fiscal year. The duration of an exchange may not exceed the equivalent
of one academic semester at the Air Force Academy.
    ``(c) Costs and Expenses.--(1) A student from a military academy of
a foreign country is not entitled to the pay, allowances, and
emoluments of an Air Force cadet by reason of attendance at the Air
Force Academy under the exchange program, and the Department of Defense
may not incur any cost of international travel required for
transportation of such a student to and from the sponsoring foreign
country.
    ``(2) The Secretary may provide a student from a foreign country
under the exchange program, during the period of the exchange, with
subsistence, transportation within the continental United States,
clothing, health care, and other services to the same extent that the
foreign country provides comparable support and services to the
exchanged Air Force cadet in that foreign country.
    ``(3) The Air Force Academy shall bear all costs of the exchange
program from funds appropriated for the Academy. Expenditures in
support of the exchange program may not exceed $50,000 during any
fiscal year.
    ``(d) Application of Other Laws.--Subsections (c) and (d) of
section 9344 of this title shall apply with respect to a student
enrolled at a military academy of a foreign country while attending the
Air Force Academy under the exchange program.
    ``(e) Regulations.--The Secretary shall prescribe regulations to
implement this section. Such regulations may include qualification
criteria and methods of selection for students of foreign military
academies to participate in the exchange program.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
9344 the following new item:

``9345. Exchange program with foreign military academies.''.
    (c) Repeal of Obsolete Limitation.--Section 9353(a) of such title
is amended by striking out ``After the date of the accrediting of the
Academy, the'' and inserting in lieu thereof ``The''.

SEC. 547. TRAINING IN HUMAN RELATIONS MATTERS FOR ARMY DRILL SERGEANT
              TRAINEES.

    (a) Human Relations Training Required.--The Secretary of the Army
shall include as part of the training program for drill sergeants a
course in human relations. The course shall be a minimum of two days in
duration.
    (b) Resources.--In developing a human relations course under this
section, the Secretary shall use the capabilities and expertise of the
Defense Equal Opportunity Management Institute (DEOMI).
    (c) Effective Date.--This section shall apply with respect drill
sergeant trainee classes that begin after the end of the 90-day period
beginning on the date of the enactment of this Act.

SEC. 548. STUDY OF FEASIBILITY OF GENDER-SEGREGATED BASIC TRAINING.

    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 report on gender-segregated basic training. Each report shall give
the views of the Secretary--
            (1) on the feasibility and implications of conducting basic
        training (or equivalent training) at the company level and
        below through separate units for male and female recruits,
        including the costs and other resource commitments required to
        implement and conduct basic training in such a manner and the
        implications for readiness and unit cohesion; and
            (2) assuming that basic training were to be conducted as
        described in paragraph (1), on the feasibility and implications
        of requiring drill instructors for basic training units to be
        of the same sex as the recruits in those units.

              Subtitle F--Military Decorations and Awards

SEC. 551. STUDY OF NEW DECORATIONS FOR INJURY OR DEATH IN LINE OF DUTY.

    (a) Determination of Criteria for New Decoration.--(1) The
Secretary of Defense shall determine the appropriate name, policy,
award criteria, and design 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) Limitation on Implementation.--Any such decoration may only be
implemented as provided by a law enacted after the date of the
enactment of this Act.
    (c) Recommendation to Congress.--Not later than July 31, 1998, the
Secretary shall submit to Congress a legislative proposal that would,
if enacted, establish the new decorations developed pursuant to
subsection (a). The Secretary shall include with that proposal the
Secretary's recommendation concerning the need for, and propriety of,
each of the decorations.
    (d) 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. 552. PURPLE HEART TO BE AWARDED ONLY TO MEMBERS OF THE ARMED
              FORCES.

    (a) In General.--(1) Chapter 57 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 1131. Purple Heart: limitation to members of the armed forces
    ``The decoration known as the Purple Heart (authorized to be
awarded pursuant to Executive Order 11016) may only be awarded to a
person who is a member of the armed forces at the time the person is
killed or wounded under circumstances otherwise qualifying that person
for award of the Purple Heart.''.
    (2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``1131. Purple Heart: limitation to members of the armed forces.''.
    (b) Effective Date.--Section 1131 of title 10, United States Code,
as added by subsection (a), shall apply with respect to persons who are
killed or wounded after the end of the 180-day period beginning on the
date of the enactment of this Act.

SEC. 553. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL FOR
              PARTICIPATION IN OPERATION JOINT ENDEAVOR OR OPERATION
              JOINT GUARD.

    (a) Inclusion of Operations.--For the purpose of determining the
eligibility of members and former members of the Armed Forces for the
Armed Forces Expeditionary Medal, the Secretary of Defense shall
designate participation in Operation Joint Endeavor or Operation Joint
Guard in the Republic of Bosnia and Herzegovina, and in such other
areas in the region as the Secretary considers appropriate, as service
in an area that meets the general requirements for the award of that
medal.
    (b) Individual Determination.--The Secretary of the military
department concerned shall determine whether individual members or
former members of the Armed Forces who participated in Operation Joint
Endeavor or Operation Joint Guard meet the individual service
requirements for award of the Armed Forces Expeditionary Medal as
established in applicable regulations. A member or former member shall
be considered to have participated in Operation Joint Endeavor or
Operation Joint Guard if the member--
            (1) was deployed in the Republic of Bosnia and Herzegovina,
        or in such other area in the region as the Secretary of Defense
        considers appropriate, in direct support of one or both of the
        operations;
            (2) served on board a United States naval vessel operating
        in the Adriatic Sea in direct support of one or both of the
        operations; or
            (3) operated in airspace above the Republic of Bosnia and
        Herzegovina, or in such other area in the region as the
        Secretary of Defense considers appropriate, while the
        operations were in effect.
    (c) Operations Defined.--For purposes of this section:
            (1) The term ``Operation Joint Endeavor'' means operations
        of the United States Armed Forces conducted in the Republic of
        Bosnia and Herzegovina during the period beginning on November
        20, 1995, and ending on December 20, 1996, to assist in
        implementing the General Framework Agreement and Associated
        Annexes, initialed on November 21, 1995, in Dayton, Ohio.
            (2) The term ``Operation Joint Guard'' means operations of
        the United States Armed Forces conducted in the Republic of
        Bosnia and Herzegovina as a successor to Operation Joint
        Endeavor during the period beginning on December 20, 1996, and
        ending on such date as the Secretary of Defense may designate.

SEC. 554. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS
              TO SPECIFIED PERSONS.

    (a) Waiver of Time Limitation.--Any limitation established by law
or policy for the time within which a recommendation for the award of a
military decoration or award must be submitted shall not apply in the
case of awards of decorations described in subsections (b), (c), and
(d), the award of each such decoration having been determined by the
Secretary of the military department concerned to be warranted in
accordance with section 1130 of title 10, United States Code.
    (b) Silver Star Medal.--Subsection (a) applies to the award of the
Silver Star Medal as follows:
            (1) To Joseph M. Moll, Jr. of Milford, New Jersey, for
        service during World War II.
            (2) To Philip Yolinsky of Hollywood, Florida, for service
        during the Korean Conflict.
    (c) Navy and Marine Corps Medal.--Subsection (a) applies to the
award of the Navy and Marine Corps Medal to Gary A. Gruenwald of
Damascus, Maryland, for service in Tunisia in October 1977.
    (d) Distinguished Flying Cross.--Subsection (a) applies to awards
of the Distinguished Flying Cross for service during World War II or
Korea (including multiple awards to the same individual) in the case of
each individual concerning whom the Secretary of the Navy (or an
officer of the Navy acting on behalf of the Secretary) submitted to the
Committee on National Security of the House of Representatives and the
Committee on Armed Services of the Senate, before the date of the
enactment of this Act, a notice as provided in section 1130(b) of title
10, United States Code, that the award of the Distinguished Flying
Cross to that individual is warranted and that a waiver of time
restrictions prescribed by law for recommendation for such award is
recommended.

                       Subtitle G--Other Matters

SEC. 561. SUSPENSION OF TEMPORARY EARLY RETIREMENT AUTHORITY.

    Notwithstanding subsection (i) of section 4403 of the National
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 10
U.S.C. 1293 note), the Secretary of a military department may not use
the authority provided under such section to retire a member of the
Armed Forces during fiscal year 1998.

SEC. 562. TREATMENT OF EDUCATIONAL ACCOMPLISHMENTS OF NATIONAL GUARD
              CHALLENGE PROGRAM PARTICIPANTS.

    Section 509 of title 32, United States Code, as added by section
1057, is amended by adding at the end of subsection (f) the following
new paragraph:
    ``(3) In the case of a person who is selected for training in a
State program conducted under the National Guard Challenge Program and
who obtains a general education diploma in connection with such
training, the general education diploma shall be treated as equivalent
to a high school diploma for purposes of determining the eligibility of
the person for enlistment in the armed forces.''.

SEC. 563. AUTHORITY FOR PERSONNEL TO PARTICIPATE IN MANAGEMENT OF
              CERTAIN NON-FEDERAL ENTITIES.

    (a) Military Personnel.--(1) Chapter 53 of title 10, United States
Code, is amended by inserting after section 1032 the following new
section:
``Sec. 1033. Participation in management of specified non-Federal
              entities: authorized activities
    ``(a) Authorization.--The Secretary concerned may authorize a
member of the armed forces under the Secretary's jurisdiction, as part
of that member's official duties, to serve without compensation as a
director, officer, or trustee, or to otherwise participate, in the
management of an entity designated under subsection (b). Any such
authorization shall be made on a case-by-case basis, for a particular
member to participate in a specific capacity with a specific designated
entity. Such authorization may be made only for the purpose of
providing oversight and advice to, and coordination with, the
designated entity, and participation of the member in the activities of
the designated entity may not extend to participation in the day-to-day
operations of the entity.
    ``(b) Designated Entities.--(1) The Secretary of Defense, and the
Secretary of Transportation in the case of the Coast Guard when it is
not operating as a service in the Navy, shall designate those entities
for which authorization under subsection (a) may be provided. The list
of entities so designated may not be revised more frequently than
semiannually. In making such designations, the Secretary shall
designate each military welfare society and may designate any other
entity described in paragraph (3). No other entities may be designated.
    ``(2) In this section, the term `military welfare society' means
the following:
            ``(A) Army Emergency Relief.
            ``(B) Air Force Aid Society, Inc.
            ``(C) Navy-Marine Corps Relief Society.
            ``(D) Coast Guard Mutual Assistance.
    ``(3) An entity described in this paragraph is an entity that--
            ``(A) regulates and supports the athletic programs of the
        service academies (including athletic conferences);
            ``(B) regulates international athletic competitions;
            ``(C) accredits service academies and other schools of the
        armed forces (including regional accrediting agencies); or
            ``(D)(i) regulates the performance, standards, and policies
        of military health care (including health care associations and
        professional societies), and (ii) has designated the position
        or capacity in that entity in which a member of the armed
        forces may serve if authorized under subsection (a).
    ``(c) Publication of Designated Entities and of Authorized
Persons.--A designation of an entity under subsection (b), and an
authorization under subsection (a) of a member of the armed forces to
participate in the management of such an entity, shall be published in
the Federal Register.
    ``(d) Regulations.--The Secretary of Defense, and the Secretary of
Transportation in the case of the Coast Guard when it is not operating
as a service in the Navy, shall prescribe regulations to carry out this
section.''.
    (2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 1032 the
following new item:

``1033. Participation in management of specified non-Federal entities:
                            authorized activities.''.
    (b) Civilian Personnel.--(1) Chapter 81 of such title is amended by
inserting after section 1588 the following new section:
``Sec. 1589. Participation in management of specified non-Federal
              entities: authorized activities
    ``(a) Authorization.--(1) The Secretary concerned may authorize an
employee described in paragraph (2), as part of that employee's
official duties, to serve without compensation as a director, officer,
or trustee, or to otherwise participate, in the management of an entity
designated under subsection (b). Any such authorization shall be made
on a case-by-case basis, for a particular employee to participate in a
specific capacity with a specific designated entity. Such authorization
may be made only for the purpose of providing oversight and advice to,
and coordination with, the designated entity, and participation of the
employee in the activities of the designated entity may not extend to
participation in the day-to-day operations of the entity.
    ``(2) Paragraph (1) applies to any employee of the Department of
Defense or, in the case of the Coast Guard when not operating as a
service in the Navy, of the Department of Transportation. For purposes
of this section, the term `employee' includes a civilian officer.
    ``(b) Designated Entities.--(1) The Secretary of Defense, and the
Secretary of Transportation in the case of the Coast Guard when it is
not operating as a service in the Navy, shall designate those entities
for which authorization under subsection (a) may be provided. The list
of entities so designated may not be revised more frequently than
semiannually. In making such designations, the Secretary shall
designate each military welfare society and may designate any other
entity described in paragraph (3). No other entities may be designated.
    ``(2) In this section, the term `military welfare society' means
the following:
            ``(A) Army Emergency Relief.
            ``(B) Air Force Aid Society, Inc.
            ``(C) Navy-Marine Corps Relief Society.
            ``(D) Coast Guard Mutual Assistance.
    ``(3) An entity described in this paragraph is an entity that--
            ``(A) regulates and supports the athletic programs of the
        service academies (including athletic conferences);
            ``(B) regulates international athletic competitions;
            ``(C) accredits service academies and other schools of the
        armed forces (including regional accrediting agencies); or
            ``(D)(i) regulates the performance, standards, and policies
        of military health care (including health care associations and
        professional societies), and (ii) has designated the position
        or capacity in that entity in which a Federal employee
        described in subsection (a)(2) may serve if authorized under
        subsection (a).
    ``(c) Publication of Designated Entities and of Authorized
Persons.--A designation of an entity under subsection (b), and an
authorization under subsection (a) of an employee to participate in the
management of such an entity, shall be published in the Federal
Register.
    ``(d) Civilians Outside the Military Departments.--In this section,
the term `Secretary concerned' includes the Secretary of Defense with
respect to employees of the Department of Defense who are not employees
of a military department.
    ``(e) Regulations.--The Secretary of Defense, and the Secretary of
Transportation in the case of the Coast Guard when it is not operating
as a service in the Navy, shall prescribe regulations to carry out this
section.''.
    (2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 1588 the
following new item:

``1589. Participation in management of specified non-Federal entities:
                            authorized activities.''.

SEC. 564. CREW REQUIREMENTS OF WC-130J AIRCRAFT.

    (a) Study.--The Secretary of the Air Force shall conduct a study of
the crew requirements for WC-130J aircraft engaged in the aerial
weather reconnaissance mission involving the eyewall penetration of
tropical cyclones. The study shall involve the operation of WC-130J
aircraft in weather reconnaissance missions configured to carry five
crewmembers, including a navigator. The study shall include the
participation of members of the Armed Forces assigned to units
currently engaged in weather reconnaissance operations.
    (b) Report.--The Secretary shall submit to Congress a report on the
results of the study. The report shall include the views of members of
the Armed Forces assigned to units currently engaged in weather
reconnaissance operations who participated in the study.
    (c) Limitation on Revision to Personnel Requirements.--The
Secretary of the Air Force may not reduce the personnel requirement
levels of units that, as of the date of the enactment of this Act, are
engaged in weather reconnaissance operations involving the eyewall
penetration of tropical cyclones, including requirements for
navigators, below the requirements established for those units as of
October 1, 1997, until the end of the six-month period beginning on the
date on which the report required under subsection (b) is submitted to
Congress.

SEC. 565. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE CIVIL
              MILITARY PROGRAMS.

    (a) Study Required.--The Comptroller General shall conduct a study
to evaluate the following:
            (1) The nature, extent, and cost to the Department of
        Defense of the support and services being provided by units and
        members of the Armed Forces to non-Department of Defense
        organizations and activities under the authority of section
        2012 of title 10, United States Code.
            (2) The degree to which the Armed Forces are in compliance
        with the requirements of such section in the provision of such
        support and services, especially the requirements that the
        assistance meet specific requirements relative to military
        training and that the assistance provided be incidental to
        military training.
            (3) The degree to which the regulations and procedures for
        implementing such section, as required by subsection (f) of
        such section, are consistent with the requirements of such
        section.
            (4) The effectiveness of the Secretary of Defense and the
        Secretaries of the military departments in conducting oversight
        of the implementation of such section, and the provision of
        such support and services under such section, to ensure
        compliance with the requirements of such section.
    (b) Submission of Report.--Not later than March 31, 1998, the
Comptroller General shall submit to Congress a report containing the
results of the study required by subsection (a).

SEC. 566. TREATMENT OF PARTICIPATION OF MEMBERS IN DEPARTMENT OF
              DEFENSE CIVIL MILITARY PROGRAMS.

    Section 2012 of title 10, United States Code, is amended--
            (1) by redesignating subsections (g) and (h) as subsections
        (h) and (i), respectively; and
            (2) by inserting after subsection (f) the following new
        subsection:
    ``(g) Treatment of Member's Participation in Provision of Support
or Services.--(1) The Secretary of a military department may not
require or request a member of the armed forces to submit for
consideration by a selection board (including a promotion board,
command selection board, or any other kind of selection board) evidence
of the member's participation in the provision of support and services
to non-Department of Defense organizations and activities under this
section or the member's involvement in, or support of, other community
relations and public affairs activities of the armed forces. A
selection board may not evaluate a member on the basis of the member's
participation or involvement in, or support of, such support, services,
or activities.
    ``(2) Paragraph (1) shall not apply with respect to the following
members:
            ``(A) A member who is in a public affairs career field.
            ``(B) A member who is not in a public affairs career field,
        but who is serving, at the time the member is considered by a
        selection board, in a public affairs position specified in
        service authorization documents or who served in such a
        position within three years before being considered by a
        selection board.''.

SEC. 567. CONTINUATION OF SUPPORT TO SENIOR MILITARY COLLEGES.

    (a) Definition of Senior Military Colleges.--For purposes of this
section, the term ``senior military colleges'' means the following:
            (1) Texas A&M University.
            (2) Norwich University.
            (3) The Virginia Military Institute.
            (4) The Citadel.
            (5) Virginia Polytechnic Institute and State University.
            (6) North Georgia College and State University.
    (b) Findings.--Congress finds the following:
            (1) The senior military colleges consistently have provided
        substantial numbers of highly qualified, long-serving leaders
        to the Armed Forces.
            (2) The quality of the military leaders produced by the
        senior military colleges is, in part, the result of the
        rigorous military environment imposed on students attending the
        senior military colleges by the colleges, as well as the result
        of the long-standing close support relationship between the
        Corps of Cadets at each college and the Reserve Officer
        Training Corps personnel at the colleges who serve as effective
        leadership role models and mentors.
            (3) In recognition of the quality of the young leaders
        produced by the senior military colleges, the Department of
        Defense and the military services have traditionally maintained
        special relationships with the colleges, including the policy
        to grant active duty service in the Army to graduates of the
        colleges who desire such service and who are recommended for
        such service by their ROTC professors of military science.
            (4) Each of the senior military colleges has demonstrated
        an ability to adapt its systems and operations to changing
        conditions in, and requirements of, the Armed Forces without
        compromising the quality of leaders produced and without
        interruption of the close relationship between the colleges and
        the Department of Defense.
    (c) Sense of Congress.--In light of the findings in subsection (b),
it is the sense of Congress that--
            (1) the proposed initiative of the Secretary of the Army to
        end the commitment to active duty service for all graduates of
        senior military colleges who desire such service and who are
        recommended for such service by their ROTC professors of
        military science is short-sighted and contrary to the long-term
        interests of the Army;
            (2) as they have in the past, the senior military colleges
        can and will continue to accommodate to changing military
        requirements to ensure that future graduates entering military
        service continue to be officers of superb quality who are
        quickly assimilated by the Armed Forces and fully prepared to
        make significant contributions to the Armed Forces through
        extended military careers; and
            (3) decisions of the Secretary of Defense or the Secretary
        of a military department that fundamentally and unilaterally
        change the long-standing relationship of the Armed Forces with
        the senior military colleges are not in the best interests of
        the Department of Defense or the Armed Forces and are patently
        unfair to students who made decisions to enroll in the senior
        military colleges on the basis of existing Department and Armed
        Forces policy.
    (d) Continuation of Support for Senior Military Colleges.--Section
2111a of title 10, United States Code, is amended--
            (1) by redesignating subsection (d) as subsection (g); and
            (2) by inserting after subsection (c) the following new
        subsections:
    ``(d) Additional Support.--(1) The Secretaries of the military
departments shall ensure that each unit of the Senior Reserve Officers'
Training Corps at a senior military college provides support to the
Corps of Cadets at the college over and above the level of support
associated with the conduct of the formal Senior Reserve Officers'
Training Corps course of instruction.
    ``(2) This additional support shall include the following:
            ``(A) Mentoring, teaching, coaching, counseling and
        advising cadets and cadet leaders in the areas of leadership,
        military, and academic performance.
            ``(B) Involvement in cadet leadership training,
        development, and evaluation, as well as drill, ceremonies,
        parades, and inspections.
    ``(3) This additional support may include the following:
            ``(A) Advising cadet teams, clubs, and organizations.
            ``(B) Involvement in matters of discipline and
        administration of the Corps of Cadets so long as such
        involvement does not interfere with the conduct of the formal
        Senior Reserve Officers' Training Corps course of instruction
        or the support required by paragraph (2).
    ``(e) Termination or Reduction of Program Prohibited.--The
Secretary of Defense and the Secretaries of the military departments
may not take or authorize any action to terminate or reduce a unit of
the Senior Reserve Officers' Training Corps at a senior military
college unless the termination or reduction is specifically requested
by the college.
    ``(f) Assignment to Active Duty.--(1) The Secretary of the Army
shall ensure that a graduate of a senior military college who desires
to serve as a commissioned officer on active duty upon graduation from
the college, who is medically and physically qualified for active duty,
and who is recommended for such duty by the professor of military
science at the college, shall be assigned to active duty. This
paragraph shall apply to a member of the program at a senior military
college who graduates from the college after March 31, 1997.
    ``(2) Nothing in this section shall be construed to prohibit the
Secretary of the Army from requiring a member of the program who
graduates from a senior military college to serve on active duty.''.
    (e) Technical Corrections.--Subsection (g) of such section, as
redesignated by subsection (d)(1), is amended--
            (1) in paragraph (2), by striking out ``College'' and
        inserting in lieu thereof ``University''; and
            (2) in paragraph (6), by inserting before the period the
        following: ``and State University''.
    (f) Clerical Amendments.--(1) The heading of such section is
amended to read as follows:
``Sec. 2111a. Support for senior military colleges''.
    (2) The item relating to such section in the table of sections at
the beginning of chapter 103 of title 10, United States Code, is
amended to read as follows:

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

SEC. 568. IMPROVEMENT OF MISSING PERSONS AUTHORITIES APPLICABLE TO
              DEPARTMENT OF DEFENSE.

    (a) Applicability to Department of Defense Civilian Employees and
Contractor Employees.--(1) Section 1501 of title 10, United States
Code, is amended--
            (A) by striking out subsection (c) and inserting in lieu
        thereof the following:
    ``(c) Covered Persons.--Section 1502 of this title applies in the
case of the following persons:
            ``(1) Any member of the armed forces on active duty who
        becomes involuntarily absent as a result of a hostile action,
        or under circumstances suggesting that the involuntary absence
        is a result of a hostile action, and whose status is
        undetermined or who is unaccounted for.
            ``(2)(A) Any other person who is a citizen of the United
        States and is described in subparagraph (B) who serves with or
        accompanies the armed forces in the field under orders and
        becomes involuntarily absent as a result of a hostile action,
        or under circumstances suggesting that the involuntary absence
        is a result of a hostile action, and whose status is
        undetermined or who is unaccounted for.
            ``(B) A person described in this subparagraph is any of the
        following:
                    ``(i) A civilian officer or employee of the
                Department of Defense.
                    ``(ii) An employee of a contractor of the
                Department of Defense.
                    ``(iii) An employee of a United States firm
                licensed by the United States under section 38 of the
                Arms Export Control Act (22 U.S.C. 2778) to perform
                duties under contract with a foreign government
                involving military training of the military forces of
                that government in accordance with policies of the
                Department of Defense.''; and
            (B) by adding at the end the following new subsection:
    ``(f) Secretary Concerned.--In this chapter, the term `Secretary
concerned' includes--
            ``(1) in the case of a person covered by clause (i) of
        subsection (c)(2)(B), the Secretary of the military department
        or head of the element of the Department of Defense employing
        the employee;
            ``(2) in the case of a person covered by clause (ii) of
        subsection (c)(2)(B), the Secretary of the military department
        or head of the element of the Department of Defense contracting
        with the contractor; and
            ``(3) in the case of a person covered by clause (iii) of
        subsection (c)(2)(B), the Secretary of Defense.''.
    (2) Section 1503(c) of such title is amended--
            (A) in paragraph (1), by striking out ``one military
        officer'' and inserting in lieu thereof ``one individual
        described in paragraph (2)'';
            (B) by redesignating paragraphs (2) and (3) as paragraphs
        (3) and (4), respectively; and
            (C) by inserting after paragraph (1) the following new
        paragraph (2):
    ``(2) An individual referred to in paragraph (1) is the following:
            ``(A) A military officer, in the case of an inquiry with
        respect to a member of the armed forces.
            ``(B) A civilian, in the case of an inquiry with respect to
        a civilian employee of the Department of Defense or of a
        contractor of the Department of Defense.''.
    (3) Section 1504(d) of such title is amended--
            (A) in paragraph (1), by striking out ``who are'' and all
        that follows in that paragraph and inserting in lieu thereof
        ``as follows:
            ``(A) In the case of a board that will inquire into the
        whereabouts and status of one or more members of the armed
        forces (and no civilians described in subparagraph (B)), the
        board shall be composed of officers having the grade of major
        or lieutenant commander or above.
            ``(B) In the case of a board that will inquire into the
        whereabouts and status of one or more civilian employees of the
        Department of Defense or contractors of the Department of
        Defense (and no members of the armed forces), the board shall
        be composed of--
                    ``(i) not less than three employees of the
                Department of Defense whose rate of annual pay is equal
                to or greater than the rate of annual pay payable for
                grade GS-13 of the General Schedule under section 5332
                of title 5; and
                    ``(ii) such members of the armed forces as the
                Secretary considers advisable.
            ``(C) In the case of a board that will inquire into the
        whereabouts and status of both one or more members of the armed
        forces and one or more civilians described in subparagraph
        (B)--
                    ``(i) the board shall include at least one officer
                described in subparagraph (A) and at least one employee
                of the Department of Defense described in subparagraph
                (B)(i); and
                    ``(ii) the ratio of such officers to such employees
                on the board shall be roughly proportional to the ratio
                of the number of members of the armed forces who are
                subjects of the board's inquiry to the number of
                civilians who are subjects of the board's inquiry.'';
                and
            (B) in paragraph (4), by striking out ``section
        1503(c)(3)'' and inserting in lieu thereof ``section
        1503(c)(4)''.
    (4) Paragraph (1) of section 1513 of such title is amended to read
as follows:
            ``(1) The term `missing person' means--
                    ``(A) a member of the armed forces on active duty
                who is in a missing status; or
                    ``(B) a civilian employee of the Department of
                Defense or an employee of a contractor of the
                Department of Defense who serves with or accompanies
                the armed forces in the field under orders and who is
                in a missing status.
        Such term includes an unaccounted for person described in
        section 1509(b) of this title, under the circumstances
        specified in the last sentence of section 1509(a) of this
        title.''.
    (b) Report on Preliminary Assessment of Status.--(1) Section 1502
of such title is amended--
            (A) in subsection (a)(2)--
                    (i) by striking out ``10 days'' and inserting in
                lieu thereof ``48 hours''; and
                    (ii) by striking out ``Secretary concerned'' and
                inserting in lieu thereof ``theater component commander
                with jurisdiction over the missing person'';
            (B) in subsection (a), as amended by subparagraph (A)--
                    (i) by redesignating paragraphs (1) and (2) as
                subparagraphs (A) and (B), respectively;
                    (ii) by inserting ``(1)'' after ``Commander.--'';
                and
                    (iii) by adding at the end the following new
                paragraph:
    ``(2) However, if the commander determines that operational
conditions resulting from hostile action or combat constitute an
emergency that prevents timely reporting under paragraph (1)(B), the
initial report should be made as soon as possible, but in no case later
than ten days after the date on which the commander receives such
information under paragraph (1).'';
            (C) by redesignating subsection (b) as subsection (c);
            (D) by inserting after subsection (a), as amended by
        subparagraphs (A) and (B), the following new subsection (b):
    ``(b) Transmission Through Theater Component Commander.--Upon
reviewing a report under subsection (a) recommending that a person be
placed in a missing status, the theater component commander shall
ensure that all necessary actions are being taken, and all appropriate
assets are being used, to resolve the status of the missing person. Not
later than 14 days after receiving the report, the theater component
commander shall forward the report to the Secretary of Defense or the
Secretary concerned in accordance with procedures prescribed under
section 1501(b) of this title. The theater component commander shall
include with such report a certification that all necessary actions are
being taken, and all appropriate assets are being used, to resolve the
status of the missing person.''; and
            (E) in subsection (c), as redesignated by subparagraph (C),
        by adding at the end the following new sentence: ``The theater
        component commander through whom the report with respect to the
        missing person is transmitted under subsection (b) shall ensure
        that all pertinent information relating to the whereabouts and
        status of the missing person that results from the preliminary
        assessment or from actions taken to locate the person is
        properly safeguarded to avoid loss, damage, or modification.''.
    (2) Section 1503(a) of such title is amended by striking out
``section 1502(a)'' and inserting in lieu thereof ``section 1502(b)''.
    (3) Section 1504 of such title is amended by striking out ``section
1502(a)(2)'' in subsections (a), (b), and (e)(1) and inserting in lieu
thereof ``section 1502(a)''.
    (4) Section 1513 of such title is amended by adding at the end the
following new paragraph:
            ``(8) The term `theater component commander' means, with
        respect to any of the combatant commands, an officer of any of
        the armed forces who (A) is commander of all forces of that
        armed force assigned to that combatant command, and (B) is
        directly subordinate to the commander of the combatant
        command.''.
    (c) Frequency of Subsequent Reviews.--Subsection (b) of section
1505 of such title is amended to read as follows:
    ``(b) Frequency of Subsequent Reviews.--(1) In the case of a
missing person who was last known to be alive or who was last suspected
of being alive, the Secretary shall appoint a board to conduct an
inquiry with respect to a person under this subsection--
            ``(A) on or about three years after the date of the initial
        report of the disappearance of the person under section 1502(a)
        of this title; and
            ``(B) not later than every three years thereafter.
    ``(2) In addition to appointment of boards under paragraph (1), the
Secretary shall appoint a board to conduct an inquiry with respect to a
missing person under this subsection upon receipt of information that
could result in a change of status of the missing person. When the
Secretary appoints a board under this paragraph, the time for
subsequent appointments of a board under paragraph (1)(B) shall be
determined from the date of the receipt of such information.
    ``(3) The Secretary is not required to appoint a board under
paragraph (1) with respect to the disappearance of any person--
            ``(A) more than 30 years after the initial report of the
        disappearance of the missing person required by section 1502(a)
        of this title; or
            ``(B) if, before the end of such 30-year period, the
        missing person is accounted for.''.
    (d) Information To Accompany Recommendation of Status of Death.--
Section 1507(b) of such title is amended adding at the end the
following new paragraphs:
            ``(3) A description of the location of the body, if
        recovered.
            ``(4) If the body has been recovered and is not
        identifiable through visual means, a certification by a
        practitioner of an appropriate forensic science that the body
        recovered is that of the missing person.''.
    (e) Missing Person's Counsel.--(1) Sections 1503(f)(1) and
1504(f)(1) of such title are amended by adding at the end the
following: ``The identity of counsel appointed under this paragraph for
a missing person shall be made known to the missing person's primary
next of kin and any other previously designated person of the
person.''.
    (2) Section 1503(f)(4) of such title is amended by adding at the
end the following: ``The primary next of kin of a missing person and
any other previously designated person of the missing person shall have
the right to submit information to the missing person's counsel
relative to the disappearance or status of the missing person.''.
    (3) Section 1505(c)(1) is amended by adding at the end the
following: ``The Secretary concerned shall appoint counsel to represent
any such missing person to whom such information may be related. The
appointment shall be in the same manner, and subject to the same
provisions, as an appointment under section 1504(f)(1) of this
title.''.
    (f) Scope of Preenactment Review.--(1) Section 1509 of such title
is amended by striking out in subsection (a) and inserting in lieu
thereof the following:
    ``(a) Review of Status.--(1) If new information is found or
received that may be related to one or more unaccounted for persons
described in subsection (b) (whether or not such information
specifically relates (or may specifically relate) to any particular
such unaccounted for person), that information shall be provided to the
Secretary of Defense. Upon receipt of such information, the Secretary
shall ensure that the information is treated under paragraphs (2) and
(3) of section 1505(c) of this title and under section 1505(d) of this
title in the same manner as information received under paragraph (1) of
section 1505(c) of this title. For purposes of the applicability of
other provisions of this chapter in such a case, each such unaccounted
for person to whom the new information may be related shall be
considered to be a missing person.
    ``(2) The Secretary concerned shall appoint counsel to represent
each such unaccounted for person to whom the new information may be
related. The appointment shall be in the same manner, and subject to
the same provisions, as an appointment under section 1504(f)(1) of this
title.
    ``(3) For purposes of this subsection, new information is
information that--
            ``(A) is found or received after the date of the enactment
        of the the National Defense Authorization Act for Fiscal Year
        1998 by a United States intelligence agency, by a Department of
        Defense agency, or by a person specified in section 1504(g) of
        this title; or
            ``(B) is identified after the date of the enactment of the
        National Defense Authorization Act for Fiscal Year 1998 in
        records of the United States as information that could be
        relevant to the case of one or more unaccounted for persons
        described in subsection (b).''.
    (2) Such section is further amended by adding at the end the
following new subsection:
    ``(d) Establishment of Personnel Files for Korean Conflict Cases.--
The Secretary of Defense shall ensure that a personnel file is
established for each unaccounted for person who is described in
subsection (b)(1). Each such file shall be handled in accordance with,
and subject to the provisions of, section 1506 of this title in the
same manner as applies to the file of a missing person.''.
    (g) Withholding of Classified Information.--Section 1506(b) of such
title is amended--
            (1) by inserting ``(1)'' before ``The Secretary'';
            (2) by redesignating paragraphs (1) and (2) as
        subparagraphs (A) and (B), respectively; and
            (3) by adding at the end the following:
    ``(2) If classified information withheld under this subsection
refers to one or more unnamed missing persons, the Secretary shall
ensure that notice of that withheld information, and notice of the date
of the most recent review of the classification of that withheld
information, is made reasonably accessible to family members of missing
persons.''.
    (h) Withholding of Privileged Information.--Section 1506(d) of such
title is amended--
            (1) in paragraph (2)--
                    (A) by striking out ``non-derogatory'' both places
                it appears in the first sentence;
                    (B) by inserting ``or about unnamed missing
                persons'' in the first sentence after ``the debriefing
                report'';
                    (C) by striking out ``the missing person'' in the
                second sentence and inserting in lieu thereof ``each
                missing person named in the debriefing report''; and
                    (D) by adding at the end the following new
                sentence: ``Any information contained in the extract of
                the debriefing report that pertains to unnamed missing
                persons shall be made reasonably accessible to family
                members of missing persons.''; and
            (2) in paragraph (3)--
                    (A) by inserting ``, or part of a debriefing
                report,'' after ``a debriefing report''; and
                    (B) by adding at the end the following new
                sentence: ``Whenever the Secretary withholds a
                debriefing report, or part of a debriefing report,
                containing information on unnamed missing persons from
                accessibility to families of missing persons under this
                section, the Secretary shall ensure that notice that
                the withheld debriefing report exists is made
                reasonably accessible to family members of missing
                persons.''.

SEC. 569. ESTABLISHMENT OF SENTENCE OF CONFINEMENT FOR LIFE WITHOUT
              ELIGIBILITY FOR PAROLE.

    (a) Establishment of Sentence.--(1) Chapter 47 of title 10, United
States Code (the Uniform Code of Military Justice), is amended by
inserting after section 856 (article 56) the following new section
(article):
``Sec. 856a. Art. 56a. Sentence of confinement for life without
              eligibility for parole
    ``(a) For any offense for which a sentence of confinement for life
may be adjudged, a court-martial may adjudge a sentence of confinement
for life without eligibility for parole.
    ``(b) An accused who is sentenced to confinement for life without
eligibility for parole shall be confined for the remainder of the
accused's life unless--
            ``(1) the sentence is set aside or otherwise modified as a
        result of--
                    ``(A) action taken by the convening authority, the
                Secretary concerned, or another person authorized to
                act under section 860 of this title (article 60); or
                    ``(B) any other action taken during post-trial
                procedure and review under any other provision of
                subchapter IX;
            ``(2) the sentence is set aside or otherwise modified as a
        result of action taken by a Court of Criminal Appeals, the
        Court of Appeals for the Armed Forces, or the Supreme Court; or
            ``(3) the accused is pardoned.''.
    (2) The table of sections at the beginning of subchapter VIII of
such chapter is amended by inserting after the item relating to section
856 (article 56) the following new item:

``856a. 56a. Sentence of confinement for life without eligibility for
                            parole.''.
    (b) Effective Date.--Section 856a of title 10, United States Code
(article 56a of the Uniform Code of Military Justice), as added by
subsection (a), shall be applicable only with respect to an offense
committed after the date of the enactment of this Act.

SEC. 570. LIMITATION ON APPEAL OF DENIAL OF PAROLE FOR OFFENDERS
              SERVING LIFE SENTENCE.

    (a) Exclusive Authority To Grant Parole on Appeal of Denial.--
Section 952 of title 10, United States Code, is amended--
            (1) by inserting ``(a)'' before ``The Secretary''; and
            (2) by adding at the end the following new subsection:
    ``(b) In a case in which parole for an offender serving a sentence
of confinement for life is denied, only the President or the Secretary
concerned may grant the offender parole on appeal of that denial. The
authority to grant parole on appeal in such a case may not be
delegated.''.
    (b) Effective Date.--This section shall apply only with respect to
any decision to deny parole made after the date of the enactment of
this Act.

SEC. 571. ESTABLISHMENT OF PUBLIC AFFAIRS BRANCH IN THE ARMY.

    (a) New Special Branch.--Section 3064(a) of title 10, United States
Code, is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs
        (4) and (5); and
            (2) by inserting after paragraph (2) the following new
        paragraph:
            ``(3) the Public Affairs Corps;''.
    (b) Public Affairs Corps.--(1) Chapter 307 of title 10, United
States Code, is amended by adding at the end the following new section:
``Sec. 3083. Public Affairs Corps
    ``There is a Public Affairs Corps in the Army. The Public Affairs
Corps consists of--
            ``(1) the Chief of the Public Affairs Corps;
            ``(2) commissioned officers of the Regular Army appointed
        therein; and
            ``(3) other members of the Army assigned thereto by the
        Secretary of the Army.''.
    (2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``3083. Public Affairs Corps.''.
    (c) Transition.--The Secretary of the Army shall implement the
amendments made by this section not later than October 1, 1998.

SEC. 572. REPORT ON MAKING UNITED STATES NATIONALS ELIGIBLE FOR
              PARTICIPATION IN SENIOR RESERVE OFFICERS' TRAINING CORPS.

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

SEC. 573. COMMUNITY COLLEGE OF THE AIR FORCE.

    (a) Limited Expansion.--Paragraph (1) of subsection (a) of section
9315 of title 10, United States Code, is amended to read as follows:
            ``(1) prescribe programs of higher education for enlisted
        members described in subsection (d) designed to improve the
        technical, managerial, and related skills of those members and
        to prepare them for military jobs which require the use of
        those skills; and ''.
    (b) Eligible Members.--Such section is further amended by adding at
the end the following new subsection:
    ``(d) Subsection (a)(1) applies to the following members:
            ``(1) Enlisted members of the Air Force.
            ``(2) Enlisted members of other armed forces attending Air
        Force training schools whose jobs are closely related to Air
        Force jobs.
            ``(3) Enlisted members of other armed forces who are
        serving as instructors at Air Force training schools.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b)
shall apply with respect to enrollments in the Community College of the
Air Force after March 31, 1996.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 1998.

    (a) Waiver of Section 1009 Adjustment.--The adjustment, to become
effective during fiscal year 1998, required by section 1009(b) of title
37, United States Code (as amended by section 602), 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, 1998, the rates
of basic pay of members of the uniformed services are increased by 2.8
percent.

SEC. 602. ANNUAL ADJUSTMENT OF BASIC PAY AND PROTECTION OF MEMBER'S
              TOTAL COMPENSATION WHILE PERFORMING CERTAIN DUTY.

    (a) In General.--Section 1009 of title 37, United States Code, is
amended to read as follows:
``Sec. 1009. Certain elements of compensation: adjustment; protection
              against change
    ``(a) Elements of Compensation.--In this section, the term
`elements of compensation' means--
            ``(1) the monthly basic pay authorized members of the
        uniformed services by section 203(a) of this title;
            ``(2) the basic allowance for subsistence authorized
        members of the uniformed services by section 402 of this title;
        and
            ``(3) the basic allowance for housing authorized members of
        the uniformed services by section 403 of this title.
    ``(b) Annual Adjustment of Basic Pay.--Effective as of the first
day of the first applicable pay period beginning on or after January 1
of each calendar year, the rates of basic pay of members of the
uniformed services shall be increased by the percentage (rounded to the
nearest one-tenth of one percent) equal to the percentage by which the
Employment Cost Index for the base quarter of the year before the
preceding calendar year exceeds the Employment Cost Index for the base
quarter of the second year before the preceding calendar year (if at
all).
    ``(c) Allocation of Adjustment.--(1) Subject to paragraph (2),
whenever the President determines such action to be in the best
interest of the Government, the President may allocate the percentage
increase in basic pay among such pay grade and years-of-service
categories as the President considers appropriate.
    ``(2) In making any allocation under paragraph (1), the amount of
the increase in basic pay for any given pay grade and years-of-service
category after the allocation under paragraph (1) may not be less than
75 percent of the amount of the increase that otherwise would have been
effective with respect to such pay grade and years-of-service category
under subsection (b).
    ``(3) Whenever the President plans to use the authority provided
under paragraph (1) with respect to any anticipated increase in the
compensation of members of the uniformed services, the President shall
advise the Congress, at the earliest practicable time before the
effective date of the increase, regarding the proposed allocation of
the increase among pay grade and years-of-service categories.
    ``(d) Protection of Member's Total Compensation While Performing
Certain Duty.--(1) The total daily amount of the elements of
compensation, described in subsection (a), together with other pay and
allowances under this title, to be paid to a member of the uniformed
services who is temporarily assigned to duty away from the member's
permanent duty station or to duty under field conditions at the
member's permanent duty station shall not be less, for any day during
the assignment period, than the total amount, for the day immediately
preceding the date of the assignment, of the elements of compensation
and other pay and allowances of the member.
    ``(2) Paragraph (1) shall not apply with respect to an element of
compensation or other pay or allowance of a member during an assignment
described in such paragraph to the extent that the element of
compensation or other pay or allowance is reduced or terminated due to
circumstances unrelated to the assignment.
    ``(e) Other Definitions.--In this section:
            ``(1) The term `Employment Cost Index' means the Employment
        Cost Index (wages and salaries, private industry workers)
        published quarterly by the Bureau of Labor Statistics.
            ``(2) The term `base quarter', for each year, means the
        three-month period ending on September 30 of such year.''.
    (b) Clerical Amendment.--The item relating to such section in the
table of sections at the beginning of chapter 19 of such title is
amended to read as follows:

``1009. Certain elements of compensation: adjustment; protection
                            against change.''.

SEC. 603. USE OF FOOD COST INFORMATION TO DETERMINE BASIC ALLOWANCE FOR
              SUBSISTENCE.

    (a) Food-Cost Based Allowance.--Section 402 of title 37, United
States Code, is amended to read as follows:
``Sec. 402. Basic allowance for subsistence
    ``(a) Entitlement; Rate; Adjustment.--(1) Except as otherwise
provided by law, each member of a uniformed service described in
subsection (b) or (c) is entitled to a basic allowance for subsistence.
The rate for the allowance shall be prescribed in regulations by the
Secretary of Defense after consultation with the Secretaries concerned
specified in subparagraphs (D), (E), and (F) of section 101(5) of this
title. The allowance may be paid in advance for a period of not more
than three months.
    ``(2) Whenever basic pay is increased pursuant to section 1009 of
this title or another law, the Secretary of Defense shall adjust the
basic allowance for subsistence at the same rate as the most recent
adjustment made to the cost of the moderate food plan of the Department
of Agriculture (one of the four official food plans used by the
Department of Agriculture under the Food Stamp Act of 1977) to reflect
changes in the cost of the diet described by the moderate food plan.
    ``(b) Enlisted Members.--An enlisted member is entitled to the
basic allowance for subsistence on a daily basis if the member is
entitled to basic pay and one or more of the following applies with
respect to the member:
            ``(1) Rations in kind are not available.
            ``(2) Rations in kind are available, but the Secretary of
        Defense authorizes the payment of the basic allowance for
        subsistence.
            ``(3) Permission to mess separately is granted.
            ``(4) The member is assigned to duty under emergency
        conditions where no messing facilities of the United States are
        available.
            ``(5) The member is on an authorized leave of absence, is
        confined in a hospital, or is performing travel under orders
        away from the member's designated post of duty (except when
        rations in kind are available and the Secretary of Defense does
        not authorize the payment of the basic allowance for
        subsistence.).
    ``(c) Officers.--An officer of a uniformed service who is entitled
to basic pay is entitled, at all times, to the basic allowances for
subsistence. An aviation cadet of the Navy, Air Force, Marine Corps, or
Coast Guard is entitled to the same basic allowance for subsistence as
is provided for an officer of the Navy, Air Force, Marine Corps, or
Coast Guard, respectively.
    ``(d) Special Rule for Certain Members Authorized to Mess
Separately.--Under regulations and in areas prescribed by the Secretary
of Defense, and the Secretary of Transportation with respect to the
Coast Guard when it is not operating as a service in the Navy, an
enlisted member who is granted permission to mess separately, and whose
duties require the member to buy at least one meal from other than a
messing facility of the United States, is entitled to not more than the
pro rata allowance authorized for each such meal for an enlisted member
when rations in kind are not available.
    ``(e) Payment for Rations in Kind Actually Received.--The Secretary
of Defense may require a member of the uniformed services to pay for
rations in kind actually received by the member while entitled to a
basic allowance for subsistence.
    ``(f) Administration.--(1) The Secretary of Defense may prescribe
regulations for the administration of this section.
    ``(2) For purposes of subsection (b)(5), a member shall not be
considered to be performing travel under orders away from his
designated post of duty if the member--
            ``(A) is an enlisted member serving the member's first tour
        of active duty;
            ``(B) has not actually reported to a permanent duty station
        pursuant to orders directing such assignment; and
            ``(C) is not actually traveling between stations pursuant
        to orders directing a change of station.
    ``(g) Percentage Limitation on Enlisted Members Receiving
Allowance.--(1) This subsection apples with respect to enlisted members
of the Army, Navy, Air Force, and Marine Corps who, when present at
their permanent duty station and at which adequate messing facilities
of the United States are available, reside without dependents in
Government quarters. The Secretary concerned may not provide a basic
allowance for subsistence to more than 12 percent of such members under
the jurisdiction of the Secretary concerned.
    ``(2) The Secretary concerned may exceed the percentage limitation
specified in paragraph (1) if the Secretary determines that compliance
would increase costs to the Government, would impose financial
hardships on members otherwise entitled to a basic allowance for
subsistence, or would reduce the quality of life for such members.
    ``(3) This subsection shall not apply to a member described in
paragraph (1) when the member is not residing at the member's permanent
duty station.
    ``(h) Rations in Kind for Certain Reserves.--(1) The Secretary
concerned may provide rations in kind, or a part thereof, to an
enlisted member of a reserve component or of the National Guard when
the member's instruction or duty periods, described in section 206(a)
of this title, total at least eight hours in a calendar day. The
Secretary concerned may provide the member with a commutation when
rations in kind are not available.
    ``(2) This subsection shall not apply with respect to an enlisted
member of a reserve component or of the National Guard who is entitled
to basic pay.
    ``(i) Use of Messing Facilities.--The Secretary of Defense, in
consultation with the Secretaries concerned, shall establish policies
regarding the use of messing facilities of the United States, including
field messing facilities.''.
    (b) Conforming Amendments.--(1) Section 404(b)(2) of title 37,
United States Code, is amended by striking out ``under section 402(e)
of this title'' and inserting in lieu thereof ``by the Secretary of
Defense''.
    (2) Section 1012 of title 37, United States Code, is amended by
striking out ``section 402(b)(3)'' and inserting in lieu thereof
``section 402(h)''.
    (3) Section 6912 of title 10, United States Code, is amended by
striking out ``section 402(a) and (b)'' and inserting in lieu thereof
``section 402(c)''.

SEC. 604. CONSOLIDATION OF BASIC ALLOWANCE FOR QUARTERS, VARIABLE
              HOUSING ALLOWANCE, AND OVERSEAS HOUSING ALLOWANCES.

    (a) Consolidation of Allowances.--Section 403 of title 37, United
States Code, is amended to read as follows:
``Sec. 403. Basic allowance for housing
    ``(a) Components of Basic Allowance for Housing.--The basic
allowance for housing consists of the following components:
            ``(1) A basic allowance for quarters for members of the
        uniformed services stationed in the United States and, under
        certain circumstances, members on duty outside of the United
        States whose dependents continue to reside in the United
        States.
            ``(2) A overseas station housing allowance for members on
        duty outside of the United States to reflect housing costs
        incurred by the members.
            ``(3) A family separation housing allowance for members
        with dependents when the movement of the dependents to the
        members' permanent station is not authorized at the expense of
        the United States.
    ``(b) Eligibility for Allowance.--(1) Except as otherwise provided
by law, a member of a uniformed service who is entitled to basic pay
shall receive the component or components of the basic allowance for
housing to which the member is entitled under this section at the
monthly rates prescribed in connection with the component under this
section or other provision of law. The amount of the allowance for a
member will vary according to the pay grade in which the member is
assigned or distributed for basic pay purposes and the member's
dependency status.
    ``(2) The basic allowance for housing may be paid in advance.
    ``(c) Effect of Assignment to Government Quarters.--(1) Except as
otherwise provided by law, a member of a uniformed service who is
assigned to quarters of the United States appropriate to the grade,
rank, or rating of the member and adequate for the member and
dependents, if with dependents, is not entitled to a basic allowance
for housing. In this section, the term `quarters of the United States'
includes a housing facility under the jurisdiction of a uniformed
service.
    ``(2) A member without dependents who is in a pay grade above pay
grade E-6 and is assigned to quarters of the United States may elect
not to occupy those quarters and instead receive the basic allowance
for housing to which the member is otherwise entitled.
    ``(3) A member without dependents who is in pay grade E-6 and is
assigned to quarters of the United States that do not meet the minimum
adequacy standards established by the Secretary of Defense for members
in such pay grade may elect not to occupy those quarters and instead to
receive the basic allowance for housing to which the member is
otherwise entitled. The Secretary concerned may deny the right to make
an election under this paragraph if the Secretary determines that the
exercise of such an election would adversely affect a training mission,
military discipline, or military readiness.
    ``(4) In the case of a member with dependents who is assigned to
quarters of the United States at a location or under circumstances
that, as determined by the Secretary concerned, require the member's
dependents to reside at different location, the member shall receive a
basic allowance for housing as if the member were assigned to duty in
the area in which the dependents reside and did not reside in quarters
of the United States.
    ``(d) Effect of Field Duty and Sea Duty.--(1) The Secretary
concerned may deny the basic allowance for housing to a member of a
uniformed service without dependents when the member is assigned to
field duty with a unit conducting field operations.
    ``(2) A member of a uniformed service without dependents who is in
a pay grade below pay grade E-6 is not entitled to a basic allowance
for housing while on sea duty. After taking into consideration the
availability of quarters for members serving in pay grade E-5, the
Secretary concerned may authorize the payment of a basic allowance for
housing to a member without dependents who is serving in such pay grade
and is assigned to sea duty.
    ``(3) Notwithstanding section 421 of this title, two members of the
uniformed services in a pay grade below pay grade E-6 who are married
to each other, have no other dependents, and are simultaneously
assigned to sea duty are jointly entitled to one basic allowance for
housing during the period of such simultaneous sea duty. The amount of
the allowance shall be based on the without dependents rate for the pay
grade of the senior member of the couple. However, this paragraph shall
not apply to a couple if one or both of the members are entitled to a
basic allowance for housing under paragraph (2).
    ``(4) For purposes of this subsection, the Secretary of Defense
shall prescribe, by regulation, definitions of the terms `field duty'
and `sea duty'.
    ``(e) Basic Allowance for Quarters.--(1) The Secretary of Defense
shall determine the costs of adequate housing in a military housing
area for all members of the uniformed services entitled to a basic
allowance for quarters in that area. The Secretary shall base the
determination upon the costs of adequate housing for civilians with
comparable income levels in the same area.
    ``(2) The monthly amount of a basic allowance for quarters for an
area of the United States for a member of a uniformed service is equal
to difference between--
            ``(A) the monthly cost of housing in that area, as
        determined by the Secretary of Defense, for members of the
        uniformed services serving in the same pay grade and with the
        same dependency status as the member; and
            ``(B) 15 percent of the national average monthly cost of
        housing in the United States, as determined by the Secretary,
        for members of the uniformed services serving in the same pay
        grade and with the same dependency status as the member.
    ``(3) The rates of basic allowance for quarters shall be reduced as
necessary to comply with this paragraph. The total amount that may be
paid for a fiscal year for the basic allowance for quarters is the
product of--
            ``(A) the total amount authorized to be paid for such
        allowance for the preceding fiscal year (as adjusted under
        paragraph (5)); and
            ``(B) a fraction--
                    ``(i) the numerator of which is the index of the
                national average monthly cost of housing for June of
                the preceding fiscal year; and
                    ``(ii) the denominator of which is the index of the
                national average monthly cost of housing for June of
                the fiscal year before the preceding fiscal year.
    ``(4) An adjustment in the rates of basic allowance for quarters as
a result of the Secretary's redetermination of housing costs in an area
shall take effect on the same date as the effective date of the next
increase in basic pay under section 1009 of this title or other
provision of law.
    ``(5) In making a determination under paragraph (3) for a fiscal
year, the amount authorized to be paid for the preceding fiscal year
for the basic allowance for quarters shall be adjusted to reflect
changes during the year for which the determination is made in the
number, grade distribution, geographic distribution, and dependency
status of members of the uniformed services entitled to the allowance
from the number of such members during the preceding fiscal year.
    ``(6) So long as a member of a uniformed service retains
uninterrupted eligibility to receive a basic allowance for quarters
within an area of the United States, the monthly amount of the
allowance for the member may not be reduced as a result of changes in
housing costs in the area, changes in the national average monthly cost
of housing, or the promotion of the member.
    ``(f) Overseas Station Housing Allowance.--(1) The Secretary of
Defense may prescribe an overseas station housing allowance for a
member of a uniformed service who is on duty outside of the United
States. The Secretary shall base the station housing allowance on
housing costs in the overseas area in which the member is assigned.
    ``(2) So long as a member of a uniformed service retains
uninterrupted eligibility to receive an overseas station housing
allowance in an overseas area and the actual monthly cost of housing
for the member is not reduced, the monthly amount of the overseas
station housing allowance may not be reduced as a result of changes in
housing costs in the area or the promotion of the member. The monthly
amount of the allowance may be adjusted to reflect changes in currency
rates.
    ``(g) Family Separation Housing Allowance.--(1) A member of a
uniformed service with dependents who is on permanent duty at a
location described in paragraph (2) is entitled to a family separation
housing allowance under this subsection at a monthly rate equal to the
rate of basic allowance for quarters or overseas station housing
allowance established for that location for members without dependents
in the same grade.
    ``(2) A permanent duty location referred to in paragraph (1) is a
location--
            ``(A) to which the movement of the member's dependents is
        not authorized at the expense of the United States under
        section 406 of this title, and the member's dependents do not
        reside at or near the location; and
            ``(B) at which quarters of the United States are not
        available for assignment to the member.
    ``(3) The allowance provided under this subsection is in addition
to any other allowance or per diem that the member is otherwise
entitled to under this title.
    ``(h) Partial Allowance.--(1) The Secretary of Defense may
prescribe a partial basic allowance for housing for a member of a
uniformed service without dependents who is not entitled to the
allowance pursuant to subsection (c) or (d).
    ``(2) In the case of a member of a uniformed service who is
assigned to quarters of the United States and pays child support, the
Secretary of Defense may authorize the payment of a partial basic
allowance for housing, at a rate prescribed by the Secretary, on
account of the member's payment of the child support. The allowance
shall be at a reduced rate to reflect the member's assignment to
quarters of the United States. The amount of the partial allowance
shall not exceed the monthly rate of the member's child support. The
payment of a partial allowance under this paragraph to a member may be
in addition to any allowance paid to the member under paragraph (1).
    ``(i) Special Rules for Certain Members.--(1)(A) In the case of a
member of a reserve component of a uniformed service without dependents
who is called or ordered to active duty (other than for training) or a
retired member without dependents ordered to active duty under section
688(a) of title 10, the member shall be considered to be assigned to
duty at the location of the primary residence of the member at the time
of the call or order for purposes of determining the amount of the
member's basic allowance for housing.
    ``(B) If a member described in subparagraph (A) is called or
ordered to active duty for less than 30 days, the Secretary of Defense
shall prescribe the amount of the basic allowance for housing to be
paid to the member.
    ``(C) This paragraph shall not apply to a member described in
subparagraph (A) if the member is authorized transportation of
household goods under section 406 of this title as part of the call or
order to active duty or if the primary residence of the member is not
owned by the member or the member is not responsible for rental
payments.
    ``(2) A member of a uniformed service without dependents who is in
pay grade E-4 (four or more years' service), or above, is entitled to a
basic allowance for housing while the member is in a travel or leave
status between permanent duty stations, including time granted as delay
en route or proceed time, when the member is not assigned to quarters
of the United States. Notwithstanding subsection (e)(2), the rate of
basic allowance for quarters for such a member shall be equal to the
national average monthly cost of housing in the United States, as
determined by the Secretary, for members of the uniformed services
serving in the same pay grade and with the same dependency status as
the member.
    ``(3) The eligibility of an aviation cadet of the Navy, Air Force,
Marine Corps, or Coast Guard for a basic allowance for housing shall be
determined as if the aviation cadet were a member of the uniformed
services in pay grade E-4.
    ``(4) In the case of a member without dependents who is assigned to
duty inside the United States, the location or the circumstances of
which make it necessary that the member be reassigned under the
conditions of low cost or no cost permanent change of station or
permanent change of assignment, the member may be treated as if the
member were not reassigned if the Secretary concerned determines that
it would be inequitable to base the member's entitlement to, and amount
of, a basic allowance for housing on the area to which the member is
reassigned.
    ``(j) Administration.--(1) The Secretary concerned may make such
determinations as may be necessary to administer this section,
including determinations of dependency and relationship. When warranted
by the circumstances, the Secretary concerned may reconsider and change
or modify any such determination. This authority may be delegated by
the Secretary concerned. Any determination made under this section with
regard to a member of the uniformed services is final and is not
subject to review by any accounting officer of the United States or a
court, unless there is fraud or gross negligence.
    ``(2) Parking facilities (including utility connections) provided
members of the uniformed services for house trailers and mobile homes
not owned by the Government shall not be considered to be quarters for
the purposes of this section or any other provision of law. Any fees
established by the Government for the use of such a facility shall be
established in an amount sufficient to cover the cost of maintenance,
services, and utilities and to amortize the cost of construction of the
facility over the 25-year period beginning with the completion of such
construction.
    ``(k) Temporary Continuation of Allowance.--(1) The Secretary of
Defense, or the Secretary of Transportation in the case of the Coast
Guard when not operating as a service in the Navy, may allow the
dependents of a member of the armed forces who dies while on active
duty and whose dependents are occupying family housing provided by the
Department of Defense, or by the Department of Transportation in the
case of the Coast Guard, other than on a rental basis on the date of
the member's death to continue to occupy such housing without charge
for a period of 180 days.
    ``(2) The Secretary concerned may pay an allowance for housing to
the dependents of a member of the uniformed services who dies while on
active duty and whose dependents are not occupying a housing facility
under the jurisdiction of a uniformed service on the date of the
member's death or are occupying such housing on a rental basis on such
date, or whose dependents vacate such housing sooner than 180 days
after the date of the member's death. The amount of the allowance shall
be the same amount that would otherwise be payable to the deceased
member under this section if the member had not died. The payment of an
allowance under this paragraph shall terminate 180 days after the date
of the member's death.''.
    (b) Repeal of Superseded Authorities.--(1) Section 403a of title
37, United States Code, is repealed.
    (2) Section 405 of such title is amended--
            (A) by striking out subsection (b); and
            (B) by redesignating subsections (c) and (d) as subsections
        (b) and (c), respectively.
    (3) Section 427 of such title is amended--
            (A) by striking out subsection (a); and
            (B) in subsection (b)--
                    (i) by striking out ``(b) Additional Separation
                Allowance.--'' and inserting in lieu thereof ``(a)
                Availability of Separation Allowance.--'';
                    (ii) in paragraph (1), by striking out ``including
                subsection (a)'' and inserting in lieu thereof
                ``including section 403(g) of this title'';
                    (iii) in paragraph (4)--
                            (I) by striking out ``(4) A member'' and
                        inserting in lieu thereof ``(b) Effect of
                        Election to Serve Unaccompanied Tour of Duty.--
                        A member'';
                            (II) by striking out ``paragraph (1)(A) of
                        this subsection'' and inserting in lieu thereof
                        ``subsection (a)(1)(A)''; and
                    (iv) in paragraph (5)--
                            (I) by striking out ``(5) Section 421'' and
                        inserting in lieu thereof ``(c) Effect of
                        Dependent Entitled to Basic Pay.--Section
                        421''; and
                            (II) by striking out ``paragraph (1)(D)''
                        both places it appears and inserting in lieu
                        thereof ``subsection (a)(1)(D)''.
    (4) The table of sections at the beginning of chapter 7 of title
37, United States Code, is amended by striking out the items relating
to sections 403 and 403a and inserting in lieu thereof the following
new item:

``403. Basic allowance for housing.''.
    (c) Conforming Amendments.--(1) Title 37, United States Code, is
amended--
            (A) in section 101(25), by striking out ``basic allowance
        for quarters (including any variable housing allowance or
        station housing allowance)'' and inserting in lieu thereof
        ``basic allowance for housing'';
            (B) in section 406(c), by striking out ``sections 404 and
        405'' and inserting in lieu thereof ``sections 403(f), 404, and
        405'';
            (C) in section 420(c), by striking out ``quarters'' and
        inserting in lieu thereof ``housing'';
            (D) in section 551(3)(D), by striking out ``basic allowance
        for quarters'' and inserting in lieu thereof ``basic allowance
        for housing''; and
            (E) in section 1014(a), by striking out ``basic allowance
        for quarters'' and inserting in lieu thereof ``basic allowance
        for housing''.
    (2) Title 10, United States Code, is amended--
            (A) in section 708(c)(1), by striking out ``basic allowance
        for quarters or basic allowance for subsistence'' and inserting
        in lieu thereof ``basic allowance for housing under section 403
        of title 37, basic allowance for subsistence under section 402
        of such title,'';
            (B) in section 2830(a)--
                    (i) in paragraph (1), by striking out ``basic
                allowance for quarters'' and inserting in lieu thereof
                ``basic allowance for housing under section 403 of
                title 37''; and
                    (ii) in paragraph (2), by striking out ``basic
                allowance for quarters'' and inserting in lieu thereof
                ``basic allowance for housing'';
            (C) in section 2882(b)--
                    (i) in paragraph (1), by striking out ``section
                403(b)'' and inserting in lieu thereof ``section 403'';
                and
                    (ii) in paragraph (2), by striking out ``basic
                allowance for quarters'' and all that follows through
                the end of the paragraph and inserting in lieu thereof
                ``basic allowance for housing under section 403 of
                title 37.'';
            (D) in section 7572(b)--
                    (i) in paragraph (1), by striking out ``the total
                of--'' and all that follows through the end of the
                paragraph and inserting in lieu thereof ``the basic
                allowance for housing payable under section 403 of
                title 37 to a member of the same pay grade without
                dependents for the period during which the member is
                deprived of quarters on board ship.''; and
                    (ii) in paragraph (2), by striking out ``basic
                allowance for quarters'' and inserting in lieu thereof
                ``basic allowance for housing''; and
            (E) in section 7573, by striking out ``basic allowance for
        quarters'' and inserting in lieu thereof ``basic allowance for
        housing under section 403 of title 37''.
    (3) Section 5561(6)(D) of title 5, United States Code, is amended
by striking out ``basic allowance for quarters'' and inserting in lieu
thereof ``basic allowance for housing''.
    (4) Section 107(b) of title 32, United States Code, is amended by
striking out ``and quarters'' and inserting in lieu thereof ``and
housing''.
    (5) Section 4(k)(10) of the Military Selective Service Act (50
U.S.C. App. 454(k)(10)) is amended by striking out ``as such terms''
and all that follows through ``extended or amended'' and inserting in
lieu thereof ``shall be entitled to receive a dependency allowance
equal to the basic allowance for quarters provided for persons in pay
grade E-1 under section 403 of title 37, United States Code,''.
    (d) Transition to Basic Allowance for Housing.--The Secretary of
Defense shall develop and implement a plan to incrementally manage the
rate of growth of the various components of the basic allowance for
housing authorized by section 403 of title 37, United States Code (as
amended by subsection (a)), during a transition period of not more than
six years. During the transition period, the Secretary may continue to
use the authorities provided under sections 403, 403a, 405(b), and
427(a) of title 37, United States Code (as in effect on the day before
the date of the enactment of this Act), but subject to such
modifications as the Secretary considers necessary, to provide
allowances for members of the uniformed services.
    (e) Availability of Funds to Reduce Out-Of-Pocket Housing Costs.--
Of the amount authorized to be appropriated pursuant to section 421 for
military personnel, $35,000,000 shall be available to the Secretary of
Defense to increase the rates of basic allowance for quarters
authorized members of the Armed Forces by section 403 of title 37,
United States Code (as amended by subsection (a)), so as to further
reduce out-of-pocket housing costs incurred by members of the Armed
Forces.

           Subtitle B--Bonuses and Special and Incentive Pays

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

    (a) Special Pay for Health Professionals in Critically Short
Wartime Specialties.--Section 302g(f) of title 37, United States Code,
is amended by striking out ``September 30, 1998'' and inserting in lieu
thereof ``September 30, 1999''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title
37, United States Code, is amended by striking out ``September 30,
1998'' and inserting in lieu thereof ``September 30, 1999''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title
37, United States Code, is amended by striking out ``September 30,
1998'' and inserting in lieu thereof ``September 30, 1999''.
    (d) Special Pay for Enlisted Members Assigned to Certain High
Priority Units.--Section 308d(c) of title 37, United States Code, is
amended by striking out ``September 30, 1998'' and inserting in lieu
thereof ``September 30, 1999''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title
37, United States Code, is amended by striking out ``September 30,
1998'' and inserting in lieu thereof ``September 30, 1999''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section
308h(g) of title 37, United States Code, is amended by striking out
``September 30, 1998'' and inserting in lieu thereof ``September 30,
1999''.
    (g) Prior Service Enlistment Bonus.--Section 308i(i) of title 37,
United States Code, is amended by striking out ``September 30, 1998''
and inserting in lieu thereof ``September 30, 1999''.

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

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1)
of title 10, United States Code, is amended by striking out ``September
30, 1998'' and inserting in lieu thereof ``September 30, 1999''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of
title 37, United States Code, is amended by striking out ``September
30, 1998'' and inserting in lieu thereof ``September 30, 1999''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section
302e(a)(1) of title 37, United States Code, is amended by striking out
``September 30, 1998'' and inserting in lieu thereof ``September 30,
1999''.

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

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37,
United States Code, is amended by striking out ``September 30, 1998,''
and inserting in lieu thereof ``September 30, 1999,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of title
37, United States Code, is amended by striking out ``September 30,
1998'' and inserting in lieu thereof ``September 30, 1999''.
    (c) Enlistment Bonuses for Members With Critical Skills.--Sections
308a(c) and 308f(c) of title 37, United States Code, are each amended
by striking out ``September 30, 1998'' and inserting in lieu thereof
``September 30, 1999''.
    (d) Special Pay for Nuclear Qualified Officers Extending Period of
Active Duty.--Section 312(e) of title 37, United States Code, is
amended by striking out ``September 30, 1998'' and inserting in lieu
thereof ``September 30, 1999''.
    (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37,
United States Code, is amended by striking out ``September 30, 1998''
and inserting in lieu thereof ``September 30, 1999''.
    (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of
title 37, United States Code, is amended by striking out ``October 1,
1998'' and inserting in lieu thereof ``October 1, 1999''.
    (g) Repayment of Education Loans for Certain Health Professionals
Who Serve in the Selected Reserve.--Section 16302(d) of title 10,
United States Code, is amended by striking out ``October 1, 1998'' and
inserting in lieu thereof ``October 1, 1999''.

SEC. 614. INCREASE IN MINIMUM MONTHLY RATE OF HAZARDOUS DUTY INCENTIVE
              PAY FOR CERTAIN MEMBERS.

    (a) Aerial Flight Crewmembers.--The table in subsection (b) of
section 301 of title 37, United States Code, is amended--
            (1) by striking out ``110'' each place it appears and
        inserting in lieu thereof ``150''; and
            (2) by striking out ``125'' each place it appears and
        inserting in lieu thereof ``150''.
    (b) Air Weapons Controller Aircrew.--The table in subsection
(c)(2)(A) of such section is amended--
            (1) by striking out ``100'' in the first column of amounts
        and inserting in lieu thereof ``150'';
            (2) by striking out ``110'' in the last column of amounts
        and inserting in lieu thereof ``150''; and
            (3) by striking out ``125'' each place it appears and
        inserting in lieu thereof ``150''.
    (c) Other Members.--Subsection (c)(1) of such section is amended--
            (1) by striking out ``$110'' and inserting in lieu thereof
        ``$150''; and
            (2) by striking out ``$165'' and inserting in lieu thereof
        ``$225''.

SEC. 615. AVAILABILITY OF MULTIYEAR RETENTION BONUS FOR DENTAL
              OFFICERS.

    (a) Availability of Retention Bonus.--Chapter 5 of title 37, United
States Code, is amended by inserting after section 301d the following
new section:
``Sec. 301e. Multiyear retention bonus: dental officers of the armed
              forces
    ``(a) Bonus Authorized.--(1) A dental officer described in
subsection (b) who executes a written agreement to remain on active
duty for two, three, or four years after completion of any other
active-duty service commitment may, upon acceptance of the written
agreement by the Secretary of the military department concerned, be
paid a retention bonus as provided in this section.
    ``(2) The amount of a retention bonus under paragraph (1) may not
exceed $14,000 for each year covered by a four-year agreement. The
maximum yearly retention bonus for two-year and three-year agreements
shall be reduced to reflect the shorter service commitment.
    ``(b) Officers Automatically Eligible.--Subsection (a) applies to
an officer of the armed forces who--
            ``(1) is an officer of the Dental Corps of the Army or the
        Navy or an officer of the Air Force designated as a dental
        officer;
            ``(2) has a dental specialty in oral and maxillofacial
        surgery;
            ``(3) is in a pay grade below pay grade 0-7;
            ``(4) has at least eight years of creditable service
        (computed as described in section 302b(g) of this title) or has
        completed any active-duty service commitment incurred for
        dental education and training; and
            ``(5) has completed initial residency training (or will
        complete such training before September 30 of the fiscal year
        in which the officer enters into an agreement under subsection
        (a)).
    ``(c) Extension of Bonus to Other Dental Officers.--At the
discretion of the Secretary of the military department concerned, the
Secretary may enter into a written agreement described in subsection
(a)(1) with a dental officer who does not have the dental specialty
specified in subsection (b)(2), and pay a retention bonus to such an
officer as provided in this section, if the officer otherwise satisfies
the eligibility requirements specified in subsection (b). The
Secretaries shall exercise the authority provided in this section in a
manner consistent with regulations prescribed by the Secretary of
Defense.
    ``(d) Refunds.--(1) Refunds shall be required, on a pro rata basis,
of sums paid under this section if the officer who has received the
payment fails to complete the total period of active duty specified in
the agreement, as conditions and circumstances warrant.
    ``(2) An obligation to reimburse the United States imposed under
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) A discharge in bankruptcy under title 11, United States Code,
that is entered less than five years after the termination of an
agreement under this section does not discharge the member signing such
agreement from a debt arising under such agreement or under paragraph
(1). This paragraph applies to any case commenced under title 11 after
the date of the enactment of the National Defense Authorization Act for
Fiscal Year 1998.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
301d the following new item:

``301e. Multiyear retention bonus: dental officers of the armed
                            forces.''.

SEC. 616. INCREASE IN VARIABLE AND ADDITIONAL SPECIAL PAYS FOR CERTAIN
              DENTAL OFFICERS.

    (a) Variable Special Pay for Junior Officers.--Paragraph (2) of
section 302b(a) of title 37, United States Code, is amended by striking
out subparagraphs (C) through (F) and inserting in lieu thereof the
following new subparagraphs:
            ``(C) $7,000 per year, if the officer has at least six but
        less than eight years of creditable service.
            ``(D) $12,000 per year, if the officer has at least eight
        but less than 12 years of creditable service.
            ``(E) $10,000 per year, if the officer has at least 12 but
        less than 14 years of creditable service.
            ``(F) $9,000 per year, if the officer has at least 14 but
        less than 18 years of creditable service.
            ``(G) $8,000 per year, if the officer has 18 or more years
        of creditable service.''.
    (b) Variable Special Pay for Senior Officers.--Paragraph (3) of
such section is amended by striking out ``$1,000'' and inserting in
lieu thereof ``$7,000''.
    (c) Additional Special Pay.--Paragraph (4) of such section is
amended by striking out subparagraphs (B) through (D) and inserting in
lieu thereof the following new subparagraphs:
            ``(B) $6,000 per year, if the officer has at least three
        but less than 10 years of creditable service.
            ``(C) $15,000 per year, if the officer has 10 or more years
        of creditable service.''.

SEC. 617. SPECIAL PAY FOR DUTY AT DESIGNATED HARDSHIP DUTY LOCATIONS.

    (a) Special Pay Authorized.--Section 305 of title 37, United States
Code, is amended by striking out subsection (a) and inserting in lieu
thereof the following new subsection:
    ``(a) Special Pay Authorized.--A member of a uniformed service who
is entitled to basic pay may be paid special pay under this section at
a monthly rate not to exceed $300 while the member is on duty at a
location in the United States or outside the United States designated
by the Secretary of Defense as a hardship duty location.''.
    (b) Cross References and Regulations.--Such section is further
amended--
            (1) in subsection (b)--
                    (A) by inserting ``Exception for Certain Members
                Serving in Certain Locations.--'' after ``(b)''; and
                    (B) by striking out ``as foreign duty pay'' and
                inserting in lieu thereof ``as hardship duty location
                pay'';
            (2) in subsection (c)--
                    (A) by inserting ``Exception for Members Receiving
                Career Sea Pay.--'' after ``(c)''; and
                    (B) by striking out ``special pay under this
                section'' and inserting in lieu thereof ``hardship duty
                location pay under subsection (a)''; and
            (3) by adding at the end the following new subsection:
    ``(d) Regulations.--The Secretary of Defense shall prescribe
regulations for the provision of hardship duty location pay under
subsection (a), including the actual monthly rates at which the special
pay will be available.''.
    (c) Clerical Amendments.--(1) the heading of such section is
amended to read as follows:
``Sec. 305. Special pay: hardship duty location pay''.
    (2) The table of sections at the beginning of chapter 5 of title
37, United States Code, is amended by striking out the item relating to
section 305 and inserting in lieu thereof the following new item:

``305. Special pay: hardship duty location pay.''.
    (d) Conforming Amendment.--Section 907(d) of such title is amended
by striking out ``duty at certain places'' and inserting in lieu
thereof ``duty at a hardship duty location''.
    (e) Transition.--Until such time as the Secretary of Defense
prescribes regulations regarding the provision of hardship duty
location pay under section 305 of title 37, United States Code, as
amended by this section, the Secretary may continue to use the
authority provided by such section 305, as in effect on the day before
the date of the enactment of this Act, to provide special pay to
enlisted members of the uniformed services on duty at certain places.

SEC. 618. SELECTED RESERVE REENLISTMENT BONUS.

    (a) Eligible Members.--Subsection (a)(1) of section 308b of title
37, United States Code, is amended by striking out ``ten years'' and
inserting in lieu thereof ``14 years''.
    (b) Bonus Amounts; Payment.--Subsection (b) of such section is
amended to read as follows:
    ``(b)(1) The amount of a bonus under this section may not exceed--
            ``(A) $2,500, in the case of a member who reenlists or
        extends an enlistment for a period of three years; and
            ``(B) $5,000, in the case of a member who reenlists or
        extends an enlistment for a period of six years.
    ``(2) The bonus shall be paid according to a payment schedule
determined by the Secretary concerned, except that the initial payment
to a member may not exceed one-half the total bonus amount for the
member.''.
    (c) Number of Individual Bonuses.--Subsection (c) of such section
is amended to read as follows:
    ``(c) A member may not be paid more than one six-year bonus or two
three-year bonuses under this section.''.
    (d) Effect of Failure to Serve Satisfactorily.--Subsection (d) of
such section is amended to read as follows:
    ``(d) A member who receives a bonus under this section and who
fails, during the period for which the bonus was paid, to serve
satisfactorily in the element of the Selected Reserve of the Ready
Reserve with respect to which the bonus was paid shall refund to the
United States an amount that bears the same relation to the amount of
the bonus paid to the member as the period that the member failed to
serve satisfactorily bears to the total period for which the bonus was
paid.''.

SEC. 619. SELECTED RESERVE ENLISTMENT BONUS FOR FORMER ENLISTED
              MEMBERS.

    (a) Eligible Persons.--Subsection (a)(2) of section 308i of title
37, United States Code, is amended by striking out subparagraph (A) and
inserting in lieu thereof the following new subparagraph:
            ``(A) has completed a military obligation but has less than
        14 years of total military service;'';
    (b) Bonus Amounts; Payment.--Subsection (b) of such section is
amended to read as follows:
    ``(b)(1) The amount of a bonus under this section may not exceed--
            ``(A) $2,500, in the case of a person who enlists for a
        period of three years; and
            ``(B) $5,000, in the case of a person who enlists for a
        period of six years.
    ``(2) The bonus shall be paid according to a payment schedule
determined by the Secretary concerned, except that the initial payment
to a person may not exceed one-half the total bonus amount for the
person.''.
    (c) Limitations.--Subsection (c) of such section is amended to read
as follows:
    ``(c)(1) A person may not be paid more than one six-year bonus or
two three-year bonuses under this section.
    ``(2) A person may not be paid a bonus under this section unless
the specialty associated with the position the person is projected to
occupy as a member of the Selected Reserve is a specialty in which--
            ``(A) the person successfully served while a member on
        active duty; and
            ``(B) the person attained a level of qualification while a
        member commensurate with the grade and years of service of the
        member.''.

SEC. 620. SPECIAL PAY OR BONUSES FOR ENLISTED MEMBERS EXTENDING TOURS
              OF DUTY OVERSEAS.

    (a) Inclusion of Bonus Incentive.--(1) Section 314 of title 37,
United States Code, is amended to read as follows:
``Sec. 314. Special pay or bonus: qualified enlisted members extending
              duty at designated locations overseas
    ``(a) Covered Members.--This section applies with respect to an
enlisted member of an armed force who--
            ``(1) is entitled to basic pay;
            ``(2) has a specialty that is designated by the Secretary
        concerned for the purposes of this section;
            ``(3) has completed a tour of duty (as defined in
        accordance with regulations prescribed by the Secretary
        concerned) at a location outside the 48 contiguous States and
        the District of Columbia that is designated by the Secretary
        concerned for the purposes of this section; and
            ``(4) at the end of that tour of duty executes an agreement
        to extend that tour for a period of not less than one year.
    ``(b) Special Pay or Bonus Authorized.--Under regulations
prescribed by the Secretary concerned, an enlisted member described in
subsection (a) is entitled, upon acceptance by the Secretary concerned
of the agreement providing for extension of the member's tour of duty,
to either--
            ``(1) special pay for duty performed during the period of
        the extension at a rate of not more than $80 per month, as
        prescribed by the Secretary concerned; or
            ``(2) a bonus of up to $2,000 per year, as prescribed by
        the Secretary concerned, for specialty requirements at
        designated locations.
    ``(c) Selection and Payment of Special Pay or Bonus.--Not later
than the date on which the Secretary concerned accepts an agreement
described in subsection (a)(4) providing for the extension of a
member's tour of duty, the Secretary concerned shall notify the member
regarding whether the member will receive special pay or a bonus under
this section. The payment rate for the special pay or bonus shall be
fixed at the time of the agreement and may not be changed during the
period of the extended tour of duty. The Secretary concerned may pay a
bonus under this section either in a lump sum or installments.
    ``(d) Repayment of Bonus.--(1) If a member who receives all or part
of a bonus under this section fails to complete the total period of
extension specified in the agreement described in subsection (a)(4),
the Secretary concerned may require the member to repay the United
States, on a pro rata basis and to the extent that the Secretary
determines conditions and circumstances warrant, amounts paid to the
member under this section.
    ``(2) An obligation to repay the United States imposed under
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) A discharge in bankruptcy under title 11 that is entered less
than five years after the termination of the agreement does not
discharge the member signing the agreement from a debt arising under
the agreement or under paragraph (1). This paragraph applies to any
case commenced under title 11 on or after October 1, 1997.
    ``(e) Effect of Rest and Recuperative Absence.--A member who elects
to receive one of the benefits specified in section 705(b) of title 10
as part of the extension of a tour of duty is not entitled to the
special pay or bonus authorized by this section for the period of the
extension of duty for which the benefit under such section is
provided.''.
    (2) The item relating to section 314 in the table of sections at
the beginning of chapter 5 of such title is amended to read as follows:

``314. Special pay or bonus: qualified enlisted members extending duty
                            at designated locations overseas.''.
    (b) Application of Amendment.--Section 314 of title 37, United
States Code, as amended by subsection (a), shall apply with respect to
an agreement to extend a tour of duty as provided in such section
executed on or after October 1, 1997.

SEC. 621. INCREASE IN AMOUNT OF FAMILY SEPARATION ALLOWANCE.

    Section 427 of title 37, United States Code (as amended by section
604(b)(3)), is further amended in subsection (a)(1) by striking out
``$75'' and inserting in lieu thereof ``$100''.

SEC. 622. CHANGE IN REQUIREMENTS FOR READY RESERVE MUSTER DUTY
              ALLOWANCE.

    Section 433(c) of title 37, United States Code, is amended--
            (1) in the first sentence, by striking out ``and shall be''
        and all that follows through ``is performed''; and
            (2) by inserting after the first sentence the following new
        sentence: ``The allowance may be paid to the member on or
        before the date on which the muster duty is performed, but
        shall be paid not later than 30 days after the date on which
        the muster duty is performed.''.

SEC. 623. EXPANSION OF RESERVE AFFILIATION BONUS TO INCLUDE COAST GUARD
              RESERVE.

    Section 308e of title 37, United States Code, is amended--
            (1) in subsection (a), by striking out ``Under regulations
        prescribed by the Secretary of Defense, the Secretary of a
        military department'' and inserting in lieu thereof ``The
        Secretary concerned'';
            (2) in subsection (b)(3), by striking out ``designated by
        the Secretary of Defense for the purposes of this section'' and
        inserting in lieu thereof ``designated for purposes of this
        section in the regulations prescribed under subsection (f)'';
            (3) in subsection (c)(3), by striking out ``regulations
        prescribed by the Secretary of Defense'' and inserting in lieu
        thereof ``the regulations prescribed under subsection (f)'';
        and
            (4) by adding at the end the following new subsection:
    ``(f) This section shall be administered under regulations
prescribed by the Secretary of Defense for the armed forces under the
jurisdiction of the Secretary of Defense and by the Secretary of
Transportation for the Coast Guard when the Coast Guard is not
operating as a service in the Navy.''.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS OF MEMBER
              SENTENCED BY COURT-MARTIAL.

    Section 406(h)(2)(C) of title 37, United States Code, is amended by
striking out the comma at the end of clause (iii) and all that follows
through ``title 10.'' and inserting in lieu thereof a period.

SEC. 632. DISLOCATION ALLOWANCE.

    Section 407 of title 37, United States Code, is amended to read as
follows:
``Sec. 407. Travel and transportation allowances: dislocation allowance
    ``(a) Basic Eligibility.--(1) Under regulations prescribed by the
Secretary concerned, a member of a uniformed service described in
paragraph (2) is entitled to a dislocation allowance at the rate set
forth in the tables in subsection (c) for the member's pay grade and
dependency status.
    ``(2) A member of the uniformed services referred to in paragraph
(1) is any of the following:
            ``(A) A member who makes a change of permanent station and
        the member's dependents actually make an authorized move in
        connection with the change, including a move by the
        dependents--
                    ``(i) to join the member at the member's duty
                station after an unaccompanied tour of duty when the
                member's next tour of duty is an accompanied tour at
                the same station; and
                    ``(ii) to a location designated by the member after
                an accompanied tour of duty when the member's next tour
                of duty is an unaccompanied tour at the same duty
                station.
            ``(B) A member whose dependents actually move pursuant to
        section 405a(a), 406(e), 406(h), or 554 of this title.
            ``(C) A member whose dependents actually move from their
        place of residence under circumstances described in section
        406a of this title.
            ``(D) A member who is without dependents and--
                    ``(i) actually moves to a new permanent station
                where the member is not assigned to quarters of the
                United States; or
                    ``(ii) actually moves from a place of residence
                under circumstances described in section 406a of this
                title.
            ``(E) A member who is ordered to move in connection with
        the closure or realignment of a military installation and, as a
        result, the member's dependents actually move or, in the case
        of a member without dependents, the member actually moves.
    ``(3) If a dislocation allowance is paid under this subsection to a
member described in subparagraph (C) or (D)(ii), the member is not
entitled to another dislocation allowance as a member described in
subparagraph (A) or (E) in connection with the same move.
    ``(b) Second Allowance Authorized Under Certain Circumstances.--(1)
Under regulations prescribed by the Secretary concerned, whenever a
member is entitled to a dislocation allowance as a member described in
subparagraph (C) or (D)(ii) of subsection (a)(2), the member is also
entitled to a second dislocation allowance at the rate set forth in the
tables in subsection (c) for the member's pay grade and dependency
status if, subsequent to the member or the member's dependents actually
moving from their place of residence under circumstances described in
section 406a of this title, the member or member's dependents complete
that move to a new location and then actually move from that new
location to another location also under circumstances described in
section 406a of this title.
    ``(2) If a second dislocation allowance is paid under this
subsection, the member is not entitled to a dislocation allowance as a
member described in subparagraph (A) or (E) of subsection (a)(2) in
connection with those moves.
    ``(c) Dislocation Allowance Rates.--(1) A dislocation allowance
under this section shall be paid at the following monthly rates, based
on a member's pay grade and dependency status:

                         ``COMMISSIONED OFFICERS
------------------------------------------------------------------------
            Paygrade              Without dependents    With dependents
------------------------------------------------------------------------
O-10............................          $2,061.75           $2,538.00
O-9.............................           2,061.75            2,538.00
O-8.............................           2,061.75            2,538.00
O-7.............................           2,061.75            2,538.00
O-6.............................           1,891.50            2,285.25
O-5.............................           1,821.75            2,202.75
O-4.............................           1,688.25            1,941.75
O-3.............................           1,353.00            1,606.50
O-2.............................           1,073.25            1,371.75
O-1.............................             903.75            1,226.25
------------------------------------------------------------------------

 ``COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
------------------------------------------------------------------------
            Paygrade              Without dependents    With dependents
------------------------------------------------------------------------
O-3E............................          $1,461.00           $1,726.50
O-2E............................           1,242.00            1,557.75
O-1E............................           1,068.00            1,439.25
------------------------------------------------------------------------

                            ``WARRANT OFFICER
------------------------------------------------------------------------
            Paygrade              Without dependents    With dependents
------------------------------------------------------------------------
W-5.............................          $1,715.25           $1,874.25
W-4.............................           1,523.25            1,718.25
W-3.............................           1,280.00            1,574.25
W-2.............................           1,137.00            1,448.25
W-1.............................             951.75            1,252.50
------------------------------------------------------------------------

                            ``ENLISTED MEMBER
------------------------------------------------------------------------
            Paygrade              Without dependents    With dependents
------------------------------------------------------------------------
E-9.............................          $1,251.00           $1,649.25
E-8.............................           1,148.25            1,520.25
E-7.............................             981.00            1,411.50
E-6.............................             888.00            1,304.25
E-5.............................             819.00            1,173.00
E-4.............................             712.50            1,020.00
E-3.............................             699.00              949.50
E-2.............................             567.75              903.75
E-1.............................             506.25              903.75
------------------------------------------------------------------------

    ``(2) For each calendar year after 1997, the Secretary of Defense
shall adjust the rates in the tables in paragraph (1) by the percentage
equal to the rate of change of the national average monthly cost of
housing, as determined by the Secretary under section 403 of this title
for that calendar year.
    ``(d) Fiscal Year Limitation; Exceptions.--(1) A member is not
entitled to more than one dislocation allowance during a fiscal year
unless--
            ``(A) the Secretary concerned finds that the exigencies of
        the service require the member to make more than one change of
        permanent station during the fiscal year;
            ``(B) the member is ordered to a service school as a change
        of permanent station;
            ``(C) the member's dependents are covered by section
        405a(a), 406(e), 406(h), or 554 of this title; or
            ``(D) subparagraph (C) or (D)(ii) of subsection (a)(2) or
        subsection (b) apply with respect to the member or the member's
        dependents.
    ``(2) This subsection does not apply in time of national emergency
or in time of war.
    ``(e) First or Last Duty.--A member is not entitled to payment of a
dislocation allowance when ordered from the member's home to the
member's first duty station or from the member's last duty station to
the member's home.
    ``(f) Rule of Construction.--For purposes of this section, a member
whose dependents may not make an authorized move in connection with a
change of permanent station is considered a member without dependents.
    ``(g) Advance Payment.--A dislocation allowance payable under this
section may be paid in advance.''.

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

SEC. 641. TIME IN WHICH CERTAIN CHANGES IN BENEFICIARY UNDER SURVIVOR
              BENEFIT PLAN MAY BE MADE.

    (a) Extension of Time for Change.--Section 1450(f)(1)(C) of title
10, United States Code, is amended by inserting before the period at
the end the following: ``, except that such a change of election to
change a beneficiary under the Plan from a former spouse to a spouse
may be made at any time after the person providing the annuity
remarries (rather than only within one year after the date on which
that person marries)''.
    (b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to marriages occurring before, on, or after the date
of the enactment of this Act.

                       Subtitle E--Other Matters

SEC. 651. DEFINITION OF SEA DUTY FOR PURPOSES OF CAREER SEA PAY.

    Section 305a(d) of title 37, United States Code, is amended--
            (1) in paragraph (1)(A), by striking out ``, ship-based
        staff, or ship-based aviation unit'';
            (2) in paragraph (1)(B), by striking out ``or ship-based
        staff'';
            (3) by redesignating paragraphs (2) and (3) as paragraphs
        (3) and (4), respectively; and
            (4) by inserting after paragraph (1) the following new
        paragraph:
    ``(2) The Secretary concerned may designate duty performed by a
member while serving on a ship the primary mission of which is
accomplished either while under way or in port as `sea duty' for
purposes of this section, even though the duty is performed while the
member is permanently or temporarily assigned to a ship-based staff or
other unit not covered by paragraph (1).''.

SEC. 652. LOAN REPAYMENT PROGRAM FOR COMMISSIONED OFFICERS IN CERTAIN
              HEALTH PROFESSIONS.

    (a) Chapter 109 of title 10, United States Code, is amended by
adding at the end the following new section:
``Sec. 2173. Education loan repayment program: commissioned officers in
              specified health professions
    ``(a) Authority To Repay Education Loans.--For the purpose of
maintaining adequate numbers of commissioned officers of the armed
forces on active duty who are qualified in the various health
professions, the Secretary of a military department may repay, in the
case of a person described in subsection (b), a loan that was used by
the person to finance education regarding a health profession and was
obtained from a governmental entity, private financial institution,
school, or other authorized entity.
    ``(b) Eligible Persons.--To be eligible to obtain a loan repayment
under this section, a person must--
            ``(1) satisfy one of the academic requirements specified in
        subsection (c);
            ``(2) be fully qualified for, or hold, an appointment as a
        commissioned officer in one of the health professions; and
            ``(3) sign a written agreement to serve on active duty, or,
        if on active duty, to remain on active duty for a period in
        addition to any other incurred active duty obligation.
    ``(c) Academic Requirements.--One of the following academic
requirements must be satisfied for purposes of determining the
eligibility of a person for a loan repayment under this section:
            ``(1) The person must be fully qualified in a health
        profession that the Secretary of the military department
        concerned has determined to be necessary to meet identified
        skill shortages.
            ``(2) The person must be enrolled as a full-time student in
        the final year of a course of study at an accredited
        educational institution leading to a degree in a health
        profession other than medicine or osteopathic medicine.
            ``(3) The person must be enrolled in the final year of an
        approved graduate program leading to specialty qualification in
        medicine, dentistry, osteopathic medicine, or other health
        profession.
    ``(d) Certain Person Ineligible.--Participants of the Armed Forces
Health Professions Scholarship and Financial Assistance program under
subchapter I of chapter 105 of this title and students of the Uniformed
Services University of the Health Sciences established under section
2112 of this title are not eligible for the repayment of an education
loan under this section.
    ``(e) Loan Repayments.--(1) Subject to the limits established by
paragraph (2), a loan repayment under this section may consist of
payment of the principal, interest, and related expenses of a loan
obtained by a person described in subsection (b) for--
            ``(A) all educational expenses, comparable to all
        educational expenses recognized under section 2127(a) of this
        title for participants in the Armed Forces Health Professions
        Scholarship and Financial Assistance program; and
            ``(B) reasonable living expenses, not to exceed expenses
        comparable to the stipend paid under section 2121(d) of this
        title for participants in the Armed Forces Health Professions
        Scholarship and Financial Assistance program.
    ``(2) For each year of obligated service that a person agrees to
serve in an agreement described in subsection (b)(3), the Secretary of
the military department concerned may pay not more than $22,000 on
behalf of the person. This maximum amount shall be increased annually
by the Secretary of Defense effective October 1 of each year by a
percentage equal to the percent increase in the average annual cost of
educational expenses and stipend costs of a single scholarship under
the Armed Forces Health Professions Scholarship and Financial
Assistance program. The total amount that may be repaid on behalf of
any person may not exceed an amount determined on the basis of a four-
year active duty service obligation.
    ``(f) Active Duty Service Obligation.--(1) A person entering into
an agreement described in subsection (b)(3) incurs an active duty
service obligation. The length of this obligation shall be determined
under regulations prescribed by the Secretary of Defense, but those
regulations may not provide for a period of obligation of less than one
year for each maximum annual amount, or portion thereof, paid on behalf
of the person for qualified loans.
    ``(2) For persons on active duty before entering into the
agreement, the active duty service obligation shall be served
consecutively to any other incurred obligation.
    ``(g) Effect of Failure To Complete Obligation.--A commissioned
officer who is relieved of the officer's active duty obligation under
this section before the completion of that obligation may be given,
with or without the consent of the officer, any alternative obligation
comparable to any of the alternative obligations authorized by section
2123(e) of this title for participants in the Armed Forces Health
Professions Scholarship and Financial Assistance program.
    ``(h) Regulations.--The Secretary of Defense shall prescribe
regulations to carry out this section, including standards for
qualified loans and authorized payees and other terms and conditions
for the making of loan repayments.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``2173. Education loan repayment program: commissioned officers in
                            specified health professions.''.

SEC. 653. CONFORMANCE OF NOAA COMMISSIONED OFFICERS SEPARATION PAY TO
              SEPARATION PAY FOR MEMBERS OF OTHER UNIFORMED SERVICES.

    (a) Elimination of Limitations on Amount of Separation Pay.--
Section 9 of the Coast and Geodetic Survey Commissioned Officers' Act
of 1948 (33 U.S.C. 853h) is amended--
            (1) in subsection (b)(1), by striking ``, or $30,000,
        whichever is less'';
            (2) in subsection (b)(2), by striking ``, but in no event
        more than $15,000''; and
            (3) in subsection (d), by striking ``(1)'', and by striking
        paragraph (2).
    (b) Waiver of Recoupment of Amounts Withheld for Tax Purposes From
Certain Separation Pay.--Section 9(e)(2) of the Coast and Geodetic
Survey Commissioned Officers' Act of 1948 (33 U.S.C. 853h) is amended
in the first sentence by inserting before the period at the end the
following: ``, less the amount of Federal income tax withheld from such
pay (such withholding being at the flat withholding rate for Federal
income tax withholding, as in effect pursuant to regulations prescribed
under chapter 24 of the Internal Revenue Code of 1986)''.
    (c) Effective Date and Application.--The amendments made by this
section shall take effect on October 1, 1996, and shall apply to
payments of separation pay that are made after September 30, 1997.

SEC. 654. REIMBURSEMENT OF PUBLIC HEALTH SERVICE OFFICERS FOR ADOPTION
              EXPENSES.

    Section 221(a) of the Public Health Service Act (42 U.S.C. 213a(a))
is amended by adding at the end the following new paragraph:
            ``(16) Section 1052, Reimbursement for adoption
        expenses.''.

SEC. 655. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES TO WORLD
              WAR II VETERANS WHO SERVED AS GUERRILLA FIGHTERS IN THE
              PHILIPPINES.

    (a) In General.--The Secretary of the military department concerned
shall pay, upon request, to an individual described in subsection (b)
the amount determined with respect to that individual under subsection
(c).
    (b) Covered Individuals.--A payment under subsection (a) shall be
made to any individual who as a member of the Armed Forces during World
War II--
            (1) was captured within the territory of the Philippines by
        Japanese forces;
            (2) escaped from captivity; and
            (3) served as a guerrilla fighter in the Philippines during
        the period from January 1942 through February 1945.
    (c) Amount To Be Paid.--The amount of a payment under subsection
(a) shall be the amount of quarters and subsistence allowance which
accrued to an individual described in subsection (b) during the period
specified in paragraph (3) of subsection (b) and which was not paid to
that individual. For the purposes of this subsection, the Secretary of
War shall be deemed to have determined that conditions in the
Philippines during the specified period justified payment under
applicable regulations of quarters and subsistence allowances at the
maximum special rate for duty where emergency conditions existed. The
Secretary shall apply interest compounded at the three-month Treasury
bill rate.
    (d) Payment to Survivors.--In the case of any individual described
in subsection (b) who is deceased, payment under this section with
respect to that individual shall be made to that individual's nearest
surviving relative, as determined by the Secretary concerned.

SEC. 656. SPACE AVAILABLE TRAVEL FOR MEMBERS OF SELECTED RESERVE.

    (a) In General.--Chapter 157 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 2646. Space available travel: members of Selected Reserve
    ``(a) Availability.--The Secretary of Defense shall prescribe
regulations to allow members of the Selected Reserve in good standing
(as determined by the Secretary concerned), and dependents of such
members, to receive transportation on aircraft of the Department of
Defense on a space available basis under the same terms and conditions
as apply to members of the armed forces on active duty and dependents
of such members.
    ``(b) Condition on Dependent Transportation.--A dependent of a
member of the Selected Reserve may be provided transportation under
this section only when the dependent is actually accompanying the
member on the travel.''.
    (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. Space available travel: members of Selected Reserve.''.

SEC. 657. STUDY ON MILITARY PERSONNEL AT, NEAR, OR BELOW THE POVERTY
              LINE.

    (a) Requirement.--The Secretary of Defense shall conduct a study of
members of the Armed Forces and their dependents who subsist at, near,
or below the poverty line.
    (b) Matters To Be Included.--The study shall include the following:
            (1) An analysis of potential solutions for mitigating or
        eliminating income levels for members of the Armed Forces that
        result in certain members and their dependents subsisting at,
        near, or below the poverty line, including potential solutions
        involving changes in the systems and rates of--
                    (A) basic allowance for subsistence for members of
                the Armed Forces under section 402 of title 37, United
                States Code;
                    (B) basic allowance for quarters for members of the
                Armed Forces under section 403 of such title; and
                    (C) variable housing allowance for members of the
                Armed Forces under section 403a of such title.
            (2) An analysis of the effect of the amendments made by
        sections 603 and 604 of this Act regarding the calculation of
        the basic allowance for subsistence and the consolidation of
        the basic allowance for quarters and variable housing allowance
        on mitigating or eliminating income levels for members of the
        Armed Forces that result in certain members and their
        dependents subsisting at, near, or below the poverty line (as
        defined in section 673(2) of the Omnibus Budget Reconciliation
        Act of 1981, including any revision required by that section).
            (3) Identification of the populations of members of the
        Armed Forces and their dependents most likely to need income
        support under Federal programs (and the number of individuals
        in each population), including--
                    (A) the populations living in areas of the United
                States where housing costs are notably high; and
                    (B) the populations living outside the United
                States.
            (4) The desirability of increasing rates of basic pay
        during a defined number of years by varying percentages
        depending on pay grade, so as to provide for greater increases
        for members in lower pay grades than for higher pay grades.
    (c) Submission to Congress.--Not later than 180 days after the date
of the enactment of this Act, the Secretary shall submit to Congress
the findings of the study conducted under subsection (a).

SEC. 658. IMPLEMENTATION OF DEPARTMENT OF DEFENSE SUPPLEMENTAL FOOD
              PROGRAM FOR MILITARY PERSONNEL OUTSIDE THE UNITED STATES.

    (a) Funding.--Section 1060a(b) of title 10, United States Code, is
amended by adding at the end the following new sentence: ``Pending
receipt of such funds from the Secretary of Agriculture for any fiscal
year, the Secretary of Defense may use funds appropriated to the
Department of Defense for that fiscal year for operations and
maintenance to carry out, and to avoid delay in implementation of, the
program referred to in subsection (a) during any fiscal year.''.
    (b) Submission of Plan to Congress.--Not later than 90 days after
the date of the enactment of this Act, the Secretary of Defense shall
submit to Congress a plan for implementing the special supplemental
food program under section 1060a of title 10, United States Code, as
amended by subsection (a).

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

SEC. 701. EXPANSION OF RETIREE DENTAL INSURANCE PLAN TO INCLUDE
              SURVIVING SPOUSE AND CHILD DEPENDENTS OF CERTAIN DECEASED
              MEMBERS.

    Section 1076c(b)(4) of title 10, United States Code, is amended--
            (1) in subparagraph (A)--
                    (A) by striking out ``dies'' and inserting in lieu
                thereof ``died''; and
                    (B) by striking out ``or'' at the end of the
                subparagraph;
            (2) by striking out the period at the end of subparagraph
        (B) and inserting in lieu thereof ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) who died while on active duty for a period of
                more than 30 days and whose eligible dependents are not
                eligible, or no longer eligible, for dental benefits
                under section 1076a of this title pursuant to
                subsection (i)(2) of such section.''.

SEC. 702. PROVISION OF PROSTHETIC DEVICES TO COVERED BENEFICIARIES.

    (a) Inclusion Among Authorized Care.--Subsection (a) of section
1077 of title 10, United States Code, is amended by adding at the end
the following new paragraph:
            ``(15) Prosthetic devices, as determined by the Secretary
        of Defense to be necessary because of significant conditions
        resulting from trauma, congenital anomalies, or disease.''.
    (b) Conforming Amendment.--Subsection (b) of such section is
amended by striking out paragraph (2) and inserting in lieu thereof the
following new paragraph:
            ``(2) Hearing aids, orthopedic footwear, and spectacles,
        except that, outside of the United States and at stations
        inside the United States where adequate civilian facilities are
        unavailable, such items may be sold to dependents at cost to
        the United States.''.

                      Subtitle B--TRICARE Program

SEC. 711. ADDITION OF DEFINITION OF TRICARE PROGRAM TO TITLE 10.

    Section 1072 of title 10, United States Code, is amended by adding
at the end the following new paragraph:
            ``(7) The term `TRICARE program' means the managed health
        care program that is established by the Department of Defense
        under the authority of this chapter, principally section 1097
        of this title, and includes the competitive selection of
        contractors to financially underwrite the delivery of health
        care services under the Civilian Health and Medical Program of
        the Uniformed Services.''.

SEC. 712. PLAN FOR EXPANSION OF MANAGED CARE OPTION OF TRICARE PROGRAM.

    (a) Expansion Plan Required.--The Secretary of Defense shall
prepare a plan for the expansion of the managed care option of the
TRICARE program, known as TRICARE Prime, into areas of the United
States located outside of the catchment areas of medical treatment
facilities of the uniformed services, but in which the managed care
option is a cost-effective alternative because of--
            (1) the significant number of covered beneficiaries under
        chapter 55 of title 10, United States Code, including retired
        members of the Armed Forces and their dependents, who reside in
        the areas; and
            (2) the presence in the areas of sufficient nonmilitary
        health care provider networks.
    (b) Alternatives.--As an alternative to expansion of the managed
care option of the TRICARE program to areas of the United States in
which there is few or no nonmilitary health care provider networks, the
Secretary shall include in the plan required under subsection (a) an
evaluation of the feasibility and cost-effectiveness of providing a
member of the Armed Forces on active duty who is stationed in such an
area, or whose dependents reside in such an area, with one or both of
the following:
            (1) A monetary stipend to assist the member in obtaining
        health care services for the member or the member's dependents.
            (2) A reduction in the cost-sharing requirements applicable
        to the TRICARE program options otherwise available to the
        member to match the reduced cost-sharing responsibilities of
        the managed care option of the TRICARE program.
    (c) Submission of Plan.--Not later than March 1, 1998, the
Secretary shall submit to Congress the plan required under subsection
(a).

          Subtitle C--Uniformed Services Treatment Facilities

SEC. 721. IMPLEMENTATION OF DESIGNATED PROVIDER AGREEMENTS FOR
              UNIFORMED SERVICES TREATMENT FACILITIES.

    (a) Commencement of Health Care Services Under Agreement.--
Subsection (c) of section 722 of the National Defense Authorization Act
for Fiscal Year 1997 (Public Law 104-201, 10 U.S.C. 1073 note) is
amended--
            (1) by redesignating paragraphs (1) and (2) as
        subparagraphs (A) and (B);
            (2) by inserting ``(1)'' before ``Unless''; and
            (3) by adding at the end the following new paragraph:
    ``(2) The Secretary may modify the effective date established under
paragraph (1) for an agreement to permit a transition period of not
more than six months between the date on which the agreement is
executed by the parties and the date on which the designated provider
commences the delivery of health care services under the agreement.''.
    (b) Temporary Continuation of Existing Participation Agreements.--
Subsection (d) of such section is amended by inserting before the
period at the end the following: ``, including any transitional period
provided by the Secretary under paragraph (2) of such subsection''.

SEC. 722. LIMITATION ON TOTAL PAYMENTS.

    Section 726(b) of the National Defense Authorization Act for Fiscal
Year 1997 (Public Law 104-201, 10 U.S.C. 1073 note) is amended by
adding at the end the following new sentence: ``In establishing the
ceiling rate for enrollees with the designated providers who are also
eligible for the Civilian Health and Medical Program of the Uniformed
Services, the Secretary of Defense shall take into account the health
status of the enrollees.''.

SEC. 723. CONTINUED ACQUISITION OF REDUCED-COST DRUGS.

    Section 722 of the National Defense Authorization Act for Fiscal
Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) is amended by
adding at the end the following new subsection:
    ``(g) Continued Acquisition of Reduced-Cost Drugs.--A designated
provider shall be treated as part of the Department of Defense for
purposes of section 8126 of title 38, United States Code, in connection
with the provision by the designated provider of health care services
to covered beneficiaries pursuant to the participation agreement of the
designated provider under section 718(c) of the National Defense
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 42 U.S.C.
248c note) or pursuant to the agreement entered into under subsection
(b).''.

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

SEC. 731. WAIVER OR REDUCTION OF COPAYMENTS UNDER OVERSEAS DENTAL
              PROGRAM.

    Section 1076a(h) of title 10, United States Code, is amended--
            (1) in the first sentence, by striking out ``Secretary''
        and inserting in lieu thereof ``Secretary of Defense''; and
            (2) by adding at the end the following new sentence: ``In
        the case of such an overseas dental plan, the Secretary may
        waive or reduce the copayments otherwise required by subsection
        (e) to the extent the Secretary determines appropriate for the
        effective and efficient operation of the plan.''.

SEC. 732. PREMIUM COLLECTION REQUIREMENTS FOR MEDICAL AND DENTAL
              INSURANCE PROGRAMS.

    (a) Selected Reserve Dental Insurance.--Paragraph (3) of section
1076b(b) of title 10, United States Code, is amended to read as
follows:
    ``(3) The Secretary of Defense shall establish procedures for the
collection of the member's share of the premium for coverage by the
dental insurance plan. Not later than October 1, 1998, the Secretary
shall permit a member to pay the member's share of the premium through
a deduction and withholding from basic pay payable to the member for
inactive duty training or basic pay payable to the member for active
duty.''.
    (b) Retiree Dental Insurance Plan.--Paragraph (2) of section
1076c(c) of such title is amended to read as follows:
    ``(2) In the regulations prescribed under subsection (h), the
Secretary of Defense shall establish procedures for the payment by
enrolled members and by other enrolled covered beneficiaries of
premiums charged for coverage by the dental insurance plan. Not later
than October 1, 1998, the Secretary shall permit a member enrolled in
the plan and entitled to retired pay to pay the member's share of the
premium through a deduction and withholding from the retired pay of the
member.''.
    (c) Implementation Plan.--Not later than March 1, 1998, the
Secretary of Defense shall submit to Congress a plan to permit, not
later than October 1, 1998--
            (1) an enrollee in the Selected Reserve dental insurance
        plan authorized under section 1076b of title 10, United States
        Code, to pay the enrollee's share of the premium for such
        insurance through a deduction and withholding from basic pay
        payable to the enrollee;
            (2) a retired member of the uniformed services enrolled in
        the dental insurance plan authorized under section 1076c of
        such title to pay the enrollee's share of the premium for such
        insurance through a deduction and withholding from retired pay
        payable to the enrollee; and
            (3) a retired member of the uniformed services enrolled in
        the managed care option of the TRICARE program known as TRICARE
        Prime to pay the enrollee's share of the premium for such
        option through a deduction and withholding from retired pay
        payable to the enrollee.

SEC. 733. CONSISTENCY BETWEEN CHAMPUS AND MEDICARE IN PAYMENT RATES FOR
              SERVICES.

    (a) Conformity Between Rates.--Section 1079(h) of title 10, United
States Code, is amended by striking out paragraphs (1), (2), and (3)
and inserting in lieu thereof the following new paragraph:
    ``(1) Except as provided in paragraphs (2) and (3), payment for a
charge for services by an individual health care professional (or other
noninstitutional health care provider) for which a claim is submitted
under a plan contracted for under subsection (a) shall be equal to an
amount determined to be appropriate, to the extent practicable, in
accordance with the same reimbursement rules as apply to payments for
similar services under title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.). The Secretary of Defense shall determine the
appropriate payment amount under this paragraph in consultation with
the other administering Secretaries.''.
    (b) Reduced Rates Authorized.--Paragraph (5) of such section is
amended by adding at the end the following new sentence: ``With the
consent of the health care provider, the Secretary is also authorized
to reduce the authorized payment for certain health care services below
the amount otherwise required by the payment limitations under
paragraph (1).''.
    (c) Conforming Amendments.--Such section is further amended--
            (1) in paragraph (5), by striking out ``paragraph (4), the
        Secretary'' and inserting in lieu thereof ``paragraph (2), the
        Secretary of Defense''; and
            (2) by redesignating paragraphs (4), (5), and (6) as
        paragraphs (2), (3), and (4), respectively.

SEC. 734. USE OF PERSONAL SERVICES CONTRACTS FOR PROVISION OF HEALTH
              CARE SERVICES AND LEGAL PROTECTION FOR PROVIDERS.

    (a) Use of Contracts Outside Medical Treatment Facilities.--Section
1091(a) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``The Secretary of
        Defense''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Secretary of Defense may also enter into personal
services contracts to carry out other health care responsibilities of
the Secretary, such as the provision of medical screening examinations
at Military Entrance Processing Stations, at locations outside medical
treatment facilities, as determined necessary pursuant to regulations
issued by the Secretary.''.
    (b) Defense of Suits.--Section 1089 of such title is amended--
            (1) in subsection (a), by adding at the end the following
        new sentence: ``This subsection shall also apply if the
        physician, dentist, nurse, pharmacist, or paramedical or other
        supporting personnel (or the estate of such person) involved is
        serving under a personal services contract entered into by the
        Secretary of Defense under section 1091 of this title.''; and
            (2) in subsection (f)--
                    (A) by inserting ``(1)'' after ``(f)''; and
                    (B) by adding at the end the following new
                paragraph:
    ``(2) With respect to the Secretary of Defense and the Armed Forces
Retirement Home Board, the authority provided by paragraph (1) also
includes the authority to provide for reasonable attorney's fees for
persons described in subsection (a), as determined necessary pursuant
to regulations issued by the head of the agency concerned.''.

SEC. 735. PORTABILITY OF STATE LICENSES FOR DEPARTMENT OF DEFENSE
              HEALTH CARE PROFESSIONALS.

    Section 1094 of title 10, United States Code, is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new
        subsection:
    ``(d)(1) Notwithstanding any law regarding the licensure of health
care providers, a health-care professional described in paragraph (2)
may practice the health profession or professions of the health-care
professional in any State, the District of Columbia, or a Commonwealth,
territory, or possession of the United States, regardless of whether
the practice occurs in a health care facility of the Department of
Defense, a civilian facility affiliated with the Department of Defense,
or any other location authorized by the Secretary of Defense .
    ``(2) A health-care professional referred to in paragraph (1) is a
member of the armed forces who--
            ``(A) has a current license to practice medicine,
        osteopathic medicine, dentistry, or another health profession;
        and
            ``(B) is performing authorized duties for the Department of
        Defense.''.

SEC. 736. STANDARD FORM AND REQUIREMENTS REGARDING CLAIMS FOR PAYMENT
              FOR SERVICES.

    (a) Clarification of Existing Requirements.--Section 1106 of title
10, United States Code, is amended to read as follows:
``Sec. 1106. Submittal of claims: standard form; time limits
    ``(a) Standard Form.--The Secretary of Defense, after consultation
with the other administering Secretaries, shall prescribe by regulation
a standard form for the submission of claims for the payment of health
care services provided under this chapter.
    ``(b) Time for Submission.--A claim for payment for services shall
be submitted as provided in such regulations not later than one year
after the services are provided.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
chapter 55 of title 10, United States Code, is amended by striking out
the item relating to section 1106 and inserting in lieu thereof the
following new item:

``1106. Submittal of claims: standard form; time limits.''.

SEC. 737. MEDICAL PERSONNEL CONSCIENCE CLAUSE.

    (a) Secretary of Defense Policy.--The Secretary of Defense shall
establish a uniform policy for the Army, Navy, and Air Force
establishing the circumstances under which covered members (as defined
in subsection (d)) of the Army, Navy, and Air Force may refuse, based
on conscience, to perform an abortion (or participate in the
performance of an abortion) or provide a covered family planning
service (or participate in the provision of such a service).
    (b) Conscience Clause.--(1) The policy established under subsection
(a) shall provide that a member of the Army, Navy, or Air Force who is
a covered member may not be required to perform an abortion (or
participate in the performance of an abortion), or to provide a covered
family planning service (or participate in the provision of such a
service), if the member believes that to do so would be wrong on moral,
ethical or religious grounds.
    (2) Paragraph (1) does not apply in a case in which refusal to
perform an abortion (or participate in the performance of an abortion)
or provide a covered family planning service would pose a life-
threatening risk to the patient.
    (c) Covered Family Planning Services.--For the purposes of this
section, a covered family planning service is any of the following:
            (1) Contraceptive services, not limited to the prescription
        or provision of a pharmaceutical preparation, device, or
        chemical method.
            (2) Surgical sterilization.
    (d) Covered Member.--In this section, the term ``covered member''
means a member of the Army, Navy, or Air Force who--
            (1) in the case of the Army, is a member of the Medical
        Corps, Dental Corps, Nurse Corps, Medical Service Corps,
        Veterinary Corps, or Army Medical Specialist Corps or is an
        enlisted member directly engaged in or directly supporting
        medically related activities;
            (2) in the case of the Navy, is a member of the Medical
        Corps, Dental Corps, Nurse Corps, or Medical Service Corps or
        is an enlisted member directly engaged in or directly
        supporting medically related activities; and
            (3) in the case of the Air Force, is designated as a
        medical officer, dental officer, Air Force nurse, medical
        service officer, or biomedical science officer or is an
        enlisted member directly engaged in or directly supporting
        medically related activities.
    (e) Effective Date.--The policy established pursuant to subsection
(a) shall apply with respect to any refusal on or after the date of the
enactment of this Act to perform an abortion (or participate in the
performance of an abortion) or to provide a covered family planning
service.

                       Subtitle E--Other Matters

SEC. 741. CONTINUED ADMISSION OF CIVILIANS AS STUDENTS IN PHYSICIAN
              ASSISTANT TRAINING PROGRAM OF ARMY MEDICAL DEPARTMENT.

    (a) Civilian Attendance.--(1) Chapter 407 of title 10, United
States Code, is amended by adding at the end the following new section:
``Sec. 4416. Academy of Health Sciences: admission of civilians in
              physician assistant training program
    ``(a) Reciprocal Agreements With Colleges.--The Secretary of the
Army may enter into an agreement with an accredited institution of
higher education under which students of the institution may attend the
physician assistant training program conducted by the Army Medical
Department at the Academy of Health Sciences at Fort Sam Houston,
Texas, during the didactic portion of the program. In exchange for the
admission of such students, the institution of higher education shall
agree to provide such academic services as the Secretary and the
institution consider to be appropriate to support the physician
assistant training program at the Academy. The Secretary shall ensure
that the Army Medical Department does not incur any additional costs as
a result of the agreement than the Department would incur to obtain
such academic services in the absence of the agreement.
    ``(b) Selection of Students.--The attendance of civilian students
at the Academy pursuant to an agreement under subsection (a) may not
result in a decrease in the number of members of the armed forces
enrolled in the physician assistant training program. In consultation
with the institution of higher education that is a party to the
agreement, the Secretary shall establish qualifications and methods of
selection for students to receive instruction at the Academy. The
qualifications established shall be comparable to those generally
required for admission to the physician assistant training program at
the Academy.
    ``(c) Rules of Attendance.--Except as the Secretary determines
necessary, a civilian student who receives instruction at the Academy
pursuant to an agreement entered into under subsection (a) shall be
subject to the same regulations governing attendance, discipline,
discharge, and dismissal as apply to other persons attending the
Academy.
    ``(d) Report.--For each year in which an agreement under subsection
(a) is in effect, the Secretary shall submit to Congress a report
specifying the number of civilian students who received instruction at
the Academy under the agreement during the period covered by the report
and accessing the benefits to the United States of the agreement.
    ``(e) Academy Defined.--In this section, the term `Academy' means
the Academy of Health Sciences of the Army Medical Department at Fort
Sam Houston, Texas.''.
    (2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``4416. Academy of Health Sciences: admission of civilians in physician
                            assistant training program.''.
    (b) Effect on Existing Demonstration Program.--An agreement entered
into under the demonstration program for the admission of civilians as
physician assistant students at the Academy of Health Sciences, Fort
Sam Houston, Texas, established pursuant to section 732 of the National
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108
Stat. 2810) shall be treated as an agreement entered into under section
4416 of title 10, United States Code (as added by subsection (a)). The
agreement may be extended in such manner and for such period as the
parties to the agreement consider appropriate consistent with such
section 4416.

SEC. 742. EMERGENCY HEALTH CARE IN CONNECTION WITH OVERSEAS ACTIVITIES
              OF ON-SITE INSPECTION AGENCY OF DEPARTMENT OF DEFENSE.

    (a) Payment of Expenses for Emergency Health Care.--Chapter 152 of
title 10, United States Code, is amended by inserting after section
2549 the following new section:
``Sec. 2549a. Emergency health care: overseas activities of On-Site
              Inspection Agency
    ``(a) Authority to Pay Expenses.--From funds appropriated for the
necessary expenses of the On-Site Inspection Agency of the Department
of Defense, the Secretary of Defense may pay or reimburse an employee
of the Agency, a member of the uniformed services or a civilian
employee assigned or detailed to the Agency, or an employee of a
contractor operating under a contract with the Agency, for emergency
health care services obtained by the employee, member, or contractor
employee while permanently or temporarily on duty in a state of the
former Soviet Union or the former Warsaw Pact.
    ``(b) Initial Deposits.--The expenses for emergency health care
that may be paid or reimbursed under subsection (a) include initial
deposits for emergency care and inpatient care.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
2549 the following new item:

``2549a. Emergency health care: overseas activities of On-Site
                            Inspection Agency.''.

SEC. 743. COMPTROLLER GENERAL STUDY OF ADEQUACY AND EFFECT OF MAXIMUM
              ALLOWABLE CHARGES FOR PHYSICIANS UNDER CHAMPUS.

    (a) Study Required.--The Comptroller General shall conduct a study
regarding the adequacy of the maximum allowable charges for physicians
established under the Civilian Health and Medical Program of the
Uniformed Services (CHAMPUS) and the effect of such charges on the
participation of physicians in CHAMPUS. The study shall include an
evaluation of the following:
            (1) The methodology used by the Secretary of Defense to
        establish maximum allowable charges for physicians under
        CHAMPUS, and whether such methodology conforms to the
        requirements of section 1079(h) of title 10, United States
        Code.
            (2) The differences between the established charges under
        CHAMPUS and reimbursement rates for similar services under
        title XVIII of the Social Security Act and other health care
        programs.
            (3) The basis for physician complaints that the CHAMPUS
        established charges are too low.
            (4) The difficultly of CHAMPUS in ensuring physician
        compliance with the CHAMPUS established charges in the absence
        of legal mechanisms to enforce compliance, and the effect of
        noncompliance on patient out-of-pocket expenses.
            (5) The effect of the established charges under CHAMPUS on
        the participation of physicians in CHAMPUS, and the extent and
        success of Department of Defense efforts to increase physician
        participation in areas with low participation rates.
    (b) Submission of Report.--Not later than March 1, 1998, the
Comptroller General shall submit to Congress a report containing the
results of the study required by subsection (a).

SEC. 744. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE PHARMACY
              PROGRAMS.

    Not later than March 31, 1998, the Comptroller General shall submit
to Congress a study evaluating the pharmacy programs of the Department
of Defense. The study shall include an examination of the following:
            (1) The merits and feasibility of establishing a uniform
        formulary for military treatment facility pharmacies and
        civilian contractor pharmacy benefit administrators.
            (2) The extent of, and cost impacts from, military
        treatment facility pharmacies denying covered beneficiaries
        under chapter 55 of title 10, United States Code, pharmacy care
        access and shifting such beneficiaries to other sources of
        pharmacy care.
            (3) The merits and feasibility of implementing other
        pharmacy benefit management best practices at military
        treatment facility and civilian contractor pharmacies.
            (4) The cost impacts of TRICARE program contractors being
        unable to procure pharmaceuticals at discounted prices pursuant
        to section 8126 of title 38, United States Code, and potential
        ways to increase the discounts available to TRICARE program
        contractors, with appropriate controls.

SEC. 745. COMPTROLLER GENERAL STUDY OF NAVY GRADUATE MEDICAL EDUCATION
              PROGRAM.

    (a) Study Required.--The Comptroller General shall conduct a study
to evaluate the validity of the recommendations made by the Medical
Education Policy Council of the Bureau of Medicine and Surgery of the
Navy regarding restructuring the graduate medical education program of
the Department of the Navy. The study shall specifically address the
Council's recommendations relating to residency training conducted at
Naval Medical Center, Portsmouth, Virginia, and National Naval Medical
Center, Bethesda, Maryland.
    (b) Submission of Report.--Not later than March 1, 1998, the
Comptroller General shall submit to Congress and the Secretary of the
Navy a report containing the results of the study required by
subsection (a).
    (c) Moratorium on Restructuring.--Until the report required by
subsection (b) is submitted to Congress, the Secretary of the Navy may
not make any change in the types of residency programs conducted under
the Navy graduate medical education program or the locations at which
such residency programs are conducted or otherwise restructure the Navy
graduate medical education program.

SEC. 746. STUDY OF EXPANSION OF PHARMACEUTICALS BY MAIL PROGRAM TO
              INCLUDE ADDITIONAL MEDICARE-ELIGIBLE COVERED
              BENEFICIARIES.

    Not later than six months after the date of the enactment of this
Act, the Secretary of Defense shall submit to Congress a report
regarding the feasibility and advisability of expanding the category of
persons eligible to participate in the demonstration project for the
purchase of prescription pharmaceuticals by mail, as required by
section 702(a) of the National Defense Authorization Act for Fiscal
Year 1993 (Public Law 102-484; 10 U.S.C. 1079 note), to include persons
referred to in section 1086(c) of title 10, United States Code, who are
covered by subsection (d)(1) of such section and reside in the United
States outside of the catchment area of a medical treatment facility of
the uniformed services.

SEC. 747. COMPTROLLER GENERAL STUDY OF REQUIREMENT FOR MILITARY MEDICAL
              FACILITIES IN NATIONAL CAPITAL REGION.

    (a) Study Required.--The Comptroller General shall conduct a study
to evaluate the requirement for Army, Navy, and Air Force medical
facilities in the National Capital Region (as defined in section
2674(f)(2) of title 10, United States Code). The study shall--
            (1) specifically address requirements with respect to
        geography, facilities, integrated residencies, and medical
        environments; and
            (2) provide specific recommendations with respect to how
        medical and health care provided by these facilities may be
        better coordinated to more efficiently serve, throughout the
        National Capital Region, members of the Armed Forces on active
        duty and covered beneficiaries under chapter 55 of title 10,
        United States Code.
    (b) Submission of Report.--Not later than six months after the date
of the enactment of this Act, the Comptroller General shall submit to
Congress and the Secretary of Defense a report containing the results
of the study required by subsection (a).

                    Subtitle F--Persian Gulf Illness

SEC. 751. DEFINITIONS.

    For purposes of this subtitle:
            (1) The term ``Gulf War illness'' means any one of the
        complex of illnesses and symptoms that might have been
        contracted by members of the Armed Forces as a result of
        service in the Southwest Asia theater of operations during the
        Persian Gulf War.
            (2) The term ``Persian Gulf War'' has the meaning given
        that term in section 101 of title 38, United States Code.
            (3) The term ``Persian Gulf veteran'' means an individual
        who served on active duty in the Armed Forces in the Southwest
        Asia theater of operations during the Persian Gulf War.
            (4) The term ``contingency operation'' has the meaning
        given that term in section 101(a) of title 10, United States
        Code, and includes a humanitarian operation, peacekeeping
        operation, or similar operation.

SEC. 752. PLAN FOR HEALTH CARE SERVICES FOR PERSIAN GULF VETERANS.

    (a) Plan Required.--The Secretary of Defense and the Secretary of
Veterans Affairs, acting jointly, shall prepare a plan to provide
appropriate health care to Persian Gulf veterans (and their dependents)
who suffer from a Gulf War illness.
    (b) Contents of Plan.--In preparing the plan, the Secretaries
shall--
            (1) use the presumptions of service connection and illness
        specified in paragraphs (1) and (2) of section 721(d) of the
        National Defense Authorization Act for Fiscal Year 1995 (Public
        Law 103-337; 10 U.S.C. 1074 note) to determine the Persian Gulf
        veterans (and the dependents of Persian Gulf veterans) who
        should be covered by the plan;
            (2) consider the need and methods available to provide
        health care services to Persian Gulf veterans who are no longer
        on active duty in the Armed Forces, such as Persian Gulf
        veterans who are members of the reserve components and Persian
        Gulf veterans who have been separated from the Armed Forces;
        and
            (3) estimate the costs to the Government to provide full or
        partial health care services under the plan to covered Persian
        Gulf veterans (and their covered dependents).
    (c) Follow-up Treatment.--The plan required by subsection (a) shall
specifically address the measures to be used to monitor the quality,
appropriateness, and effectiveness of, and patient satisfaction with,
health care services provided to Persian Gulf veterans after their
initial medical examination as part of registration in the Persian Gulf
War Veterans Health Registry or the Comprehensive Clinical Evaluation
Program.
    (d) Submission of Plan.--Not later than March 1, 1998, the
Secretaries shall submit to Congress the plan required by subsection
(a).

SEC. 753. COMPTROLLER GENERAL STUDY OF REVISED DISABILITY CRITERIA FOR
              PHYSICAL EVALUATION BOARDS.

    Not later than March 1, 1998, the Comptroller General shall submit
to Congress a study evaluating the revisions made by the Secretary of
Defense to the criteria used by Physical Evaluation Boards to set
disability ratings for members of the Armed Forces who are no longer
medically qualified for continuation on active duty so as to ensure
accurate disability ratings related to a diagnosis of a Persian Gulf
illness. Such revisions were required by section 721(e) of the National
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10
U.S.C. 1074 note).

SEC. 754. IMPROVED MEDICAL TRACKING SYSTEM FOR MEMBERS DEPLOYED
              OVERSEAS IN CONTINGENCY OR COMBAT OPERATIONS.

    (a) System Required.--Chapter 55 of title 10, United States Code,
is amended by inserting after section 1074d the following new section:
``Sec. 1074e: Medical tracking system for members deployed overseas
    ``(a) System Required.--The Secretary of Defense shall establish a
system to assess the medical condition of members of the armed forces
(including members of the reserve components) who are deployed outside
the United States or its territories or possessions as part of a
contingency operation (including a humanitarian operation, peacekeeping
operation, or similar operation) or combat operation.
    ``(b) Elements of System.--The system shall include the use of
predeployment medical examinations and postdeployment medical
examinations (including an assessment of mental health and the drawing
of blood samples) to accurately record the medical condition of members
before their deployment and any changes in their medical condition
during the course of their deployment. The postdeployment examination
shall be conducted when the member is redeployed or otherwise leaves an
area in which the system is in operation (or as soon as possible
thereafter).
    ``(c) Recordkeeping.--The results of all medical examinations
conducted under the system, records of all health care services
(including immunizations) received by members described in subsection
(a) in anticipation of their deployment or during the course of their
deployment, and records of events occurring in the deployment area that
may affect the health of such members shall be retained and maintained
in a centralized location to improve future access to the records.
    ``(d) Quality Assurance.--The Secretary of Defense shall establish
a quality assurance program to evaluate the success of the system in
ensuring that members described in subsection (a) receive predeployment
medical examinations and postdeployment medical examinations and that
the recordkeeping requirements are met.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
1074d the following new item:

``1074e: Medical tracking system for members deployed overseas.''.

SEC. 755. REPORT ON PLANS TO TRACK LOCATION OF MEMBERS IN A THEATER OF
              OPERATIONS.

    Not later than March 1, 1998, the Secretary of Defense shall submit
to Congress a report containing a plan for collecting and maintaining
information regarding the daily location of units of the Armed Forces,
and to the extent practicable individual members of such units, serving
in a theater of operations during a contingency operation or combat
operation.

SEC. 756. REPORT ON PLANS TO IMPROVE DETECTION AND MONITORING OF
              CHEMICAL, BIOLOGICAL, AND SIMILAR HAZARDS IN A THEATER OF
              OPERATIONS.

    Not later than March 1, 1998, the Secretary of Defense shall submit
to Congress a report containing a plan regarding the deployment, in a
theater of operations during a contingency operation or combat
operation, of a specialized unit of the Armed Forces with the
capability and expertise to detect and monitor the presence of
chemical, biological, and similar hazards to which members of the Armed
Forces may be exposed.

SEC. 757. NOTICE OF USE OF INVESTIGATIONAL NEW DRUGS.

    (a) Notice Requirements.--Chapter 55 of title 10, United States
Code, is amended by adding at the end the following new section:
``Sec. 1107. Notice of use of investigational new drugs
    ``(a) Notice Required.--(1) Whenever the Secretary of Defense
requests or requires a member of the armed forces to receive an
investigational new drug, the Secretary shall provide the member with
notice containing the information specified in subsection (d).
    ``(2) The Secretary shall also ensure that medical providers who
administer an investigational new drug or who are likely to treat
members who receive an investigational new drug receive the information
required to be provided under paragraphs (3) and (4) of subsection (d).
    ``(b) Time for Notice.--The notice required to be provided to a
member under subsection (a)(1) shall be provided before the
investigational new drug is first administered to the member, if
practicable, but in no case later than 30 days after the
investigational new drug is first administered to the member.
    ``(c) Form of Notice.--The notice required under subsection (a)(1)
shall be provided in writing unless the Secretary of Defense determines
that the use of written notice is impractical because of the number of
members receiving the investigational new drug, time constraints, or
similar reasons. If the Secretary provides notice under subsection
(a)(1) in a form other than in writing, the Secretary shall submit to
Congress a report describing the notification method used and the
reasons for the use of the alternative method.
    ``(d) Content of Notice.--The notice required under subsection
(a)(1) shall include the following:
            ``(1) Clear notice that drug being administered is an
        investigational new drug.
            ``(2) The reasons why the investigational new drug is being
        administered.
            ``(3) Information regarding the possible side effects of
        the investigational new drug, including any known side effects
        possible as a result of the interaction of the investigational
        new drug with other drugs or treatments being administered to
        the members receiving the investigational new drug.
            ``(4) Such other information that, as a condition of
        authorizing the use of the investigational new drug, the
        Secretary of Health and Human Services may require to be
        disclosed.
    ``(e) Records of Use.--The Secretary of Defense shall ensure that
the medical records of members accurately document the receipt by
members of any investigational new drug and the notice required by
subsection (d).
    ``(f) Definition.--In this section, the term `investigational new
drug' means a drug covered by section 505(i) of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 355(i)).''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``1107. Notice of use of investigational new drugs.''.

SEC. 758. REPORT ON EFFECTIVENESS OF RESEARCH EFFORTS REGARDING GULF
              WAR ILLNESSES.

    Not later than March 1, 1998, the Secretary of Defense shall submit
to Congress a report evaluating the effectiveness of medical research
initiatives regarding Gulf War illnesses. The report shall address the
following:
            (1) The type and effectiveness of previous research
        efforts, including the activities undertaken pursuant to
        section 743 of the National Defense Authorization Act for
        Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 1074 note),
        section 722 of the National Defense Authorization Act for
        Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 1074 note), and
        sections 270 and 271 of the National Defense Authorization Act
        for Fiscal Year 1994 (Public Law 103-160; 110 Stat. 1613).
            (2) Recommendations regarding additional research regarding
        Gulf War illnesses, including research regarding the nature and
        causes of Gulf War illnesses and appropriate treatments for
        such illnesses.
            (3) The adequacy of Federal funding and the need for
        additional funding for medical research initiatives regarding
        Gulf War illnesses.

SEC. 759. PERSIAN GULF ILLNESS CLINICAL TRIALS PROGRAM.

    (a) Findings.--Congress finds the following:
            (1) There are many ongoing studies that investigate risk
        factors which may be associated with the health problems
        experienced by Persian Gulf veterans; however, there have been
        no studies which examine health outcomes and the effectiveness
        of the treatment received by such veterans.
            (2) The medical literature and testimony presented in
        hearings on Gulf War illnesses indicate there are therapies,
        such as cognitive behavioral therapy, which have been effective
        in treating patients with symptoms similar to those seen in
        many Persian Gulf veterans.
    (b) Establishment of Program.--The Secretary of Defense and the
Secretary of Veterans Affairs, acting jointly, shall establish a
program of cooperative clinical trials at multiple sites to assess the
effectiveness of protocols for treating Persian Gulf veterans who
suffer from ill-defined or undiagnosed conditions. Such protocols shall
include a multidisciplinary treatment model, of which cognitive
behavioral therapy is a component.
    (c) Funding.--Of the funds authorized to be appropriated in section
201(1) for research, development, test, and evaluation for the Army,
the sum of $4,500,000 shall be available for program element 62787A
(medical technology) in the budget of the Department of Defense for
fiscal year 1998 to carry out the clinical trials program established
pursuant to subsection (b).

SEC. 760. SENSE OF THE CONGRESS CONCERNING GULF WAR ILLNESS.

    (a) Findings.--Congress makes the following findings:
            (1) Americans served in the Persian Gulf Conflict of 1991
        in defense of vital national security interests of the United
        States.
            (2) It was known to United States intelligence and military
        commanders that biological and chemical agents were in theater
        throughout the conflict.
            (3) An undetermined amount of these agents were released
        into theater.
            (4) A large number of United States military veterans and
        allied veterans who served in the Southwest Asia theater of
        operations have been stricken with a variety of severe
        illnesses.
            (5) Previous efforts to discern the causes of those
        illnesses have been inadequate, and those illnesses are
        affecting the health of both veterans and their families.
    (b) Sense of Congress.--It is the sense of Congress that all
promising technology and treatments relating to Gulf War illnesses
should be fully explored and tested to facilitate treatment for members
of the Armed Forces and veterans who served the United States in the
Persian Gulf conflict and are stricken with unexplainable illness.

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

                     Subtitle A--Acquisition Policy

SEC. 801. CASE-BY-CASE WAIVERS OF DOMESTIC SOURCE LIMITATIONS.

    (a) Requirement for Case-by-Case Waivers.--Section 2534(d) of title
10, United States Code, is amended in the matter appearing before
paragraph (1) by striking out ``waive the limitation in subsection (a)
with respect to the procurement of an item listed in that subsection if
the Secretary determines'' and inserting in lieu thereof the following:
``waive, on a case-by-case basis, the limitation in subsection (a) in
the case of a specific procurement of an item listed in that subsection
if the Secretary determines, for that specific procurement,''.
    (b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to contracts entered into after the expiration of
the 30-day period beginning on the date of the enactment of this Act.

SEC. 802. EXPANSION OF AUTHORITY TO ENTER INTO CONTRACTS CROSSING
              FISCAL YEARS TO ALL SEVERABLE SERVICES CONTRACTS NOT
              EXCEEDING A YEAR.

    (a) Expanded Authority.--Section 2410a of title 10, United States
Code, is amended to read as follows:
``Sec. 2410a. Severable services contracts for periods crossing fiscal
              years
    ``(a) Authority.--The Secretary of Defense or the Secretary of a
military department may enter into a contract for procurement of
severable services for a period that begins in one fiscal year and ends
in the next fiscal year if (without regard to any option to extend the
period of the contract) the contract period does not exceed one year.
    ``(b) Obligation of Funds.--Funds made available for a fiscal year
may be obligated for the total amount of a contract entered into under
the authority of subsection (a).''.
    (b) Clerical Amendment.--The item relating to that section in the
table of sections at the beginning of chapter 141 of such title is
amended to read as follows:

``2410a. Severable services contracts for periods crossing fiscal
                            years.''.

SEC. 803. CLARIFICATION OF VESTING OF TITLE UNDER CONTRACTS.

    Section 2307 of title 10, United States Code, is amended by adding
at the end the following new subsection:
    ``(i) Vesting of Title.--If a contract made by the head of an
agency provides for title to property to vest in the United States,
such title shall vest in accordance with the terms of the contract,
regardless of any security interest in the property asserted by the
contractor.''.

SEC. 804. EXCLUSION OF DISASTER RELIEF, HUMANITARIAN, AND PEACEKEEPING
              OPERATIONS FROM RESTRICTIONS ON USE OF UNDEFINITIZED
              CONTRACT ACTIONS.

    Section 2326 of title 10, United States Code, is amended--
            (1) in subsection (b)--
                    (A) by striking out paragraph (4); and
                    (B) by redesignating paragraph (5) as paragraph
                (4); and
            (2) in subsection (g)(1), by adding at the end the
        following new subparagraphs:
                    ``(E) Purchases in support of contingency
                operations.
                    ``(F) Purchases in support of humanitarian or
                peacekeeping operations, as defined in 2302(7)(B) of
                this title.
                    ``(G) Purchases in support of emergency work and
                other disaster relief operations performed pursuant to
                the Robert T. Stafford Disaster Relief and Emergency
                Assistance Act (42 U.S.C. 5121 et seq.).''.

SEC. 805. LIMITATION AND REPORT ON PAYMENT OF RESTRUCTURING COSTS UNDER
              DEFENSE CONTRACTS.

    (a) In General.--(1) Chapter 137 of title 10, United States Code,
is amended by inserting after section 2324 the following new section:
``Sec. 2325. Restructuring costs
    ``(a) Limitation on Payment of Restructuring Costs.--(1) The
Secretary of Defense may not pay, under section 2324 of this title, a
defense contractor for restructuring costs associated with a business
combination of the contractor unless the Secretary determines in
writing either--
            ``(A) that the amount of savings for the Department of
        Defense associated with the restructuring, based on audited
        cost data, will be at least twice the amount of the costs
        allowed; or
            ``(B) that the amount of savings for the Department of
        Defense associated with the restructuring, based on audited
        cost data, will exceed the amount of the costs allowed and that
        the business combination will result in the preservation of a
        critical capability that otherwise might be lost to the
        Department.
    ``(2) The Secretary may not delegate the authority to make a
determination under paragraph (1) to an official of the Department of
Defense below the level of an Assistant Secretary of Defense.
    ``(b) Report.--Not later than March 1 in each of 1998, 1999, 2000,
2001, and 2002, the Secretary of Defense shall submit to Congress a
report containing the following:
            ``(1) For each defense contractor to which the Secretary
        has paid, under section 2324 of this title, restructuring costs
        associated with a business combination, a summary of the
        following:
                    ``(A) The amount of savings for the Department of
                Defense associated with such business combination that
                has been realized as of the date of the report, based
                on audited cost data.
                    ``(B) An estimate, as of the date of the report, of
                the amount of savings for the Department of Defense
                associated with such business combination that is
                expected to be achieved in the future.
            ``(2) An identification of any business combination for
        which the Secretary has paid restructuring costs under section
        2324 of this title during the preceding calendar year and, for
        each such business combination--
                    ``(A) the supporting rationale for allowing such
                costs;
                    ``(B) factual information associated with the
                determination made under subsection (a) with respect to
                such costs; and
                    ``(C) a discussion of whether the business
                combination would have proceeded without the payment of
                restructuring costs by the Secretary.
            ``(3) An assessment of the degree of vertical integration
        resulting from business combinations of defense contractors and
        a discussion of the measures taken by the Secretary of Defense
        to increase the ability of the Department of Defense to monitor
        vertical integration trends and address any resulting negative
        consequences.
    ``(c) Definition.--In this section, the term `business combination'
includes a merger or acquisition.''.
    (2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 2324 the
following new item:

``2325. Restructuring costs.''.
    (b) Effective Date.--Section 2325 of title 10, United States Code,
as added by subsection (a), shall apply with respect to business
combinations that occur after the date of the enactment of this Act.
    (c) Repeal of Superseded Provision.--Subsection (a) of section 818
of the National Defense Authorization Act for Fiscal Year 1995 (10
U.S.C. 2324 note) is repealed.

SEC. 806. AUTHORITY RELATING TO PURCHASE OF CERTAIN VEHICLES.

    Section 2253(a)(2) of title 10, United States Code, is amended by
striking out ``$12,000'' and inserting in lieu thereof ``$30,000''.

SEC. 807. MULTIYEAR PROCUREMENT CONTRACTS.

    (a) Requirement for Authorization by Law in Acts Other Than
Appropriations Acts.--(1) Subsection (i) of section 2306b of title 10,
United States Code, is amended by adding at the end the following new
paragraph:
    ``(3) In the case of the Department of Defense, a multiyear
contract may not be entered into for any fiscal year under this section
unless the contract is specifically authorized by law in an Act other
than an appropriations Act.''.
    (2) Paragraph (3) of section 2306b(i) of title 10, United States
Code, as added by paragraph (1), shall not apply with respect to a
contract authorized by law before the date of the enactment of this
Act.
    (b) Codification of Annual Recurring Multiyear Procurement
Requirements.--(1) Such section is further amended by adding at the end
the following new subsection:
    ``(l) Various Additional Requirements With Respect to Multiyear
Defense Contracts.--(1)(A) The head of an agency may not initiate a
contract described in subparagraph (B) unless the congressional defense
committees are notified of the proposed contract at least 30 days in
advance of the award of the proposed contract.
    ``(B) Subparagraph (A) applies to the following contracts:
            ``(i) A multiyear contract--
                    ``(I) that employs economic order quantity
                procurement in excess of $20,000,000 in any one year of
                the contract; or
                    ``(II) that includes an unfunded contingent
                liability in excess of $20,000,000.
            ``(ii) Any contract for advance procurement leading to a
        multiyear contract that employs economic order quantity
        procurement in excess of $20,000,000 in any one year.
    ``(2) The head of an agency may not initiate a multiyear contract
for which the economic order quantity advance procurement is not funded
at least to the limits of the Government's liability.
    ``(3) The head of an agency may not initiate a multiyear
procurement contract for any system (or component thereof) if the value
of the multiyear contract would exceed $500,000,000 unless authority
for the contract is specifically provided in an appropriations Act.
    ``(4) The head of an agency may not terminate a multiyear
procurement contract until 10 days after the date on which notice of
the proposed termination is provided to the congressional defense
committees.
    ``(5) The execution of multiyear authority shall require the use of
a present value analysis to determine lowest cost compared to an annual
procurement.
    ``(6) This subsection does not apply to the National Aeronautics
and Space Administration or to the Coast Guard.
    ``(7) In this subsection, the term `congressional defense
committees' means the following:
            ``(A) The Committee on Armed Services of the Senate and the
        Subcommittee on Defense of the Committee on Appropriations of
        the Senate.
            ``(B) The Committee on National Security of the House of
        Representatives and the Subcommittee on National Security of
        the Committee on Appropriations of the House of
        Representatives.''.
    (2) The amendment made by paragraph (1) shall take effect on
October 1, 1998.
    (c) Technical and Conforming Amendments.--Such section is further
amended as follows:
            (1) Subsection (a) is amended--
                    (A) by striking out ``finds--'' in the matter
                preceding paragraph (1) and inserting in lieu thereof
                ``finds each of the following:'';
                    (B) by capitalizing the initial letter of the first
                word in each of paragraphs (1) through (6);
                    (C) by striking out the semicolon at the end of
                paragraphs (1) through (4) and inserting in lieu
                thereof a period; and
                    (D) by striking out ``; and'' at the end of
                paragraph (5) and inserting in lieu thereof a period.
            (2) Subsection (d)(1) is amended by striking out
        ``paragraph (1)'' and inserting in lieu thereof ``subsection
        (a)''.
            (3) Subsection (i)(1) is amended by striking ``five-year''
        and inserting in lieu thereof ``future-years''.
            (4) Subsection (k) is amended by striking out
        ``subsection'' and inserting in lieu thereof ``section''.

SEC. 808. DOMESTIC SOURCE LIMITATION AMENDMENTS.

    (a) Addition of Shipboard Work Stations.--Section 2534(a)(3)(B) of
title 10, United States Code, is amended--
            (1) by striking out ``and'' before ``totally''; and
            (2) by inserting before the period at the end the
        following: ``, and shipboard work stations''.
    (b) Extension of Domestic Source Limitation for Valves and Machine
Tools.--Section 2534(c)(2)(C) of such title is amended by striking out
``October 1, 1996'' and inserting in lieu thereof ``October 1, 2001''.

SEC. 809. REPEAL OF EXPIRATION OF DOMESTIC SOURCE LIMITATION FOR
              CERTAIN NAVAL VESSEL PROPELLERS.

    Section 2534(c) of title 10, United States Code, is amended by
striking out paragraph (4).

SEC. 810. AUDIT OF PROCUREMENT OF GOODS BY MILITARY INSTALLATIONS IN
              THE UNITED STATES.

    (a) Audit Requirement.--Not later than September 30, 1998, the
Inspector General of the Department of Defense shall perform a random
audit of the procurement of goods by military installations during
fiscal years 1996 and 1997 to determine the extent to which such
installations procured goods made in a country other than the United
States during those fiscal years.
    (b) Definition.--For purposes of this section, the term ``random
audit of the procurement of goods by military installations''--
            (1) means an audit of the procurement of goods (not
        including goods obtained from the Defense Logistics Agency) by
        not less than four and not more than twelve military
        installations in the United States;
            (2) shall include an audit of the procurement of goods by a
        military installation of each of the Army, Navy, Air Force, and
        Marine Corps.
    (c) Report.--Not later than October 31, 1998, the Inspector General
of the Department of Defense shall submit to Congress a report on the
results of the audit performed under subsection (a).

                       Subtitle B--Other Matters

SEC. 821. REPEAL OF CERTAIN ACQUISITION REQUIREMENTS AND REPORTS

    (a) Repeal of Reporting Requirement for Nonmajor Acquisition
Programs.--Section 2220(b) of title 10, United States Code, is amended
by striking out ``and nonmajor''.
    (b) Repeal of Additional Documentation Requirement for Competition
Exception for International Agreements.--Section 2304(f) of title 10,
United States Code, is amended in paragraph (2)(E) by striking out
``procedures and such document is approved by the competition advocate
for the procuring activity.'' and inserting in lieu thereof
``procedures.''.
    (c) Elimination of Completion Status Requirement in Certain
Selected Acquisition Reports.--Section 2432(h)(2) of title 10, United
States Code, is amended--
            (1) by striking out subparagraph (D); and
            (2) by redesignating subparagraphs (E) and (F) as
        subparagraphs (D) and (E), respectively.
    (d) Repeal of Requirement To Establish Procurement Competition
Goals.--Section 913 of the Department of Defense Authorization Act,
1986 (Public Law 99-145; 99 Stat. 687; 10 U.S.C. 2302 note), is
repealed.
    (e) Repeal of Annual Report by Advocates for Competition.--Section
20(b) of the Office of Federal Procurement Policy Act (41 U.S.C.
418(b)) is amended--
            (1) by striking out ``and'' at the end of paragraph (3)(B);
            (2) by striking out paragraph (4); and
            (3) by redesignating paragraphs (5), (6), and (7) as
        paragraphs (4), (5), and (6), respectively.
    (f) Repeal of Review and Report Relating to Procurement
Regulations.--Section 25 of the Office of Federal Procurement Policy
Act (41 U.S.C. 421) is amended--
            (1) by striking out paragraphs (4), (5), and (6) of
        subsection (c); and
            (2) by striking out subsection (g).

SEC. 822. EXTENSION OF AUTHORITY FOR USE OF TEST AND EVALUATION
              INSTALLATIONS BY COMMERCIAL ENTITIES.

    Section 2681(g) of title 10, United States Code, is amended by
striking out ``September 30, 1998'' and inserting in lieu thereof
``September 30, 2000''.

SEC. 823. REQUIREMENT TO DEVELOP AND MAINTAIN LIST OF FIRMS NOT
              ELIGIBLE FOR DEFENSE CONTRACTS.

    (a) Development and Maintenance of List.--Section 2327 of title 10,
United States Code, is amended--
            (1) by redesignating subsections (d) and (e) as subsections
        (e) and (f), respectively; and
            (2) by inserting after subsection (c) the following new
        subsection:
    ``(d) List of Firms Subject to Subsection (b).--(1) The Secretary
of Defense shall develop and maintain a list of all firms and
subsidiaries of firms that have been subject to the prohibition in
subsection (b) since the date occurring five years before the date of
the enactment of the National Defense Authorization Act for Fiscal Year
1998. The Secretary shall make the list available to the public.
    ``(2) A firm or subsidiary included on the list maintained under
paragraph (1) may request the Secretary of Defense to remove such firm
or subsidiary from the list if its foreign ownership circumstances have
significantly changed. Upon receipt of such request, the Secretary
shall determine if paragraphs (1) and (2) of subsection (b) still apply
to the firm or subsidiary. If the Secretary determines such paragraphs
no longer apply, the Secretary shall remove the firm or subsidiary from
the list.
    ``(3) The head of an agency shall provide a copy of the list
maintained under paragraph (1) to each firm or subsidiary of a firm
that submits a bid or proposal in response to a solicitation issued by
the Department of Defense.
    ``(4) The head of an agency shall prohibit each firm or subsidiary
of a firm awarded a contract by the agency from using in the
performance of the contract any equipment, parts, or services that are
provided by a firm or subsidiary included on the list maintained under
paragraph (1).''.
    (b) Removal From List.--Section 2327(c)(1)(A) of such title is
amended by inserting after ``United States,'' the following: ``the
Secretary shall remove the firm or subsidiary from the list maintained
under subsection (d)(1) and''.

SEC. 824. ALLOWABILITY OF COSTS OF EMPLOYEE STOCK OWNERSHIP PLANS.

    (a) Prohibition.--Under section 2324 of title 10, United States
Code, the Secretary of Defense may not determine the allowability of
costs of employee stock ownership plans under contracts with the
Department of Defense in accordance with the rule described in
subsection (b).
    (b) Rule.--The rule referred to in subsection (a) is the rule that
was--
            (1) proposed by the Civilian Agency Acquisition Council and
        the Defense Acquisition Regulations Council on November 7,
        1995, and referred to as FAR Case 92-024, Employee Stock
        Ownership Plans (60 Federal Register 56216); and
            (2) withdrawn by such Councils on April 3, 1996 (61 Federal
        Register 14944).

SEC. 825. EXPANSION OF PERSONNEL ELIGIBLE TO PARTICIPATE IN
              DEMONSTRATION PROJECT RELATING TO ACQUISITION WORKFORCE.

    (a) Amendment to Purpose of Project.--Section 4308(a) of the
National Defense Authorization Act for Fiscal Year 1996 (Public Law
104-106; 10 U.S.C. 1701 note) is amended by adding before the period at
the end the following: ``and supporting personnel assigned to work
directly with the acquisition workforce''.
    (b) Amendment to Eligible Workforce.--Section 4308(b)(3)(A) of such
Act is amended by inserting before the semicolon the following: ``or
involves a team of personnel more than half of which consists of
members of the acquisition workforce and the remainder of which
consists of supporting personnel assigned to work directly with the
acquisition workforce''.
    (c) Commencement of Project.--Section 4308(b)(3)(C) of such Act, as
redesignated by subsection (b)(2), is amended by striking out ``this
Act'' and inserting in lieu thereof ``the National Defense
Authorization Act for Fiscal Year 1998''.
    (d) Limitation on Number of Participants.--Section 4308 of such Act
is amended by adding at the end the following:
    ``(d) Limitation on Number of Participants.--The total number of
persons who may participate in the demonstration project under this
section may not exceed the number that is equal to the total number of
persons who are members of the acquisition workforce.''.

SEC. 826. 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; 41 U.S.C. 10b-3) is amended by striking
out ``120 days'' and inserting in lieu thereof ``60 days''.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

SEC. 901. LIMITATION ON OPERATION AND SUPPORT FUNDS FOR THE OFFICE OF
              THE SECRETARY OF DEFENSE.

    (a) Reduction in Funds.--The amount of funds appropriated pursuant
to section 301 that are available for operation and support activities
of the Office of the Secretary of Defense may not exceed the amount
equal to 80 percent of the amount of funds requested for such purpose
in the budget submitted by the President to Congress under section 1105
of title 31, United States Code, for fiscal year 1998.
    (b) Limitation Pending Receipt of Previously Required Reports.--Of
the amount available for fiscal year 1998 for operation and support
activities of the Office of the Secretary of Defense (as limited
pursuant to subsection (a)), not more than 90 percent may be obligated
until each of the following reports has been submitted to the
congressional defense committees:
            (1) The report required by section 901(c) of the National
        Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
        106; 110 Stat. 401).
            (2) The report required by section 904(b) of the National
        Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
        201; 110 Stat. 2619).

SEC. 902. COMPONENTS OF NATIONAL DEFENSE UNIVERSITY.

    (a) Employment and Compensation of Civilian Faculty.--Section
1595(d)(2) of title 10, United States Code, is amended by striking out
``Institute for National Strategic Study,'' and inserting in lieu
thereof ``Institute for National Strategic Studies, the Information
Resources Management College,''.
    (b) Preparation of Budget Requests.--Section 2162(d)(2) of such
title is amended by inserting after ``the Armed Forces Staff College,''
the following: ``the Institute for National Strategic Studies, the
Information Resources Management College,''.

SEC. 903. AUTHORIZATION FOR THE MARINE CORPS UNIVERSITY TO EMPLOY
              CIVILIAN PROFESSORS.

    (a) In General.--Subsections (a) and (c) of 7478 of title 10,
United States Code, are amended by striking ``or at the Marine Corps
Command and Staff College'' and inserting in lieu thereof ``or at a
school of the Marine Corps University''.
    (b) Clerical Amendments.--(1) The heading of such section is
amended to read as follows:
``Sec. 7478. Naval War College and Marine Corps University: civilian
              faculty members''.
    (2) The item relating to such section in the table of sections at
the beginning of chapter 643 of such title is amended to read as
follows:

``7478. Naval War College and Marine Corps University: civilian faculty
                            members.''.

SEC. 904. CENTER FOR THE STUDY OF CHINESE MILITARY AFFAIRS.

    (a) Findings.--The Congress finds the following:
            (1) The strategic relationship between the United States
        and the People's Republic of China will be very important for
        future peace and security, not only in the Asia-Pacific region
        but around the world.
            (2) The United States does not view China as an enemy, nor
        consider that the coming century necessarily will see a new
        great power competition between the two nations.
            (3) The end of the Cold War has eliminated what had been
        the one fundamental common strategic interest of the United
        States and China, that of containing the Soviet Union.
            (4) The rapid economic rise and stated geopolitical
        ambitions of China will pose challenges that will require
        careful management in order to preserve peace and protect the
        national security interests of the United States.
            (5) The ability of the Department of Defense, and the
        United States Government more generally, to develop sound
        security and military strategies is hampered by a limited
        understanding of Chinese strategic goals and military
        capabilities. The low priority accorded the study of Chinese
        strategic and military affairs within the Government and within
        the academic community has contributed to this limited
        understanding.
            (6) There is a need for a United States national institute
        for research and assessment of political, strategic, and
        military affairs in the People's Republic of China. Such an
        institute should be capable of providing analysis for the
        purpose of shaping United States military strategy and policy
        with regard to China and should be readily accessible to senior
        leaders within the Department of Defense, but should maintain
        academic and intellectual independence so that that analysis is
        not first shaped by policy.
    (b) Establishment of Center for the Study of Chinese Military
Affairs.--(1) Chapter 108 of title 10, United States Code, is amended
by adding at the end the following new section:
``Sec. 2165. National Defense University: Center for the Study of
              Chinese Military Affairs
    ``(a) Establishment.--(1) The Secretary of Defense shall establish
a Center for the Study of Chinese Military Affairs (hereinafter in this
section referred to as the `Center') as part of the National Defense
University. The Center shall be organized as an independent institute
under the University.
    ``(2) The Director of the Center shall be a distinguished scholar
of proven academic, management, and leadership credentials with a
superior record of achievement and publication regarding Chinese
political, strategic, and military affairs. The Director shall be
appointed by the Secretary of Defense in consultation with the chairman
and ranking minority party member of the Committee on National Security
of the House of Representatives and the chairman and ranking minority
party member of the Committee on Armed Services of the Senate.
    ``(b) Mission.--The mission of the Center is to study the national
goals and strategic posture of the People's Republic of China and the
ability of that nation to develop, field, and deploy an effective
military instrument in support of its national strategic objectives.
    ``(c) Areas of Study.--The Center shall conduct research relating
to the People's Republic of China as follows:
            ``(1) To assess the potential of that nation to act as a
        global great power, the Center shall conduct research that
        considers the policies and capabilities of that nation in a
        regional and world-wide context, including Central Asia,
        Southwest Asia, Europe, and Latin America, as well as the Asia-
        Pacific region.
            ``(2) To provide a fuller assessment of the areas of study
        referred to in paragraph (1), the Center shall conduct research
        on--
                    ``(A) economic trends relative to strategic goals
                and military capabilities;
                    ``(B) strengths and weaknesses in the scientific
                and technological sector; and
                    ``(C) relevant demographic and human resource
                factors on progress in the military sphere.
            ``(3) The Center shall conduct research on the armed forces
        of the People's Republic of China, taking into account the
        character of those armed forces and their role in Chinese
        society and economy, the degree of their technological
        sophistication, and their organizational and doctrinal
        concepts. That research shall include inquiry into the
        following matters:
                    ``(A) Concepts concerning national interests,
                objectives, and strategic culture.
                    ``(B) Grand strategy, military strategy, military
                operations, and tactics.
                    ``(C) Doctrinal concepts at each of the four levels
                specified in subparagraph (B).
                    ``(D) The impact of doctrine on China's force
                structure choices.
                    ``(E) The interaction of doctrine and force
                structure at each level to create an integrated system
                of military capabilities through procurement, officer
                education, training, and practice and other similar
                factors.
    ``(d) Faculty of the Center.--(1) The core faculty of the Center
should comprise mature scholars capable of providing diverse
perspectives on Chinese political, strategic, and military thought.
Center scholars shall demonstrate the following competencies and
capabilities:
            ``(A) Analysis of national strategy, military strategy, and
        doctrine.
            ``(B) Analysis of force structure and military
        capabilities.
            ``(C) Analysis of--
                    ``(i) issues relating to weapons of mass
                destruction, military intelligence, defense economics,
                trade, and international economics; and
                    ``(ii) the relationship between those issues and
                grand strategy, science and technology, the sociology
                of human resources and demography, and political
                science.
    ``(2) A substantial number of Center scholars shall be competent in
the Chinese language. The Center shall include a core of junior
scholars capable of providing linguistics and translation support to
the Center.
    ``(e) Activities of the Center.--The activities of the Center shall
include other elements appropriate to its mission, including the
following:
            ``(1) The Center should include an active conference
        program with an international reach.
            ``(2) The Center should conduct an international
        competition for a Visiting Fellowship in Chinese Military
        Affairs and Chinese Security Issues. The term of the fellowship
        should be for one year, renewable for a second. The visitor
        should contract to produce a major publication in the visitor's
        area of expertise.
            ``(3) The Center shall provide funds to support at least
        one trip per analyst per year to China and the region and to
        support visits of Chinese military leaders to the Center.
            ``(4) The Center shall support well defined, distinguished,
        signature publications.
            ``(5) Center scholars shall have appropriate access to
        intelligence community assessments of Chinese military affairs.
    ``(f) Studies and Reports.--The Director may contract for studies
and reports from the private sector to supplement the work of the
Center.''.
    (2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``2165. National Defense University: Center for the Study of Chinese
                            Military Affairs.''.
    (c) Implementation Report.--Not later than January 1, 1998, the
Secretary of Defense shall submit to Congress a report stating the
timetable and organizational plan for establishing the Center for the
Study of Chinese Military Affairs under section 2165 of title 10,
United States Code, as added by subsection (b).
    (d) Startup of Center.--The Secretary shall establish the Center
for the Study of Chinese Military Affairs under section 2165 of title
10, United States Code, as added by subsection (b), not later than
March 1, 1998, and shall appoint the first Director of the Center not
later than June 1, 1998.
    (e) First Year Funding.--Of the amount available to the Secretary
of Defense for fiscal year 1998 for Defense-wide operation and
maintenance (other than funds otherwise available for the activities of
the National Defense University), the Secretary shall make $5,000,000
available for the Center for the Study of Chinese Military Affairs
established under section 2165 of title 10, United States Code, as
added by subsection (b).

SEC. 905. WHITE HOUSE COMMUNICATIONS AGENCY.

    Of the amount appropriated pursuant to section 301 for operation
and maintenance for fiscal year 1998, not more than $55,000,000 may be
made available for the White House Communications Agency.

SEC. 906. REVISION TO REQUIRED FREQUENCY FOR PROVISION OF POLICY
              GUIDANCE FOR CONTINGENCY PLANS.

    Section 113(g)(2) of title 10, United States Code, is amended--
            (1) in the first sentence, by striking out ``annually'';
        and
            (2) in the second sentence, by inserting ``be provided
        every two years or more frequently as needed and shall'' after
        ``Such guidance shall''.

SEC. 907. TERMINATION OF THE DEFENSE AIRBORNE RECONNAISSANCE OFFICE.

    (a) Termination of Office.--The organization within the Department
of Defense known as the Defense Airborne Reconnaissance Office is
terminated. No funds available for the Department of Defense may be
used for the operation of that Office after the date specified in
subsection (d).
    (b) Transfer of Functions.--(1) Subject to paragraphs (2) and (3),
the Secretary of Defense shall transfer to the Defense Intelligence
Agency the functions that were performed on the day before the date of
the enactment this Act by the Defense Airborne Reconnaissance Office
relating to its responsibilities for management oversight and
coordination of defense airborne reconnaissance capabilities.
    (2) The Secretary shall determine which functions are appropriate
for transfer under paragraph (1). In making such determination, the
Secretary shall ensure that program management, development and
acquisition, operations, and related responsibilities for individual
programs within the Defense Airborne Reconnaissance program remain
within the military departments.
    (3) Any functions transferred under this subsection shall be
subject to the authority, direction, and control of the Secretary.
    (c) Report.--(1) Not later than 90 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to the
committees named in paragraph (2) a report containing the Secretary's
plan for terminating and transferring the functions of the Defense
Airborne Reconnaissance Office.
    (2) The committees referred to in paragraph (1) are--
            (A) the Committee on Armed Services and the Select
        Committee on Intelligence of the Senate; and
            (B) the Permanent Select Committee on Intelligence and the
        Committee on National Security of the House of Representatives.
    (d) Effective Date.--Subsection (a) shall take effect at the end of
the 120-day period beginning on the date of the enactment of this Act.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination
by the Secretary of Defense that such action is necessary in the
national interest, the Secretary may transfer amounts of authorizations
made available to the Department of Defense in this division for fiscal
year 1998 between any such authorizations for that fiscal year (or any
subdivisions thereof). Amounts of authorizations so transferred shall
be merged with and be available for the same purposes as the
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary of
Defense may transfer under the authority of this section may not exceed
$2,000,000,000.
    (b) Limitations.--The authority provided by this section to
transfer authorizations--
            (1) may only be used to provide authority for items that
        have a higher priority than the items from which authority is
        transferred; and
            (2) may not be used to provide authority for an item that
        has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one
account to another under the authority of this section shall be deemed
to increase the amount authorized for the account to which the amount
is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify
Congress of each transfer made under subsection (a).

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex prepared by
the Committee on National Security of the House of Representatives to
accompany the bill H.R. 1119 of the One Hundred Fifth Congress and
transmitted to the President is hereby incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts
specified in the Classified Annex are not in addition to amounts
authorized to be appropriated by other provisions of this Act.
    (c) Limitation on Use of Funds.--Funds appropriated pursuant to an
authorization contained in this Act that are made available for a
program, project, or activity referred to in the Classified Annex may
only be expended for such program, project, or activity in accordance
with such terms, conditions, limitations, restrictions, and
requirements as are set out for that program, project, or activity in
the Classified Annex.
    (d) Distribution of Classified Annex.--The President shall provide
for appropriate distribution of the Classified Annex, or of appropriate
portions of the annex, within the executive branch of the Government.

SEC. 1003. AUTHORITY FOR OBLIGATION OF UNAUTHORIZED FISCAL YEAR 1997
              DEFENSE APPROPRIATIONS.

    (a) Authority.--The amounts described in subsection (b) may be
obligated and expended for programs, projects, and activities of the
Department of Defense in accordance with fiscal year 1997 defense
appropriations.
    (b) Covered Amounts.--The amounts referred to in subsection (a) are
the amounts provided for programs, projects, and activities of the
Department of Defense in fiscal year 1997 defense appropriations that
are in excess of the amounts provided for such programs, projects, and
activities in fiscal year 1997 defense authorizations.
    (c) Definitions.--For the purposes of this section:
            (1) Fiscal year 1997 defense appropriations.--The term
        ``fiscal year 1997 defense appropriations'' means amounts
        appropriated or otherwise made available to the Department of
        Defense for fiscal year 1997 in the Department of Defense
        Appropriations Act, 1997 (as contained in section 101(b) of
        Public Law 104-208).
            (2) Fiscal year 1997 defense authorizations.--The term
        ``fiscal year 1997 defense authorizations'' means amounts
        authorized to be appropriated for the Department of Defense for
        fiscal year 1997 in the National Defense Authorization Act for
        Fiscal Year 1997 (Public Law 104-201).

SEC. 1004. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR
              1997.

    Amounts authorized to be appropriated to the Department of Defense
for fiscal year 1997 in the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201) are hereby adjusted, with respect
to any such authorized amount, by the amount by which appropriations
pursuant to such authorization were increased (by a supplemental
appropriation) or decreased (by a rescission), or both, in the 1997
Emergency Supplemental Appropriations Act for Recovery from Natural
Disasters, and for Overseas Peacekeeping Efforts, Including Those in
Bosnia.

SEC. 1005. INCREASE IN FISCAL YEAR 1996 TRANSFER AUTHORITY.

    Section 1001(a)(2) of the National Defense Authorization Act for
Fiscal Year 1996 (Public Law 104-106; 100 Stat. 2630) is amended by
striking out ``$2,000,000,000'' and inserting in lieu thereof
``$3,100,000,000''.

SEC. 1006. FISHER HOUSE TRUST FUNDS.

    Section 2221(c) of title 10, United States Code, is amended by
adding at the end the following new paragraph:
    ``(5) There is hereby authorized to be appropriated for any fiscal
year from a trust fund specified in subsection (a) any amount referred
to in paragraph (1), (2), or (3) (as applicable to that trust fund),
such amount to be available only for the purposes stated in that
paragraph. With respect to any such amount, the preceding sentence is
the specific authorization by law required by section 1321(b)(2) of
title 31.''.

SEC. 1007. FLEXIBILITY IN FINANCING CLOSURE OF CERTAIN OUTSTANDING
              CONTRACTS FOR WHICH A SMALL FINAL PAYMENT IS DUE.

    (a) Closure of Outstanding Contracts.--The Secretary of Defense may
make the final payment on a contract to which this section applies from
the account established pursuant to subsection (d).
    (b) Covered Contracts.--This section applies to any contract of the
Department of Defense--
            (1) that was entered into before December 5, 1990; and
            (2) for which an unobligated balance of an appropriation
        that had been initially applied to the contract was canceled
        before December 5, 1990, pursuant to section 1552 of title 31,
        United States Code, as in effect before that date.
    (c) Authority Limited to Small Final Payments.--The Secretary may
use the authority provided by this section only for a contract for
which the amount of the final payment due is not greater than the
micro-purchase threshold (as defined in section 32 of the Office of
Federal Procurement Policy Act (41 U.S.C. 428)).
    (d) Account.--The Secretary may establish an account for the
purposes of this section. The Secretary may from time to time transfer
into the account, from funds available to the Department of Defense for
procurement or for research, development, test, and evaluation, such
amounts as the Secretary determines to be needed for the purposes of
the account, except that no such transfer may be made that would result
in the balance of the account exceeding $1,000,000. Amounts in the
account may be used only for the purposes of this section.
    (e) Closure of Account.--When the Secretary determines that all
contracts to which this section applies have been closed and there is
no further need for the account established under subsection (d), the
Secretary shall close the account. Any amounts remaining in the account
shall be covered into the Treasury as miscellaneous receipts.

SEC. 1008. UNITED STATES MAN AND THE BIOSPHERE PROGRAM LIMITATION.

    No funds appropriated pursuant to this Act shall be used for the
United States Man and Biosphere Program, or related projects.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1021. RELATIONSHIP OF CERTAIN LAWS TO DISPOSAL OF VESSELS FOR
              EXPORT FROM THE NAVAL VESSEL REGISTER AND THE NATIONAL
              DEFENSE RESERVE FLEET.

    (a) Naval Vessel Register.--(1) Section 7305 of title 10, United
States Code, is amended by adding at the end the following:
    ``(e) Relationship to Toxic Substances Control Act.--(1) Subject to
paragraph (2), the sale of a vessel under this section for export, or
any subsequent resale of a vessel sold under this section for export--
            ``(A) is not a disposal or a distribution in commerce under
        section 6 or 12(a) of the Toxic Substances Control Act (15
        U.S.C. 2605 and 2611(a)) or an export of hazardous waste under
        section 3017 of the Solid Waste Disposal Act (42 U.S.C. 6938);
        and
            ``(B) is not subject to section 12(b) of the Toxic
        Substances Control Act (15 U.S.C. 2611(b)).
    ``(2)(A) Paragraph (1) applies to a vessel being sold for export
only if, before the sale of such vessel, any item listed in
subparagraph (B) containing polychlorinated biphenyls is removed from
the vessel.
    ``(B) Subparagraph (A) covers any transformer, large high or low
voltage capacitor, or hydraulic or heat transfer fluid.''.
    (2) Section 7306a of such title is amended--
            (A) in the heading, by adding at the end the following:
        ``or operational training'';
            (B) in subsection (a), by inserting ``or operational
        training'' after ``purposes''; and
            (C) by adding at the end the following:
    ``(c) Relationship to Other Laws.--The sinking of a vessel for an
experimental purpose or for operational training pursuant to subsection
(a) is not--
            ``(1) a disposal or a distribution in commerce under
        section 6 or 12(a) of the Toxic Substances Control Act (15
        U.S.C. 2605 and 2611(a)); or
            ``(2) the transport of material for the purpose of dumping
        it into ocean waters, or the dumping of material transported
        from a location outside the United States, under section 101 of
        the Marine Protection, Research, and Sanctuaries Act of 1972
        (33 U.S.C. 1411).''.
    (b) National Defense Reserve Fleet.--(1) Section 510(i) of the
Merchant Marine Act, 1936 (46 U.S.C. App. 1160(i)) is amended--
            (A) by inserting ``(1)'' after ``(i)''; and
            (B) by adding at the end the following new paragraph:
    ``(2)(A) Subject to subparagraph (B), the sale under this
subsection of a vessel from the National Defense Reserve Fleet for
export, or any subsequent resale of a vessel sold from the Fleet for
export--
            ``(i) is not a disposal or a distribution in commerce under
        section 6 or 12(a) of the Toxic Substances Control Act (15
        U.S.C. 2605 and 2611(a)) or an export of hazardous waste under
        section 3017 of the Solid Waste Disposal Act (42 U.S.C. 6938);
        and
            ``(ii) is not subject to subsection (b) of section 12 of
        the Toxic Substances Control Act (15 U.S.C. 2611).
    ``(B)(i) Subparagraph (A) applies to a vessel being sold for export
only if, before the sale of such vessel, any item listed in clause (ii)
containing polychlorinated biphenyls is removed from the vessel.
    ``(ii) Clause (i) covers any transformer, large high or low voltage
capacitor, or hydraulic or heat transfer fluid.''.
    (2) Section 6 of the National Maritime Heritage Act of 1994 (Public
Law 103-451; 108 Stat. 4776; 16 U.S.C. 5405) is amended--
            (A) in subsections (a)(1) and (b)(2)--
                    (i) by inserting ``or 510(i)'' after ``508''; and
                    (ii) by inserting ``or 1160(i)'' after ``1158'';
                and
            (B) in subsection (c)(1)(A), by striking out ``1999'' and
        inserting in lieu thereof ``2001''.

SEC. 1022. AUTHORITY TO ENTER INTO A LONG-TERM CHARTER FOR A VESSEL IN
              SUPPORT OF THE SURVEILLANCE TOWED-ARRAY SENSOR (SURTASS)
              PROGRAM.

    The Secretary of the Navy is authorized to enter into a contract in
accordance with section 2401 of title 10, United States Code, for the
charter, for a period through fiscal year 2003, of the vessel RV CORY
CHOUEST (United States official number 933435) in support of the
Surveillance Towed-Array Sensor (SURTASS) program.

SEC. 1023. TRANSFER OF TWO SPECIFIED OBSOLETE TUGBOATS OF THE ARMY.

    (a) Authority To Transfer Vessels.--The Secretary of the Army may
transfer the two obsolete tugboats of the Army described in subsection
(b) to the Brownsville Navigation District, Brownsville, Texas.
    (b) Vessels Covered.--Subsection (a) applies to the following two
decommissioned tugboats of the Army, each of which is listed as of the
date of the enactment of this Act as being surplus to the needs of the
Army: the Normandy (LT-1971) and the Salerno (LT-1953).
    (c) Transfers To Be at No Cost to United States.--A transfer
authorized by this section shall be made at no cost to the United
States.
    (d) Terms and Conditions.--The Secretary may require such
additional terms and conditions in connection with the transfers
authorized by this section as the Secretary considers appropriate.

SEC. 1024. NAMING OF A DDG-51 CLASS DESTROYER THE U.S.S. THOMAS F.
              CONNOLLY.

    It is the sense of Congress that the Secretary of the Navy should
name a guided missile destroyer of the DDG-51 class the U.S.S. Thomas
F. Connolly, in honor of Vice Admiral Thomas F. Connolly (1909-1996),
of the State of Minnesota, who during an active-duty naval career
extending from 1933 to 1971 became a leading architect of the modern
United States Navy.

SEC. 1025. CONGRESSIONAL REVIEW PERIOD WITH RESPECT TO TRANSFER OF THE
              EX-U.S.S. MIDWAY (CV-41).

    In applying section 7306 of title 10, United States Code, with
respect to the transfer of the decommissioned aircraft carrier ex-
U.S.S. MIDWAY (CV-41), subsection (d)(1)(B) of that section shall be
applied by substituting ``30 calendar days'' for ``60 days of
continuous session of Congress''.

                  Subtitle C--Counter-Drug Activities

SEC. 1031. PROHIBITION ON USE OF NATIONAL GUARD FOR CIVIL-MILITARY
              ACTIVITIES UNDER STATE DRUG INTERDICTION AND COUNTER-DRUG
              ACTIVITIES PLAN.

    Section 112 of title 32, United States Code, is amended--
            (1) by redesignating subsections (g) and (h) as subsections
        (h) and (i), respectively; and
            (2) by inserting after subsection (f) the following new
        subsection:
    ``(g) Prohibition on Certain Civil-Military Activities.--Funds
provided under this section may not be used to conduct activities,
including community-outreach programs, designed to reduce the demand
for illegal drugs among persons who are not members of the National
Guard or their dependents.''.

SEC. 1032. ASSIGNMENT OF DEPARTMENT OF DEFENSE PERSONNEL TO ASSIST
              IMMIGRATION AND NATURALIZATION SERVICE AND CUSTOMS
              SERVICE.

    (a) Assignment Authority of Secretary of Defense.--Chapter 18 of
title 10, United States Code, is amended by inserting after section 374
the following new section:
``Sec. 374a. Assignment of personnel to assist border patrol and
              control
    ``(a) Assignment Authorized.--The Secretary of Defense may assign
up to 10,000 Department of Defense personnel at any one time to
assist--
            ``(1) the Immigration and Naturalization Service in
        preventing the entry of terrorists, drug traffickers, and
        illegal aliens into the United States; and
            ``(2) the United States Customs Service in the inspection
        of cargo, vehicles, and aircraft at points of entry into the
        United States.
    ``(b) Request for Assignment.--The assignment of Department of
Defense personnel under subsection (a) may only occur--
            ``(1) at the request of the Attorney General, in the case
        of an assignment to the Immigration and Naturalization Service;
        and
            ``(2) at the request of the Secretary of the Treasury, in
        the case of an assignment to the United States Customs
        Service.''.
    ``(c) Reimbursement Requirement.--Section 377 of this title shall
apply in the case of Department of Defense personnel assigned under
subsection (a).''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
374 the following new item:

``374a. Assignment of personnel to assist border patrol and control.''.

SEC. 1033. ANNUAL REPORT ON DEVELOPMENT AND DEPLOYMENT OF NARCOTICS
              DETECTION TECHNOLOGIES.

    (a) Report Requirement.--Not later than December 1st of each year,
the Director of the Office of National Drug Control Policy shall submit
to Congress and the President a report on the development and
deployment of narcotics detection technologies by Federal agencies.
Each such report shall be prepared in consultation with the Secretary
of Defense, the Secretary of State, the Secretary of Transportation,
and the Secretary of the Treasury.
    (b) Matters To Be Included.--Each report under subsection (a) shall
include--
            (1) a description of each project implemented by a Federal
        agency relating to the development or deployment of narcotics
        detection technology;
            (2) the agency responsible for each project described in
        paragraph (1);
            (3) the amount of funds obligated or expended to carry out
        each project described in paragraph (1) during the fiscal year
        in which the report is submitted or during any fiscal year
        preceding the fiscal year in which the report is submitted;
            (4) the amount of funds estimated to be obligated or
        expended for each project described in paragraph (1) during any
        fiscal year after the fiscal year in which the report is
        submitted to Congress; and
            (5) a detailed timeline for implementation of each project
        described in paragraph (1).

       Subtitle D--Miscellaneous Report Requirements and Repeals

SEC. 1041. REPEAL OF MISCELLANEOUS OBSOLETE REPORTS REQUIRED BY PRIOR
              DEFENSE AUTHORIZATION ACTS.

    (a) Report on Removal of Basic Point Defense Missile System From
Naval Amphibious Vessels.--Section 1437 of the Department of Defense
Authorization Act, 1986 (Public Law 99-145; 99 Stat. 757), is repealed.
    (b) Report Concerning the Stretchout of Major Defense Acquisition
Programs.--Section 117 of the National Defense Authorization Act,
Fiscal Year 1989 (Public Law 100-456; 102 Stat. 1933), is repealed.
    (c) Report Concerning the B-2 Aircraft Program.--Section 115 of the
National Defense Authorization Act for Fiscal Years 1990 and 1991
(Public Law 101-189; 103 Stat. 1373) is repealed.

SEC. 1042. REPEAL OF ANNUAL REPORT REQUIREMENT RELATING TO TRAINING OF
              SPECIAL OPERATIONS FORCES WITH FRIENDLY FOREIGN FORCES.

    Section 2011 of title 10, United States Code, is amended by
striking out subsection (e).

SEC. 1043. REPORT ON ANTI-TERRORISM ACTIVITIES.

    Not later than 180 days after the date of the enactment of this
Act, the Secretary of Defense shall submit to Congress a report, in
classified and unclassified form, describing--
            (1) the programs designed to carry out anti-terrorism
        activities of the Department of Defense;
            (2) any deficiencies in those programs; and
            (3) any actions taken by the Secretary to improve
        implementation of such programs.

                       Subtitle E--Other Matters

SEC. 1051. AUTHORITY FOR SPECIAL AGENTS OF THE DEFENSE CRIMINAL
              INVESTIGATIVE SERVICE TO EXECUTE WARRANTS AND MAKE
              ARRESTS.

    (a) Authority.--Chapter 81 of title 10, United States Code, is
amended by inserting after section 1585 the following new section:
``Sec. 1585a. Special agents of the Defense Criminal Investigative
              Service: authority to execute warrants and make arrests
    ``(a) Authority.--The Secretary of Defense may authorize any DCIS
special agent--
            ``(1) to execute and serve any warrant or other process
        issued under the authority of the United States; and
            ``(2) to make arrests without a warrant--
                    ``(A) for any offense against the United States
                committed in the presence of that agent; and
                    ``(B) for any felony cognizable under the laws of
                the United States if the agent has probable cause to
                believe that the person to be arrested has committed or
                is committing the felony.
    ``(b) Attorney General Guidelines.--Authority of a DCIS special
agent under subsection (a) may be exercised only in accordance with
guidelines approved by the Attorney General.
    ``(c) DCIS Special Agent Defined.--In this section, the term `DCIS
special agent' means an employee of the Department of Defense who is a
special agent of the Defense Criminal Investigative Service (or any
successor to that service).''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
1585 the following new item:

``1585a. Special agents of the Defense Criminal Investigative Service:
                            authority to execute warrants and make
                            arrests.''.

SEC. 1052. STUDY OF INVESTIGATIVE PRACTICES OF MILITARY CRIMINAL
              INVESTIGATIVE ORGANIZATIONS RELATING TO SEX CRIMES.

    (a) Independent Study Required.--(1) The Secretary of Defense shall
provide for an independent study of the policies, procedures, and
practices of the military criminal investigative organizations for the
conduct of investigations of complaints of sex crimes and other
criminal sexual misconduct arising in the Armed Forces.
    (2) The Secretary shall provide for the study to be conducted by
the National Academy of Public Administration. The amount of a contract
for the study may not exceed $2,000,000.
    (3) The Secretary shall require that all components of the
Department of Defense cooperate fully with the organization carrying
out the study.
    (b) Matters To Be Included in Study.--The Secretary shall require
that the organization conducting the study under this section
specifically consider each of the following matters:
            (1) The need (if any) for greater organizational
        independence and autonomy for the military criminal
        investigative organizations than exists under current chain-of-
        command structures within the military departments.
            (2) The authority of each of the military criminal
        investigative organizations to investigate allegations of sex
        crimes and other criminal sexual misconduct and the policies of
        those organizations for carrying out such investigations.
            (3) The training (including training in skills and
        techniques related to the conduct of interviews) provided by
        each of those organizations to agents or prospective agents
        responsible for conducting or providing support to
        investigations of alleged sex crimes and other criminal sexual
        misconduct, including--
                    (A) the extent to which that training is comparable
                to the training provided by the Federal Bureau of
                Investigation and other civilian law enforcement
                agencies; and
                    (B) the coordination of training and investigative
                policies related to alleged sex crimes and other
                criminal sexual misconduct of each of those
                organizations with the Federal Bureau of Investigation
                and other civilian Federal law enforcement agencies.
            (4) The procedures and relevant professional standards of
        each military criminal investigative organization with regard
        to recruitment and hiring of agents, including an evaluation of
        the extent to which those procedures and standards provide
        for--
                    (A) sufficient screening of prospective agents
                based on background investigations; and
                    (B) obtaining sufficient information about the
                qualifications and relevant experience of prospective
                agents.
            (5) The advantages and disadvantages of establishing,
        within each of the military criminal investigative
        organizations or within the Defense Criminal Investigative
        Service only, of a special unit for the investigation of
        alleged sex crimes and other criminal sexual misconduct.
            (6) The clarity of guidance for, and consistency of
        investigative tactics used by, each of the military criminal
        investigative organizations for the investigation of alleged
        sex crimes and other criminal sexual misconduct, together with
        a comparison with the guidance and tactics used by the Federal
        Bureau of Investigation and other civilian law enforcement
        agencies for such investigations.
            (7) The number of allegations of agent misconduct in the
        investigation of sex crimes and other criminal sexual
        misconduct for each of those organizations, together with a
        comparison with the number of such allegations concerning
        agents of the Federal Bureau of Investigation and other
        civilian law enforcement agencies for such investigations.
            (8) The procedures of each of the military criminal
        investigative organizations for administrative identification
        (known as ``titling'') of persons suspected of committing sex
        crimes or other criminal sexual misconduct, together with a
        comparison with the comparable procedures of the Federal Bureau
        of Investigation and other civilian Federal law enforcement
        agencies for such investigations.
            (9) The accuracy, timeliness, and completeness of reporting
        of sex crimes and other criminal sexual misconduct by each of
        the military criminal investigative organizations to the
        National Crime Information Center maintained by the Department
        of Justice.
            (10) Any recommendation for legislation or administrative
        action to revise the organizational or operational arrangements
        of the military criminal investigative organizations or to
        alter recruitment, training, or operational procedures, as they
        pertain to the investigation of sex crimes and other criminal
        sexual misconduct.
    (c) Report.--(1) The Secretary of Defense shall require the
organization conducting the study under this section to submit to the
Secretary a report on the study not later than one year after the date
of the enactment of this Act. The organization shall include in the
report its findings and conclusions concerning each of the matters
specified in subsection (b).
    (2) The Secretary shall submit the report under paragraph (1),
together with the Secretary's comments on the report, to Congress not
later than 30 days after the date on which the report is submitted to
the Secretary under paragraph (1).
    (d) Military Criminal Investigative Organization Defined.--For the
purposes of this section, the term ``military criminal investigative
organization'' means any of the following:
            (1) The Army Criminal Investigation Command.
            (2) The Naval Criminal Investigative Service.
            (3) The Air Force Office of Special Investigations.
            (4) The Defense Criminal Investigative Service.
    (e) Criminal Sexual Misconduct Defined.--For the purposes of this
section, the term ``criminal sexual misconduct'' means conduct by a
member of the Armed Forces involving sexual abuse, sexual harassment,
or other sexual misconduct that constitutes an offense under the
Uniform Code of Military Justice.

SEC. 1053. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is
amended as follows:
            (1) The tables of chapters at the beginning of subtitle A,
        and at the beginning of part I of subtitle A, are each amended
        by striking out ``471'' in the item relating to chapter 23 and
        inserting in lieu thereof ``481''.
            (2) The tables of chapters at the beginning of subtitle A,
        and at the beginning of part IV of subtitle A, are each amended
        by striking out ``2540'' in the item relating to chapter 152
        and inserting in lieu thereof ``2541''.
            (3) Section 116(b)(2) is amended by striking out ``such
        subsection'' and inserting in lieu thereof ``subsection (a)''.
            (4) Section 129c(e) is amended by striking out ``section
        115a(g)(2)'' and inserting in lieu thereof ``section
        115a(e)(2)''.
            (5) Section 382(g) is amended by striking out ``the date of
        the enactment of the National Defense Authorization Act for
        Fiscal Year 1997'' and inserting in lieu thereof ``September
        23, 1996''.
            (6) The table of sections at the beginning of subchapter I
        of chapter 21 is amended by striking out the items relating to
        sections 424 and 425 and inserting in lieu thereof the
        following:

``424. Disclosure of organizational and personnel information:
                            exemption for Defense Intelligence Agency,
                            National Reconnaissance Office, and
                            National Imagery and Mapping Agency.''.
            (7) Section 445 is amended--
                    (A) by striking out ``(1)'' before ``Except with'';
                    (B) by redesignating subparagraphs (A), (B), and
                (C) as paragraphs (1), (2), and (3), respectively;
                    (C) by striking out ``(2)'' before ``Whenever it
                appears'' and inserting in lieu thereof ``(b)
                Injunctive Relief.--''; and
                    (D) by striking out ``paragraph (1)'' and inserting
                in lieu thereof ``subsection (a)''.
            (8) Section 858b is amended in the first sentence by
        striking out ``forfeiture'' and all that follows through ``due
        that member'' and inserting in lieu thereof ``forfeiture of
        pay, or of pay and allowances, due that member''.
            (9) Section 943(c) is amended--
                    (A) in the third sentence, by striking out ``such
                positions'' and inserting in lieu thereof ``positions
                referred to in the preceding sentences''; and
                    (B) by capitalizing the initial letter of the third
                word of the subsection heading.
            (10) Section 954 is amended by striking out ``this'' and
        inserting in lieu thereof ``his''.
            (11) Section 972(b) is amended by striking out ``the date
        of the enactment of the National Defense Authorization Act for
        Fiscal Year 1996'' in the matter preceding paragraph (1) and
        inserting in lieu thereof ``February 10, 1996''.
            (12) Section 976(f) is amended by striking out ``shall,''
        and all that follows and inserting in lieu thereof ``shall be
        fined under title 18 or imprisoned not more than 5 years, or
        both, except that, in the case of an organization (as defined
        in section 18 of such title), the fine shall not be less than
        $25,000.''.
            (13) Section 977 is amended--
                    (A) in subsection (c), by striking out ``Beginning
                on October 1, 1996, not more than'' and inserting in
                lieu thereof ``Not more than''; and
                    (B) in subsection (d)(2), by striking out ``before
                October 1, 1996,'' and all that follows through ``so
                assigned'' the second place it appears.
            (14) Section 1129(c) is amended--
                    (A) by striking out ``the date of the enactment of
                this section,'' and inserting in lieu thereof
                ``November 30, 1993,''; and
                    (B) by striking out ``before the date of the
                enactment of this section or'' and inserting in lieu
                thereof ``before such date or''.
            (15) Section 1151(b) is amended by striking out ``with'' in
        the subsection heading and inserting in lieu thereof ``With''.
            (16) Section 1152(g) is amended by inserting ``(1)'' before
        ``The Secretary may''.
            (17) Section 1408(d) is amended--
                    (A) by striking out ``To'' in the subsection
                heading and inserting in lieu thereof ``to''; and
                    (B) by redesignating the second paragraph (6) as
                paragraph (7).
            (18) Section 1599c(c)(1)(F) is amended by striking out
        ``Sections 106(f)'' and inserting in lieu thereof ``Sections
        106(e)''.
            (19) Section 1763 is amended--
                    (A) by striking out ``On and after October 1, 1993,
                the Secretary of Defense'' and inserting in lieu
                thereof ``The Secretary of Defense''; and
                    (B) by striking out ``secretaries'' and inserting
                in lieu thereof ``Secretaries''.
            (20) Section 2010(e) is repealed.
            (21) Section 2208(k) is repealed.
            (22)(A) Section 2306(h) is amended by inserting ``for the
        purchase of property'' after ``Multiyear contracting
        authority''.
            (B)(i) The heading of section 2306b is amended to read as
        follows:
``Sec. 2306b. Multiyear contracts: acquisition of property''.
            (ii) The item relating to such section in the table of
        sections at the beginning of chapter 137 of such title is
        amended to read as follows:

``2306b. Multiyear contracts: acquisition of property.''.
            (23) Section 2306b(k) is amended by striking out ``this
        subsection'' in the first sentence and inserting in lieu
        thereof ``this section''.
            (24) Section 2315(a) is amended by striking out ``the
        Information Technology Management Reform Act of 1996'' and
        inserting in lieu thereof ``division E of the Clinger-Cohen Act
        of 1996 (40 U.S.C. 1401 et seq.)''.
            (25) Section 2371a is amended by inserting ``Defense''
        before ``Advanced Research Projects Agency''.
            (26) Section 2401a(a) is amended by striking out ``leasing
        of such vehicles'' and inserting in lieu thereof ``such
        leasing''.
            (27) Section 2466(e) is repealed.
            (28) Section 2684(b) is amended by striking out ``, United
        States Code,''.
            (29) Section 2885 is amended by striking out ``five years
        after the date of the enactment of the National Defense
        Authorization Act for Fiscal Year 1996'' and inserting in lieu
        thereof ``on February 10, 2001''.
            (30) Section 12733(3) is amended--
                    (A) by inserting a comma after ``(B)''; and
                    (B) by striking out ``the date of the enactment of
                the National Defense Authorization Act for Fiscal Year
                1997'' and inserting in lieu thereof ``September 23,
                1996,''.
    (b) Title 37, United States Code.--Section 205(d) of title 37,
United States Code, is amended by striking out the period after
``August 1, 1979'' and inserting in lieu thereof a comma.
    (c) Public Law 104-201.--Effective as of September 23, 1996, and as
if included therein as enacted, the National Defense Authorization Act
for Fiscal Year 1997 (Public Law 104-201) is amended as follows:
            (1) Section 367 (110 Stat. 2496) is amended--
                    (A) in subsection (a), by striking out ``Subchapter
                II of chapter'' and inserting in lieu thereof
                ``Chapter''; and
                    (B) in subsection (b), by striking out
                ``subchapter'' and inserting in lieu thereof
                ``chapter''.
            (2) Section 614(b)(2)(B) (110 Stat. 2544) is amended by
        striking out ``the period'' and inserting in lieu thereof ``the
        semicolon''.
            (3) Section 802(1) (110 Stat. 2604) is amended by striking
        out ``1995'' in the first quoted matter therein and inserting
        in lieu thereof ``1996''.
            (4) Section 829(c) (110 Stat. 2612) is amended--
                    (A) in paragraph (2), by striking out ``Section
                2502(b)'' and inserting in lieu thereof ``Section
                2502(c)''; and
                    (B) by redesignating paragraph (3) as subparagraph
                (C) of paragraph (2).
    (d) Other Annual Defense Authorization Acts.--
            (1) of The National Defense Authorization Act for Fiscal
        Year 1996 (Public Law 104-106) is amended as follows:
                    (A) Section 533(b) (110 Stat. 315) is amended by
                inserting before the period at the end the following:
                ``and the amendments made by subsection (b), effective
                as of October 5, 1994''.
                    (B) Section 1501(d)(1) (110 Stat. 500) is amended
                by striking out ``337(b)'' and ``2717'' and inserting
                in lieu thereof ``377(b)'' and ``2737'', respectively.
            (2) Section 845 of the National Defense Authorization Act
        for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note)
        is amended--
                    (A) in subsection (a), by inserting ``Defense''
                before ``Advanced''; and
                    (B) in the section heading, by inserting
                ``defense'' after the third word.
            (3) The National Defense Authorization Act for Fiscal Year
        1993 (Public Law 102-484) is amended as follows:
                    (A) Section 812(c) (10 U.S.C. 1723 note) is amended
                by inserting ``and Technology'' after ``for
                Acquisition''.
                    (B) Subsection (e) of section 4471 (10 U.S.C. 2501
                note) is amended--
                            (i) by realigning that subsection so as to
                        be flush to the margin; and
                            (ii) by capitalizing the initial letter of
                        the third word of the subsection heading.
            (4) Section 807(b)(2)(A) of the National Defense
        Authorization Act for Fiscal Years 1992 and 1993 (Public Law
        102-190; 10 U.S.C. 2320 note) is amended by inserting before
        the period the following: ``and Technology''.
            (5) The National Defense Authorization Act for Fiscal Year
        1991 (Public Law 101-510) is amended as follows:
                    (A) Section 1205 (10 U.S.C. 1746 note) is amended
                by striking out ``Under Secretary of Defense for
                Acquisition'' each place it appears and inserting in
                lieu thereof ``Under Secretary of Defense for
                Acquisition and Technology''.
                    (B) Section 2921 (10 U.S.C. 2687 note) is amended--
                            (i) in subsection (e)(3)(B), by striking
                        out ``Subcommittees'' and inserting in lieu
                        thereof ``Subcommittee''; and
                            (ii) in subsection (f)(2), by striking out
                        ``the Committees on Armed Services of the
                        Senate and House of Representatives'' and
                        inserting in lieu thereof ``the Committee on
                        Armed Services of the Senate and the Committee
                        on National Security of the House of
                        Representatives''.
            (6) Section 1121(c) of the National Defense Authorization
        Act for Fiscal Years 1988 and 1989 (Public Law 100-180; 10
        U.S.C. 113 note) is amended by striking out ``under this
        section--'' and all that follow through ``fiscal year 1990''
        and inserting in lieu thereof ``under this section may not
        exceed 5,000 during any fiscal year''.
    (d) Title 5, United States Code.--Title 5, United States Code, is
amended as follows:
            (1) Section 3329(b) is amended by striking out ``a position
        described in subsection (c)'' the second place it appears.
            (2) Section 5315 is amended--
                    (A) in the item relating to the Chief Information
                Officer of the Department of the Interior, by inserting
                ``the'' before ``Interior''; and
                    (B) in the item relating to the Chief Information
                Officer of the Department of the Treasury, by inserting
                ``the'' before ``Treasury''.
            (3) Section 5316 is amended by striking out ``Atomic
        Energy'' after ``Assistant to the Secretary of Defense for''
        and inserting in lieu thereof ``Nuclear and Chemical and
        Biological Defense Programs''.
    (e) Acquisition Policy Statutes.--
            (1) Section 309 of the Federal Property and Administrative
        Services Act of 1949 (41 U.S.C. 259) is amended by striking out
        ``and'' at the end of subsection (b)(2).
            (2) The Office of Federal Procurement Policy Act is amended
        as follows:
                    (A) The item relating to section 27 in the table of
                contents in section 1 is amended to read as follows:

``Sec. 27. Restrictions on disclosing and obtaining contractor bid or
                            proposal information or source selection
                            information.''.
                    (B) Section 6(d) (41 U.S.C. 405(d)) is amended--
                            (i) by striking out the period at the end
                        of paragraph (5)(J) and inserting in lieu
                        thereof a semicolon;
                            (ii) by moving paragraph (6) two ems to the
                        left; and
                            (iii) in paragraph (12), by striking out
                        ``small business'' and inserting in lieu
                        thereof ``small businesses''.
                    (C) Section 35(b)(2) (41 U.S.C. 431(b)(2)) is
                amended by striking out ``commercial'' and inserting in
                lieu thereof ``commercially available''.
            (3) Section 6 of the Contract Disputes Act of 1978 (41
        U.S.C. 605) is amended in subsections (d) and (e) by striking
        out ``(as in effect on September 30, 1995)'' each place it
        appears.
            (4) Subsections (d)(1) and (e) of section 16 of the Small
        Business Act (15 U.S.C. 645) are each amended by striking out
        ``concerns'' and inserting in lieu thereof ``concern''.
    (f) 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.

SEC. 1054. DISPLAY OF POW/MIA FLAG.

    (a) Required Display.--The POW/MIA flag shall be displayed at the
locations specified in subsection (c) each year on POW/MIA flag display
days. Such display shall serve (1) as the symbol of the Nation's
concern and commitment to achieving the fullest possible accounting of
Americans who, having been prisoners of war or missing in action, still
remain unaccounted for, and (2) as the symbol of the Nation's
commitment to achieving the fullest possible accounting for Americans
who in the future may become prisoners of war, missing in action, or
otherwise unaccounted for as a result of hostile action.
    (b) Days for Flag Display.--(1) For purposes of this section, POW/
MIA flag display days are the following:
            (A) Armed Forces Day, the third Saturday in May.
            (B) Memorial Day, the last Monday in May.
            (C) Flag Day, June 14.
            (D) Independence Day, July 4.
            (E) National POW/MIA Recognition Day.
            (F) Veterans Day, November 11.
    (2) In the case of display at United States Postal Service post
offices (required by subsection (c)(8)), POW/MIA flag display days in
any year include, in addition to the days specified in paragraph (1),
the last business day before each such day that itself is not a
business day.
    (c) Locations for Flag Display.--The locations for the display of
the POW/MIA flag under this section are the following:
            (1) The Capitol.
            (2) The White House.
            (3) The Korean War Veterans Memorial and the Vietnam
        Veterans Memorial.
            (4) Each national cemetery.
            (5) The buildings containing the primary offices of--
                    (A) the Secretary of State;
                    (B) the Secretary of Defense;
                    (C) the Secretary of Veterans Affairs; and
                    (D) the Director of the Selective Service System.
            (6) Each major military installation, as designated by the
        Secretary of Defense.
            (7) Each Department of Veterans Affairs medical center.
            (8) Each United States Postal Service post office.
    (d) Coordination With Other Display Requirement.--Display of the
POW/MIA flag at the Capitol pursuant to paragraph (1) of subsection (c)
is in addition to the display of that flag in the Rotunda of the
Capitol required by Senate Concurrent Resolution 5 of the 101st
Congress, agreed to on February 22, 1989 (103 Stat. 2533).
    (e) Requirements Concerning Display at Specified Locations.--(1)
Display of the POW/MIA flag at the buildings specified in paragraphs
(1), (2), (5), and (7) of subsection (c) shall be on, or on the grounds
of, each such building.
    (2) Display of that flag pursuant to paragraph (5) of subsection
(c) at the buildings containing the primary offices of the officials
specified in that paragraph shall be in an area visible to the public.
    (3) Display of that flag at United States Postal Service post
offices pursuant to paragraph (8) of subsection (c) shall be on the
grounds or in the public lobby of each such post office.
    (f) POW/MIA Flag Defined.--As used in this section, the term ``POW/
MIA flag'' means the National League of Families POW/MIA flag
recognized officially and designated by section 2 of Public Law 101-355
(36 U.S.C. 189).
    (g) Regulations for Implementation.--Within 180 days after the date
of the enactment of this Act, the head of each department, agency, or
other establishment responsible for a location specified in subsection
(c) (other than the Capitol) shall prescribe such regulations as
necessary to carry out this section.
    (h) Procurement and Distribution of Flags.--Within 30 days after
the date of the enactment of this Act, the Administrator of General
Services shall procure POW/MIA flags and distribute them as necessary
to carry out this section.
    (i) Repeal of Prior Law.--Section 1084 of Public Law 102-190 (36
U.S.C. 189 note) is repealed.
    (j) Daily Display of Flag at Department of Veterans Affairs Medical
Centers.--In addition to the display required by subsection (a), the
POW/MIA flag shall be displayed on, or on the grounds of, each
Department of Veterans Affairs medical center on every day on which the
flag of the United States is displayed.

SEC. 1055. CERTIFICATION REQUIRED BEFORE OBSERVANCE OF MORATORIUM ON
              USE BY ARMED FORCES OF ANTIPERSONNEL LANDMINES.

    Any moratorium imposed by law (whether enacted before, on, or after
the date of the enactment of this Act) on the use of antipersonnel
landmines by the Armed Forces may be implemented only if (and after)
the Secretary of Defense, after consultation with the Chairman of the
Joint Chiefs of Staff, certifies to Congress that--
            (1) the moratorium will not adversely affect the ability of
        United States forces to defend against attack on land by
        hostile forces; and
            (2) the Armed Forces have systems that are effective
        substitutes for antipersonnel landmines.

SEC. 1056. PROTECTION OF SAFETY-RELATED INFORMATION VOLUNTARILY
              PROVIDED BY AIR CARRIERS.

    (a) Authority To Protect Information.--Section 2640 of title 10,
United States Code, is amended--
            (1) by redesignating subsections (h) and (i) as subsections
        (i) and (j), respectively; and
            (2) by inserting after subsection (g) the following new
        subsection:
    ``(h) Authority to Protect Safety-Related Information Voluntarily
Provided by An Air Carrier.--(1) In any case in which an air carrier
voluntarily provides safety-related information to the Secretary for
purposes of this section, the Secretary may (notwithstanding any other
provision of law) withhold the information from public disclosure if
the Secretary determines that--
            ``(A) disclosure of the information would inhibit the air
        carrier from voluntarily providing safety-related information
        to the Secretary; and
            ``(B) the information would aid--
                    ``(i) the Secretary in carrying out his
                responsibilities under this section; or
                    ``(ii) the head of another agency in carrying out
                the safety responsibilities of the agency.
    ``(2) If the Secretary provides to the head of another agency
safety-related information described in paragraph (1) with respect to
which the Secretary has made a determination described in that
paragraph, the head of that agency shall (notwithstanding any other
provision of law) withhold the information from public disclosure.''.
    (b) Applicability.--Subsection (h) of section 2640 of title 10,
United States Code, as added by subsection (a), shall apply with
respect to requests for information made on or after the date of the
enactment of this Act.

SEC. 1057. NATIONAL GUARD CHALLENGE PROGRAM TO CREATE OPPORTUNITIES FOR
              CIVILIAN YOUTH.

    (a) Program Authority.--Chapter 5 of title 32, United States Code,
is amended by adding at the end the following new section:
``Sec. 509. National Guard Challenge Program of opportunities for
              civilian youth
    ``(a) Program Authority and Purpose.--The Secretary of Defense,
acting through the Chief of the National Guard Bureau, may conduct a
National Guard civilian youth opportunities program (to be known as the
`National Guard Challenge Program') to use the National Guard to
provide military-based training, including supervised work experience
in community service and conservation projects, to civilian youth who
cease to attend secondary school before graduating so as to improve the
life skills and employment potential of such youth.
    ``(b) Conduct of the Program.--The Secretary of Defense shall
provide for the conduct of the National Guard Challenge Program in such
States as the Secretary considers to be appropriate, except that
Federal expenditures under the program may not exceed $50,000,000 for
any fiscal year.
    ``(c) Program Agreements.--(1) To carry out the National Guard
Challenge Program in a State, the Secretary of Defense shall enter into
an agreement with the Governor of the State or, in the case of the
District of Columbia, with the commanding general of the District of
Columbia National Guard, under which the Governor or the commanding
general will establish, organize, and administer the National Guard
Challenge Program in the State.
    ``(2) The agreement may provide for the Secretary to provide funds
to the State for civilian personnel costs attributable to the use of
civilian employees of the National Guard in the conduct of the National
Guard Challenge Program.
    ``(d) Matching Funds Required.--The amount of assistance provided
under this section to a State program of the National Guard Challenge
Program may not exceed--
            ``(1) for fiscal year 1998, 75 percent of the costs of
        operating the State program during that year;
            ``(2) for fiscal year 1999, 70 percent of the costs of
        operating the State program during that year;
            ``(3) for fiscal year 2000, 65 percent of the costs of
        operating the State program during that year; and
            ``(4) for fiscal year 2001 and each subsequent fiscal year,
        60 percent of the costs of operating the State program during
        that year.
    ``(e) Persons Eligible to Participate in Program.--A school dropout
from secondary school shall be eligible to participate in the National
Guard Challenge Program. The Secretary of Defense shall prescribe the
standards and procedures for selecting participants from among school
dropouts.
    ``(f) Authorized Benefits for Participants.--(1) To the extent
provided in an agreement entered into in accordance with subsection (c)
and subject to the approval of the Secretary of Defense, a person
selected for training in the National Guard Challenge Program may
receive the following benefits in connection with that training:
            ``(A) Allowances for travel expenses, personal expenses,
        and other expenses.
            ``(B) Quarters.
            ``(C) Subsistence.
            ``(D) Transportation.
            ``(E) Equipment.
            ``(F) Clothing.
            ``(G) Recreational services and supplies.
            ``(H) Other services.
            ``(I) Subject to paragraph (2), a temporary stipend upon
        the successful completion of the training, as characterized in
        accordance with procedures provided in the agreement.
    ``(2) In the case of a person selected for training in the National
Guard Challenge Program who afterwards becomes a member of the Civilian
Community Corps under subtitle E of title I of the National and
Community Service Act of 1990 (42 U.S.C. 12611 et seq.), the person may
not receive a temporary stipend under paragraph (1)(I) while the person
is a member of that Corps. The person may receive the temporary stipend
after completing service in the Corps unless the person elects to
receive benefits provided under subsection (f) or (g) of section 158 of
such Act (42 U.S.C. 12618).
    ``(g) Program Personnel.--(1) Personnel of the National Guard of a
State in which the National Guard Challenge Program is conducted may
serve on full-time National Guard duty for the purpose of providing
command, administrative, training, or supporting services for the
program. For the performance of those services, any such personnel may
be ordered to duty under section 502(f) of this title for not longer
than the period of the program.
    ``(2) A Governor participating in the National Guard Challenge
Program and the commanding general of the District of Columbia National
Guard (if the District of Columbia National Guard is participating in
the program) may procure by contract the temporary full time services
of such civilian personnel as may be necessary to augment National
Guard personnel in carrying out the National Guard Challenge Program in
that State.
    ``(3) Civilian employees of the National Guard performing services
for the National Guard Challenge Program and contractor personnel
performing such services may be required, when appropriate to achieve
the purposes of the program, to be members of the National Guard and to
wear the military uniform.
    ``(h) Equipment and Facilities.--(1) Equipment and facilities of
the National Guard, including military property of the United States
issued to the National Guard, may be used in carrying out the National
Guard Challenge Program.
    ``(2) Activities under the National Guard Challenge Program shall
be considered noncombat activities of the National Guard for purposes
of section 710 of this title.
    ``(i) Status of Participants.--(1) A person receiving training
under the National Guard Challenge Program shall be considered an
employee of the United States for the purposes of the following
provisions of law:
            ``(A) Subchapter I of chapter 81 of title 5 (relating to
        compensation of Federal employees for work injuries).
            ``(B) Section 1346(b) and chapter 171 of title 28 and any
        other provision of law relating to the liability of the United
        States for tortious conduct of employees of the United States.
    ``(2) In the application of the provisions of law referred to in
paragraph (1)(A) to a person referred to in paragraph (1)--
            ``(A) the person shall not be considered to be in the
        performance of duty while the person is not at the assigned
        location of training or other activity or duty authorized in
        accordance with a program agreement referred to in subsection
        (c), except when the person is traveling to or from that
        location or is on pass from that training or other activity or
        duty;
            ``(B) the person's monthly rate of pay shall be deemed to
        be the minimum rate of pay provided for grade GS-2 of the
        General Schedule under section 5332 of title 5; and
            ``(C) the entitlement of a person to receive compensation
        for a disability shall begin on the day following the date on
        which the person's participation in the National Guard
        Challenge Program is terminated.
    ``(3) A person referred to in paragraph (1) may not be considered
an employee of the United States for any purpose other than a purpose
set forth in that paragraph.
    ``(j) Supplemental Resources.--(1) To carry out the National Guard
Challenge Program in a State, the Governor of the State or, in the case
of the District of Columbia, the commanding general of the District of
Columbia National Guard may supplement funds made available under the
program out of other resources (including gifts) available to the
Governor or the commanding general. The Governor or the commanding
general may accept, use, and dispose of gifts or donations of money,
other property, or services for the National Guard Challenge Program.
    ``(k) Report.--Within 90 days after the end of each fiscal year,
the Secretary of Defense shall submit to Congress a report on the
design, conduct, and effectiveness of the National Guard Challenge
Program during the preceding fiscal year. In preparing the report, the
Secretary shall coordinate with the Governor of each State in which the
National Guard Challenge Program is carried out and, if the program is
carried out in the District of Columbia, with the commanding general of
the District of Columbia National Guard.
    ``(l) Definitions.--In this section:
            ``(1) The term `State' includes the Commonwealth of Puerto
        Rico, the territories, and the District of Columbia.
            ``(2) The term `school dropout' means an individual who is
        no longer attending any school and who has not received a
        secondary school diploma or a certificate from a program of
        equivalency for such a diploma.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``509. National Guard Challenge Program of opportunities for civilian
                            youth.''.

SEC. 1058. LEASE OF NON-EXCESS PERSONAL PROPERTY OF THE MILITARY
              DEPARTMENTS.

    (a) Receipt of Fair Market Value.--Subsection (b)(4) of section
2667 of title 10, United States Code, is amended by striking out ``, in
the case of the lease of real property,''.
    (b) Competitive Selection.--Such section is further amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f) the following new
        subsection:
    ``(g)(1) If a proposed lease under subsection (a) involves only
personal property, the lease term exceeds one year, and the fair market
value of the lease interest exceeds $100,000, as determined by the
Secretary concerned, the Secretary shall use competitive procedures to
select the lessee.
    ``(2) Not later than 45 days before entering into a lease referred
to in paragraph (1), the Secretary concerned shall submit to Congress
written notice describing the terms of the proposed lease and the
competitive procedures used to select the lessee.''.

SEC. 1059. COMMENDATION OF MEMBERS OF THE ARMED FORCES AND GOVERNMENT
              CIVILIAN PERSONNEL WHO SERVED DURING THE COLD WAR.

    (a) Findings.--The Congress finds the following:
            (1) During the period of the Cold War, from the end of
        World War II until the collapse of the Soviet Union in 1991,
        the United States and the Soviet Union engaged in a global
        military rivalry.
            (2) This rivalry, potentially the most dangerous military
        confrontation in the history of mankind, has come to a close
        without a direct superpower military conflict.
            (3) Military and civilian personnel of the Department of
        Defense, personnel in the intelligence community, members of
        the foreign service, and other officers and employees of the
        United States faithfully performed their duties during the Cold
        War.
            (4) Many such personnel performed their duties while
        isolated from family and friends and served overseas under
        frequently arduous conditions in order to protect the United
        States and achieve a lasting peace.
            (5) The discipline and dedication of those personnel were
        fundamental to the prevention of a superpower military
        conflict.
    (b) Congressional Commendation.--The Congress hereby commends, and
expresses its gratitude and appreciation for, the service and
sacrifices of the members of the Armed Forces and civilian personnel of
the Government who contributed to the historic victory in the Cold War.

SEC. 1060. PROHIBITION OF PERFORMANCE OF MILITARY HONORS UPON DEATH OF
              PERSONS CONVICTED OF CAPITAL CRIMES.

    (a) Military Funerals.--The Secretary of Defense and the Secretary
of Transportation, with respect to the Coast Guard when it is not
operating as a service in the Navy, may not provide military honors at
the funeral of a person who has been convicted of a crime under State
or Federal law for which death is a possible punishment and for which
the person was sentenced to death or life imprisonment without parole.
    (b) Applicability of Section.--This section applies without regard
to any other provision of law relating to funeral or burial benefits.

SEC. 1061. STUDY OF UNITED STATES CAPACITOR AND RESISTOR INDUSTRIES.

    The Secretary of Defense shall conduct a study to assess the
capacitor and resistor industries in the United States in order to
determine--
            (1) the importance of such industries to the national
        defense and the defense mobilization base; and
            (2) whether such industries are in danger of being
        critically weakened because of the removal of tariffs on
        imports under the Information Technology Agreement.

SEC. 1062. SENSE OF THE CONGRESS ON DEPLOYMENT OF UNITED STATES ARMED
              FORCES ABROAD FOR ENVIRONMENTAL PRESERVATION ACTIVITIES.

    (a) Sense of Congress.--It is the sense of Congress that United
States Armed Forces should not be deployed outside the United States to
provide assistance to another nation in connection with environmental
preservation activities in that nation.
    (b) Scope of Section.--For purposes of this section, environmental
preservation activities do not include activities undertaken for
humanitarian purposes, disaster relief activities, peacekeeping
activities, or operational training activities.

SEC. 1063. STUDY OF TRANSFER OF MODULAR AIRBORNE FIRE FIGHTING SYSTEM.

    Not later than six months after the date of the enactment of this
Act, the Secretary of Defense, in consultation with the Secretary of
Agriculture, shall submit to Congress a report evaluating the
feasibility of transferring jurisdiction over units of the Modular
Airborne Fire Fighting System from the Department of Agriculture to the
Department of Defense.

SEC. 1064. OVERSIGHT OF COUNTER-TERRORISM AND ANTI-TERRORISM PROGRAMS
              AND ACTIVITIES OF THE UNITED STATES.

    (a) In General.--Not later than 120 days after the date of the
enactment of this Act, the Director of the Office of Management and
Budget shall--
            (1) establish a Government-wide reporting system with
        respect to the budget and expenditure of funds by executive
        departments and agencies for the purpose of carrying out
        counter-terrorism and anti-terrorism programs and activities;
        and
            (2) collect information on--
                    (A) the budget and expenditure of funds by
                executive departments and agencies during fiscal years
                1995 through 1997 for purposes of carrying out counter-
                terrorism and anti-terrorism programs and activities;
                and
                    (B) the specific programs and activities for which
                such funds were expended.
    (b) Report Requirement.--Not later than March 1st of each year, the
Director of the Office of Management and Budget shall submit to the
President and to Congress a report, in classified and unclassified
form, describing, for each executive department and agency and for the
executive branch as whole--
            (1) the amounts proposed to be expended directly for
        counter-terrorism and anti-terrorism programs and activities
        for the fiscal year beginning in the calendar year in which the
        report is submitted;
            (2) the amounts proposed to be expended directly for
        counter-terrorism and anti-terrorism programs and activities
        for the fiscal year in which the report is submitted and the
        amounts that have already been expended for such programs and
        activities for that fiscal year;
            (3) the amounts proposed to be expended directly and the
        amounts actually expended directly for counter-terrorism and
        anti-terrorism programs and activities for the three fiscal
        years preceding the fiscal year in which the report is
        submitted; and
            (4) the specific counter-terrorism and anti-terrorism
        programs and activities being implemented, any priorities with
        respect to such programs and activities, and whether there has
        been any duplication of efforts in implementing such programs
        and activities.

SEC. 1065. ARMAMENT RETOOLING AND MANUFACTURING SUPPORT INITIATIVE.

    (a) Expansion of Purposes of Initiative.--Section 193(b) 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
adding at the end the following new paragraph:
            ``(10) To allow for the use of ammunition manufacturing
        facilities by other entities for the purpose of modernization,
        development, and restoration of the facilities.''.
    (b) Authority to Enter Into Agreements.--Section 194(a) of such Act
is amended--
            (1) by striking out ``and'' at the end of paragraph (1);
            (2) by striking out the period at the end of paragraph (2)
        and inserting in lieu thereof ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) to enter into agreements (which may include
        contracts, leases, or other arrangements for a period of not
        more than 99 years) with other entities with respect to the
        ammunition manufacturing facility, or a part of such
        facility.''.
    (c) Reporting Requirement.--Not later than January 1, 1998, the
Secretary of the Army shall submit to Congress a report on progress
with respect to the implementation of the amendments made to the
Armament Retooling and Manufacturing Support Act of 1992 by this
section.

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

SEC. 1101. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS.

    (a) In General.--For purposes of section 301 and other provisions
of this Act, Cooperative Threat Reduction programs are the programs
specified in subsection (b) of section 406 of title 10, United States
Code, as added by section 1110.
    (b)  Fiscal Year 1998 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 1998 Cooperative Threat
Reduction funds'' means the funds appropriated pursuant to the
authorization of appropriations in section 301 for Cooperative Threat
Reduction programs.

SEC. 1102. FISCAL YEAR 1998 FUNDING ALLOCATIONS.

    (a) In General.--Of the fiscal year 1998 Cooperative Threat
Reduction funds, not more than the following amounts may be obligated
for the purposes specified:
            (1) For strategic offensive arms elimination in Russia,
        $77,900,000.
            (2) For strategic nuclear arms elimination in Ukraine,
        $76,700,000.
            (3) For fissile material containers in Russia, $7,000,000.
            (4) For planning and design of a chemical weapons
        destruction facility in Russia, $14,400,000.
            (5) For planning, design, and construction of a storage
        facility for Russian fissile material, $57,700,000.
            (6) For weapons storage security in Russia, $23,500,000.
            (7) For activities designated as Defense and Military-to-
        Military Contacts in Russia, Ukraine, and Kazakhstan,
        $7,000,000.
            (8) For military-to-military programs of the United States
        that focus on countering the threat of proliferation of weapons
        of mass destruction and that include the security forces of the
        independent states of the former Soviet Union other than
        Russia, Ukraine, Belarus, and Kazakstan, $2,000,000.
            (9) For activities designated as Other Assessments/
        Administrative Support $18,500,000.
    (b) Limited Authority To Vary Individual Amounts.--(1) If the
Secretary of Defense determines that it is necessary to do so in the
national interest, the Secretary may, subject to paragraph (2),
obligate amounts for the purposes stated in any of the paragraphs of
subsection (a) in excess of the amount specified for those purposes in
that paragraph, but not in excess of 115 percent of that amount.
However, the total amount obligated for the purposes stated in the
paragraphs in subsection (a) may not by reason of the use of the
authority provided in the preceding sentence exceed the sum of the
amounts specified in those paragraphs.
    (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.

SEC. 1103. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

    (a) In General.--No fiscal year 1998 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 or any other 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. 1104. PROHIBITION ON USE OF FUNDS UNTIL SPECIFIED REPORTS ARE
              SUBMITTED.

    No fiscal year 1998 Cooperative Threat Reduction funds may be
obligated or expended until 15 days after the date that is the latest
of the following:
            (1) The date on which the President submits to Congress the
        determinations required under subsection (c) of section 211 of
        Public Law 102-228 (22 U.S.C. 2551 note) with respect to any
        certification transmitted to Congress under subsection (b) of
        that section during the period beginning on September 23, 1996,
        and ending on the date of the enactment of this Act.
            (2) The date on which the Secretary of Defense submits to
        Congress the annual report required to be submitted not later
        than January 31, 1998, under section 1206(a) of the National
        Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
        106; 110 Stat. 471; 22 U.S.C. 5955 note).
            (3) The date on which the Secretary of Defense submits to
        Congress the report for fiscal year 1997 required under section
        1205(c) of the National Defense Authorization Act for Fiscal
        Year 1995 (Public Law 103-337; 108 Stat. 2883; 22 U.S.C. 5952
        note).

SEC. 1105. LIMITATION ON USE OF FUNDS UNTIL SUBMISSION OF
              CERTIFICATION.

    (a) Limitation on Use of Funds Until Submission of Certification.--
No fiscal year 1998 Cooperative Threat Reduction funds may be obligated
or expended for strategic offensive arms elimination projects in Russia
related to the START II Treaty (as defined in section 1302(d) of the
National Defense Authorization Act for Fiscal Year 1997 (Public Law
104-201; 110 Stat. 2701)) until 30 days after the date on which the
President submits to Congress a certification in writing that--
            (1) implementation of the projects would benefit the
        national security interest of the United States; and
            (2) Russia has agreed to share the cost for the projects.
    (b) Report.--Not later than 15 days after the date that the
President submits to Congress the certification under subsection (a),
the Secretary of Defense shall submit to the congressional defense
committees a report describing the arrangement between the United
States and Russia with respect to the sharing of costs for strategic
offensive arms elimination projects in Russia related to the START II
Treaty.

SEC. 1106. USE OF FUNDS FOR CHEMICAL WEAPONS DESTRUCTION FACILITY.

    (a) Limitation on Use of Funds Until Submission of Notifications to
Congress.--No fiscal year 1998 Cooperative Threat Reduction funds may
be obligated or expended for planning and design of a chemical weapons
destruction facility until 15 days after the date that is the later of
the following:
            (1) The date on which the Secretary of Defense submits to
        Congress notification of an agreement between the United States
        and Russia with respect to such chemical weapons destruction
        facility that includes--
                    (A) an agreement providing for a limitation on the
                financial contribution by the United States for the
                facility;
                    (B) an agreement that the United States will not
                pay the costs for infrastructure determined by Russia
                to be necessary to support the facility; and
                    (C) an agreement on the site of the facility.
            (2) The date on which the Secretary of Defense submits to
        Congress notification that the Government of Russia has
        formally approved a plan--
                    (A) that allows for the destruction of chemical
                weapons in Russia; and
                    (B) that commits Russia to pay a portion of the
                cost for the facility.
    (b) Prohibition on Use of Funds for Facility Construction.--No
fiscal year 1998 Cooperative Threat Reduction funds authorized to be
obligated in section 1102(a)(4) for planning and design of a chemical
weapons destruction facility in Russia may be used for construction of
such facility.

SEC. 1107. LIMITATION ON USE OF FUNDS FOR STORAGE FACILITY FOR RUSSIAN
              FISSILE MATERIAL.

    (a) Limitation on Use of Fiscal Year 1998 Funds.--No fiscal year
1998 Cooperative Threat Reduction funds may be obligated or expended
for planning, design, or construction of a storage facility for Russian
fissile material until 15 days after the date that is the later of the
following:
            (1) The date on which the Secretary of Defense submits to
        Congress notification of an agreement between the United States
        and Russia that the total share of the cost to the United
        States for such facility will not exceed $275,000,000.
            (2) The date on which the Secretary submits to Congress
        notification of an agreement between the United States and
        Russia incorporating the principle of transparency with respect
        to the use of the facility.
    (b) Limitation on Use of Funds for Fiscal Years Before Fiscal Year
1998.--None of the funds appropriated for Cooperative Threat Reduction
programs for a fiscal year before fiscal year 1998 and remaining
available for obligation on the date of the enactment of this Act may
be obligated or expended for planning, design, or construction of a
storage facility for Russian fissile material until--
            (1) the Secretary of Defense submits to the congressional
        defense committees a report on the costs and schedule for the
        planning, design, and construction of the facility and
        transparency issues relating to the facility; and
            (2) 15 days have elapsed following the date of the
        notification.

SEC. 1108. LIMITATION ON USE OF FUNDS FOR WEAPONS STORAGE SECURITY.

    No fiscal year 1998 Cooperative Threat Reduction funds may be
obligated or expended for weapons storage security in Russia until--
            (1) the Secretary of Defense submits to the congressional
        defense committees notification of an agreement between the
        United States and Russia on audits and examinations with
        respect to weapons storage security; and
            (2) 15 days have elapsed following the date of the
        notification.

SEC. 1109. REPORT TO CONGRESS ON ISSUES REGARDING PAYMENT OF TAXES OR
              DUTIES ON ASSISTANCE PROVIDED TO RUSSIA UNDER COOPERATIVE
              THREAT REDUCTION PROGRAMS.

    Not later than September 30, 1997, the Secretary of Defense shall
submit to Congress a report on--
            (1) any disputes between the United States and Russia with
        respect to payment by the United States of taxes or duties on
        assistance provided to Russia under a Cooperative Threat
        Reduction program, including a description of the nature of
        each dispute, the amount of payment disputed, whether the
        dispute was resolved, and if the dispute was resolved, the
        means by which the dispute was resolved;
            (2) the actions taken by the Secretary to prevent disputes
        between the United States and Russia with respect to payment by
        the United States of taxes or duties on assistance provided to
        Russia under a Cooperative Threat Reduction program;
            (3) any agreements between the United States and Russia
        with respect to payment by the United States of taxes or duties
        on assistance provided to Russia under a Cooperative Threat
        Reduction program; and
            (4) any proposals of the Secretary on actions that should
        be taken to prevent disputes between the United States and
        Russia with respect to payment by the United States of taxes or
        duties on assistance provided to Russia under a Cooperative
        Threat Reduction program.

SEC. 1110. LIMITATION ON OBLIGATION OF FUNDS FOR A SPECIFIED PERIOD.

    (a) In General.--(1) Chapter 20 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 406. Use of Cooperative Threat Reduction program funds:
              limitation
    ``(a) In General.--In carrying out Cooperative Threat Reduction
programs during any fiscal year, the Secretary of Defense may use funds
appropriated for those programs only to the extent that those funds
were appropriated for that fiscal year or for either of the two
preceding fiscal years.
    ``(b) Definition of Cooperative Threat Reduction Programs.--In this
section, the term `Cooperative Threat Reduction programs' means the
following programs with respect to states of the former Soviet Union:
            ``(1) Programs to facilitate the elimination, and the safe
        and secure transportation and storage, of nuclear, chemical,
        and other weapons and their delivery vehicles.
            ``(2) Programs to facilitate the safe and secure storage of
        fissile materials derived from the elimination of nuclear
        weapons.
            ``(3) Programs to prevent the proliferation of weapons,
        components, and weapons-related technology and expertise.
            ``(4) Programs to expand military-to-military and defense
        contacts.''.
    (2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``406. Use of Cooperative Threat Reduction program funds:
                            limitation.''.
    (b) Effective Date.--Section 406 of title 10, United States Code,
as added by subsection (a), shall apply with respect to fiscal years
beginning with fiscal year 1998.

SEC. 1111. 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.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                      Subtitle A--General Matters

SEC. 1201. REPORTS TO CONGRESS RELATING TO UNITED STATES FORCES IN
              BOSNIA.

    (a) Secretary of Defense Reports on Nonmilitary Tasks Carried Out
by United States Forces.--The Secretary of Defense shall submit to the
congressional defense committees two reports identifying each activity
being carried out, as of the date of the report, by covered United
States forces in Bosnia that is an activity that (as determined by the
Secretary) is expected to be performed by an international or local
civilian organization once the multinational peacekeeping mission in
Bosnia is concluded.
    (b) Covered United States Forces.--For purposes of this section,
covered United States forces in Bosnia are United States ground forces
in the Republic of Bosnia and Herzegovina that are assigned to the
multinational peacekeeping force known as the Stabilization Force
(SFOR) or to any other multinational peacekeeping force that is a
successor to the Stabilization Force.
    (c) Matters To Be Included.--The Secretary shall include in each
report under subsection (a), for each activity identified under that
subsection, the following:
            (1) The number of United States military personnel
        involved.
            (2) Whether forces assigned to the SFOR (or successor
        multinational force) from other nations also participated in
        that activity.
            (3) The justification for using military forces rather than
        civilian organizations to perform that activity.
    (d) Submission of Reports.--The first report under subsection (a)
shall be submitted not later than December 1, 1997. The second such
report shall be submitted not later than March 31, 1998.

SEC. 1202. ONE-YEAR EXTENSION OF COUNTERPROLIFERATION AUTHORITIES.

    Section 1505 of the Weapons of Mass Destruction Control Act of 1992
(title XV of Public Law 102-484; 22 U.S.C. 5859a) is amended--
            (1) in subsection (d)(3), by striking out ``or'' after
        ``fiscal year 1996,'' and by inserting ``, or $15,000,000 for
        fiscal year 1998'' before the period at the end; and
            (2) in subsection (f), by striking out ``1997'' and
        inserting in lieu thereof ``1998''.

SEC. 1203. REPORT ON FUTURE MILITARY CAPABILITIES AND STRATEGY OF THE
              PEOPLE'S REPUBLIC OF CHINA.

    (a) Report.--The Secretary of Defense shall prepare a report, in
both classified and unclassified form, on the future pattern of
military modernization of the People's Republic of China. The report
shall address the probable course of military-technological development
in the People's Liberation Army and the development of Chinese grand
strategy, security strategy, and military strategy, and of military
organizations and operational concepts, through 2015.
    (b) Matters To Be Included.--The report shall include analyses and
forecasts of the following:
            (1) The goals of Chinese grand strategy, security strategy,
        and military strategy.
            (2) Trends in Chinese political grand strategy meant to
        establish the People's Republic of China as the leading
        political power in the Asia-Pacific region and as a political
        and military presence in other regions of the world, including
        Central Asia, Southwest Asia, Europe, and Latin America.
            (3) Developments in Chinese military doctrine, focusing on
        (but not limited to) efforts to exploit the emerging Revolution
        in Military Affairs or to conduct preemptive strikes.
            (4) Efforts by the People's Republic of China to enhance
        its capabilities in the area nuclear weapons development.
            (5) Efforts by the People's Republic of China to develop
        long-range air-to-air or air defense missiles designed to
        target special support aircraft such as Airborne Warning and
        Control System (AWACS) aircraft, Joint Surveillance and Target
        Attack Radar System (JSTARS) aircraft, or other command and
        control, intelligence, airborne early warning, or electronic
        warfare aircraft.
            (6) Efforts by the People's Republic of China to develop a
        capability to conduct ``information warfare'' at the strategic,
        operational, and tactical levels of war.
            (7) Development by the People's Republic of China of
        capabilities in the area of electronic warfare.
            (8) Efforts by the People's Republic of China to develop a
        capability to establish control of space or to deny access and
        use of military and commercial space systems in times of crisis
        or war, including programs to place weapons in space or to
        develop earth-based weapons capable of attacking space-based
        systems.
            (9) Trends that would lead the People's Republic of China
        toward the development of advanced intelligence, surveillance,
        and reconnaissance capabilities, including gaining access to
        commercial or third-party systems with military significance.
            (10) Efforts by the People's Republic of China to develop
        highly accurate and stealthy ballistic and cruise missiles,
        including sea-launched cruise missiles, particularly in numbers
        sufficient to conduct attacks capable of overwhelming projected
        defense capabilities in the Asia-Pacific region.
            (11) Development by the People's Republic of China of
        command and control networks, particularly those capable of
        battle management of long-range precision strikes.
            (12) Efforts by the People's Republic of China in the area
        of telecommunications, including common channel signaling and
        synchronous digital hierarchy technologies.
            (13) Development by People's Republic of China of advanced
        aerospace technologies with military applications (including
        gas turbine ``hot section'' technologies).
            (14) Programs of the People's Republic of China involving
        unmanned aerial vehicles, particularly those with extended
        ranges or loitering times or potential strike capabilities.
            (15) Exploitation by the People's Republic of China for
        military purposes of the Global Positioning System or other
        similar systems (including commercial land surveillance
        satellites), with such analysis and forecasts focusing
        particularly on those signs indicative of an attempt to
        increase accuracy of weapons or situational awareness of
        operating forces.
            (16) Development by the People's Republic of China of
        capabilities for denial of sea control, including such systems
        as advanced sea mines, improved submarine capabilities, or
        land-based sea-denial systems.
            (17) Efforts by the People's Republic of China to develop
        its anti-submarine warfare capabilities.
            (18) Continued development by the People's Republic of
        China of follow-on forces, particularly forces capable of rapid
        air or amphibious assault.
            (19) Efforts by the People's Republic of China to enhance
        its capabilities in such additional areas of strategic concern
        as the Secretary identifies.
    (c) Analysis of Implications of Sales of Products and Technologies
to Entities in China.--The report under subsection (a) shall include,
with respect to each area for analyses and forecasts specified in
subsection (b)--
            (1) an assessment of the implications of sales of United
        States and foreign products and technologies to entities in the
        People's Republic of China; and
            (2) the potential threat of developments in that area to
        United States strategic interests.
    (d) Submission of Report.--The report shall be submitted to
Congress not later than March 15, 1998.

SEC. 1204. TEMPORARY USE OF GENERAL PURPOSE VEHICLES AND NONLETHAL
              MILITARY EQUIPMENT UNDER ACQUISITION AND CROSS SERVICING
              AGREEMENTS.

    Section 2350(1) of title 10, United States Code, is amended by
striking out ``other items'' in the second sentence and all that
follows through ``United States Munitions List'' and inserting in lieu
thereof ``other nonlethal items of military equipment which are not
designated as significant military equipment on the United States
Munitions List promulgated''.

SEC. 1205. DEFENSE BURDENSHARING.

    (a) Efforts To Increase Allied Burdensharing.--The President shall
seek to have each nation that has cooperative military relations with
the United States (including security agreements, basing arrangements,
or mutual participation in multinational military organizations or
operations) take one or more of the following actions:
            (1) For any nation in which United States military
        personnel are assigned to permanent duty ashore, increase its
        financial contributions to the payment of the nonpersonnel
        costs incurred by the United States Government for stationing
        United States military personnel in that nation, with a goal of
        achieving by September 30, 2000, 75 percent of such costs. An
        increase in financial contributions by any nation under this
        paragraph may include the elimination of taxes, fees, or other
        charges levied on United States military personnel, equipment,
        or facilities stationed in that nation.
            (2) Increase its annual budgetary outlays for national
        defense as a percentage of its gross domestic product by 10
        percent or at least to a level commensurate that of the United
        States by September 30, 1998.
            (3) Increase its annual budgetary outlays for foreign
        assistance (to promote democratization, economic stabilization,
        transparency arrangements, defense economic conversion, respect
        for the rule of law, and internationally recognized human
        rights) by 10 percent or at least to a level commensurate to
        that of the United States by September 30, 1998.
            (4) Increase the amount of military assets (including
        personnel, equipment, logistics, support and other resources)
        that it contributes, or would be prepared to contribute, to
        multinational military activities worldwide.
    (b) Authorities To Encourage Actions by United States Allies.--In
seeking the actions described in subsection (a) with respect to any
nation, or in response to a failure by any nation to undertake one or
more of such actions, the President may take any of the following
measures to the extent otherwise authorized by law:
            (1) Reduce the end strength level of members of the Armed
        Forces assigned to permanent duty ashore in that nation.
            (2) Impose on that nation fees or other charges similar to
        those that such nation imposes on United States forces
        stationed in that nation.
            (3) Reduce (through rescission, impoundment, or other
        appropriate procedures as authorized by law) the amount the
        United States contributes to the NATO Civil Budget, Military
        Budget, or Security Investment Program.
            (4) Suspend, modify, or terminate any bilateral security
        agreement the United States has with that nation, consistent
        with the terms of such agreement.
            (5) Reduce (through rescission, impoundment or other
        appropriate procedures as authorized by law) any United States
        bilateral assistance appropriated for that nation.
            (6) Take any other action the President determines to be
        appropriate as authorized by law.
    (c) Report on Progress in Increasing Allied Burdensharing.--Not
later than March 1, 1998, the Secretary of Defense shall submit to
Congress a report on--
            (1) steps taken by other nations to complete the actions
        described in subsection (a);
            (2) all measures taken by the President, including those
        authorized in subsection (b), to achieve the actions described
        in subsection (a);
            (3) the difference between the amount allocated by other
        nations for each of the actions described in subsection (a)
        during the period beginning on March 1, 1996, and ending on
        February 28, 1997, and during the period beginning on March 1,
        1997, and ending on February 28, 1998; and
            (4) the budgetary savings to the United States that are
        expected to accrue as a result of the steps described under
        paragraph (1).
    (d) Report on National Security Bases for Forward Deployment and
Burdensharing Relationships.--(1) In order to ensure the best
allocation of budgetary resources, the President shall undertake a
review of the status of elements of the United States Armed Forces that
are permanently stationed outside the United States. The review shall
include an assessment of the following:
            (A) The alliance requirements that are to be found in
        agreements between the United States and other countries.
            (B) The national security interests that support
        permanently stationing elements of the United States Armed
        Forces outside the United States.
            (C) The stationing costs associated with the forward
        deployment of elements of the United States Armed Forces.
            (D) The alternatives available to forward deployment (such
        as material prepositioning, enhanced airlift and sealift, or
        joint training operations) to meet such alliance requirements
        or national security interests, with such alternatives
        identified and described in detail.
            (E) The costs and force structure configurations associated
        with such alternatives to forward deployment.
            (F) The financial contributions that allies of the United
        States make to common defense efforts (to promote
        democratization, economic stabilization, transparency
        arrangements, defense economic conversion, respect for the rule
        of law, and internationally recognized human rights).
            (G) The contributions that allies of the United States make
        to meeting the stationing costs associated with the forward
        deployment of elements of the United States Armed Forces.
            (H) The annual expenditures of the United States and its
        allies on national defense, and the relative percentages of
        each nation's gross domestic product constituted by those
        expenditures.
    (2) The President shall submit to Congress a report on the review
under paragraph (1). The report shall be submitted not later than March
1, 1998, in classified and unclassified form.

SEC. 1206. PRESIDENTIAL CERTIFICATIONS CONCERNING DETARGETING OF
              RUSSIAN INTERCONTINENTAL BALLISTIC MISSILES.

    (a) Required Certifications.--Not later than January 1, 1998, the
President shall submit to Congress a report containing a certification
by the President of each of the following:
            (1) Whether it is possible for the United States to verify
        by technical means that a Russian ICBM is or is not targeted at
        a site in the United States.
            (2) The length of time it would take for a Russian ICBM
        formerly, but no longer, targeted at a site in the United
        States to be retargeted at a site in the United States.
            (3) Whether a Russian ICBM that was formerly, but is no
        longer, targeted at a site in the United States would be
        automatically retargeted at a site in the United States in the
        event of an accidental launch of such missile.
    (b) Russian ICBMs Defined.--For purposes of subsection (a), the
term ``Russian ICBM'' means an intercontinental ballistic missile of
the Russian Federation.

SEC. 1207. LIMITATION ON PAYMENTS FOR COST OF NATO EXPANSION.

    (a) The amount spent by the United States as its share of the total
cost to North Atlantic Treaty Organization member nations of the
admission of new member nations to the North American Treaty
Organization may not exceed 10 percent of the cost of expansion or a
total of $2,000,000,000, whichever is less, for fiscal years 1998
through 2010.
    (b) If at any time during the period specified in subsection (a),
the United States' share of the total cost of expanding the North
Atlantic Treaty Organization exceeds 10 percent, no further United
States funds may be expended for the costs of such expansion until that
percentage is reduced to below 10 percent.

SEC. 1208. SENSE OF THE CONGRESS RELATING TO LEVEL OF UNITED STATES
              MILITARY PERSONNEL IN THE ASIA AND PACIFIC REGION.

    (a) Findings.--The Congress finds the following:
            (1) The stability of the Asia-Pacific region is a matter of
        vital national interest affecting the well-being of all
        Americans.
            (2) The nations of the Pacific Rim collectively represent
        the United States largest trading partner and are expected to
        account for almost one-third of the world's economic activity
        by the start of the next century.
            (3) The increased reliance by the United States on trade
        and Middle East oil sources has reinforced United States
        security interests in the Southeast Asia shipping lanes through
        the South China Sea and the key straits of Malacca, Sunda,
        Lombok, and Makassar.
            (4) The South China Sea is a vital conduit for United
        States Navy ships passing from the Pacific to the Indian Ocean
        and the Persian Gulf.
            (5) Maintaining freedom of navigation in the South China
        Sea is a fundamental interest of the United States.
            (6) The threats of proliferation of weapons of mass
        destruction, the emerging nationalism amidst long-standing
        ethnic and national rivalries, and the unresolved territorial
        disputes combine to create a political landscape of potential
        instability and conflict in this region that would jeopardize
        the interests of the United States and the safety of United
        States nationals.
            (7) A critical component of the East Asia strategy of the
        United States is maintaining forward deployed forces in Asia to
        ensure broad regional stability, to help to deter aggression,
        to lessen the pressure for arms races, and to contribute to the
        political and economic advances of the region from which the
        United States benefits.
            (8) The forward presence of the United States in Northeast
        Asia enables the United States to respond to regional
        contingencies, to protect sea lines of communication, to
        sustain influence, and to support operations as distant as
        operations in the Persian Gulf.
            (9) The military forces of the United States serve to
        prevent the political or economic control of the Asia-Pacific
        region by a rival, hostile power or coalition of such powers,
        thus preventing any such group from obtaining control over the
        vast resources, enormous wealth, and advanced technology of the
        region.
            (10) Allies of the United States in the region can base
        their defense planning on a reliable American security
        commitment, a reduction of which could stimulate an arms
        buildup in the region.
            (11) The Joint Announcement of the United States-Japan
        Security Consultative Committee of December 1996, acknowledged
        that ``the forward presence of U.S. forces continues to be an
        essential element for pursuing our common security
        objectives''.
            (12) The administration has committed itself on numerous
        occasions to maintain approximately 100,000 troops in the
        region, most recently by the President in Australia, the
        Secretary of Defense in the Quadrennial Defense Review, and the
        Secretary of State in the Republic of Korea.
            (13) The United States and Japan signed the United States-
        Japan Security Declaration in April 1996, in which the United
        States reaffirmed its commitment to maintain this level of
        100,000 United States military personnel in the region.
            (14) The United States military presence is recognized by
        the nations of the region as serving stability and signaling
        United States engagement.
            (15) The nations of East Asia and the Pacific consider the
        commitment of the forces of the United States to be so vital to
        their future that they scrutinize actions of the United States
        for any sign of weakened commitment to the security of the
        region.
            (16) The reduction of forward-based military forces could
        negatively affect the ability of the United States to
        contribute to the maintenance of peace and stability of the
        Asia and Pacific region.
            (17) Recognizing that while the United States must consider
        the overall capabilities of its forces in its decisions to
        deploy troops, nevertheless any reduction in the number of
        forward-based troops may reduce the perception of American
        capability and commitment in the region that cannot be
        completely offset by modernization of the remaining forces.
            (18) During time of crisis, redeployment of forces
        previously removed from the area might itself be deemed an act
        of provocation that could be used as a pretext by a hostile
        power for armed aggression within the region, and the existence
        of that possibility might hinder such a deployment.
            (19) Proposals to reduce the forward presence of the United
        States in Asia or drastically subordinate security interests to
        United States domestic budgetary concerns can erode the
        perception of the commitment of the United States to its
        alliances and interests in the region.
    (b) Sense of the Congress.--It is the sense of the Congress that
the United States should maintain approximately 100,000 United States
military personnel in the Asia and Pacific region until such time as
there is a peaceful and permanent resolution to the major security and
political conflicts in the region.

SEC. 1209. SENSE OF THE CONGRESS ON NEED FOR RUSSIAN OPENNESS ON THE
              YAMANTAU MOUNTAIN PROJECT.

    (a) Findings.--Congress finds as follows:
            (1) The United States and Russia have been working in the
        post-Cold War era to establish a new strategic relationship
        based on cooperation and openness between the two nations.
            (2) This effort to establish a new strategic relationship
        has resulted in the conclusion or agreement in principle on a
        number of far-reaching agreements, including START I, II, and
        III, a revision in the Conventional Forces in Europe Treaty,
        and a series of other agreements (such as the Comprehensive
        Test Ban Treaty and the Chemical Weapons Convention), designed
        to further reduce bilateral threats and limit the proliferation
        of weapons of mass destruction.
            (3) These far-reaching agreements were based on the
        understanding between the United States and Russia that there
        would be a good faith effort on both sides to comply with the
        letter and spirit of the agreements, that both sides would end
        their Cold War competition, and that neither side would seek to
        gain or maintain unilateral strategic advantage over the other.
            (4) Reports indicate that Russia has been pursuing
        construction of a massive underground facility of unknown
        purpose at Yamantau Mountain and the city of Mezhgorye
        (formerly the settlements of Beloretsk-15 and Beloretsk-16)
        that is designed to survive a nuclear war and appears to exceed
        reasonable defense requirements.
            (5) The Yamantau Mountain project does not appear to be
        consistent with the lowering of strategic threats, openness,
        and cooperation that is the basis of the post-Cold War
        strategic partnership between the United States and Russia.
            (6) Russia appears to have engaged in a campaign to
        deliberately conceal and mislead the United States about the
        purpose of the Yamantau Mountain project, as shown by the
        following:
                    (A) General and Bashkortostan, People's Deputy
                Leonid Akimovich Tsirkunov, commandant of Beloretsk-15
                and Beloretsk-16, stated in 1991 and 1992 that the
                purpose of the construction there was to build a mining
                and ore-processing complex, but later claimed that it
                was an underground warehouse for food and clothing.
                    (B) M.Z. Shakiorov, a former communist official in
                the region, alleged in 1992 that the Yamantau Mountain
                facility was to become a shelter for the Russian
                national leadership in case of nuclear war.
                    (C) Sources of the Segodnya newspaper in 1996
                claimed that the Yamantau Mountain project was
                associated with the so-called ``Dead Hand'' nuclear
                retaliatory command and control system for strategic
                missiles.
                    (D) Then Commander-in-Chief of the Strategic Rocket
                Forces General Igor Sergeyev denied that the facility
                was associated with nuclear forces.
                    (E) R. Zhukov, a Deputy in the State Assembly, in
                1996 claimed that the Yamantau Mountain facility
                belonged to ``atomic scientists'' and posed a serious
                environmental hazard.
                    (F) Russia's 1997 federal budget lists the project
                as a closed territory containing installations of the
                Ministry of Defense, while First Deputy Defense
                Minister Andrey Kokoshin recently stated that the
                Ministry of Defense has nothing to do with the project.
            (7) Continued cooperation and progress on forging a new
        strategic relationship between the United States and Russia
        requires that both nations make transparent to one another
        major projects underway or plans under consideration that could
        alter the strategic balance sought in arms control agreements
        or otherwise be construed by the other side as an important new
        potential threat.
            (8) The United States has allowed senior Russian military
        and government officials to have access to key strategic
        facilities of the United States by providing tours of the North
        American Air Defense (NORAD) command at Cheyenne Mountain and
        the United States Strategic Command (STRACOM) headquarters in
        Omaha, Nebraska, among other sites, and by providing extensive
        briefings on the operations of those facilities.
    (b) Sense of Congress.--In light of the findings in subsection (a),
it is the sense of Congress that--
            (1) the Russian government should provide to the United
        States a written explanation on the principal and secondary
        purposes of the Yamantau Mountain project, specifically
        identifying the intended end user and explaining the heavy
        investment in that project;
            (2) the Russian government should allow a United States
        delegation, including officials of the executive branch,
        Members of Congress, and United States experts on underground
        facilities, to have access to the Yamantau Mountain project to
        inspect the facility and all rail-served buildings in the
        southern and northern settlements located near Yamantau; and
            (3) the Russian government should direct senior officials
        responsible for the Yamantau Mountain project to explain to
        such a United States delegation the purpose and operational
        concept of all completed and planned underground facilities at
        Yamantau Mountain in sufficient detail (including through the
        use of drawings and diagrams) to support a high-confidence
        judgment by the United States delegation that the design is
        consistent with the official explanations.

SEC. 1210. UNITED STATES ARMED FORCES IN BOSNIA.

    (a) Limitation.--Funds appropriated or otherwise made available for
the Department of Defense may not be obligated for the deployment of
any ground elements of the United States Armed Forces in the Republic
of Bosnia and Herzegovina after--
            (1) June 30, 1998; or
            (2) such later date as may be specifically prescribed by
        law after the date of the enactment of this Act, based upon a
        request from the President or otherwise as the Congress may
        determine.
    (b) Exceptions.--The limitation in subsection (a) shall not apply
to the extent necessary to support (1) a limited number of United
States military personnel sufficient only to protect United States
diplomatic facilities in existence on the date of the enactment of this
Act, and (2) noncombat military personnel sufficient only to advise the
commanders North Atlantic Treaty Organization peacekeeping operations
in the Republic of Bosnia and Herzegovina.
    (c) Construction of Section.--Nothing in this section shall be
deemed to restrict the authority of the President under the
Constitution to protect the lives of United States citizens.

SEC. 1211. LIMITATION ON SUPPORT FOR LAW ENFORCEMENT ACTIVITIES IN
              BOSNIA.

    None of the funds appropriated or otherwise made available to the
Department of Defense may be obligated or expended after the date of
the enactment of this Act for the conduct of, or direct support for,
law enforcement activities in the Republic of Bosnia and Herzegovina,
except for the training of law enforcement personnel or to prevent
imminent loss of life.

SEC. 1212. PRESIDENTIAL REPORT ON POLITICAL AND MILITARY CONDITIONS IN
              BOSNIA.

    (a) Report.--Not later than December 15, 1997, the President shall
submit to Congress a report on the political and military conditions in
the Republic of Bosnia and Herzegovina (hereafter in this section
referred to as Bosnia-Herzegovina). Of the funds available to the
Secretary of Defense for fiscal year 1998 for the operation of United
States ground forces in Bosnia-Herzegovina during that fiscal year, no
more than 60 percent may be expended before the report is submitted.
    (b) Matters To Be Included.--The report under subsection (a) shall
include a discussion of the following:
            (1) An identification of the specific steps taken by the
        United States Government to transfer the United States portion
        of the peacekeeping mission in the Republic of Bosnia and
        Herzegovina to European allied nations or organizations.
            (2) A detailed discussion of the proposed role and
        involvement of the United States in supporting peacekeeping
        activities in the Republic of Bosnia and Herzegovina following
        the withdrawal of United States ground forces from the Republic
        of Bosnia and Herzegovina pursuant to section 1205.
            (3) A detailed explanation and timetable for carrying out
        the President's commitment to withdraw all United States ground
        forces from Bosnia-Herzegovina by the end of June 1998,
        including the planned date of commencement and completion of
        the withdrawal.
            (4) The date on which the transition from the multinational
        force known as the Stabilization Force to the planned
        multinational successor force to be known as the Deterrence
        Force will occur and how the decision as to that date will
        impact the estimates of costs associated with the operation of
        United States ground forces in Bosnia-Herzegovina during fiscal
        year 1998 as contained in the President's budget for fiscal
        year 1998.
            (5) The military and political considerations that will
        affect the decision to carry out such a transition.
            (6) Any plan to maintain or expand other Bosnia-related
        operations (such as the operation designated as Operation
        Deliberate Guard) if tensions in Bosnia-Herzegovina remain
        sufficient to delay the transition from the Stabilization Force
        to the Deterrence Force and the estimated cost associated with
        each such operation.
            (7) Whether allied nations participating in the Bosnia
        mission have similar plans to increase and maintain troop
        strength or maintain ground forces in Bosnia-Herzegovina and,
        if so, the identity of each such country and a description of
        that country's plans.
    (c) Stabilization Force Defined.--As used in this section, the term
``Stabilization Force'' (referred to as ``SFOR'') means the follow-on
force to the Implementation Force (known as ``IFOR'') in the Republic
of Bosnia and Herzegovina and other countries in the region, authorized
under United Nations Security Council Resolution 1008 (December 12,
1996).

   Subtitle B--Matters Relating To Prevention of Technology Diversion

SEC. 1231. FINDINGS.

    Congress finds as follows:
            (1) There have been numerous reports of United States-
        origin supercomputers being obtained by countries of
        proliferation concern for use in weapon development programs.
            (2) China is considered by the United States Government to
        be a country of proliferation concern.
            (3) According to United States officials, China has
        acquired at least 47 United States-origin supercomputers.
            (4) Recent reports indicate that China has purchased
        hundreds of supercomputers for use in its weapons programs and
        that the United States is unsure of the location of those
        supercomputers or the purposes for which they are being used.
            (5) China has refused to allow the United States to conduct
        post-shipment verifications of dual-use items exported from the
        United States to ensure that those items are not diverted to
        military use.
            (6) China has in the past diverted dual-use items intended
        for civilian use to military purposes.

SEC. 1232. EXPORT APPROVALS FOR SUPERCOMPUTERS.

    (a) Prior Approval of Exports and Reexports.--The President shall
require that no digital computer with a composite theoretical
performance of more than 2,000 millions of theoretical operations per
second (MTOPS) may be exported or reexported to a country specified in
subsection (b) without the prior written approval of the Secretary of
Commerce, the Secretary of Defense, the Secretary of Energy, the
Secretary of State, and the Director of the Arms Control and
Disarmament Agency.
    (b) Covered Countries.--For purposes of subsection (a), the
countries specified in this subsection are the countries listed as
``computer tier 3'' eligible countries in section 740.7(d) of title 15
of the Code of Federal Regulations, as in effect on June 10, 1997.
    (c) Time Limit.--The Secretary of Commerce, the Secretary of
Defense, the Secretary of Energy, the Secretary of State, and the
Director of the Arms Control and Disarmament Agency shall provide a
written response to an application for export approval under subsection
(a) within 10 days after the application is received. If any such
Secretary or the Director declines to approve the export of a computer,
the computer may be exported or reexported only pursuant to a license
issued by the Secretary of Commerce under the Export Administration
Regulations of the Department of Commerce, and without regard to the
licensing exceptions otherwise authorized under section 740.7 of title
15 of the Code of Federal Regulations, as in effect on June 10, 1997.

SEC. 1233. REPORT ON EXPORTS OF SUPERCOMPUTERS.

    (a) Report.--Not later than 30 days after the date of the enactment
of this Act, the President shall provide to the congressional
committees specified in subsection (d) a report identifying all exports
of digital computers with a composite theoretical performance of over
2,000 millions of theoretical operations per second (MTOPS) to all
countries since January 25, 1996. For each export, the report shall
identify--
            (1) whether an export license was applied for and whether
        one was granted;
            (2) the date of the transfer of the computer;
            (3) the United States manufacturer and exporter of the
        computer;
            (4) the MTOPS level of the computer; and
            (5) the recipient country and end user.
    (b) Additional Information on Exports to Certain Countries.--In the
case of exports to countries specified in subsection (c), the report
under subsection (a) shall identify the intended end use for the
exported computer and the assessment by the executive branch of whether
the end user is a military end user or an end user involved in
activities relating to nuclear, chemical, or biological weapons or
missile technology. Information provided under this subsection may be
submitted in classified form if necessary.
    (c) Covered Countries.--For purposes of subsection (b), the
countries specified in this subsection are--
            (1) the countries listed as ``computer tier 3'' eligible
        countries in section 740.7(d) of title 15 of the Code of
        Federal Regulations, as in effect on June 10, 1997; and
            (2) the countries listed in section 740.7(e) of title 15 of
        the Code of Federal Regulations, as in effect on June 10, 1997.
    (d) Congressional Committees.--For purposes of subsection (a), the
congressional committees specified in this subsection are the
following:
            (1) The Committee on Banking, Housing, and Urban Affairs
        and the Committee on Armed Services of the Senate.
            (2) The Committee on International Relations and the
        Committee on National Security of the House of Representatives.

SEC. 1234. POST-SHIPMENT VERIFICATION OF EXPORT OF SUPERCOMPUTERS.

    (a) Required Post-Shipment Verification.--The Secretary of Commerce
shall conduct post-shipment verification of each supercomputer that is
exported from the United States, on or after the date of the enactment
of this Act, to a country specified in subsection (c).
    (b) Covered Supercomputers.--Subsection (a) applies with respect to
a digital computer with a composite theoretical performance in excess
of 2,000 millions of theoretical operations per second (MTOPS).
    (c) Covered Countries.--For purposes of subsection (a), the
countries specified in this subsection are the countries listed as
``computer tier 3'' eligible countries in section 740.7 of title 15 of
the Code of Federal Regulations, as in effect on June 10, 1997.
    (d) Annual Report.--The Secretary of Commerce shall submit to the
congressional committees specified in subsection (f) an annual report
on the results of post-shipment verifications conducted under this
section during the preceding year. Each such report shall include a
list of all such items exported from the United States to such
countries during the previous year and, with respect to each such
export, the following:
            (1) The destination country.
            (2) The date of export.
            (3) The intended end use and intended end user.
            (4) The results of the post-shipment verification.
    (e) Explanation When Verification Not Conducted.--If a post-
shipment verification has not been conducted in accordance with
subsection (a) with respect to any such export during the period
covered by a report, the Secretary shall include in the report for that
period a detailed explanation of the reasons why such a post-shipment
verification was not conducted.
    (f) Congressional Committees.--For purposes of subsection (a), the
congressional committees specified in this subsection are the
following:
            (1) The Committee on National Security and the Committee on
        International Relations of the House of Representatives.
            (2) The Committee on Armed Services and the Committee on
        Banking, Housing, and Urban Affairs of the Senate.

                 TITLE XIII--DEFENSE PERSONNEL REFORMS

SEC. 1301. REDUCTION IN PERSONNEL ASSIGNED TO MANAGEMENT HEADQUARTERS
              AND HEADQUARTERS SUPPORT ACTIVITIES.

    (a) In General.--(1) Chapter 3 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 130a. Management headquarters and headquarters support
              activities personnel: limitation
    ``(a) Limitation.--Effective October 1, 2001, the number of
management headquarters and headquarters support activities personnel
in the Department of Defense may not exceed the 75 percent of the
baseline number.
    ``(b) Phased Reduction.--The number of management headquarters and
headquarters support activities personnel in the Department of
Defense--
            ``(1) as of October 1, 1998, may not exceed 90 percent of
        the baseline number;
            ``(2) as of October 1, 1999, may not exceed 85 percent of
        the baseline number; and
            ``(3) as of October 1, 2000, may not exceed 80 percent of
        the baseline number.
    ``(c) Baseline Number.--In this section, the term `baseline number'
means the number of management headquarters and headquarters support
activities personnel in the Department of Defense as of October 1,
1997.
    ``(d) Management Headquarters and Headquarters Support Activities
Personnel Defined.--In this section:
            ``(1) The term `management headquarters and headquarters
        support activities personnel' means military and civilian
        personnel of the Department of Defense who are assigned to, or
        employed in, functions in management headquarters activities or
        in management headquarters support activities.
            ``(2) The terms `management headquarters activities' and
        `management headquarters support activities' have the meanings
        given those terms in Department of Defense Directive 5100.73,
        entitled `Department of Defense Management Headquarters and
        Headquarters Support Activities', as in effect on November 12,
        1996.
    ``(e) Limitation on Reassignment of Functions.--In carrying out
reductions in the number of personnel assigned to, or employed in,
management headquarters and headquarters support activities in order to
comply with this section, the Secretary of Defense and the Secretaries
of the military departments may not reassign functions in order to
evade the requirements of this section.
    ``(f) Flexibility.--If the Secretary of Defense determines, and
certifies to Congress, that the limitation in subsection (b) with
respect to any fiscal year would adversely affect United States
national security, the Secretary may waive the limitation under that
subsection with respect to that fiscal year. If the Secretary of
Defense determines, and certifies to Congress, that the limitation in
subsection (a) during fiscal year 2001 would adversely affect United
States national security, the Secretary may waive the limitation under
that subsection with respect to that fiscal year. The authority under
this subsection may be used only once, with respect to a single fiscal
year.''.
    (2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``130a. Management headquarters and headquarters support activities
                            personnel: limitation.''.
    (b) Implementation Report.--Not later than January 15, 1998, the
Secretary of Defense shall submit to Congress a report--
            (1) containing a plan to achieve the personnel reductions
        required by section 130a of title 10, United States Code, as
        added by subsection (a); and
            (2) including the recommendations of the Secretary
        regarding--
                    (A) the revision, replacement, or augmentation of
                Department of Defense Directive 5100.73, entitled
                ``Department of Defense Management Headquarters and
                Headquarters Support Activities'', as in effect on
                November 12, 1996; and
                    (B) the revision of the definitions of the terms
                ``management headquarters activities'' and ``management
                headquarters support activities'' under that Directive
                so that those terms apply uniformly throughout the
                Department of Defense.
    (c) Codification of Prior Permanent Limitation on OSD Personnel.--
(1) Chapter 4 of title 10, United States Code, is amended by adding at
the end a new section 143 consisting of--
            (A) a heading as follows:
``Sec. 143. Office of the Secretary of Defense personnel: limitation'';
            and
            (B) a text consisting of the text of subsections (a)
        through (f) of section 903 of the National Defense
        Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110
        Stat. 2617).
    (2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``143. Office of the Secretary of Defense personnel: limitation.''.
    (3) Section 903 of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2617) is repealed.

SEC. 1302. ADDITIONAL REDUCTION IN DEFENSE ACQUISITION WORKFORCE.

    (a) In General.--(1) Chapter 87 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 1765. Limitations on number of personnel
    ``(a) Limitation.--Effective October 1, 2001, the number of defense
acquisition personnel may not exceed the baseline number reduced by
124,000.
    ``(b) Phased Reduction.--The number of the number of defense
acquisition personnel--
            ``(1) as of October 1, 1998, may not exceed the baseline
        number reduced by 40,000;
            ``(2) as of October 1, 1999, may not exceed the baseline
        number reduced by 80,000; and
            ``(3) as of October 1, 2000, may not exceed the baseline
        number reduced by 102,000.
    ``(c) Baseline Number.--For purposes of this section, the baseline
number is the total number of defense acquisition personnel as of
October 1, 1997.
    ``(d) Defense Acquisition Personnel Defined.--(1) In this section,
the term `defense acquisition personnel' means military and civilian
personnel (other than civilian personnel described in paragraph (2))
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).
    ``(2) Such term does not include civilian employees of the
Department of Defense who are employed at a maintenance depot.''.
    (2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``1765. Limitations on number of personnel.''.
    (b) Implementation Report.--Not later than January 15, 1998, the
Secretary of Defense shall submit to Congress a report--
            (1) containing a plan to achieve the personnel reductions
        required by section 1765 of title 10, United States Code, as
        added by subsection (a); and
            (2) containing any recommendations (including legislative
        proposals) that the Secretary considers necessary to fully
        achieve such reductions.
    (c) Technical Reference Correction.--Section 1721(c) of title 10,
United States Code, is amended by striking out ``November 25, 1988''
and inserting in lieu thereof ``November 12, 1996''.

SEC. 1303. AVAILABILITY OF FUNDS FOR SEPARATION PAY FOR DEFENSE
              ACQUISITION PERSONNEL.

    Of the amount authorized to be appropriated pursuant to section
301(5) for operation and maintenance for Defense-wide activities,
$100,000,000 shall be available only for the payment of separation pay
under section 5597 of title 5, United States Code, to civilian
employees of the Department of Defense who are defense acquisition
personnel (as defined in section 1765(d) of title 10, United States
Code).

SEC. 1304. PERSONNEL REDUCTIONS IN UNITED STATES TRANSPORTATION
              COMMAND.

    (a) Purpose of Reduction.--The purpose of the reduction in the
number of United States Transportation Command personnel is to
recognize and continue the effort of the Secretary of Defense to
achieve the United States Transportation Command reengineering reform
plan to eliminate administrative duplication and process
inefficiencies.
    (b) Reduction in United States Transportation Command Personnel.--
(1) Effective October 1, 1998, the number of United States
Transportation Command personnel may not exceed the number equal to the
baseline number reduced by 1,000.
    (2) For purposes of this section, the baseline number is the total
number of United States Transportation Command personnel as of
September 30, 1997.
    (c) United States Transportation Command Personnel Defined.--For
purposes of this section, the term ``United States Transportation
Command personnel'' means military and civilian personnel who are
assigned to, or employed in, the United States Transportation Command
Headquarters, Air Force Air Mobility Command, Navy Military Sealift
Command, Army Military Traffic Management Command, and Defense Courier
Service.
    (d) Source of Reductions.--In reducing the number of United States
Transportation Command personnel as required by subsection (b), the
Secretary of Defense shall limit such reductions to the United States
Transportation Command personnel who are in the following occupational
classifications established to group similar occupations and work
positions into a consistent structure:
            (1) Enlisted members in the Functional Support and
        Administration classification (designated as occupational code
        5XX), as described in Department of Defense Instruction 1312.1,
        dated August 9, 1995, regarding ``Department of Defense
        Occupational Information Collection and Reporting''.
            (2) Officers in the General Officers and Executives
        classification (designated as occupational code 1XX),
        Administrators (designated as occupational code 7XX), and
        Supply, Procurement, and Allied Officers classification
        (designated as occupational code 8XX), as described in such
        instruction.
            (3) Civilian personnel in the Program Management
        classification (designated as occupational code GS-0340),
        Accounting and Budget classification (designated as
        occupational code GS-0500 and related codes), Business and
        Industry classification (designated as occupational code GS-
        1100 and related codes), and Supply classification (designated
        as occupational code GS-2000 and related codes), as described
        in Office of Personnel Management document El-12, dated
        November 1, 1995, entitled ``Federal Occupational Groups''.
    (e) Waiver Authority.--The Secretary of Defense may waive or
suspend operation of this section in the event of a war or national
emergency.

             TITLE XIV--DEFENSE BUSINESS PRACTICES REFORMS

            Subtitle A--Competitive Procurement Requirements

SEC. 1401. COMPETITIVE PROCUREMENT OF FINANCE AND ACCOUNTING SERVICES.

    (a) Competitive Procurement Required.--Chapter 165 of title 10,
United States Code, is amended by adding at the end the following new
section:
``Sec. 2784. Competitive procurement of finance and accounting services
    ``(a) Study and Report.--(1) Not later than December 1, 1997, the
Secretary of Defense shall initiate a study regarding the competitive
procurement of finance and accounting services for the Department of
Defense, including non-appropriated fund instrumentalities of the
Department of Defense. The study shall analyze the conduct of
competitions among private-sector sources and the Defense Finance and
Accounting Service and other interested Federal agencies.
    ``(2) Not later than June 1, 1998, the Secretary of Defense shall
submit to Congress a report containing the results of the study
conducted under paragraph (1).
    ``(b) Competitive Procurement Required.--Beginning not later than
October 1, 1999, the Secretary of Defense shall competitively procure
finance and accounting services for the Department of Defense,
including nonappropriated fund instrumentalities of the Department of
Defense. The Secretary shall conduct competitions among private-sector
sources and the Defense Finance and Accounting Service and other
interested Federal agencies. Such a competition shall not involve
competition between components of the Defense Finance and Accounting
Service.
    ``(c) Improvement of Competitive Ability.--Before conducting a
competition under subsection (b) for the procurement of finance and
accounting services that are being provided by a component of the
Defense Finance and Accounting Service, the Secretary of Defense shall
provide the component with an opportunity to establish its most
efficient organization.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``2784. Competitive procurement of finance and accounting services.''.

SEC. 1402. COMPETITIVE PROCUREMENT OF SERVICES TO DISPOSE OF SURPLUS
              DEFENSE PROPERTY.

    (a) Competitive Procurement Required.--(1) Chapter 153 of title 10,
United States Code, is amended by inserting after section 2572 the
following new section:
``Sec. 2573. Competitive procurement of services to dispose of surplus
              property
    ``(a) Competitive Procurement of Services.--Beginning not later
than October 1, 1998, the Secretary of Defense shall competitively
procure services for the Department of Defense in connection with the
disposal of surplus property at each site at which the Defense
Reutilization and Marketing Service operates. The Secretary shall
conduct competitions among private-sector sources and the Defense
Reutilization and Marketing Service and other interested Federal
agencies for the performance of all such services at a particular site.
    ``(b) Improvement of Competitive Ability.--Before conducting a
competition under subsection (a) for the procurement of services
described in such subsection that are being provided by a component of
the Defense Reutilization and Marketing Service, the Secretary of
Defense shall provide the component with an opportunity to establish
its most efficient organization.
    ``(c) Reporting Requirements.--Not later than 90 days after the end
of each fiscal year in which services for the disposal of surplus
property are competitively procured under subsection (a), the Secretary
of Defense shall submit to Congress a report specifying--
            ``(1) the type and volume of such services procured by the
        Department of Defense during that fiscal year from the Defense
        Reutilization and Marketing Service and from other sources;
            ``(2) the former sites of the Defense Reutilization and
        Marketing Service operated during that fiscal year by
        contractors (other than the Defense Reutilization and Marketing
        Service); and
            ``(3) the total amount of any fees paid by such contractors
        in connection with the performance of such services during that
        fiscal year.
    ``(d) Rule of Construction.--Nothing in this section shall be
construed to alter the requirements regarding the identification or
demilitarization of an item of excess property or surplus property of
the Department of Defense before the disposal of the item.
    ``(e) Definitions.--In this section:
            ``(1) The term `surplus property' means any personal excess
        property which is not required for the needs and the discharge
        of the responsibilities of all Federal agencies and the
        disposal of which is the responsibility of the Department of
        Defense.
            ``(2) The term `excess property' means any personal
        property under the control of the Department of Defense which
        is not required for its needs and the discharge of its
        responsibilities, as determined by the Secretary of Defense.''.
    (2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 2572 the
following new item:

``2573. Competitive procurement of services to dispose of surplus
                            property.''.
    (b) Implementation Report.--Not later than March 1, 1998, the
Secretary of Defense shall submit to Congress a report--
            (1) containing a plan to implement the competitive
        procurement requirements of section 2573 of title 10, United
        States Code, as added by subsection (a); and
            (2) identifying other functions of the Defense
        Reutilization and Marketing Service that the Secretary
        considers suitable for performance by private-sector sources.

SEC. 1403. COMPETITIVE PROCUREMENT OF FUNCTIONS PERFORMED BY DEFENSE
              INFORMATION SYSTEMS AGENCY.

    (a) Competitive Procurement Required.--Chapter 146 of title 10,
United States Code, is amended by adding at the end the following new
section:
``Sec. 2474. Competitive procurement of information services
    ``(a) Study and Report.--(1) Not later than December 1, 1997, the
Secretary of Defense shall initiate a study regarding the competitive
procurement of those commercial and industrial type functions performed
before the date of the enactment of this Act by the Defense Information
Systems Agency, with particular regard to the functions performed at
the entities known as megacenters. The study shall analyze the conduct
of competitions among private-sector sources and the Defense
Information Systems Agency and other interested Federal agencies.
    ``(2) Not later than June 1, 1998, the Secretary of Defense shall
submit to Congress a report containing the results of the study
conducted under paragraph (1).
    ``(b) Competitive Procurement Required.--Beginning not later than
October 1, 1999, the Secretary of Defense shall competitively procure
those commercial and industrial type functions performed before that
date by the Defense Information Systems Agency. The Secretary shall
conduct competitions among private-sector sources and the Defense
Information Systems Agency and other interested Federal agencies.
    ``(c) Improvement of Competitive Ability.--Before conducting a
competition under subsection (b) for the procurement of information
services that are being provided by a component of the Defense
Information Systems Agency, the Secretary of Defense shall provide the
component with an opportunity to establish its most efficient
organization.
    ``(d) Exception for Classified Functions.--(1) The requirement of
subsection (b) shall not apply to the procurement of services involving
a classified function performed by the Defense Information Systems
Agency.
    ``(2) In this subsection, the term `classified function' means any
telecommunications or information services that--
            ``(A) involve intelligence activities;
            ``(B) involve cryptologic activities related to national
        security;
            ``(C) involve command and control of military forces;
            ``(D) involve equipment that is an integral part of a
        weapon or weapons system; or
            ``(E) are critical to the direct fulfillment of military or
        intelligence missions (other than routine administrative and
        business applications, such as payroll, finance, logistics, and
        personnel management applications).''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``2474. Competitive procurement of information services.''.

SEC. 1404. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION
              SERVICES.

    (a) Extension.--Subsection (a) of section 351 of the National
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
Stat. 266) is amended--
            (1) by striking out ``and 1997'' and inserting in lieu
        thereof ``through 1998''; and
            (2) by striking out ``Defense Printing Service'' and
        inserting in lieu thereof ``Defense Automation and Printing
        Service''.
    (b) Prohibition on Surcharge for Services.--Such section is further
amended by adding at the end the following new subsection:
    ``(d) Prohibition on Imposition of Surcharge.--The Defense
Automation and Printing Service may not impose a surcharge on any
printing and duplication service for the Department of Defense that is
procured from a source outside of the Department.''.

SEC. 1405. COMPETITIVE PROCUREMENT OF CERTAIN OPHTHALMIC SERVICES.

    (a) Competitive Procurement Required.--Beginning not later than
October 1, 1998, the Secretary of Defense shall competitively procure
from private-sector sources, or other sources outside of the Department
of Defense, all ophthalmic services related to the provision of single
vision and multivision eyeware for members of the Armed Forces, retired
members, and certain covered beneficiaries under chapter 55 of title
10, United States Code, who would otherwise receive such ophthalmic
services through the Department of Defense.
    (b) Exception.--Subsection (a) shall not apply to the extent that
the Secretary of Defense determines that the use of sources within the
Department of Defense to provide such ophthalmic services--
            (1) is necessary to meet the readiness requirements of the
        Armed Forces; or
            (2) is more cost effective.
    (c) Completion of Existing Orders.--Subsection (a) shall not apply
to orders for ophthalmic services received on or before September 30,
1998.

SEC. 1406. COMPETITIVE PROCUREMENT OF COMMERCIAL AND INDUSTRIAL TYPE
              FUNCTIONS BY DEFENSE AGENCIES.

    (a) Competition Required.--Section 2461 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) Competitive Procurement by Defense Agencies.--(1) Beginning
not later than September 30, 1999 (unless an earlier effective date is
otherwise required for a specific Defense Agency), the Secretary of
Defense shall competitively procure those commercial and industrial
type functions performed before that date by a Defense Agency. The
Secretary shall conduct competitions among private-sector sources and
the Defense Agency involved and other interested Federal agencies.
    ``(2) Before conducting a competition under subsection (a) for the
procurement of a commercial or industrial type function that is being
performed by a component of a Defense Agency, the Secretary of Defense
shall provide the component with an opportunity to establish its most
efficient organization.
    ``(3) In this subsection, the term `Defense Agency' means a program
activity specified in the table entitled `Program and Financing' for
operation and maintenance, Defense-wide activities, in the budget of
the President transmitted to Congress for fiscal year 1998 pursuant to
section 1105 of title 31 (and any successor of such activity).''.
    (b) Implementation Report.--Not later than March 1, 1998, the
Secretary of Defense shall submit to Congress a report containing a
plan to implement the competitive procurement requirements of section
2461(g) of title 10, United States Code, as added by subsection (a).

                Subtitle B--Reform of Conversion Process

SEC. 1411. DEVELOPMENT OF STANDARD FORMS REGARDING PERFORMANCE WORK
              STATEMENT AND REQUEST FOR PROPOSAL FOR CONVERSION OF
              CERTAIN OPERATIONAL FUNCTIONS OF MILITARY INSTALLATIONS.

    (a) Standard Forms Required.--Chapter 146 of title 10, United
States Code, is amended by inserting after section 2474, as added by
section 1403, the following new section:
``Sec. 2475. Military installations: use of standard forms in
              conversion process
    ``(a) Standardization of Requirements.--(1) The Secretary of
Defense shall develop standard forms (to be known as a `standard
performance work statement' and a `standard request for proposal') to
be used in the consideration for conversion to contractor performance
of those commercial services and functions at military installations
that have been converted to contractor performance at a rate of 50
percent or more, as determined under subsection (c).
    ``(2) A separate standard form shall be developed for each service
and function covered by paragraph (1) and the forms shall be used
throughout the Department of Defense in lieu of the performance work
statement and request for proposal otherwise required under the
procedures and requirements of Office of Management and Budget Circular
A-76 (or any successor administrative regulation or policy).
    ``(3) The Secretary shall develop and implement the standard forms
not later than October 1, 1998.
    ``(b) Inapplicability of Elements of OMB Circular A-76.--On and
after October 1, 1998, the procedures and requirements of Office of
Management and Budget Circular A-76 regarding performance work
statements and requests for proposals shall not apply with respect to
the conversion to contractor performance at a military installation of
a service or function for which a standard form is required under
subsection (a).
    ``(c) Determination of Contractor Performance Percentage.--In
determining the percentage at which a particular commercial service or
function at military installations has been converted to contractor
performance, the Secretary of Defense shall take into consideration all
military installations and use the final estimate of the percentage of
contractor performance of services and functions contained in the most
recent commercial and industrial activity inventory database
established under Office of Management and Budget Circular A-76.
    ``(d) Exclusion of Multi-Function Conversion.--If a commercial
service or function for which a standard form is developed under
subsection (a) is combined with another service or function (for which
such a form is not required) for purposes of considering the services
and functions at the military installation for conversion to contractor
performance, a standard form developed under subsection (a) may not be
used in the conversion process in lieu of the procedures and
requirements of Office of Management and Budget Circular A-76 regarding
performance work statements and requests for proposals.
    ``(e) Effect on Other Laws.--Nothing in this section shall be
construed to supersede any other requirements or limitations,
specifically contained in this chapter, on the conversion to contractor
performance of activities performed by civilian employees of the
Department of Defense.
    ``(f) Military Installation Defined.--In this section, the term
`military installation' means a base, camp, post, station, yard,
center, homeport facility for any ship, or other activity under the
jurisdiction of the Department of Defense, including any leased
facility.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
2474, as added by section 1403, the following new item:

``2475. Military installations: use of standard forms in conversion
                            process.''.

SEC. 1412. STUDY AND NOTIFICATION REQUIREMENTS FOR CONVERSION OF
              COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO CONTRACTOR
              PERFORMANCE.

    (a) Notification.--Section 2461 of title 10, United States Code, is
amended by striking out subsections (a) and (b) and inserting in lieu
thereof the following new subsections:
    ``(a) Notification of Conversion Study.--(1) In the case of a
commercial or industrial type function of the Department of Defense
that on October 1, 1980, was being performed by Department of Defense
civilian employees, the Secretary of Defense shall notify Congress of
any decision to study the function for possible conversion to
performance by a private contractor. The notification shall include
information regarding the anticipated length and cost of the study.
    ``(2) A study of a commercial or industrial type function for
possible conversion to contractor performance shall include the
following:
            ``(A) A comparison of the performance of the function by
        Department of Defense civilian employees and by private
        contractor to determine whether contractor performance will
        result in savings to the Government over the life of the
        contract.
            ``(B) An examination of the potential economic effect on
        employees who would be affected by the conversion, and the
        potential economic effect on the local community and the United
        States if more than 75 employees perform the function.
            ``(C) An examination of the effect of contracting for
        performance of the function on the military mission of the
        function.
    ``(b) Notification of Conversion Decision.--If, as a result of the
completion of a study under subsection (a) regarding the possible
conversion of a function to performance by a private contractor, a
decision is made to convert the function to contractor performance, the
Secretary of Defense shall notify Congress of the conversion decision.
The notification shall--
            ``(1) indicate that the study conducted regarding
        conversion of the function to performance by a private
        contractor has been completed;
            ``(2) certify that the comparison required by subsection
        (a)(2)(A) as part of the study demonstrates that the
        performance of the function by a private contractor will result
        in savings to the Government over the life of the contract;
            ``(3) certify that the entire comparison is available for
        examination; and
            ``(4) contain a timetable for completing conversion of the
        function to contractor performance.''.
    (b) Waiver for Small Functions.--Subsection (d) of such section is
amended by striking out ``45 or fewer'' and inserting in lieu thereof
``20 or fewer''.

SEC. 1413. COLLECTION AND RETENTION OF COST INFORMATION DATA ON
              CONTRACTED OUT SERVICES AND FUNCTIONS.

    (a) Collection and Retention Required.--Section 2463 of title 10,
United States Code, is amended--
            (1) by redesignating subsections (a) and (b) as subsections
        (b) and (c), respectively; and
            (2) by inserting after the section heading the following
        new subsection:
    ``(a) Requirements In Connection With Conversion to Contractor
Performance.--With respect to each contract converting the performance
of a service or function of the Department of Defense to contractor
performance (and any extension of such a contract), the Secretary of
Defense shall collect, during the term of the contract or extension,
but not to exceed five years, cost information data regarding
performance of the service or function by private contractor employees.
The Secretary shall provide for the permanent retention of information
collected under this subsection.''.
    (b) Conforming Amendments.--Such section is further amended--
            (1) in subsection (b), as redesignated by subsection
        (a)(1)--
                    (A) by striking out the subsection heading and
                inserting in lieu thereof ``Requirements In Connection
                With Return to Employee Performance.--''; and
                    (B) by striking out ``to which this section
                applies'' and inserting in lieu thereof ``described in
                subsection (c),''; and
            (2) in subsection (c), as redesignated by subsection
        (a)(1)--
                    (A) by striking out the subsection heading and
                inserting in lieu thereof ``Covered Fiscal Years.--'';
                and
                    (B) by striking out ``This section'' and inserting
                in lieu thereof ``Subsection (b)''.
    (c) Clerical Amendments.--(1) The heading of such section is
amended to read as follows:
``Sec. 2463. Collection and retention of cost information data on
              contracted out services and functions
    (2) The item relating to such section in the table of sections at
the beginning of chapter 146 of title 10, United States Code, is
amended to read as follows:

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

                       Subtitle C--Other Reforms

SEC. 1421. REDUCTION IN OVERHEAD COSTS OF INVENTORY CONTROL POINTS.

    (a) Reduction in Costs Required.--The Secretary of Defense shall
take such actions as may be necessary to reduce the annual overhead
costs of the supply management activities of the Defense Logistics
Agency and the military departments (known as Inventory Control Points)
so that the annual overhead costs are not more than eight percent of
annual net sales at standard price by the Inventory Control Points.
    (b) Time To Achieve Reduction.--The Secretary shall achieve the
cost reductions required by subsection (a) not later than September 30,
2000.
    (c) Implementation Plan.--Not later than March 1, 1998, the
Secretary of Defense shall submit to Congress a plan to achieve the
reduction in overhead costs required by subsection (a).
    (d) Definitions.--For purposes of this section:
            (1) The term ``overhead costs'' means the total expenses of
        the Inventory Control Points, excluding--
                    (A) annual materiel costs; and
                    (B) military and civilian personnel related costs,
                defined as personnel compensation and benefits under
                the March 1996 Department of Defense Financial
                Management Regulations, Volume 2A, Chapter 1, Budget
                Account Title File (Object Classification Name/Code),
                object classifications 200, 211, 220, 221, 222, and
                301.
            (2) The term ``net sales at standard price'' has the
        meaning given that term in the March 1996 Department of Defense
        Financial Management Regulations, Volume 2B, Chapter 9, and
        displayed in ``Exhibit Fund--14 Revenue and Expenses'' for the
        supply management business areas.

SEC. 1422. CONSOLIDATION OF PROCUREMENT TECHNICAL ASSISTANCE AND
              ELECTRONIC COMMERCE TECHNICAL ASSISTANCE.

    (a) Consolidation of Assistance.--Chapter 142 of title 10, United
States Code, is amended as follows:
            (1) Sections 2412, 2414, 2417, and 2418 are each amended by
        inserting ``and electronic commerce'' after ``procurement''
        each place it appears.
            (2) Section 2413 is amended--
                    (A) in subsection (b), by striking out
                ``procurement technical assistance'' and inserting in
                lieu thereof ``both procurement technical assistance
                and electronic commerce technical assistance''; and
                    (B) in subsection (c), by inserting ``and
                electronic commerce'' after ``procurement''.
    (b) Requirement To Use Competitive Procedures.--Section 2413 of
such title is amended by adding at the end the following new
subsection:
    ``(d) The Secretary shall use competitive procedures in entering
into cooperative agreements under subsection (a).''.
    (c) Limitation on Use of Funds.--Section 2417 of such title is
amended--
            (1) by striking out ``The Director'' and inserting in lieu
        thereof the following: ``(b) Administrative Costs.--The
        Director''; and
            (2) by inserting before subsection (b) (as designated by
        paragraph (1)) the following:
    ``(a) Limitation on Use of Funds.--In any fiscal year the Secretary
of Defense may use for the program authorized by this chapter only
funds specifically appropriated for the program for that fiscal
year.''.
    (d) Clerical Amendments.--(1) The heading for chapter 142 of such
title is amended to read as follows:

``CHAPTER 142--PROCUREMENT AND ELECTRONIC COMMERCE TECHNICAL ASSISTANCE
                               PROGRAM''.

    (2) The tables of chapters at the beginning of subtitle A, and at
the beginning of part IV of subtitle A, of such title are each amended
by striking out the item relating to chapter 142 and inserting in lieu
thereof the following:

``142. Procurement and Electronic Commerce Technical            2411''.
                            Assistance Program.
    (3) The heading for section 2417 of such title is amended to read
as follows:
``Sec. 2417. Funding provisions''.
    (4) The table of sections at the beginning of chapter 142 of such
title is amended by striking out the item relating to section 2417 and
inserting in lieu thereof the following:

``2417. Funding provisions.''.

SEC. 1423. PERMANENT AUTHORITY REGARDING CONVEYANCE OF UTILITY SYSTEMS.

    (a) In General.--Chapter 159 of title 10, United States Code, is
amended by inserting after section 2687 the following new section:
``Sec. 2688. Utility systems: permanent conveyance authority.
    ``(a) Conveyance Authority.--The Secretary of a military department
may convey a utility system, or part of a utility system, under the
jurisdiction of the Secretary to a municipal, private, regional,
district, or cooperative utility company or other entity. The
conveyance may consist of all right, title, and interest of the United
States in the utility system or such lesser estate as the Secretary
considers appropriate to serve the interests of the United States.
    ``(b) Utility System Defined.--In this section, the term `utility
system' includes the following:
            ``(1) Electrical generation and supply systems.
            ``(2) Water supply and treatment systems.
            ``(3) Wastewater collection and treatment systems.
            ``(4) Steam or hot or chilled water generation and supply
        systems.
            ``(5) Natural gas supply systems.
            ``(6) Sanitary landfills or lands to be used for sanitary
        landfills.
            ``(7) Similar utility systems.
    ``(c) Consideration.--(1) The Secretary of a military department
may accept consideration received for a conveyance under subsection (a)
in the form of a cash payment or a reduction in utility rate charges
for a period of time sufficient to amortize the monetary value of the
utility system, including any real property interests, conveyed.
    ``(2) Cash payments received shall be credited to an appropriation
account designated as appropriate by the Secretary of Defense. Amounts
so credited shall be available for the same time period as the
appropriation credited and shall be used only for the purposes
authorized for that appropriation.
    ``(d) Congressional Notification.--A conveyance may not be made
under subsection (a) until--
            ``(1) the Secretary of the military department concerned
        submits to the appropriate committees of Congress (as defined
        in section 2801(c)(4) of this title) a report containing an
        economic analysis (based upon accepted life-cycle costing
        procedures approved by the Secretary of Defense) which
        demonstrates that the full cost to the United States of the
        proposed conveyance is cost-effective when compared with
        alternative means of furnishing the same utility systems; and
            ``(2) a period of 21 days has elapsed after the date on
        which the report is received by the committees.
    ``(e) Additional Terms and Conditions.--The Secretary of the
military department concerned may require such additional terms and
conditions in a conveyance entered into under subsection (a) as the
Secretary considers appropriate to protect the interests of the United
States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
2687 the following new item:

``2688. Utility systems: permanent conveyance authority.''.

           TITLE XV--MISCELLANEOUS ADDITIONAL DEFENSE REFORMS

SEC. 1501. LONG-TERM CHARTER CONTRACTS FOR ACQUISITION OF AUXILIARY
              VESSELS FOR THE DEPARTMENT OF DEFENSE.

    (a) Program Authorization.--Chapter 631 of title 10, United States
Code, is amended by adding at the end the following new section:
``Sec. 7233. Auxiliary vessels: authority for long-term charter
              contracts
    ``(a) Authorized Contracts.--After September 30, 1998, the
Secretary of the Navy, subject to subsection (b), may enter into a
contract for the long-term lease or charter of a newly built surface
vessel, under which the contractor agrees to provide a crew for the
vessel for the term of the long-term lease or charter, for any of the
following:
            ``(1) The combat logistics force of the Navy.
            ``(2) The strategic sealift program of the Navy.
            ``(3) Other auxiliary support vessels for the Department of
        Defense.
    ``(b) Contracts Required To Be Authorized by Law.--A contract may
be entered into under this section with respect to specific vessels
only if the Secretary is specifically authorized by law to enter into
such a contract with respect to those vessels.
    ``(c) Funds for Contract Payments.--The Secretary may make payments
for contracts entered into under this section using funds available for
obligation during the fiscal year for which the payments are required
to be made. Any such contract shall provide that the United States will
not be required to make a payment under the contract (other than a
termination payment, if required) before October 1, 2000.
    ``(d) Budgeting Provisions.--Any contract entered into under this
section shall be treated as a multiyear service contract and as an
operating lease for purposes of any provision of law relating to the
Federal budget and Federal budget accounting procedures, including part
C of title II of the Balanced Budget and Emergency Deficit Control Act
of 1985 (2 U.S.C. 900 et seq.), and any regulation or directive
(including any directive of the Office of Management and Budget)
prescribed with respect to the Federal budget and Federal budget
accounting procedures.
    ``(e) Term of Contract.--In this section, the term `long-term lease
or charter' means a lease, charter, service contract, or conditional
sale agreement with respect to a vessel the term of which (including
any option period) is for a period of 20 years or more.
    ``(f) Option To Buy.--A contract entered into under the authority
of this section may contain options for the United States to purchase
one or more of the vessels covered by the contract at any time during,
or at the end of, the contract period (including any option period)
upon payment of an amount not in excess of the unamortized portion of
the cost of the vessels plus amounts incurred in connection with the
termination of the financing arrangements associated with the vessels.
    ``(g) Domestic Construction.--The Secretary shall require in any
contract entered into under this section that each vessel to which the
contract applies--
            ``(1) shall have been constructed in a shipyard within the
        United States; and
            ``(2) upon delivery, shall be documented under the laws of
        the United States.
    ``(h) Vessel Crewing.--The Secretary shall require in any contract
entered into under this section that the crew of any vessel to which
the contract applies be comprised of private sector commercial
mariners.
    ``(i) Contingent Waiver of Other Provisions of Law.--A contract
authorized by this section may be entered into without regard to
section 2401 or 2401a of this title if the Secretary of Defense makes
the following findings with respect to that contract:
            ``(1) The need for the vessels or services to be provided
        under the contract is expected to remain substantially
        unchanged during the contemplated contract or option period.
            ``(2) There is a reasonable expectation that throughout the
        contemplated contract or option period the Secretary of the
        Navy (or, if the contract is for services to be provided to,
        and funded by, another military department, the Secretary of
        that military department) will request funding for the contract
        at the level required to avoid contract cancellation.
            ``(3) The use of such contract or the exercise of such
        option is in the interest of the national defense.
    ``(j) Source of Funds for Termination Liability.--If a contract
entered into under this section is terminated, the costs of such
termination may be paid from--
            ``(1) amounts originally made available for performance of
        the contract;
            ``(2) amounts currently available for operation and
        maintenance of the type of vessels or services concerned and
        not otherwise obligated; or
            ``(3) funds appropriated for those costs.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``7233. Auxiliary vessels: authority for long-term charter
                            contracts.''.

SEC. 1502. FIBER-OPTICS BASED TELECOMMUNICATIONS LINKAGE OF MILITARY
              INSTALLATIONS.

    (a) Installation Required.--In at least one metropolitan area of
the United States containing multiple military installations of one or
more military department or Defense Agency, the Secretary of Defense
shall provide for the installation of fiber-optics based
telecommunications technology to link as many of the installations in
the area as practicable in a privately dedicated telecommunications
network. The Secretary shall use a competitive process to provide for
the installation of the telecommunications network through one or more
new contracts.
    (b) Features of Network.--The telecommunications network shall
provide direct access to local and long distance telephone carriers,
allow for transmission of both classified and unclassified information,
and take advantage of the various capabilities of fiber-optics based
telecommunications technology.
    (c) Time for Installation.--The telecommunications network or
networks to be installed under this section shall be installed and
operational not later than September 30, 1999.
    (d) Report on Implementation.--Not later than March 1, 1998, the
Secretary of Defense shall submit to the congressional defense
committees a report on the implementation of subsections (a) and (b),
including the metropolitan area or areas selected for the
telecommunications network, the estimated cost of the network, and
potential areas for the future use of such fiber-optics based
telecommunications technology.

SEC. 1503. REPEAL OF REQUIREMENT FOR CONTRACTOR GUARANTEES ON MAJOR
              WEAPON SYSTEMS.

    (a) Repeal.--Section 2403 of title 10, United States Code, is
repealed.
    (b) Clerical and Conforming Amendments.--(1) The table of sections
at the beginning of chapter 141 of such title is amended by striking
out the item relating to section 2403.
    (2) Section 803 of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2604; 10 U.S.C. 2430
note) is amended--
            (A) in subsection (a), by striking out ``2403,'';
            (B) by striking out subsection (c); and
            (C) by redesignating subsection (d) as subsection (c).

SEC. 1504. REQUIREMENTS RELATING TO MICRO-PURCHASES OF COMMERCIAL
              ITEMS.

    (a) In General.--Section 2304 of title 10, United States Code, is
amended by adding at the end the following new subsection:
    ``(l) Micro-Purchases.--(1) A contracting officer may not award a
contract or issue a purchase order to buy commercial items for an
amount equal to or less than the micro-purchase threshold unless a
member of the Senior Executive Service or a general or flag officer
makes a written determination that--
            ``(A) the source or sources available for the commercial
        item do not accept a preferred micro-purchase method, and the
        contracting officer is seeking a source that does accept such a
        method; or
            ``(B) the nature of the commercial item necessitates a
        contract or purchase order so that terms and conditions can be
        specified.
    ``(2) In this subsection:
            ``(A) 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).
            ``(B) The term `preferred micro-purchase method' means the
        use of the Government-wide commercial purchase card or any
        other method for carrying out micro-purchases that the
        Secretary of Defense prescribes in the regulations implementing
        this subsection.
    ``(3) The Secretary of Defense shall prescribe regulations to
implement this subsection. The regulations shall include such
additional preferred methods of carrying out micro-purchases, and such
exceptions to the requirement of paragraph (1), as the Secretary
considers appropriate.''.
    (b) Effective Date.--Subsection (l) of section 2304 of title 10,
United States Code, as added by subsection (a), shall apply with
respect to micro-purchases made on or after October 1, 1997.

SEC. 1505. AVAILABILITY OF SIMPLIFIED PROCEDURES TO COMMERCIAL ITEM
              PROCUREMENTS.

    (a) Armed Services Acquisitions.--Section 2304(g) of title 10,
United States Code, is amended in paragraph (1)(B) by striking out
``only''.
    (b) Civilian Agency Acquisitions.--Section 303(g) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 253(g)) is
amended in paragraph (1)(B) by striking out ``only''.

SEC. 1506. TERMINATION OF THE ARMED SERVICES PATENT ADVISORY BOARD.

    (a) Termination of Board.--The organization within the Department
of Defense known as the Armed Services Patent Advisory Board is
terminated. No funds available for the Department of Defense may be
used for the operation of that Board after the date specified in
subsection (c).
    (b) Transfer of Functions.--All functions performed on the day
before the date of the enactment of this Act by the Armed Services
Patent Advisory Board (including performance of the responsibilities of
the Department of Defense for security review of patent applications
under chapter 17 of title 35, United States Code) shall be transferred
to the Defense Technology Security Administration.
    (c) Effective Date.--Subsection (a) shall take effect at the end of
the 120-day period beginning on the date of the enactment of this Act.

SEC. 1507. COORDINATION OF DEPARTMENT OF DEFENSE CRIMINAL
              INVESTIGATIONS AND AUDITS.

    (a) Board on Criminal Investigations.--Chapter 7 of title 10,
United States Code, is amended by adding at the end the following new
section:
``Sec. 182. Board on Criminal Investigations
    ``(a) Establishment.--(1) There is in the Department of Defense a
Board on Criminal Investigations. The Board consists of the following
officials:
            ``(A) The Assistant Secretary of Defense for Command,
        Control, Communications, and Intelligence.
            ``(B) The head of the Army Criminal Investigation Command.
            ``(C) The head of the Naval Criminal Investigative Service.
            ``(D) The head of the Air Force Office of Special
        Investigations.
    ``(2) To ensure cooperation between the military department
criminal investigative organizations and the Defense Criminal
Investigative Service, the Inspector General of the Department of
Defense shall serve as a nonvoting member of the Board.
    ``(b) Functions of Board.--The Board shall provide for coordination
and cooperation between the military department criminal investigative
organizations so as to avoid duplication of effort and maximize
resources available to the military department criminal investigative
organizations.
    ``(c) Regional Working Groups.--The Board shall establish working
groups at the regional level to address and resolve issues of
jurisdictional responsibility that may arise regarding criminal
investigations involving a military department criminal investigative
organization. A working group shall consist of managers or supervisors
of the military department criminal investigative organizations who
have the authority to make binding decisions regarding which
organization will conduct a particular criminal investigation or
whether a criminal investigation should be conducted jointly.
    ``(d) Authority of Assistant Secretary.--In the event that a
regional working group or the Board is unable to resolve an issue of
investigative responsibility, the Assistant Secretary of Defense for
Command, Control, Communications, and Intelligence shall have the
responsibility to make a final determination regarding the issue.
    ``(e) Military Department Criminal Investigative Organization
Defined.--In this section, the term `military department criminal
investigative organization' means any of the following:
            ``(1) The Army Criminal Investigation Command.
            ``(2) The Naval Criminal Investigative Service.
            ``(3) The Air Force Office of Special Investigations.''.
    (b) Board on Audits.--Such chapter is further amended by inserting
after section 182, as added by subsection (a), the following new
section:
``Sec. 183. Board on Audits
    ``(a) Establishment.--(1) There is in the Department of Defense a
Board on Audits. The Board consists of the following officials:
            ``(A) The Under Secretary of Defense (Comptroller).
            ``(B) The Auditor General of the Army.
            ``(C) The Auditor General of the Navy.
            ``(D) The Auditor General of the Air Force.
            ``(E) The director of the Defense Contract Audit Agency.
    ``(2) To ensure cooperation between the defense auditing
organizations and the Office of the Inspector General of the Department
of Defense, the Inspector General of the Department of Defense shall
serve as a nonvoting member of the Board.
    ``(b) Functions of Board.--The Board shall provide for coordination
and cooperation between the defense auditing organizations so as to
avoid duplication of effort and maximize resources available to the
defense auditing organizations.
    ``(c) Regional Working Groups.--The Board shall establish working
groups at the regional level to address and resolve issues of
jurisdictional responsibility that may arise regarding audits involving
a defense auditing organization. A working group shall consist of
managers or supervisors of the defense auditing organizations who have
the authority to make binding decisions regarding which defense
auditing organization will conduct a particular audit or whether an
audit should be conducted jointly.
    ``(d) Authority of Under Secretary of Defense (Comptroller).--In
the event that a regional working group or the Board is unable to
resolve an issue of jurisdictional responsibility, the Under Secretary
of Defense (Comptroller) shall have the responsibility to make a final
determination regarding the issue.
    ``(e) Defense Auditing Organization Defined.--In this section, the
term `defense auditing organization' means any of the following:
            ``(1) The Army Audit Agency.
            ``(2) The Naval Audit Service.
            ``(3) The Air Force Audit Agency.
            ``(4) The Defense Contract Audit Agency.''.
    (c) Working Guidance.--Not later than December 31, 1997, the
Secretary of Defense shall prescribe such policies as may be necessary
for the operation of the Board on Criminal Investigations and the Board
on Audits established pursuant to the amendments made by this section.
    (d) Clerical Amendments.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new items:

``182. Board on Criminal Investigations.
``183. Board on Audits.''.

SEC. 1508. DEPARTMENT OF DEFENSE BOARDS, COMMISSIONS, AND ADVISORY
              COMMITTEES.

    (a) Termination of Existing Advisory Committees.--(1) Effective
December 31, 1998, any advisory committee established in, or
administered or funded (in whole or in part) by, the Department of
Defense that (A) is in existence on the day before the date of the
enactment of this Act, and (B) was not established by law, or expressly
continued by law, after January 1, 1995, is terminated.
    (2) For purposes of this section, the term ``advisory committee''
means an entity that is subject to the provisions of the Federal
Advisory Committee Act (5 U.S.C. App.).
    (b) Report on Committees For Which Continuation Is Requested.--Not
later than March 1, 1998, the Secretary of Defense shall submit to
Congress a report setting forth those advisory committees subject to
subsection (a) that the Secretary proposes to continue. The Secretary
shall include in the report, for each such committee, the justification
for continuing the committee and a statement of the costs of such
continuation over the next four fiscal years. The Secretary shall
include in the report a proposal for any legislation that may be
required for the continuations proposed in the report.
    (c) Policy for Future DOD Advisory Committees.--(1) Chapter 7 of
title 10, United States Code, is amended by inserting after section
183, as added by section 1507(b), the following new section:
``Sec. 184. Boards, commissions, and other advisory committees:
              limitations
    ``(a) Limitation on Establishment.--No advisory committee may be
established in, or administered or funded (in whole or in part) by, the
Department of Defense except as specifically provided by law after the
date of the enactment of this section.
    ``(b) Termination of Advisory Committees.--Each advisory committee
of the Department of Defense (whether established by law, by the
President, or by the Secretary of Defense) shall terminate not later
than the expiration of the four-year period beginning on the date of
its establishment or on the date of the most recent continuation of the
advisory committee by law.
    ``(c) Exception for Temporary Advisory Committees.--Subsection (a)
does not apply to an advisory committee established for a period of one
year or less for the purpose (as set forth in the charter of the
advisory committee) of examining a matter that is critical to the
national security of the United States.
    ``(d) Annual Report.--Not later than March 1 of each year
(beginning in 1999), the Secretary of Defense shall submit to Congress
a report on advisory committees of the Department of Defense. In each
such report, the Secretary shall identify each advisory committee that
the Secretary proposes to support during the next fiscal year and shall
set forth the justification for each such committee and the projected
costs for that committee for the next fiscal year. In the case of any
advisory committee that is to terminate in the year following the year
in which the report is submitted pursuant to subsection (b) and that
the Secretary proposes be continued by law, the Secretary shall include
in the report a request for continuation of the committee and a
justification and cost estimate for such continuation.
    ``(e) Advisory Committee Defined.--In this section, the term
`advisory committee' means an entity that is subject to the provisions
of the Federal Advisory Committee Act (5 U.S.C. App.).''.
    (2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 183, as added
by section 1507(d), the following new item:

``184. Boards, commissions, and other advisory committees:
                            limitations.''.

SEC. 1509. ADVANCES FOR PAYMENT OF PUBLIC SERVICES.

    (a) In General.--Subsection (a) of section 2396 of title 10, United
States Code, is amended--
            (1) by striking out ``and'' at the end of paragraph (2);
            (2) by striking out the period at the end of paragraph (3)
        and inserting in lieu thereof ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(4) public service utilities.''.
    (b) Clerical Amendments.--(1) The heading of such section is
amended to read as follows:
``Sec. 2396. Advances for payments for compliance with foreign laws,
              rent in foreign countries, tuition, public utility
              services, and pay and supplies of armed forces of
              friendly foreign countries''.
    (2) The item relating to such section in the table of sections at
the beginning of chapter 141 of such title is amended to read as
follows:

``2396. Advances for payments for compliance with foreign laws, rent in
                            foreign countries, tuition, public utility
                            services, and pay and supplies of armed
                            forces of friendly foreign countries.''.

     TITLE XVI--COMMISSION ON DEFENSE ORGANIZATION AND STREAMLINING

SEC. 1601. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is hereby established a commission to be
known as the ``Commission on Defense Organization and Streamlining''
(hereinafter in this title referred to as the ``Commission'').
    (b) Composition.--The Commission shall be composed of nine members,
appointed as follows:
            (1) Two members shall be appointed by the chairman of the
        Committee on National Security of the House of Representatives.
            (2) Two members shall be appointed by the ranking minority
        party member of the Committee on National Security of the House
        of Representatives.
            (3) Two members shall be appointed by the chairman of the
        Committee on Armed Services of the Senate.
            (4) Two members shall be appointed by the ranking minority
        party member of the Committee on Armed Services of the Senate.
            (5) One member, who shall serve as chairman of the
        Commission, shall be appointed by at least three of the Members
        of Congress referred to paragraphs (1) through (4) acting
        jointly.
    (c) Qualifications.--Members of the Commission shall be appointed
from among private United States citizens with knowledge and expertise
in organization and management matters.
    (d) Period of Appointment; Vacancies.--Members shall be appointed
for the life of the Commission. Any vacancy in the Commission shall be
filled in the same manner as the original appointment.
    (e) Initial Organization Requirements.--(1) All appointments to the
Commission shall be made not later than 30 days after the date of the
enactment of this Act.
    (2) The Commission shall convene its first meeting not later than
30 days after the date on which all members of the Commission have been
appointed.
    (f) Security Clearances.--The Secretary of Defense shall expedite
the processing of appropriate security clearances for members of the
Commission.

SEC. 1602. DUTIES OF COMMISSION.

    (a) In General.--(1) The Commission shall examine the missions,
functions, and responsibilities of the Office of the Secretary of
Defense, the management headquarters and headquarters support
activities of the military departments and Defense Agencies, and the
various acquisition organizations of the Department of Defense (and the
relationships among such Office, activities, and organizations).
    (2) On the basis of such examination, the Commission shall propose
alternative organizational structures and alternative allocations of
authorities as it considers appropriate.
    (b) Duplication and Redundancy.-- In carrying out its duties, the
Commission shall identify areas of duplication and recommend options to
streamline, reduce, and eliminate redundancies.
    (c) Special Requirements Regarding Office of Secretary.--The
examination of the missions, functions, and responsibilities of the
Office of the Secretary of Defense shall include the following:
            (1) An assessment of the appropriate functions of the
        Office and whether the Office of the Secretary of Defense or
        some of its component parts should be organized along mission
        lines.
            (2) An assessment of the adequacy of the present
        organizational structure to efficiently and effectively support
        the Secretary in carrying out responsibilities in a manner that
        ensures civilian authority in the Department of Defense.
            (3) An assessment of the extent of unnecessary duplication
        of functions between the Office of the Secretary of Defense and
        the Joint Staff.
            (4) An assessment of the extent of unnecessary duplication
        of functions between the Office of the Secretary of Defense and
        the military departments.
            (5) An assessment of the appropriate number of Under
        Secretaries of Defense, Assistant Secretaries of Defense,
        Deputy Under Secretaries of Defense, and Deputy Assistant
        Secretaries of Defense.
            (6) An assessment of any benefits or efficiencies derived
        from decentralizing certain functions currently performed by
        the Office of the Secretary of Defense.
    (d) Special Requirements Regarding Headquarters.--The examination
of the missions, functions, and responsibilities of the management
headquarters and headquarters support activities of the military
departments and Defense Agencies shall include the following:
            (1) An assessment on the adequacy of the present
        headquarters organization structure to efficiently and
        effectively support the mission of the military departments and
        the Defense Agencies.
            (2) An assessment of options to reduce the number of
        personnel assigned to such headquarters staffs and headquarters
        support activities.
            (3) An assessment of the extent of unnecessary duplication
        of functions between the Office of the Secretary of Defense and
        headquarters staffs of the military departments and the Defense
        Agencies.
            (4) An assessment of the possible benefits that could be
        derived from further functional consolidation between the
        civilian secretariat of the military departments and the staffs
        of the military service chiefs.
            (5) An assessment of the possible benefits that could be
        derived from reducing the number of civilian officers in the
        military departments who are appointed by and with the advice
        and consent of the Senate.
    (e) Special Requirements Regarding Acquisition Organizations.--The
examination of the missions, functions, and responsibilities of the
various acquisition organizations of the Department of Defense shall
include the following:
            (1) An assessment of benefits of consolidation or selected
        elimination of Department of Defense acquisition organizations.
            (2) An assessment of the opportunities to streamline the
        defense acquisition infrastructure that were realized as a
        result of the enactment of the Federal Acquisition Streamlining
        Act of 1994 (Public Law 103-355) and the Clinger-Cohen Act of
        1996 (divisions D and E of Public Law 104-106) or as result of
        other acquisition reform initiatives implemented
        administratively during the period from 1993 through 1997.
            (3) An assessment of such other defense acquisition
        infrastructure streamlining or restructuring options as the
        Commission considers appropriate.
    (f) Cooperation From Government Officials.--In carrying out its
duties, the Commission should receive the full and timely cooperation
of the Secretary of Defense and any other United States Government
official responsible for providing the Commission with analyses,
briefings, and other information necessary for the fulfillment of its
responsibilities.

SEC. 1603. REPORTS.

    The Commission shall submit to Congress an interim report
containing its preliminary findings and conclusions not later than
March 15, 1998, and a final report containing its findings and
conclusions not later than July 15, 1998.

SEC. 1604. POWERS.

    (a) Hearings.--The Commission or, at its direction, any panel or
member of the Commission, may, for the purpose of carrying out the
provisions of this title, hold hearings, sit and act at times and
places, take testimony, receive evidence, and administer oaths to the
extent that the Commission or any panel or member considers advisable.
    (b) Information.--The Commission may secure directly from the
Department of Defense and any other Federal department or agency
information that the Commission considers necessary to enable the
Commission to carry out its responsibilities under this title.

SEC. 1605. COMMISSION PROCEDURES.

    (a) Meetings.--The Commission shall meet at the call of the
Chairman.
    (b) Quorum.--(1) Five members of the Commission shall constitute a
quorum other than for the purpose of holding hearings.
    (2) The Commission shall act by resolution agreed to by a majority
of the members of the Commission.
    (c) Commission.--The Commission may establish panels composed of
less than full membership of the Commission for the purpose of carrying
out the Commission's duties. The actions of each such panel shall be
subject to the review and control of the Commission. Any findings and
determinations made by such a panel shall not be considered the
findings and determinations of the Commission unless approved by the
Commission.
    (d) Authority of Individuals To Act for Commission.--Any member or
agent of the Commission may, if authorized by the Commission, take any
action which the Commission is authorized to take under this title.

SEC. 1606. PERSONNEL MATTERS.

    (a) Pay of Members.--Members of the Commission shall serve without
pay by reason of their work on the Commission.
    (b) Travel Expenses.--The members of the Commission shall be
allowed travel expenses, including per diem in lieu of subsistence, at
rates authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from their homes
or regular places of business in the performance of services for the
Commission.
    (c) Staff.--(1) The chairman of the Commission may, without regard
to the provisions of title 5, United States Code, governing
appointments in the competitive service, appoint a staff director and
such additional personnel as may be necessary to enable the Commission
to perform its duties. The appointment of a staff director shall be
subject to the approval of the Commission.
    (2) The chairman of the Commission may fix the pay of the staff
director and other personnel without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of title 5, United States
Code, relating to classification of positions and General Schedule pay
rates, except that the rate of pay fixed under this paragraph for the
staff director may not exceed the rate payable for level V of the
Executive Schedule under section 5316 of such title and the rate of pay
for other personnel may not exceed the maximum rate payable for grade
GS-15 of the General Schedule.
    (d) Detail of Government Employees.--Upon request of the chairman
of the Commission, the head of any Federal department or agency may
detail, on a nonreimbursable basis, any personnel of that department or
agency to the Commission to assist it in carrying out its duties.
    (e) Procurement of Temporary and Intermittent Services.--The
chairman of the Commission may procure temporary and intermittent
services under section 3109(b) of title 5, United States Code, at rates
for individuals which do not exceed the daily equivalent of the annual
rate of basic pay payable for level V of the Executive Schedule under
section 5316 of such title.

SEC. 1607. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

    (a) Postal and Printing Services.--The Commission may use the
United States mails and obtain printing and binding services in the
same manner and under the same conditions as other departments and
agencies of the Federal Government.
    (b) Miscellaneous Administrative and Support Services.--The
Secretary of Defense shall furnish the Commission, on a reimbursable
basis, any administrative and support services requested by the
Commission.

SEC. 1608. FUNDING.

    Funds for activities of the Commission shall be provided from
amounts appropriated for the Department of Defense for operation and
maintenance for Defense-wide activities for fiscal year 1998. Upon
receipt of a written certification from the Chairman of the Commission
specifying the funds required for the activities of the Commission, the
Secretary of Defense shall promptly disburse to the Commission, from
such amounts, the funds required by the Commission as stated in such
certification.

SEC. 1609. TERMINATION OF THE COMMISSION.

    The Commission shall terminate 60 days after the date of the
submission of its final report under section 1603.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction
Authorization Act for Fiscal Year 1998''.

                            TITLE XXI--ARMY

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
------------------------------------------------------------------------
                                     Installation or
             State                       Location             Amount
------------------------------------------------------------------------
Arizona........................  Fort Huachuca..........     $20,000,000
California.....................  Fort Irwin.............     $11,150,000
                                 Naval Weapons Station,      $23,000,000
                                  Concord.
Colorado.......................  Fort Carson............     $47,300,000
Georgia........................  Fort Gordon............     $22,000,000
                                 Hunter Army Air Field,
                                  Fort Stewart..........     $54,000,000
Hawaii.........................  Schofield Barracks.....     $44,000,000
Indiana........................  Crane Army Ammunition        $7,700,000
                                  Activity.
Kansas.........................  Fort Leavenworth.......     $63,000,000
                                 Fort Riley.............     $25,800,000
Kentucky.......................  Fort Campbell..........     $43,700,000
                                 Fort Knox..............      $7,200,000
Missouri.......................  Fort Leonard Wood......      $3,200,000
New Jersey.....................  Fort Monmouth..........      $2,050,000
New Mexico.....................  White Sands Missile          $6,900,000
                                  Range.
New York.......................  Fort Drum..............     $24,400,000
North Carolina.................  Fort Bragg.............     $61,900,000
Oklahoma.......................  Fort Sill..............     $25,000,000
South Carolina.................  Fort Jackson...........      $5,400,000
                                 Naval Weapons Station,       $7,700,000
                                  Charleston.
Texas..........................  Fort Bliss.............      $7,700,000
                                 Fort Hood..............     $27,200,000
                                 Fort Sam Houston.......     $16,000,000
Virginia.......................  Fort A.P. Hill.........      $5,400,000
                                 Fort Myer..............      $8,200,000
                                 Fort Story.............      $2,050,000
Washington.....................  Fort Lewis.............     $33,000,000
CONUS Classified...............  Classified Location....      $6,500,000
                                                         ---------------
                                       Total............    $614,900,000
------------------------------------------------------------------------


    (b) Outside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2104(a)(2), the
Secretary of the Army may acquire real property and carry out military
construction projects for the locations outside the United States, and
in the amounts, set forth in the following table:

                     Army: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      Location             Amount
------------------------------------------------------------------------
Germany........................  Ansbach................     $22,000,000
                                 Heidelberg.............      $8,800,000
                                 Mannheim...............      $6,200,000
                                 Military Support Group,
                                  Kaiserslautern........      $6,000,000
Korea..........................  Camp Casey.............      $5,100,000
                                 Camp Castle............      $8,400,000
                                 Camp Humphreys.........     $32,000,000
                                 Camp Red Cloud.........     $23,600,000
                                 Camp Stanley...........      $7,000,000
Overseas Classified............  Overseas Classified....     $37,000,000
                                                         ---------------
                                       Total............    $156,100,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated
pursuant to 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
----------------------------------------------------------------------------------------------------------------
Arizona...............................  Fort Huachuca............  55 Units.....................      $8,000,000
Hawaii................................  Schofield Barracks.......  132 Units....................     $26,600,000
Maryland..............................  Fort George Meade........  56 Units.....................      $7,900,000
New Jersey............................  Picatinny Arsenal........  35 Units.....................      $7,300,000
North Carolina........................  Fort Bragg...............  174 Units....................     $20,150,000
Texas.................................  Fort Bliss...............  91 Units.....................     $12,900,000
                                        Fort Hood................  130 Units....................     $18,800,000
                                                                                                 ---------------
                                                                         Total..................    $103,950,000
----------------------------------------------------------------------------------------------------------------


    (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 $9,550,000.

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
sections 2104(a)(5)(A), the Secretary of the Army may improve existing
military family housing units in an amount not to exceed $89,200,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be appropriated for
fiscal years beginning after September 30, 1997, for military
construction, land acquisition, and military family housing functions
of the Department of the Army in the total amount of $2,055,364,000 as
follows:
            (1) For military construction projects inside the United
        States authorized by section 2101(a), $425,850,000.
            (2) For the military construction projects outside the
        United States authorized by section 2101(b), $162,600,000.
            (3) For unspecified minor military construction projects
        authorized by section 2805 of title 10, United States Code,
        $6,000,000.
            (4) For architectural and engineering services and
        construction design under section 2807 of title 10, United
        States Code, $71,577,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and
                design and improvement of military family housing and
                facilities, $200,400,000.
                    (B) For support of military family housing
                (including the functions described in section 2833 of
                title 10, United States Code), $1,148,937,000.
            (6) For the construction of the National Range Control
        Center, White Sands Missile Range, New Mexico, authorized by
        section 2101(a) of the Military Construction Authorization Act
        for Fiscal Year 1997 (division B of Public Law 104-201; 110
        Stat. 2763), $18,000,000.
            (7) For the construction of the whole barracks complex
        renewal, Fort Knox, Kentucky, authorized by section 2101(a) of
        the Military Construction Authorization Act for Fiscal Year
        1997 (division B of Public Law 104-201; 110 Stat. 2763),
        $22,000,000.
    (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) $14,400,000 (the balance of the amount authorized under
        section 2101(a) for the construction of the Force XXI Soldier
        Development School at Fort Hood, Texas);
            (3) $24,000,000 (the balance of the amount authorized under
        section 2101(a) for rail yard expansion at Fort Carson,
        Colorado);
            (4) $43,000,000 (the balance of the amount authorized under
        section 2101(a) for the construction of a disciplinary barracks
        at Fort Leavenworth, Kansas);
            (5) $36,500,000 (the balance of the amount authorized under
        section 2101(a) for the construction of a barracks at Hunter
        Army Airfield, Fort Stewart, Georgia);
            (6) $44,200,000 (the balance of the amount authorized under
        section 2101(a) for the construction of a barracks at Fort
        Bragg, North Carolina); and
            (7) $17,000,000 (the balance of the amount authorized under
        section 2101(a) for the construction of a barracks at Fort
        Sill, Oklahoma).

SEC. 2105. CORRECTION IN AUTHORIZED USES OF FUNDS, FORT IRWIN,
              CALIFORNIA.

    In the case of amounts appropriated pursuant to the authorization
of appropriations in section 2104(a)(1) of the Military Construction
Authorization Act for Fiscal Year 1995 (division B of Public Law 103-
337; 108 Stat. 3029) and section 2104(a)(1) of the Military
Construction Authorization Act for Fiscal Year 1996 (division B of
Public Law 104-106; 110 Stat. 524) for a military construction project
for Fort Irwin, California, involving the construction of an air field
for the National Training Center at Barstow-Daggett, California, the
Secretary of the Army may use such amounts for the construction of a
heliport at the same location.

                            TITLE XXII--NAVY

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2204(a)(1), the
Secretary of the Navy may acquire real property and carry out military
construction projects for the installations and locations inside the
United States, and in the amounts, set forth in the following table:

                     Navy: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       Location             Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air
                                  Station, Yuma.........     $12,250,000
                                 Navy Detachment, Camp
                                  Navajo................     $11,426,000
California.....................  Marine Corps Air
                                  Station, Camp
                                  Pendleton.............     $24,150,000
                                 Marine Corps Air
                                  Station, Miramar......      $8,700,000
                                 Marine Corps Air-Ground
                                  Combat Center,
                                  Twentynine Palms......      $3,810,000
                                 Marine Corps Base, Camp
                                  Pendleton.............     $60,069,000
                                 Naval Air Facility, El
                                  Centro................     $11,000,000
                                 Naval Air Station,
                                  North Island..........     $19,600,000
                                 Naval Amphibious Base,
                                  Coronado..............     $10,100,000
                                 Naval Construction
                                  Battalion Center, Port
                                  Hueneme...............      $3,200,000
Connecticut....................  Naval Submarine Base,
                                  New London............     $18,300,000
Florida........................  Naval Air Station,
                                  Jacksonville..........      $3,480,000
                                 Naval Air Station,           $1,300,000
                                  Whiting Field.
                                 Naval Station, Mayport.     $17,940,000
Hawaii.........................  Marine Corps Air
                                  Station, Kaneohe Bay..     $19,000,000
                                 Naval Communications
                                  and Telecommunications
                                  Area Master Station
                                  Eastern Pacific,
                                  Honolulu..............      $3,900,000
                                 Naval Station, Pearl        $25,000,000
                                  Harbor.
Illinois.......................  Naval Training Center,
                                  Great Lakes...........     $41,220,000
Indiana........................  Naval Surface Warfare
                                  Center, Crane.........      $4,120,000
Maryland.......................  Naval Electronics
                                  System Command, St.
                                  Ingoes................      $2,610,000
Mississippi....................  Naval Air Station,
                                  Meridian..............      $7,050,000
North Carolina.................  Marine Corps Air
                                  Station, Cherry Point.      $8,800,000
                                 Marine Corps Air
                                  Station, New River....     $19,900,000
Rhode Island...................  Naval Undersea Warfare
                                  Center Division,
                                  Newport...............      $8,900,000
South Carolina.................  Marine Corps Air
                                  Station, Beaufort.....     $17,730,000
                                 Marine Corps Reserve
                                  Detachment Parris
                                  Island................      $3,200,000
Texas..........................  Naval Air Station,
                                  Corpus Christi........        $800,000
Virginia.......................  AEGIS Training Center,       $6,600,000
                                  Dahlgren.
                                 Fleet Combat Training
                                  Center, Dam Neck......      $7,000,000
                                 Naval Air Station,
                                  Norfolk...............     $18,240,000
                                 Naval Air Station,          $34,000,000
                                  Oceana.
                                 Naval Amphibious Base,
                                  Little Creek..........      $8,685,000
                                 Naval Shipyard,
                                  Norfolk, Portsmouth...     $29,410,000
                                 Naval Station, Norfolk.     $18,850,000
                                 Naval Surface Warfare
                                  Center, Dahlgren......     $13,880,000
                                 Naval Weapons Station,
                                  Yorktown..............     $14,547,000
Washington.....................  Naval Air Station,           $1,100,000
                                  Whidbey Island.
                                 Puget Sound Naval
                                  Shipyard, Bremerton...      $4,400,000
                                                         ---------------
                                       Total............    $524,267,000
------------------------------------------------------------------------


    (b) Outside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2204(a)(2), the
Secretary of the Navy may acquire real property and carry out military
construction projects for the installations and locations outside the
United States, and in the amounts, set forth in the following table:

                     Navy: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      Location             Amount
------------------------------------------------------------------------
Bahrain........................  Administrative Support
                                  Unit, Bahrain.........     $30,100,000
Guam...........................  Naval Communications
                                  and Telecommunications
                                  Area Master Station
                                  Western Pacific, Guam.      $4,050,000
Italy..........................  Naval Air Station,          $21,440,000
                                  Sigonella.
                                 Naval Support Activity,      $8,200,000
                                  Naples.
Puerto Rico....................  Naval Station,                 $500,000
                                  Roosevelt Roads.
United Kingdom.................  Joint Maritime
                                  Communications Center,
                                  St. Mawgan............      $2,330,000
                                                         ---------------
                                       Total............     $66,620,000
------------------------------------------------------------------------

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............................  Marine Corps Air Station,
                                         Miramar.................  166 Units....................     $28,881,000
                                        Marine Corps Air-Ground
                                         Combat Center,
                                         Twentynine Palms........  132 Units....................     $23,891,000
                                        Marine Corps Base, Camp
                                         Pendleton...............  171 Units....................     $22,518,000
                                        Naval Air Station,
                                         Lemoore.................  128 Units....................     $23,226,000
                                        Naval Complex, San Diego.  94 Units.....................     $13,500,000
Hawaii................................  Naval Complex, Pearl
                                         Harbor..................  84 Units.....................     $17,900,000
Louisiana.............................  Naval Complex, New
                                         Orleans.................  100 Units....................     $11,930,000
Texas.................................  Naval Complex, Kingsville
                                         and Corpus Christi......  212 Units....................     $22,250,000
Washington............................  Naval Complex, Bangor....  118 Units....................     $15,700,000
                                                                                                 ---------------
                                                                         Total..................    $179,796,000
----------------------------------------------------------------------------------------------------------------


    (b) Planning and Design.--Using amounts appropriated pursuant to
the authorization of appropriation 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 $15,100,000.

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 $214,282,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be appropriated for
fiscal years beginning after September 30, 1997, for military
construction, land acquisition, and military family housing functions
of the Department of the Navy in the total amount of $2,053,025,000 as
follows:
            (1) For military construction projects inside the United
        States authorized by section 2201(a), $524,267,000.
            (2) For military construction projects outside the United
        States authorized by section 2201(b), $66,120,000.
            (3) For unspecified minor construction projects authorized
        by section 2805 of title 10, United States Code, $9,960,000.
            (4) For architectural and engineering services and
        construction design under section 2807 of title 10, United
        States Code, $46,659,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and
                design and improvement of military family housing and
                facilities, $409,178,000.
                    (B) For support of military housing (including
                functions described in section 2833 of title 10, United
                States Code), $976,504,000.
            (6) For construction of bachelor enlisted quarters at Naval
        Hospital, Great Lakes, Illinois, authorized by section 2201(a)
        of the Military Construction Authorization Act for Fiscal Year
        1997 (division B of Public Law 104-201; 110 Stat. 2766),
        $5,200,000.
            (7) For construction of bachelor enlisted quarters at Naval
        Station, Roosevelt Roads, Puerto Rico, authorized by section
        2201(a) of the Military Construction Authorization Act for
        Fiscal Year 1997 (division B of Public Law 104-201; 110 Stat.
        2767), $14,600,000.
            (8) For construction of a large anecohic chamber facility
        at Patuxent River Naval Air Warfare Center, Maryland,
        authorized by section 2201(a) of the Military Construction
        Authorization Act for Fiscal Year 1993 (division B of Public
        Law 102-484; 106 Stat. 2590), $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 2201 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 (8) of subsection (a) is the sum of
the amounts authorized to be appropriated in such paragraphs, reduced
by $8,463,000, which represents the combination of project savings
resulting from favorable bids, reduced overhead costs, and
cancellations due to force structure changes.

SEC. 2205. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT NAVAL AIR
              STATION, PASCAGOULA, MISSISSIPPI, FOR WHICH FUNDS HAVE
              BEEN APPROPRIATED.

    (a) Authorization.--The table in section 2201(a) of the Military
Construction Authorization Act for Fiscal Year 1997 (division B of
Public Law 104-201; 110 Stat. 2766) is amended--
            (1) by striking out the amount identified as the total and
        inserting in lieu thereof ``$594,982,000''; and
            (2) by inserting after the item relating to Stennis Space
        Center, Mississippi, the following new item:

------------------------------------------------------------------------

------------------------------------------------------------------------
                                 ``Naval Air Station,      $4,990,000''.
                                  Pascagoula.
------------------------------------------------------------------------


    (b) Conforming Amendments.--Section 2204(a) of such Act (110 Stat.
2769) is amended--
            (1) in the matter preceding the paragraphs, by striking out
        ``$2,213,731,000'' and inserting in lieu thereof
        ``$2,218,721,000''; and
            (2) in paragraph (1), by striking out ``$579,312,000'' and
        inserting in lieu thereof ``$584,302,000''.

                         TITLE XXIII--AIR FORCE

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION
              PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2304(a)(1), the
Secretary of the Air Force may acquire real property and carry out
military construction projects for the installations and locations
inside the United States, and in the amounts, set forth in the
following table:

                   Air Force: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       Location             Amount
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.     $14,874,000
Alaska.........................  Clear Air Station......     $67,069,000
                                 Eielson Air Force Base.      $7,764,000
                                 Indian Mountain........      $1,991,000
Arizona........................  Luke Air Force Base....     $10,000,000
Arkansas.......................  Little Rock Air Force        $3,400,000
                                  Base.
California.....................  Edwards Air Force Base.      $2,887,000
                                 Vandenberg Air Force        $26,876,000
                                  Base.
Colorado.......................  Buckley Air National         $6,718,000
                                  Guard Base.
                                 Falcon Air Force            $10,551,000
                                  Station.
                                 Peterson Air Force Base      $4,081,000
                                 United States Air Force     $15,229,000
                                  Academy.
Florida........................  Eglin Auxiliary Field 9      $6,470,000
                                 MacDill Air Force Base.      $1,543,000
Georgia........................  Moody Air Force Base...      $9,100,000
                                 Robins Air Force Base..     $27,763,000
Idaho..........................  Mountain Home Air Force     $17,719,000
                                  Base.
Kansas.........................  McConnell Air Force         $11,669,000
                                  Base.
Louisiana......................  Barksdale Air Force         $19,410,000
                                  Base.
Mississippi....................  Keesler Air Force Base.     $30,855,000
Missouri.......................  Whiteman Air Force Base     $40,419,000
Nevada.........................  Nellis Air Force Base..      $1,950,000
New Jersey.....................  McGuire Air Force Base.     $18,754,000
North Carolina.................  Pope Air Force Base....     $20,656,000
North Dakota...................  Grand Forks Air Force        $8,560,000
                                  Base.
                                 Minot Air Force Base...      $5,200,000
Ohio...........................  Wright-Patterson Air        $19,350,000
                                  Force Base.
Oklahoma.......................  Tinker Air Force Base..      $9,655,000
                                 Vance Air Force Base...      $6,700,000
South Carolina.................  Shaw Air Force Base....      $6,072,000
South Dakota...................  Ellsworth Air Force          $6,600,000
                                  Base.
Tennessee......................  Arnold Air Force Base..     $20,650,000
Texas..........................  Dyess Air Force Base...     $10,000,000
                                 Laughlin Air Force Base       4,800,000
                                 Randolph Air Force Base      $2,488,000
Utah...........................  Hill Air Force Base....      $6,470,000
Virginia.......................  Langley Air Force Base.      $4,031,000
Washington.....................  Fairchild Air Force          $7,366,000
                                  Base.
                                 McChord Air Force Base.      $9,655,000
CONUS Classified...............  Classified Location....      $6,175,000
                                                         ---------------
                                       Total............    $511,520,000
------------------------------------------------------------------------


    (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
------------------------------------------------------------------------
                                     Installation or
            Country                      Location             Amount
------------------------------------------------------------------------
Germany........................  Spangdahlem Air Base...     $18,500,000
Italy..........................  Aviano Air Base........     $15,220,000
Korea..........................  Kunsan Air Base........     $10,325,000
                                 Osan Air Base..........     $11,100,000
Portugal.......................  Lajes Field, Azores....      $4,800,000
United Kingdom.................  Royal Air Force,            $11,400,000
                                  Lakenheath.
Overseas Classified............  Classified Location....     $31,100,000
                                                         ---------------
                                       Total............    $102,445,000
------------------------------------------------------------------------

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
----------------------------------------------------------------------------------------------------------------
Arizona...............................  Davis-Monthan Air Force
                                         Base....................  70 Units.....................      $9,800,000
California............................  Edwards Air Force Base...  95 Units.....................     $16,800,000
                                        Travis Air Force Base....  70 Units.....................      $9,714,000
                                        Vandenberg Air Force Base  108 Units....................     $17,100,000
Delaware..............................  Dover Air Force Base.....  Ancillary Facility...........        $831,000
District of Columbia..................  Bolling Air Force Base...  46 Units.....................      $5,100,000
Florida...............................  MacDill Air Force Base...  58 Units.....................     $10,000,000
                                        Tyndall Air Force Base...  32 Units.....................      $4,200,000
Georgia...............................  Robins Air Force Base....  60 Units.....................      $6,800,000
Idaho.................................  Mountain Home Air Force
                                         Base....................  60 Units.....................     $11,032,000
Kansas................................  McConnell Air Force Base.  19 Units.....................      $2,951,000
                                        McConnell Air Force Base.  Ancillary Facility...........        $581,000
Mississippi...........................  Columbus Air Force Base..  50 Units.....................      $6,200,000
                                        Keesler Air Force Base...  40 Units.....................      $5,000,000
Montana...............................  Malmstrom Air Force Base.  28 Units.....................      $4,842,000
New Mexico............................  Kirtland Air Force Base..  180 Units....................     $20,900,000
North Dakota..........................  Grand Forks Air Force
                                         Base....................  42 Units.....................      $7,936,000
Texas.................................  Dyess Air Force Base.....  70 Units.....................     $10,503,000
                                        Goodfellow Air Force Base  3 Units......................        $500,000
                                        Lackland Air Force Base..  50 Units.....................      $7,400,000
                                        Sheppard Air Force Base..  40 Units.....................      $7,400,000
Wyoming...............................  F. E. Warren Air Force
                                         Base....................  52 Units.....................      $6,853,000
                                                                                                 ---------------
                                                                         Total..................    $172,443,000
----------------------------------------------------------------------------------------------------------------


    (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 $11,971,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2835 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
$156,995,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be appropriated for
fiscal years beginning after September 30, 1997, for military
construction, land acquisition, and military family housing functions
of the Department of the Air Force in the total amount of
$1,810,090,000 as follows:
            (1) For military construction projects inside the United
        States authorized by section 2301(a), $505,435,000.
            (2) For military construction projects outside the United
        States authorized by section 2301(b), $102,445,000.
            (3) For unspecified minor construction projects authorized
        by section 2805 of title 10, United States Code, $8,545,000.
            (4) For architectural and engineering services and
        construction design under section 2807 of title 10, United
        States Code, $45,880,000.
            (5) For military housing functions:
                    (A) For construction and acquisition, planning and
                design and improvement of military family housing and
                facilities, $341,409,000.
                    (B) For support of military family housing
                (including the functions described in section 2833 of
                title 10, United States Code), $830,234,000.
    (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--
            (1) the total amount authorized to be appropriated under
        paragraphs (1) and (2) of subsection (a); and
            (2) $11,000,000 (the balance of the amount authorized under
        section 2301(a) for the construction of a B-2 low observability
        restoration facility at Whiteman Air Force Base, Missouri).
    (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 $23,858,000, which represents the combination of project savings
resulting from favorable bids, reduced overhead costs, and
cancellations due to force structure changes.

SEC. 2305. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT MCCONNELL
              AIR FORCE BASE, KANSAS, FOR WHICH FUNDS HAVE BEEN
              APPROPRIATED.

    (a) Authorization.--The table in section 2301(a) of the Military
Construction Authorization Act for Fiscal Year 1997 (division B of
Public Law 104-201; 110 Stat. 2771) is amended in the item relating to
McConnell Air Force Base, Kansas, by striking out ``$19,130,000'' in
the amount column and inserting in lieu thereof ``$25,830,000''.
    (b) Conforming Amendments.--Section 2304 of such Act (110 Stat.
2774) is amended--
            (1) in the matter preceding the paragraph, by striking out
        ``$1,894,594,000'' and inserting in lieu thereof
        ``$1,901,294,000'' and
            (2) in paragraph (1), by striking out ``$603,834,000'' and
        inserting in lieu thereof ``$610,534,000''.

                      TITLE XXIV--DEFENSE AGENCIES

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 2405(a)(1), the
Secretary of Defense may acquire real property and carry out military
construction projects for the installations and locations inside the
United States, and in the amounts, set forth in the following table:

               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      Location             Amount
------------------------------------------------------------------------
Defense Commissary Agency......  Fort Lee, Virginia.....      $9,300,000
Defense Finance and Accounting
 Service.......................  Columbus Center, Ohio..      $9,722,000
                                 Naval Air Station,
                                  Millington, Tennessee.      $6,906,000
                                 Naval Station, Norfolk,
                                  Virginia..............     $12,800,000
                                 Naval Station, Pearl
                                  Harbor, Hawaii........     $10,000,000
Defense Intelligence Agency....  Bolling Air Force Base,
                                  District of Columbia..      $7,000,000
                                 Redstone Arsenal,           $32,700,000
                                  Alabama.
Defense Logistics Agency.......  Defense Distribution
                                  Depot--DDNV, Virginia.     $16,656,000
                                 Defense Distribution
                                  New Cumberland--DDSP,
                                  Pennsylvania..........     $15,500,000
                                 Defense Fuel Support
                                  Point, Craney Island,
                                  Virginia..............     $22,100,000
                                 Defense General Supply
                                  Center, Richmond
                                  (DLA), Virginia.......      $5,200,000
                                 Elmendorf Air Force
                                  Base, Alaska..........     $21,700,000
                                 Naval Air Station,
                                  Jacksonville, Florida.      $9,800,000
                                 Truax Field, Wisconsin.      $4,500,000
                                 Westover Air Reserve
                                  Base, Massachusetts...      $4,700,000
                                 CONUS Various, CONUS
                                  Various...............     $11,275,000
Defense Medical Facilities
 Office........................  Fort Campbell, Kentucky     $13,600,000
                                 Fort Detrick, Maryland.      $5,300,000
                                 Fort Lewis, Washington.      $5,000,000
                                 Hill Air Force Base,         $3,100,000
                                  Utah.
                                 Holloman Air Force
                                  Base, New Mexico......      $3,000,000
                                 Lackland Air Force
                                  Base, Texas...........      $3,000,000
                                 Marine Corps Combat Dev
                                  Com, Quantico,
                                  Virginia..............     $19,000,000
                                 McGuire Air Force Base,
                                  New Jersey............     $35,217,000
                                 Naval Air Station,
                                  Pensacola, Florida....      $2,750,000
                                 Naval Station, Everett,
                                  Washington............      $7,500,000
                                 Naval Station, San
                                  Diego, California.....      $2,100,000
                                 Naval Submarine Base,
                                  New London,
                                  Connecticut...........      $2,300,000
                                 Robins Air Force Base,
                                  Georgia...............     $19,000,000
                                 Tinker Air Force Base,
                                  Oklahoma..............      $6,500,000
                                 Wright-Patterson Air
                                  Force Base, Ohio......      $2,750,000
National Security Agency.......  Fort Meade, Maryland...     $29,800,000
Special Operations Command.....  Eglin Auxiliary Field        $6,100,000
                                  3, Florida.
                                 Fort Benning, Georgia..     $12,314,000
                                 Fort Bragg, North            $1,500,000
                                  Carolina.
                                 Hurlburt Field, Florida      $2,450,000
                                 Naval Amphibious Base,
                                  Coronado, California..      $7,400,000
                                                         ---------------
                                       Total............    $389,440,000
------------------------------------------------------------------------


    (b) Outside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2405(a)(2), the
Secretary of Defense may acquire real property and carry out military
construction projects for the installations and locations outside the
United States, and in the amounts, set forth in the following table:

               Defense Agencies: Outside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      Location             Amount
------------------------------------------------------------------------
Ballistic Missile Defense        Pacific Missile Range,
 Organization.                    Kwajalein Atoll.......      $4,565,000
Defense Logistics Agency.......  Defense Fuel Support
                                  Point, Guam...........     $16,000,000
                                 Moron Air Base, Spain..     $14,400,000
Defense Medical Facilities
 Office........................  Andersen Air Force
                                  Base, Guam............      $3,700,000
                                                         ---------------
                                     Total..............     $38,665,000
------------------------------------------------------------------------

SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.

    Using amounts appropriated pursuant to the authorization of
appropriations in section 2405(a)(13)(A), the Secretary of Defense 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 $50,000.

SEC. 2403. 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 2405(a)(12)(A), the Secretary of Defense may improve existing
military family housing units in an amount not to exceed $4,900,000.

SEC. 2404. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of
appropriations in section 2405(a)(10), the Secretary of Defense may
carry out energy conservation projects under section 2865 of title 10,
United States Code.

SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be appropriated for
fiscal years beginning after September 30, 1997, 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 $2,711,761,000 as follows:
            (1) For military construction projects inside the United
        States authorized by section 2401(a), $382,390,000
            (2) For military construction projects outside the United
        States authorized by section 2401(a), $34,965,000.
            (3) For military construction projects at Anniston Army
        Depot, Alabama, ammunition demilitarization facility,
        authorized by section 2101(a) of the Military Construction
        Authorization Act for Fiscal Year 1993 (division B of the
        Public Law 102-484; 106 Stat. 2587), which was originally
        authorized as an Army construction project, but which became a
        Defense Agencies construction project by reason of the
        amendments made by section 142 of the National Defense
        Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108
        Stat. 2689), $9,900,000.
            (4) For military construction projects at Walter Reed Army
        Institute of Research, Maryland, hospital replacement,
        authorized by section 2401(a) of the Military Construction
        Authorization Act for Fiscal Year 1993 (division B of Public
        Law 102-484; 106 Stat. 2599), $20,000,000.
            (5) For military construction projects at Umatilla Army
        Depot, Oregon, authorized by section 2401(a) of the Military
        Construction Authorization Act for Fiscal Year 1995 (division B
        of the Public Law 103-337; 108 Stat. 3040), as amended by
        section 2407 of the Military Construction Authorization Act for
        Fiscal Year 1996 (110 Stat. 539) and section 2407(2) of this
        Act, $57,427,000.
            (6) For military construction projects at Defense Finance
        and Accounting Service, Columbus, Ohio, authorized by section
        2401(a) of the Military Construction Authorization Act of
        Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat.
        535), $14,200,000.
            (7) For contingency construction projects of the Secretary
        of Defense under section 2804 of title 10, United States Code,
        $9,844,000.
            (8) For unspecified minor construction projects under
        section 2805 of title 10, United States Code, $25,257,000.
            (9) For architectural and engineering services and
        construction design under section 2807 of title 10, United
        States Code, $34,350,000.
            (10) For Energy Conservation projects authorized by section
        2403, $25,000,000.
            (11) 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), $2,060,854,000.
            (12) For military family housing functions:
                    (A) For improvement and planning of military family
                housing and facilities, $4,950,000.
                    (B) For support of military housing (including
                functions described in section 2833 of title 10, United
                States Code), $32,724,000 of which not more than
                $27,673,000 may be obligated or expended for the
                leasing of military family housing units worldwide.
    (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 variations authorized by
law, the total cost of all projects carried out under section 2401 of
this Act may not exceed the total amount authorized to be appropriated
under paragraphs (1) and (2) of subsection (a).

SEC. 2406. CORRECTION IN AUTHORIZED USES OF FUNDS, MCCLELLAN AIR FORCE
              BASE, CALIFORNIA.

    In the case of amounts appropriated pursuant to the authorization
of appropriations in section 2405(a)(1) of the Military Construction
Authorization Act for Fiscal Year 1995 (division B of Public Law 103-
337; 108 Stat. 3041) for a military construction project involving the
upgrade of the hospital facility at McClellan Air Force Base,
California, the Secretary of Defense may use such amounts for the
following medical construction projects authorized by section 2401 of
this Act:
            (1) The Aeromedical Clinic Addition at Andersen Air Base,
        Guam, in the amount of $3,700,000.
            (2) The Occupational Health Clinic Facility at Tinker Air
        Force Base, Oklahoma, in the amount of $6,500,000.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT 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), under the agency heading relating
to Chemical Weapons and Munitions Destruction, is further amended--
            (1) in the item relating to Pine Bluff Arsenal, Arkansas,
        by striking out ``$115,000,000'' in the amount column and
        inserting in lieu thereof ``$134,000,000''; and
            (2) in the item relating to Umatilla Army Depot, Oregon, by
        striking out ``$186,000,000'' in the amount column and
        inserting in lieu thereof ``$187,000,000''.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                PROGRAM

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, 1997, 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 $166,300,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND
              ACQUISITION PROJECTS.

    (a) In General.--There are authorized to be appropriated for fiscal
years beginning after September 30, 1997, 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, $45,098,000; and
                    (B) for the Army Reserve, $69,831,000.
            (2) For the Department of the Navy, for the Naval and
        Marine Corps Reserve, $40,561,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the United
                States, $137,275,000; and
                    (B) for the Air Force Reserve, $34,443,000.
    (b) Adjustment.--The amount authorized to be appropriated pursuant
to subsection (a)(1)(B) is reduced by $7,900,000, which represents the
combination of project savings resulting from favorable bids, reduced
overhead costs, and cancellations due to force structure changes.

SEC. 2602. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECTS FOR WHICH
              FUNDS HAVE BEEN APPROPRIATED.

    (a) Army National Guard, Hilo, Hawaii.--Paragraph (1)(A) of section
2601 of the Military Construction Authorization Act for Fiscal Year
1997 (division B of Public Law 104-201; 110 Stat. 2780) is amended by
striking out ``$59,194,000'' and inserting in lieu thereof
``$65,094,000'' to account for a project involving additions and
alterations to an Army aviation support facility in Hilo, Hawaii.
    (b) Naval and Marine Corps Reserve, New Orleans.--Paragraph (2) of
such section is amended by striking out ``$32,779,000'' and inserting
in lieu thereof ``$37,579,000'' to account for a project for the
construction of bachelor enlisted quarters at Naval Air Station, New
Orleans, Louisiana.

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 in Salt Lake City, Utah, to be carried out using funds
appropriated pursuant to the authorization of appropriations in section
2601(1)(B), the Secretary of the Army may enter into an agreement with
the State of Utah under which the State agrees to provide financial or
in-kind contributions toward land acquisition, site preparation,
environmental assessment and remediation, relocation, and other costs
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.

    (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, 2000; or
            (2) the date for the enactment of an Act authorizing funds
        for military construction for fiscal year 2001.
    (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, 2000; or
            (2) the date of the enactment of an Act authorizing funds
        for fiscal year 2001 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 1995
              PROJECTS.

    (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), authorizations for the projects
set forth in the tables in subsection (b), as provided in section 2101,
2201, 2202, 2301, 2302, 2401, or 2601 of that Act, shall remain in
effect until October 1, 1998, or the date of the enactment of an Act
authorizing funds for military construction for fiscal year 1999,
whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as
follows:

                                  Army: Extension of 1995 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
California............................  Fort Irwin...............  National Training Center
                                                                    Airfield Phase I............     $10,000,000
----------------------------------------------------------------------------------------------------------------

                                 Navy: Extension of 1995 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Maryland..............................  Indian Head Naval Surface
                                         Warfare Center..........  Upgrade Power Plant..........      $4,000,000
                                        Indian Head Naval Surface
                                         Warfare Center..........  Denitrification/Acid Mixing
                                                                    Facility....................      $6,400,000
Virginia..............................  Norfolk Marine Corps
                                         Security Force Battalion
                                         Atlantic................  Bachelor Enlisted Quarters...      $6,480,000
Washington............................  Naval Station Puget
                                         Sound, Everett..........  New Construction (Housing
                                                                    Office).....................        $780,000
CONUS Classified......................  Classified Location......  Aircraft Fire/Rescue &
                                                                    Vehicle Maintenance Facility      $2,200,000
----------------------------------------------------------------------------------------------------------------

                               Air Force: Extension of 1995 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
California............................  Beale Air Force Base.....  Consolidated Support Center..     $10,400,000
                                        Los Angeles Air Force
                                         Station.................  Family Housing (50 Units)....      $8,962,000
North Carolina........................  Pope Air Force Base......  Combat Control Team Facility.      $2,400,000
                                        Pope Air Force Base......  Fire Training Center.........      $1,100,000
----------------------------------------------------------------------------------------------------------------

                           Defense Agencies: Extension of 1995 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Alabama...............................  Anniston Army Depot......  Carbon Filtration System.....      $5,000,000
Arkansas..............................  Pine Bluff Arsenal.......  Ammunition Demilitarization
                                                                    Facility....................    $115,000,000
California............................  Defense Contract
                                         Management Office, El
                                         Segundo.................  Administrative Facility......      $5,100,000
Oregon................................  Umatilla Army Depot......  Ammunition Demilitarization
                                                                    Facility....................    $186,000,000
----------------------------------------------------------------------------------------------------------------

                          Army National Guard: Extension of 1995 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
California............................  Camp Roberts.............  Combat Pistol Range..........        $952,000
                                        Camp Roberts.............  Modify Record Fire Range/
                                                                    Maintenance Shop
                                                                    Construction Project........      $3,910,000
Pennsylvania..........................  Fort Indiantown Gap......  Barracks Construction Project      $6,200,000
----------------------------------------------------------------------------------------------------------------

                             Naval Reserve: Extension of 1995 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Georgia...............................  Naval Air Station
                                         Marietta................  Training Center..............      $2,650,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1994
              PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the Military
Construction Authorization Act for Fiscal Year 1994 (division B of
Public Law 103-160, 107 Stat. 1880), authorizations for the projects
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 1997 (division B of Public Law 104-
201; 110 Stat. 2783), shall remain in effect until October 1, 1998, or
the date of the enactment of an Act authorizing funds for military
construction for fiscal year 1999, whichever is later.
    (b) Table.--The table referred to in subsection (a) is as follows:

                                 Navy: Extension of 1994 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
California............................  Camp Pendleton Marine
                                         Corps Base..............  Sewage Facility..............      $7,930,000
Connecticut...........................  New London Naval
                                         Submarine Base..........  Hazardous Waste Facility.....      $1,450,000
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1993
              PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the Military
Construction Authorization Act for Fiscal Year 1993 (division B of
Public Law 102-484; 106 Stat. 2602), the authorizations for the
projects set forth in the tables in subsection (b), as provided in
section 2101 or 2601 of that Act and extended by section 2702 of the
Military Construction Authorization Act for Fiscal Year 1996 (division
B of Public Law 104-106; 110 Stat. 541) and section 2703 of the
Military Construction Authorization Act for Fiscal Year 1997 (division
B of Public Law 104-201; 110 Stat. 2784), shall remain in effect until
October 1, 1998, or the date of the enactment of an Act authorizing
funds for military construction for fiscal year 1999, whichever is
later.
    (b) Tables.--The tables referred to in subsection (a) are as
follows:

                                  Army: Extension of 1993 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount
----------------------------------------------------------------------------------------------------------------
Arkansas................................  Pine Bluff Arsenal........  Ammunition
                                                                       Demilitarization Support
                                                                       Facility.................     $15,000,000
----------------------------------------------------------------------------------------------------------------

                          Army National Guard: Extension of 1993 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
Alabama.................................  Union Springs.............  Armory....................        $813,000
----------------------------------------------------------------------------------------------------------------

SEC. 2705. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1992
              PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the Military
Construction Authorization Act for Fiscal Year 1992 (division B of
Public Law 102-190; 105 Stat. 1535), authorizations for the projects
set forth in the table in subsection (b), as provided in section 2101
of that Act and extended by section 2702 of the Military Construction
Authorization Act for Fiscal Year 1995 (division B of Public Law 103-
337; 108 Stat. 3047), section 2703 of the Military Construction
Authorization Act for Fiscal Year 1996 (division B of Public Law 104-
106; 110 Stat. 543), and section 2704 of the Military Construction
Authorization Act for Fiscal Year 1997 (division B of Public Law 104-
201; 110 Stat. 2784), shall remain in effect until October 1, 1998, or
the date of the enactment of an Act authorizing funds for military
construction for fiscal year 1999, whichever is later.
    (b) Table.--The table referred to in subsection (a) is as follows:

                                 Army: Extension of 1992 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount
----------------------------------------------------------------------------------------------------------------
Oregon..................................  Umatilla Army Depot.......  Ammunition
                                                                       Demilitarization Support
                                                                       Facility.................      $3,600,000
                                          Umatilla Army Depot.......  Ammunition
                                                                       Demilitarization
                                                                       Utilities................      $7,500,000
----------------------------------------------------------------------------------------------------------------

SEC. 2706. EXTENSION OF AVAILABILITY OF FUNDS FOR CONSTRUCTION OF OVER-
              THE-HORIZON RADAR IN PUERTO RICO.

    Amounts appropriated under the heading ``Drug Interdiction and
Counter-Drug Activities, Defense'' in the Department of Defense
Appropriations Act, 1995 (Public Law 103-335; 108 Stat. 2615), and
transferred to the ``Military Construction, Navy'' appropriation for
construction of a Relocatable Over-the-Horizon Radar at Naval Station
Roosevelt Roads, Puerto Rico, shall remain available for obligation
until October 1, 1998, or the date of the enactment of an Act
authorizing funds for military construction for fiscal year 1999,
whichever is later.

SEC. 2707. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on
the later of--
            (1) October 1, 1997; 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. USE OF MOBILITY ENHANCEMENT FUNDS FOR UNSPECIFIED MINOR
              CONSTRUCTION.

    (a) Congressional Notification.--Subsection (b)(2) of section 2805
of title 10, United States Code, is amended by adding at the end the
following new sentence: ``This paragraph shall apply even though the
project is to be carried out using funds made available to enhance the
deployment and mobility of military forces and supplies.''.
    (b) Restriction on Use of Operation and Maintenance Funds.--
Subsection (c) of such section is amended--
            (1) in paragraph (1), by striking out ``paragraph (2)'' and
        inserting in lieu thereof ``paragraphs (2) and (3)''; and
            (2) by adding at the end the following new paragraph:
    ``(3) The limitations specified in paragraph (1) shall not apply if
the unspecified minor military construction project is to be carried
out using funds made available to enhance the deployment and mobility
of military forces and supplies.''.
    (c) Technical Amendments.--Such section is further amended--
            (1) in subsection (a)(1)--
                    (A) by striking out ``minor military construction
                projects'' in the first sentence and inserting in lieu
                thereof ``unspecified minor military construction
                projects'';
                    (B) by striking out ``A minor'' in the second
                sentence and inserting in lieu thereof ``An unspecified
                minor''; and
                    (C) by striking out ``a minor'' in the last
                sentence and inserting in lieu thereof ``an unspecified
                minor'';
            (2) in subsection (b)(1), by striking out ``A minor'' and
        inserting in lieu thereof ``An unspecified minor'';
            (3) in subsection (b)(2), by striking out ``a minor'' and
        inserting in lieu thereof ``an unspecified minor''; and
            (4) in subsection (c), by striking out ``unspecified
        military'' each place it appears and inserting in lieu thereof
        ``unspecified minor military''.

SEC. 2802. LIMITATION ON USE OF OPERATION AND MAINTENANCE FUNDS FOR
              FACILITY REPAIR PROJECTS.

    Section 2811 of title 10, United States Code, is amended by adding
at the end the following new subsections:
    ``(d) Congressional Notification.--When a decision is made to carry
out a repair project under this section with an estimated cost in
excess of $10,000,000, the Secretary concerned shall submit to the
appropriate committees of Congress a report containing--
            ``(1) the justification for the repair project and the
        current estimate of the cost of the project; and
            ``(2) the justification for carrying out the project under
        this section.
    ``(e) Repair Project Defined.--In this section, the term `repair
project' means a project to restore a real property facility, system,
or component to such a condition that it may effectively be used for
its designated functional purpose.''.

SEC. 2803. LEASING OF MILITARY FAMILY HOUSING, UNITED STATES SOUTHERN
              COMMAND, MIAMI, FLORIDA.

    (a) Leases to Exceed Maximum Rental.--Section 2828(b) of title 10,
United States Code, is amended--
            (1) in paragraph (2), by striking out ``paragraph (3)'' and
        inserting in lieu thereof ``paragraphs (3) and (4)'';
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by inserting after paragraph (3) the following new
        paragraph:
    ``(4) The Secretary of the Army may lease not more than eight
housing units in the vicinity of Miami, Florida, for key and essential
personnel, as designated by the Secretary, for the United States
Southern Command for which the expenditure for the rental of such units
(including the cost of utilities, maintenance, and operation, including
security enhancements) exceeds the expenditure limitations in
paragraphs (2) and (3). The total amount for all leases under this
paragraph may not exceed $280,000 per year, and no lease on any
individual housing unit may exceed $60,000 per year.''.
    (b) Conforming Amendment.--Paragraph (5) of such section, as
redesignated by subsection (a)(2), is amended by striking out
``paragraphs (2) and (3)'' and inserting in lieu thereof ``paragraphs
(2), (3), and (4)''.

SEC. 2804. USE OF FINANCIAL INCENTIVES PROVIDED AS PART OF ENERGY
              SAVINGS AND WATER CONSERVATION ACTIVITIES.

    (a) Energy Savings.--Section 2865 of title 10, United States Code,
is amended--
            (1) in subsection (b)(1), by striking out ``and financial
        incentives described in subsection (d)(2)'';
            (2) in subsection (d)(2), by adding at the end the
        following new sentence: ``Financial incentives received under
        this paragraph or section 2866(a)(2) of this title shall be
        credited to an appropriation account designated by the
        Secretary of Defense.''; and
            (3) in subsection (f), by adding at the end the following
        new sentence: ``Each report shall also describe the types and
        amount of financial incentives received under subsection (d)(2)
        and section 2866(a)(2) of this title during the period covered
        by the report and the appropriation account or accounts to
        which the incentives were credited.''.
    (b) Water Conservation.--Section 2866(b) of such title is amended--
            (1) by striking out ``Savings.--'' in the subsection
        heading and inserting in lieu thereof ``Savings and Financial
        Incentives.--(1)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Financial incentives received under this section shall be
used as provided in section 2865(d)(2) of this title.''.

SEC. 2805. CONGRESSIONAL NOTIFICATION REQUIREMENTS REGARDING USE OF
              DEPARTMENT OF DEFENSE HOUSING FUNDS FOR INVESTMENTS IN
              NONGOVERNMENTAL ENTITIES.

    Section 2875 of title 10, United States Code, is amended by adding
at the end the following new subsection:
    ``(e) Congressional Notification Required.--Amounts in the
Department of Defense Family Housing Improvement Fund or the Department
of Defense Military Unaccompanied Housing Improvement Fund may be used
to make a cash investment under this section in a nongovernmental
entity only after the end of the 30-day period beginning on the date
the Secretary of Defense submits written notice of, and justification
for, the investment to the appropriate committees of Congress.''.

        Subtitle B--Real Property And Facilities Administration

SEC. 2811. INCREASE IN CEILING FOR MINOR LAND ACQUISITION PROJECTS.

    (a) Increase.--Section 2672 of title 10, United States Code, is
amended by striking out ``$200,000'' both places it appears in
subsection (a) and inserting in lieu thereof ``$500,000''.
    (b) Clerical Amendments.--(1) The section heading for such section
is amended to read as follows:
``Sec. 2672. Acquisition: interests in land when cost is not more than
              $500,000''.
    (2) The table of sections at the beginning of chapter 159 of such
title is amended by striking out the item relating to section 2672 and
inserting in lieu thereof the following new item:

``2672. Acquisition: interests in land when cost is not more than
                            $500,000.''.

SEC. 2812. ADMINISTRATIVE EXPENSES FOR CERTAIN REAL PROPERTY
              TRANSACTIONS.

    (a) In General.--Chapter 159 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 2695. Acceptance of funds to cover administrative expenses
              relating to certain real property transactions
    ``(a) Authority To Accept.--In connection with a real property
transaction described in subsection (b) with a non-Federal person or
entity, the Secretary of a military department may accept amounts
provided by the person or entity to cover administrative expenses
incurred by the Secretary in entering into the transaction.
    ``(b) Covered Transactions.--Subsection (a) applies to the
following transactions:
            ``(1) The conveyance or exchange of real property.
            ``(2) The grant of an easement over, in, or upon real
        property of the United States.
            ``(3) The lease or license of real property of the United
        States.
    ``(c) Use of Amounts Collected.--Amounts collected under subsection
(a) 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.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
chapter 159 of such title is amended by adding at the end the
following:

``2695. Acceptance of funds to cover administrative expenses relating
                            to certain real property transactions.''.

SEC. 2813. DISPOSITION OF PROCEEDS FROM SALE OF AIR FORCE PLANT 78,
              BRIGHAM CITY, UTAH.

    Notwithstanding subparagraph (A) of section 204(h)(2) of the
Federal Property and Administrative Services Act of 1949 (40 U.S.C.
485(h)(2)), the entire amount derived from the sale of Air Force Plant
78 in Brigham City, Utah, and deposited in the special account in the
Treasury established pursuant to such section shall, to the extent
provided in appropriations Acts, be available to the Secretary of the
Air Force for facility maintenance, repair, or environmental
restoration at other industrial plants of the Department of the Air
Force.

            Subtitle C--Defense Base Closure and Realignment

SEC. 2821. CONSIDERATION OF MILITARY INSTALLATIONS AS SITES FOR NEW
              FEDERAL FACILITIES.

    (a) 1988 Law.--Section 204(b)(5) of the Defense Authorization
Amendments and Base Closure and Realignment Act (Public Law 100-526; 10
U.S.C. 2687 note) is amended--
            (1) in subparagraph (A), by striking out ``subparagraph
        (B)'' and inserting in lieu thereof ``subparagraphs (B) and
        (C)''; and
            (2) by adding at the end the following new subparagraph:
    ``(C)(i) Before acquiring non-Federal real property as the location
for a new or replacement Federal facility of any type, the head of the
Federal agency acquiring the property shall consult with the Secretary
regarding the feasibility and cost advantages of using Federal property
or facilities at a military installation to be closed or realigned
under this title as the location for the new or replacement facility.
In considering the availability and suitability of a specific military
installation, the Secretary and the head of the Federal agency involved
shall consult with the redevelopment authority with respect to the
installation and comply with the redevelopment plan for the
installation.
    ``(ii) Not later than 30 days after acquiring non-Federal real
property as the location for a new or replacement Federal facility, the
head of the Federal agency acquiring the property shall submit to
Congress a report containing the results of the consultation under
clause (i) and the reasons why military installations referred to in
such clause that are located within the area to be served by the new or
replacement Federal facility or within a 200-mile radius of the new or
replacement facility, whichever area is greater, were considered to be
unsuitable or unavailable for the site of the new or replacement
facility.''.
    (b) 1990 Law.--Section 2905(b)(5) of the Defense Base Closure and
Realignment Act of 1990 (Public Law 101-510; 10 U.S.C. 2687 note) is
amended--
            (1) in subparagraph (A), by striking out ``subparagraph
        (B)'' and inserting in lieu thereof ``subparagraphs (B) and
        (C)''; and
            (2) by adding at the end the following new subparagraph:
    ``(C)(i) Before acquiring non-Federal real property as the location
for a new or replacement Federal facility of any type, the head of the
Federal agency acquiring the property shall consult with the Secretary
regarding the feasibility and cost advantages of using Federal property
or facilities at a military installation to be closed or realigned
under this part as the location for the new or replacement facility. In
considering the availability and suitability of a specific military
installation, the Secretary and the head of the Federal agency involved
shall consult with the redevelopment authority with respect to the
installation and comply with the redevelopment plan for the
installation.
    ``(ii) Not later than 30 days after acquiring non-Federal real
property as the location for a new or replacement Federal facility, the
head of the Federal agency acquiring the property shall submit to
Congress a report containing the results of the consultation under
clause (i) and the reasons why military installations referred to in
such clause that are located within the area to be served by the new or
replacement Federal facility or within a 200-mile radius of the new or
replacement facility, whichever area is greater, were considered to be
unsuitable or unavailable for the site of the new or replacement
facility.''.

SEC. 2822. PROHIBITION AGAINST CONVEYANCE OF PROPERTY AT MILITARY
              INSTALLATIONS TO STATE-OWNED SHIPPING COMPANIES.

    (a) Prohibition Against Direct Conveyance.--In disposing of real
property in connection with the closure of a military installation
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), the Secretary
of Defense may not convey any portion of the property (by sale, lease,
or other method) to a State-owned shipping company.
    (b) Prohibition Against Indirect Conveyance.--The Secretary of
Defense shall impose as a condition on each conveyance of real property
located at such an installation the requirement that the property may
not be subsequently conveyed (by sale, lease, or other method) to a
State-owned shipping company.
    (c) Reversionary Interest.--If the Secretary determines at any time
that real property located at such an installation and conveyed under
the Defense Base Closure and Realignment Act of 1990 has been conveyed
to a State-owned shipping company in violation of subsection (b) or is
otherwise being used by a State-owned shipping company in violation of
such subsection, all right, title, and interest in and to the property
shall revert to the United States, and the United States shall have
immediate right of entry thereon.
    (d) Definition.--In this section, the term ``State-owned shipping
company'' means a commercial shipping company owned or controlled by a
foreign country.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

SEC. 2831. LAND CONVEYANCE, JAMES T. COKER ARMY RESERVE CENTER, DURANT,
              OKLAHOMA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey,
without consideration, to Big Five Community Services, Incorporated, a
nonprofit organization operating in Durant, Oklahoma, all right, title,
and interest of the United States in and to a parcel of real property
located at 1500 North First Street in Durant, Oklahoma, and containing
the James T. Coker Army Reserve Center, if the Secretary determines
that the Reserve Center is excess to the needs of the Armed Forces.
    (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 Big Five Community Services,
Incorporated.
    (c) Condition on Conveyance.--The conveyance authorized under
subsection (a) shall be subject to the condition that Big Five
Community Services, Incorporated, retain the conveyed property for
educational purposes.
    (d) Reversion.--If the Secretary determines at any time that the
real property conveyed under subsection (a) is not being used for the
purpose specified in subsection (c), all right, title, and interest in
and to such real property, including any improvements thereon, shall
revert to the United States, and the United States shall have the right
of immediate entry thereon.
    (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.

SEC. 2832. LAND CONVEYANCE, FORT A. P. HILL, VIRGINIA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to
Caroline County, Virginia (in this section referred to as the
``County''), all right, title, and interest of the United States in and
to a parcel of unimproved real property consisting of approximately 10
acres located at Fort A. P. Hill, Virginia. The purpose of the
conveyance is to permit the County to establish a solid waste transfer
and recycling facility on the property.
    (b) Consideration.--As consideration for the conveyance under
subsection (a), the County shall permit the Army, at no cost, to
dispose of not less than 1,800 tons of solid waste annually at the
facility established on the conveyed property. The obligation of the
County to accept solid waste under this subsection shall not commerce
until after the solid waste transfer and recycling facility on the
conveyed property becomes operational, and the establishment of a solid
waste collection and transfer site on the .36-acre parcel described in
subsection (d)(2) shall not be construed to impose the obligation.
    (c) Disclaimer.--The United States shall not be responsible for the
provision or cost of utilities or any other improvements necessary to
carry out the conveyance under subsection (a) or to establish or
operate the solid waste transfer and recycling facility intended for
the property.
    (d) Reversion.--(1) Except as provided in paragraph (2), if the
Secretary determines that a solid waste transfer and recycling facility
is not operational, before December 31, 1999, on the real property
conveyed under subsection (a), all right, title, and interest in and to
such real property, including any improvements thereon, shall revert to
the United States, and the United States shall have the right of
immediate entry thereon.
    (2) Paragraph (1) shall not apply with respect to a parcel of
approximately .36 acres of the approximately 10-acre parcel to be
conveyed under subsection (a), which is included in the larger
conveyance to permit the County to establish a solid waste collection
and transfer site for residential waste.
    (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.

SEC. 2833. EXPANSION OF LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT,
              CHARLESTOWN, INDIANA.

    (a) Additional Conveyance.--Subsection (a) of section 2858 of the
National Defense Authorization Act for Fiscal Year 1996 (Public Law
104-106; 110 Stat. 571) is amended--
            (1) by inserting ``(1)'' before ``The Secretary of the
        Army''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Secretary may also convey to the State, without
consideration, an additional parcel of real property at the Indiana
Army Ammunition Plant consisting of approximately 500 acres located
along the Ohio River.''.
    (b) Conforming Amendments.--Such section is further amended by
striking out ``conveyance'' both places it appears in subsections (b)
and (d) and inserting in lieu thereof ``conveyances''.

SEC. 2834. MODIFICATION OF LAND CONVEYANCE, LOMPOC, CALIFORNIA.

    (a) Change in Authorized Uses of Land.--Section 834(b)(1) of the
Military Construction Authorization Act, 1985 (Public Law 98-407; 98
Stat. 1526), is amended by striking out subparagraphs (A) and (B) and
inserting in lieu thereof the following new subparagraphs:
            ``(A) for educational and recreational purposes;
            ``(B) for open space; or''.
    (b) Conforming Deed Changes.--With respect to the land conveyance
made pursuant to section 834 of the Military Construction Authorization
Act, 1985, the Secretary of the Army shall execute and file in the
appropriate office or offices an amended deed or other appropriate
instrument effectuating the changes to the authorized uses of the
conveyed property resulting from the amendment made by subsection (a).

SEC. 2835. MODIFICATION OF LAND CONVEYANCE, ROCKY MOUNTAIN ARSENAL,
              COLORADO.

    Section 5(c) of Public Law 102-402 (106 Stat. 1966) is amended by
striking out ``The transferred property shall be sold in advertised
sales'' and inserting in lieu thereof ``The Administrator shall convey
the transferred property to Commerce City, Colorado, in a negotiated
sale,''.

SEC. 2836. CORRECTION OF LAND CONVEYANCE AUTHORITY, ARMY RESERVE
              CENTER, ANDERSON, SOUTH CAROLINA.

    (a) Identification of Recipient.--Subsection (a) of section 2824 of
the Military Construction Authorization Act for Fiscal Year 1997
(division B of Public Law 104-201; 110 Stat. 2793) is amended by
striking out ``County of Anderson, South Carolina (in this section
referred to as the `County')'' and inserting in lieu thereof ``Board of
Education, Anderson County, South Carolina (in this section referred to
as the `Board')''.
    (b) Conforming Amendments.--Subsections (b) and (c) of such section
are amended by striking out ``County'' each place it appears and
inserting in lieu thereof ``Board''.

SEC. 2837. LAND CONVEYANCE, FORT BRAGG, NORTH CAROLINA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey,
without consideration, to the Town of Spring Lake, North Carolina (in
this section referred to as the ``Town''), all right, title, and
interest of the United States in and to a parcel of unimproved real
property consisting of approximately 50 acres located at Fort Bragg,
North Carolina. The purpose of the conveyance is to improve access by
the Town to a waste treatment facility and to permit economic
development.
    (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) 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, GIBSON ARMY RESERVE CENTER, CHICAGO,
              ILLINOIS.

    (a) Conveyance Authorized.--The Secretary of the Army may convey,
without consideration, to the Lawndale Business and Local Development
Corporation (in this section referred to as the ``Corporation''), a
nonprofit organization organized in the State of Illinois, all right,
title, and interest of the United States in and to a parcel of real
property, including improvements thereon, that is located at 4454 West
Cermak Road in Chicago, Illinois, and contains the Gibson Army Reserve
Center.
    (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 Corporation.
    (c) 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, FORT DIX, NEW JERSEY.

    (a) Conveyances Authorized.--(1) The Secretary of the Army may
convey, without consideration, to the Borough of Wrightstown, New
Jersey (in this section referred to as the ``Borough''), all right,
title, and interest of the United States in and to a parcel of real
property (including improvements thereon) consisting of approximately
39.69 acres located at Fort Dix, New Jersey, for the purpose of
permitting the Borough to develop the parcel for economic purposes.
    (2) The Secretary may convey, without consideration, to the New
Hanover Board of Education (in this section referred to as the
``Board''), all right, title, and interest of the United States in and
to an additional parcel of real property (including improvements
thereon) at Fort Dix consisting of approximately five acres for the
purpose of permitting the Board to develop 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 surveys satisfactory to the Secretary. The cost
of the survey in connection with the conveyance under subsection (a)(1)
shall be borne by the Borough, and the cost of the survey in connection
with the conveyance under subsection (a)(2) shall be borne by the
Board.
    (c) Additional Terms and Conditions.--The Secretary may require
such additional terms and conditions in connection with the conveyances
under subsection (a) as the Secretary considers appropriate to protect
the interests of the United States.

                       Part II--Navy Conveyances

SEC. 2851. CORRECTION OF LEASE AUTHORITY, NAVAL AIR STATION, MERIDIAN,
              MISSISSIPPI.

    (a) Correction of Lessee.--Subsection (a) of section 2837 of the
Military Construction Authorization Act for Fiscal Year 1997 (division
B of Public Law 104-201; 110 Stat. 2798) is amended--
            (1) by striking out ``State of Mississippi (in this section
        referred to as the `State')'' and inserting in lieu thereof
        ``County of Lauderdale, Mississippi (in this section referred
        to as the `County')''; and
            (2) by striking out ``The State'' and inserting in lieu
        thereof ``The County''.
    (b) Conforming Amendments.--Subsections (b) and (c) of such section
are amended by striking out ``State'' each place it appears and
inserting in lieu thereof ``County''.

                    Part III--Air Force Conveyances

SEC. 2861. LAND TRANSFER, EGLIN AIR FORCE BASE, FLORIDA.

    (a) Transfer.--Jurisdiction over the real property withdrawn by
Executive Order 4525, dated October 1, 1826, which consists of
approximately 440 acres of land at Cape San Blas, Gulf County, Florida,
and any improvements thereon, is transferred from the administrative
jurisdiction of the Secretary of Transportation to the administrative
jurisdiction of the Secretary of the Air Force, without reimbursement.
Executive Order 4525 is revoked, and the transferred real property
shall be administered by the Secretary of the Air Force pursuant to the
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471
et seq.) and such other laws as may be applicable to Federal real
property.
    (b) Use of Property.--The real property transferred under
subsection (a) may be used in conjunction with operations at Eglin Air
Force Base, Florida.
    (c) Legal Description.--The exact acreage and legal description of
the real property to be transferred under this section shall be
determined by a survey satisfactory to the Secretary of the Air Force.
The cost of the survey shall be borne by the Secretary of the Air
Force.

SEC. 2862. STUDY OF LAND EXCHANGE OPTIONS, SHAW AIR FORCE BASE, SOUTH
              CAROLINA.

    Section 2874 of the National Defense Authorization Act for Fiscal
Year 1996 (Public Law 104-106; 110 Stat. 583) is amended by adding at
the end the following new subsection:
    ``(g) Study of Exchange Options.--To facilitate the use of a land
exchange to acquire the real property described in subsection (a), the
Secretary of the Air Force shall conduct a study to identify real
property in the possession of the Air Force (located in the State of
South Carolina or elsewhere) that satisfies the requirements of
subsection (b)(2), is acceptable to the party holding the property to
be acquired, and is otherwise suitable for exchange under this section.
Not later than three months after the date of the enactment of the
National Defense Authorization Act for Fiscal Year 1998, the Secretary
shall submit to Congress a report containing the results of the
study.''.

SEC. 2863. LAND CONVEYANCE, MARCH AIR FORCE BASE, CALIFORNIA.

    (a) Conveyance Authorized.--The Secretary of the Air Force may
convey to Air Force Village West, Incorporated (in this section
referred to as the ``Corporation''), of Riverside, California, all
right, title, and interest of the United States in and to a parcel of
real property located at March Air Force Base, California, and
consisting of approximately 75 acres, as more fully described in
subsection (c).
    (2) If the Secretary does not make the conveyance authorized by
paragraph (1) to the Corporation on or before January 1, 2006, the
Secretary shall convey the real property instead to the March Joint
Powers Authority, the redevelopment authority established for March Air
Force Base.
    (b) Consideration.--As consideration for the conveyance under
subsection (a), the Corporation shall pay to the United States an
amount equal to the fair market value of the real property, as
determined by the Secretary.
    (c) Land Description.--The real property to be conveyed under this
section is contiguous to land conveyed to the Corporation pursuant to
section 835 of the Military Construction Authorization Act, 1985
(Public Law 98-407; 98 Stat. 1527), and lies within sections 27, 28,
33, and 34 of Township 3 South, Range 4 West, San Bernardino Base and
Meridian, County of Riverside, California. The exact acreage and legal
description of the real property shall be determined by a survey
satisfactory to the Secretary. The cost of the survey shall be borne by
the party receiving the property.
    (d) Technical Corrections Regarding Previous Conveyance.--Section
835 of the Military Construction Authorization Act, 1985 (Public Law
98-407; 98 Stat. 1527), is amended--
            (1) in subsection (b), by striking out ``subsection (b)''
        and inserting in lieu thereof ``subsection (a)''; and
            (2) in subsection (c), by striking out ``Clark Street,''
        and all that follows through the period and inserting in lieu
        thereof ``Village West Drive, on the west by Allen Avenue, on
        the south by 8th Street, and the north is an extension of 11th
        Street between Allen Avenue and Clark Street.''.

SEC. 2864. LAND CONVEYANCE, ELLSWORTH AIR FORCE BASE, SOUTH DAKOTA.

    (a) Conveyance Required.--The Secretary of the Air Force may
convey, without consideration, to the Greater Box Elder Area Economic
Development Corporation, Box Elder, South Dakota (in this section
referred to as the ``Corporation''), all right, title, and interest of
the United States in and to the parcels of real property located at
Ellsworth Air Force Base, South Dakota, referred to in subsection (b).
    (b) Covered Property.--(1) Subject to paragraph (2), the real
property referred to in subsection (a) is the following:
            (A) A parcel of real property, together with any
        improvements thereon, consisting of approximately 53.32 acres
        and comprising the Skyway Military Family Housing Area.
            (B) A parcel of real property, together with any
        improvements thereon, consisting of approximately 137.56 acres
        and comprising the Renal Heights Military Family Housing Area.
            (C) A parcel of real property, together with any
        improvements thereon, consisting of approximately 14.92 acres
        and comprising the East Nike Military Family Housing Area.
            (D) A parcel of real property, together with any
        improvements thereon, consisting of approximately 14.69 acres
        and comprising the South Nike Military Family Housing Area.
            (E) A parcel of real property, together with any
        improvements thereon, consisting of approximately 14.85 acres
        and comprising the West Nike Military Family Housing Area.
    (2) The real property referred to in subsection (a) does not
include the portion of real property referred to in paragraph (1)(B)
that the Secretary determines to be required for the construction of an
access road between the main gate of Ellsworth Air Force Base and an
interchange on Interstate Route 90 located in the vicinity of mile
marker 67 in South Dakota.
    (c) Conditions of Conveyance.--The conveyance of the real property
referred to in subsection (b) shall be subject to the following
conditions:
            (1) That the Corporation, and any person or entity to which
        the Corporation transfers the property, comply in the use of
        the property with the applicable provisions of the Ellsworth
        Air Force Base Air Installation Compatible Use Zone Study.
            (2) That the Corporation convey a portion of the real
        property referred to in paragraph (1)(A) of that subsection,
        together with any improvements thereon, consisting of
        approximately 20 acres to the Douglas School District, South
        Dakota, for use for education purposes.
    (d) Reversionary Interest.--If the Secretary determines that any
portion of the real property conveyed under subsection (a) is not being
utilized in accordance with the applicable provision of subsection (c),
all right, title, and interest in and to that portion of the real
property shall revert to the United States, and the United States shall
have the right of immediate entry thereon.
    (e) Legal Description.--The exact acreage and legal description of
the property conveyed under subsection (a) shall be determined by a
survey satisfactory to the Secretary. The cost of the survey 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.

                       Subtitle E--Other Matters

SEC. 2881. REPEAL OF REQUIREMENT TO OPERATE NAVAL ACADEMY DAIRY FARM.

    (a) Operation.--(1) Chapter 603 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 6976. Operation of Naval Academy dairy farm
    ``(a) Discretion Regarding Continued Operation.--(1) Subject to
paragraph (2), the Secretary of the Navy may terminate or reduce the
dairy or other operations conducted at the Naval Academy dairy farm
located in Gambrills, Maryland.
    ``(2) Notwithstanding the termination or reduction of operations at
the Naval Academy dairy farm under paragraph (1), the real property
containing the dairy farm (consisting of approximately 875 acres)--
            ``(A) may not be declared to be excess real property to the
        needs of the Navy or transferred or otherwise disposed of by
        the Navy or any Federal agency; and
            ``(B) shall be maintained in its rural and agricultural
        nature.
    ``(b) Lease Authority.--(1) Subject to paragraph (2), to the extent
that the termination or reduction of operations at the Naval Academy
dairy farm permit, the Secretary of the Navy may lease the real
property containing the dairy farm, and any improvements and personal
property thereon, to such persons and under such terms as the Secretary
considers appropriate. In leasing any of the property, the Secretary
may give a preference to persons who will continue dairy operations on
the property.
    ``(2) Any lease of property at the Naval Academy dairy farm shall
be subject to a condition that the lessee maintain the rural and
agricultural nature of the leased property.
    ``(c) Effect of Other Laws.--Nothing in section 6971 of this title
shall be construed to require the Secretary of the Navy or the
Superintendent of the Naval Academy to operate a dairy farm for the
Naval Academy in Gambrills, Maryland, or any other location.''.
    (2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``6976. Operation of Naval Academy dairy farm.''.
    (b) Conforming Repeal of Existing Requirements.--Section 810 of the
Military Construction Authorization Act, 1968 (Public Law 90-110; 81
Stat. 309), is repealed.

SEC. 2882. LONG-TERM LEASE OF PROPERTY, NAPLES ITALY.

    (a) Authority.--Subject to subsection (d), the Secretary of the
Navy may acquire by long-term lease structures and real property
relating to a regional hospital complex in Naples, Italy, that the
Secretary determines to be necessary for purposes of the Naples
Improvement Initiative.
    (b) Lease Term.--Notwithstanding section 2675 of title 10, United
States Code, the lease authorized by subsection (a) shall be for a term
of not more than 20 years.
    (c) Expiration of Authority.--The authority of the Secretary to
enter into a lease under subsection (a) shall expire on September 30,
2002.
    (d) Authority Contingent on Appropriations Acts.--The authority of
the Secretary to enter into a lease under subsection (a) is available
only to the extent or in the amount provided in advance in
appropriations Acts.

SEC. 2883. DESIGNATION OF MILITARY FAMILY HOUSING AT LACKLAND AIR FORCE
              BASE, TEXAS, IN HONOR OF FRANK TEJEDA, A FORMER MEMBER OF
              THE HOUSE OF REPRESENTATIVES.

    The military family housing developments to be constructed at two
locations on Government property at Lackland Air Force Base, Texas,
under the authority of subchapter IV of chapter 169 of title 10, United
States Code, shall be designated by the Secretary of the Air Force, at
an appropriate time, as follows:
            (1) The northern development shall be designated as ``Frank
        Tejeda Estates North''.
            (2) The southern development shall be designated as ``Frank
        Tejeda Estates South''.

                   TITLE XXIX--SIKES ACT IMPROVEMENT

SEC. 2901. SHORT TITLE.

    This title may be cited as the ``Sikes Act Improvement Amendments
of 1997''.

SEC. 2902. DEFINITION OF SIKES ACT FOR PURPOSES OF AMENDMENTS.

    In this title, the term ``Sikes Act'' means the Act entitled ``An
Act to promote effectual planning, development, maintenance, and
coordination of wildlife, fish, and game conservation and
rehabilitation in military reservations'', approved September 15, 1960
(16 U.S.C. 670a et seq.), commonly referred to as the ``Sikes Act''.

SEC. 2903. CODIFICATION OF SHORT TITLE OF ACT.

    The Sikes Act (16 U.S.C. 670a et seq.) is amended by inserting
before title I the following new section:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Sikes Act'.''.

SEC. 2904. INTEGRATED NATURAL RESOURCE MANAGEMENT PLANS.

    (a) Plans Required.--Subsection (a) of section 101 of the Sikes Act
(16 U.S.C. 670a) is amended to read as follows:
    ``(a) Integrated Natural Resources Management Plans.--
            ``(1) Plans required.--The Secretary of Defense shall carry
        out a program to provide for the conservation and
        rehabilitation of natural resources on military installations.
        To facilitate the program, the Secretary of each military
        department shall prepare and implement an integrated natural
        resources management plan for each military installation in the
        United States under the jurisdiction of the Secretary, unless
        the Secretary determines that the absence of significant
        natural resources on a particular installation makes
        preparation of such a plan inappropriate.
            ``(2) Cooperative preparation.--The Secretary of a military
        department shall prepare the integrated natural resources
        management plans for which the Secretary is responsible in
        cooperation with the Secretary of the Interior, acting through
        the Director of the Fish and Wildlife Service, and the head of
        the appropriate State fish and wildlife agency or agencies for
        the State in which the military installation involved is
        located. The resulting plan for a military installation
        consistent with paragraph (4) shall reflect the mutual
        agreement of the parties concerning conservation, protection,
        and management of fish and wildlife resources.
            ``(3) Purpose of plans.--Consistent with the use of
        military installations to ensure the preparedness of the Armed
        Forces, the Secretaries of the military departments shall carry
        out the program required by this subsection to provide for--
                    ``(A) the conservation and rehabilitation of
                natural resources on military installations;
                    ``(B) the sustained multipurpose use of these
                resources, to include hunting, fishing, trapping, and
                nonconsumptive uses; and
                    ``(C) subject to safety requirements and military
                security, public access to military installations to
                facilitate these uses.
            ``(4) Rule of construction.--Nothing in this Act shall be
        construed as modifying or repealing the provisions of any
        Federal law governing the conservation or protection of fish
        and wildlife resources, nor as enlarging or diminishing the
        responsibility and authority of the States for the protection
        and management of fish and resident wildlife. Except as
        elsewhere specifically provided in this section and section
        102, nothing in this Act shall be construed as authorizing the
        Secretary of a military department to require a Federal license
        or permit to hunt, fish, or trap on a military installation.
    (b) Conforming Amendments.--Title I of the Sikes Act is amended--
            (1) in section 101(b)(4) (16 U.S.C. 670a(b)(4)), by
        striking out ``cooperative plan'' each place it appears and
        inserting in lieu thereof ``integrated natural resource
        management plan'';
            (2) in section 101(c) (16 U.S.C. 670a(c)), in the matter
        preceding paragraph (1) by striking out ``a cooperative plan''
        and inserting in lieu thereof ``an integrated natural resource
        management plan'';
            (3) in section 101(d) (16 U.S.C. 670a(d)), in the matter
        preceding paragraph (1) by striking out ``cooperative plans''
        and inserting in lieu thereof ``integrated natural resource
        management plans'';
            (4) in section 101(e) (16 U.S.C. 670a(e)), by striking out
        ``Cooperative plans'' and inserting in lieu thereof
        ``Integrated natural resource management plans'';
            (5) in section 102 (16 U.S.C. 670b), by striking out ``a
        cooperative plan'' and inserting in lieu thereof ``an
        integrated natural resource management plan'';
            (6) in section 103 (16 U.S.C. 670c), by striking out ``a
        cooperative plan'' and inserting in lieu thereof ``an
        integrated natural resource management plan'';
            (7) in section 106(a) (16 U.S.C. 670f(a)), by striking out
        ``cooperative plans'' and inserting in lieu thereof
        ``integrated natural resource management plans''; and
            (8) in section 106(c) (16 U.S.C. 670f(c)), by striking out
        ``cooperative plans'' and inserting in lieu thereof
        ``integrated natural resource management plans''.
    (c) Contents of Plans.--Section 101(b) of the Sikes Act (16 U.S.C.
670a(b)) is amended--
            (1) by striking out ``Each cooperative plan'' and all that
        follows through paragraph (1) and inserting in lieu thereof the
        following:
    ``(b) Required Elements of Plans.--Consistent with the use of
military installations to ensure the preparedness of the Armed Forces,
each integrated natural resources management plan prepared under
subsection (a)--
            ``(1) shall, where appropriate and applicable, provide
        for--
                    ``(A) fish and wildlife management, land
                management, forest management, and fish and wildlife-
                oriented recreation;
                    ``(B) fish and wildlife habitat enhancement or
                modifications;
                    ``(C) wetland protection, enhancement, and
                restoration, where necessary for support of fish or
                wildlife;
                    ``(D) integration of, and consistency among, the
                various activities conducted under the plan;
                    ``(E) establishment of specific natural resource
                management objectives and time frames for proposed
                action;
                    ``(F) sustained use by the public of natural
                resources to the extent such use is not inconsistent
                with the needs of fish and wildlife resources
                management;
                    ``(G) public access to the military installation
                that is necessary or appropriate for the use described
                in subparagraph (F), subject to requirements necessary
                to ensure safety and military security;
                    ``(H) enforcement of natural resource laws and
                regulations;
                    ``(I) no net loss in the capability of military
                installation lands to support the military mission of
                the installation; and
                    ``(J) such other activities as the Secretary of the
                military department considers appropriate;''
            (2) by striking out paragraph (3);
            (3) by redesignating paragraph (4) as paragraph (3); and
            (4) in paragraph (3)(A) (as so redesignated), by striking
        out ``collect the fees therefor,'' and inserting in lieu
        thereof ``collect, spend, administer, and account for fees
        therefor,''.

SEC. 2905. REVIEW FOR PREPARATION OF INTEGRATED NATURAL RESOURCE
              MANAGEMENT PLANS.

    (a) Review of Military Installations.--
            (1) Review.--The Secretary of each military department
        shall, by not later than nine months after the date of the
        enactment of this Act--
                    (A) review each military installation in the United
                States that is under the jurisdiction of that Secretary
                to determine the military installations for which the
                preparation of an integrated natural resource
                management plan under section 101 of the Sikes Act, as
                amended by this title, is appropriate; and
                    (B) submit to the Secretary of Defense a report on
                those determinations.
            (2) Report to congress.--The Secretary of Defense shall, by
        not later than 12 months after the date of the enactment of
        this Act, submit to the Congress a report on the reviews
        conducted under paragraph (1). The report shall include--
                    (A) a list of those military installations reviewed
                under paragraph (1) for which the Secretary of the
                military department concerned determines the
                preparation of an integrated natural resource
                management plan is not appropriate; and
                    (B) for each of the military installations listed
                under subparagraph (A), an explanation of the reasons
                such a plan is not appropriate.
    (b) Deadline for Integrated Natural Resource Management Plans.--Not
later than two years after the date of the submission of the report
required under subsection (a)(2), the Secretary of each military
department shall, for each military installation for which the
Secretary has not determined under subsection (a)(2)(A) that
preparation of an integrated natural resource management plan is not
appropriate--
            (1) prepare and begin implementing such a plan in
        accordance with section 101(a) of the Sikes Act, as amended by
        section 2904; or
            (2) in the case of a military installation for which there
        is in effect a cooperative plan under section 101(a) of the
        Sikes Act on the day before the date of the enactment of this
        Act, complete negotiations with the Secretary of the Interior
        and the heads of the appropriate State agencies regarding
        changes to that plan that are necessary for the plan to
        constitute an integrated natural resource plan that complies
        with that section, as amended by section 2904.
    (c) Public Comment.--The Secretary of each military department
shall provide an opportunity for the submission of public comments on--
            (1) integrated natural resource management plans proposed
        pursuant to subsection (b)(1); and
            (2) changes to cooperative plans proposed pursuant to
        subsection (b)(2).

SEC. 2906. ANNUAL REVIEWS AND REPORTS.

    Section 101 of the Sikes Act (16 U.S.C. 670a) is amended by adding
at the end the following new subsection:
    ``(f) Reviews and Reports.--
            ``(1) Secretary of defense.--The Secretary of Defense
        shall, by not later than March 1 of each year, review the
        extent to which integrated natural resource management plans
        were prepared or in effect and implemented in accordance with
        this Act in the preceding year, and submit a report on the
        findings of that review to the committees. Each report shall
        include--
                    ``(A) the number of integrated natural resource
                management plans in effect in the year covered by the
                report, including the date on which each plan was
                issued in final form or most recently revised;
                    ``(B) the amount of moneys expended on conservation
                activities conducted pursuant to those plans in the
                year covered by the report; and
                    ``(C) an assessment of the extent to which the
                plans comply with the requirements of this Act.
            ``(2) Secretary of the interior.--The Secretary of the
        Interior, by not later than March 1 of each year and in
        consultation with State agencies responsible for conservation
        or management of fish or wildlife, shall submit a report to the
        committees on the amount of moneys expended by the Department
        of the Interior and those State agencies in the year covered by
        the report on conservation activities conducted pursuant to
        integrated natural resource management plans.
            ``(3) Committees defined.--For purposes of this subsection,
        the term `committees' means the Committee on Resources and the
        Committee on National Security of the House of Representatives
        and the Committee on Armed Services and the Committee on
        Environment and Public Works of the Senate.''.

SEC. 2907. TRANSFER OF WILDLIFE CONSERVATION FEES FROM CLOSED MILITARY
              INSTALLATIONS.

    Subsection (b)(3)(B) of section 101(b) of the Sikes Act (16 U.S.C.
670a(b)), as redesignated and amended by section 2904, is further
amended by inserting before the period at the end the following: ``,
unless that military installation is subsequently closed, in which case
the fees may be transferred to another military installation to be used
for the same purposes''.

SEC. 2908. FEDERAL ENFORCEMENT.

    Title I of the Sikes Act (16 U.S.C. 670a et seq.) is amended--
            (1) by redesignating section 106, as amended by section
        2904(b), as section 109; and
            (2) by inserting after section 105 the following new
        section:

``SEC. 106. FEDERAL ENFORCEMENT OF OTHER LAWS.

    ``All Federal laws relating to the conservation of natural
resources on Federal lands may be enforced by the Secretary of Defense
with respect to violations of those laws that occur on military
installations within the United States.''.

SEC. 2909. NATURAL RESOURCE MANAGEMENT SERVICES.

    Title I of the Sikes Act (16 U.S.C. 670a et seq.) is amended by
inserting after section 106 (as added by section 2908) the following
new section:

``SEC. 107. NATURAL RESOURCE MANAGEMENT SERVICES.

    ``The Secretary of each military department shall ensure, within
available resources, that sufficient numbers of professionally trained
natural resource management personnel and natural resource law
enforcement personnel are available and assigned responsibility to
perform tasks necessary to comply with this Act, including the
preparation and implementation of integrated natural resource
management plans.''.

SEC. 2910. DEFINITIONS.

    Title I of the Sikes Act (16 U.S.C. 670a et seq.) is amended by
inserting after section 107 (as added by section 2909) the following
new section:

``SEC. 108. DEFINITIONS.

    ``In this title:
            ``(1) Military installation.--(A) The term `military
        installation' means any land or interest in land owned by the
        United States and administered by the Secretary of Defense or
        the Secretary of a military department (except civil works
        lands). The term includes all public lands withdrawn from all
        forms of appropriation under public land laws and reserved for
        use by the Secretary of Defense or the Secretary of a military
        department.
            ``(B) The term does not include any lands otherwise covered
        by subparagraph (A) that are subject to an approved
        recommendation for closure under the Defense Base Closure and
        Realignment Act of 1990 (part A of title XXIX of Public Law
        101-510; 10 U.S.C. 2687 note).
            ``(2) State fish and wildlife agency.--The term `State fish
        and wildlife agency' means an agency or agencies of State
        government that is responsible under State law for managing
        fish or wildlife resources.
            ``(3) United states.--The term `United States' means the
        States, the District of Columbia, and the territories and
        possessions of the United States.''.

SEC. 2911. COOPERATIVE AGREEMENTS.

    Section 103a of the Sikes Act (16 U.S.C. 670c-1) is amended--
            (1) in subsection (a) by striking out ``Secretary of
        Defense'' and inserting ``Secretary of a military department'';
    (b) by striking out subsection (b) and inserting in lieu thereof
the following new subsection:
    ``(b) Funds appropriated to the Department of Defense for a fiscal
year may be obligated to cover the cost of goods and services provided
either under a cooperative agreement entered into under subsection (a)
or through an agency agreement under section 1535 of title 31, United
States Code, during any 18-month period beginning in that fiscal year,
without regard to whether the agreement crosses fiscal years.''.

SEC. 2912. REPEAL OF SUPERSEDED PROVISION.

    Section 2 of the Act of October 27, 1986 (Public Law 99-561; 16
U.S.C. 670a-1), is repealed.

SEC. 2913. CLERICAL AMENDMENTS.

    Title I of the Sikes Act, as amended by this title, is amended--
            (1) in the heading for the title by striking out ``MILITARY
        RESERVATIONS'' and inserting in lieu thereof ``MILITARY
        INSTALLATIONS'';
            (2) in section 101(b)(3) (16 U.S.C. 670a(b)(3)), as
        redesignated and amended by section 2904--
                    (A) in subparagraph (A), by striking out ``the
                reservation'' and inserting in lieu thereof ``the
                installation''; and
                    (B) in subparagraph (B), by striking out ``the
                military reservation'' and inserting in lieu thereof
                ``the military installation'';
            (4) in section 101(c) (16 U.S.C. 670a(c))--
                    (A) in paragraph (1), by striking out ``a military
                reservation'' and inserting in lieu thereof ``a
                military installation''; and
                    (B) in paragraph (2), by striking out ``the
                reservation'' and inserting in lieu thereof ``the
                installation'';
            (5) in section 102 (16 U.S.C. 670b), by striking out
        ``military reservations'' and inserting in lieu thereof
        ``military installations''; and
            (6) in section 103 (16 U.S.C. 670c)--
                    (A) by striking out ``military reservations'' and
                inserting in lieu thereof ``military installations'';
                and
                    (B) by striking out ``such reservations'' and
                inserting in lieu thereof ``such installations''.

SEC. 2914. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Programs on Military Installations.--Subsections (b) and (c) of
section 109 of the Sikes Act (as redesignated by section 1408) are each
amended by striking out ``1983'' and all that follows through ``1993,''
and inserting in lieu thereof ``1983 through 2000,''.
    (b) Programs on Public Lands.--Section 209 of the Sikes Act (16
U.S.C. 670o) is amended--
            (1) in subsection (a), by striking out ``the sum of
        $10,000,000'' and all that follows through ``to enable the
        Secretary of the Interior'' and inserting in lieu thereof
        ``$4,000,000 for each of fiscal years 1998 through 2003, to
        enable the Secretary of the Interior''; and
            (2) in subsection (b), by striking out ``the sum of
        $12,000,000'' and all that follows through ``to enable the
        Secretary of Agriculture'' and inserting in lieu thereof
        ``$5,000,000 for each of fiscal years 1998 through 2003, to
        enable the Secretary of Agriculture''.

 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.

    (a) Stockpile Stewardship.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1998 for
stockpile stewardship in carrying out weapons activities necessary for
national security programs in the amount of $1,733,400,000, to be
allocated as follows:
            (1) For core stockpile stewardship, $1,257,100,000, to be
        allocated as follows:
                    (A) For operation and maintenance, $1,158,290,000.
                    (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), $98,810,000, to be
                allocated as follows:
                            Project 97-D-102, dual-axis radiographic
                        hydrotest facility, Los Alamos National
                        Laboratory, Los Alamos, New Mexico,
                        $46,300,000.
                            Project 96-D-102, stockpile stewardship
                        facilities revitalization, Phase VI, various
                        locations, $19,810,000.
                            Project 96-D-103, ATLAS, Los Alamos
                        National Laboratory, Los Alamos, New Mexico,
                        $13,400,000.
                            Project 96-D-105, contained firing facility
                        addition, Lawrence Livermore National
                        Laboratory, Livermore, California, $19,300,000.
            (2) For inertial fusion, $414,800,000, to be allocated as
        follows:
                    (A) For operation and maintenance, $217,000,000.
                    (B) For the following plant project (including
                maintenance, restoration, planning, construction,
                acquisition, and modification of facilities, and land
                acquisition related thereto), $197,800,000, to be
                allocated as follows:
                            Project 96-D-111, national ignition
                        facility, location to be determined,
                        $197,800,000.
            (3) For technology transfer and education, $61,500,000, to
        be allocated as follows:
                    (A) For technology transfer, $52,500,000.
                    (B) For education, $9,000,000.
    (b) Stockpile Management.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1998 for
stockpile management in carrying out weapons activities necessary for
national security programs in the amount of $2,024,150,000, to be
allocated as follows:
            (1) For operation and maintenance, $1,868,265,000.
            (2) 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),
        $155,885,000, to be allocated as follows:
                    Project 98-D-123, stockpile management
                restructuring initiative, tritium factory modernization
                and consolidation, Savannah River Site, Aiken, South
                Carolina, $11,000,000.
                    Project 98-D-124, stockpile management
                restructuring initiative, Y-12 Plant consolidation, Oak
                Ridge, Tennessee, $6,450,000.
                    Project 98-D-125, tritium extraction facility,
                Savannah River Site, Aiken, South Carolina, $9,650,000.
                    Project 98-D-126, accelerator production of
                tritium, various locations, $67,865,000.
                    Project 97-D-122, nuclear materials storage
                facility renovation, Los Alamos National Laboratory,
                Los Alamos, New Mexico, $9,200,000.
                    Project 97-D-124, steam plant wastewater treatment
                facility upgrade, Y-12 Plant, Oak Ridge, Tennessee,
                $1,900,000.
                    Project 96-D-122, sewage treatment quality upgrade
                (STQU), Pantex Plant, Amarillo, Texas, $6,900,000.
                    Project 96-D-123, retrofit heating, ventilation,
                and air conditioning and chillers for ozone protection,
                Y-12 Plant, Oak Ridge, Tennessee, $2,700,000.
                    Project 95-D-122, sanitary sewer upgrade, Y-12
                Plant, Oak Ridge, Tennessee, $12,600,000.
                    Project 94-D-124, hydrogen fluoride supply system,
                Y-12 Plant, Oak Ridge, Tennessee, $1,400,000.
                    Project 94-D-125, upgrade life safety, Kansas City
                Plant, Kansas City, Missouri, $2,000,000.
                    Project 93-D-122, life safety upgrades, Y-12 Plant,
                Oak Ridge, Tennessee, $2,100,000.
                    Project 92-D-126, replace emergency notification
                system, various locations, $3,200,000.
                    Project 88-D-122, facilities capability assurance
                program, various locations, $18,920,000.
    (c) Program Direction.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1998 for
program direction in carrying out weapons activities necessary for
national security programs in the amount of $208,500,000.

SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

    (a) Environmental Restoration.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1998 for
environmental restoration in carrying out environmental restoration and
waste management activities necessary for national security programs in
the amount of $1,000,973,000, of which $388,000,000 shall be allocated
to the uranium enrichment decontamination and decommissioning fund.
    (b) Closure Projects.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1998 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
$905,800,000.
    (c) Waste Management.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1998 for waste
management in carrying out environmental restoration and waste
management activities necessary for national security programs in the
amount of $1,536,344,000, to be allocated as follows:
            (1) For operation and maintenance, $1,455,576,000.
            (2) 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),
        $80,768,000, to be allocated as follows:
                    Project 98-D-401, H-tank farm storm water systems
                upgrade, Savannah River Site, Aiken, South Carolina,
                $1,000,000.
                    Project 97-D-402, tank farm restoration and safe
                operations, Richland, Washington, $13,961,000.
                    Project 96-D-408, waste management upgrades,
                various locations, $8,200,000.
                    Project 95-D-402, install permanent electrical
                service, Waste Isolation Pilot Plant, Carlsbad, New
                Mexico, $176,000.
                    Project 95-D-405, industrial landfill V and
                construction/demolition landfill VII, Y-12 Plant, Oak
                Ridge, Tennessee, $3,800,000.
                    Project 95-D-407, 219-S secondary containment
                upgrade, Richland, Washington, $2,500,000.
                    Project 94-D-404, Melton Valley storage tank
                capacity increase, Oak Ridge National Laboratory, Oak
                Ridge, Tennessee, $1,219,000.
                    Project 94-D-407, initial tank retrieval systems,
                Richland, Washington, $15,100,000.
                    Project 93-D-187, high-level waste removal from
                filled waste tanks, Savannah River Site, Aiken, South
                Carolina, $17,520,000.
                    Project 92-D-172, hazardous waste treatment and
                processing facility, Pantex Plant, Amarillo, Texas,
                $5,000,000.
                    Project 89-D-174, replacement high-level waste
                evaporator, Savannah River Site, Aiken, South Carolina,
                $1,042,000.
                    Project 86-D-103, decontamination and waste
                treatment facility, Lawrence Livermore National
                Laboratory, Livermore, California, $11,250,000.
    (d) Technology Development.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1998 for
technology development in carrying out environmental restoration and
waste management activities necessary for national security programs in
the amount of $182,881,000.
    (e) Nuclear Materials and Facilities Stabilization.--Funds are
hereby authorized to be appropriated to the Department of Energy for
fiscal year 1998 for nuclear materials and facilities stabilization in
carrying out environmental restoration and waste management activities
necessary for national security programs in the amount of
$1,244,021,000, to be allocated as follows:
            (1) For operation and maintenance, $1,159,114,000.
            (2) 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),
        $84,907,000, to be allocated as follows:
                    Project 98-D-453, plutonium stabilization and
                handling system for plutonium finishing plant,
                Richland, Washington, $8,136,000.
                    Project 98-D-700, road rehabilitation, Idaho
                National Engineering Laboratory, Idaho, $500,000.
                    Project 97-D-450, Actinide packaging and storage
                facility, Savannah River Site, Aiken, South Carolina,
                $18,000,000.
                    Project 97-D-451, B-Plant safety class ventilation
                upgrades, Richland, Washington, $2,000,000.
                    Project 97-D-470, environmental monitoring
                laboratory, Savannah River Site, Aiken, South Carolina,
                $5,600,000.
                    Project 97-D-473, health physics site support
                facility, Savannah River Site, Aiken, South Carolina,
                $4,200,000.
                    Project 96-D-406, spent nuclear fuels canister
                storage and stabilization facility, Richland,
                Washington, $16,744,000.
                    Project 96-D-461, electrical distribution upgrade,
                Idaho National Engineering Laboratory, Idaho,
                $2,927,000.
                    Project 96-D-464, electrical and utility systems
                upgrade, Idaho Chemical Processing Plant, Idaho
                National Engineering Laboratory, Idaho, $14,985,000.
                    Project 96-D-471, chlorofluorocarbon heating,
                ventilation, and air conditioning and chiller retrofit,
                Savannah River Site, Aiken, South Carolina, $8,500,000.
                    Project 95-D-155, upgrade site road infrastructure,
                Savannah River Site, South Carolina, $2,713,000.
                    Project 95-D-456, security facilities
                consolidation, Idaho Chemical Processing Plant, Idaho
                National Engineering Laboratory, Idaho, $602,000.
    (f) Program Direction.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1998 for
program direction in carrying out environmental restoration and waste
management activities necessary for national security programs in the
amount of $288,251,000.
    (g) Policy and Management.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1998 for
policy and management in carrying out environmental restoration and
waste management activities necessary for national security programs in
the amount of $20,000,000.
    (h) Environmental Science Program.--Funds are hereby authorized to
be appropriated to the Department of Energy for fiscal year 1998 for
the environmental science program in carrying out environmental
restoration and waste management activities necessary for national
security programs in the amount of $55,000,000.
    (i) Hanford Tank Waste Vitrification.--Funds are hereby authorized
to be appropriated to the Department of Energy for fiscal year 1998 for
the Hanford Tank Waste Vitrification project, subject to the provisions
of section 3145, in the amount of $70,000,000.
    (j) Adjustment.--The total amount authorized to be appropriated
pursuant to this section is the sum of the amounts authorized to be
appropriated in subsections (a) through (h) reduced by the sum of
$20,000,000, to be derived from non-safety-related contractor training
expenses.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    Funds are hereby authorized to be appropriated to the Department of
Energy for fiscal year 1998 for other defense activities in carrying
out programs necessary for national security in the amount of
$1,512,551,000, to be allocated as follows:
            (1) For verification and control technology, $428,600,000,
        to be allocated as follows:
                    (A) For nonproliferation and verification research
                and development, $190,000,000.
                    (B) For arms control, $205,000,000.
                    (C) For intelligence, $33,600,000.
            (2) For nuclear safeguards and security, $47,200,000.
            (3) For security investigations, $25,000,000.
            (4) For emergency management, $17,000,000.
            (5) For program direction, $68,900,000.
            (6) For worker and community transition assistance,
        $22,000,000, to be allocated as follows:
                    (A) For worker and community transition,
                $20,000,000.
                    (B) For program direction, $2,000,000.
            (7) For fissile materials control and disposition,
        $103,451,000, to be allocated as follows:
                    (A) For operation and maintenance, $99,451,000.
                    (B) For program direction, $4,000,000.
            (8) For environment, safety, and health, defense,
        $73,000,000, to be allocated as follows:
                    (A) For the Office of Environment, Safety, and
                Health (Defense), $63,000,000.
                    (B) For program direction, $10,000,000.
            (9) For the Office of Hearings and Appeals, $1,900,000.
            (10) For nuclear energy, $47,000,000, to be allocated as
        follows:
                    (A) For nuclear technology research and development
                (electrometallurgical), $12,000,000.
                    (B) For international nuclear safety (Soviet-
                designed reactors), $25,000,000.
                    (C) For Russian plutonium reactor core conversion,
                $10,000,000.
            (11) For naval reactors development, $678,500,000, to be
        allocated as follows:
                    (A) For operation and maintenance, $648,920,000.
                    (B) For program direction, $20,080,000.
                    (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), $9,500,000, to be
                allocated as follows:
                            Project 98-D-200, site laboratory/facility
                        upgrade, various locations, $1,200,000.
                            Project 97-D-201, advanced test reactor
                        secondary coolant refurbishment, Idaho National
                        Engineering Laboratory, Idaho, $4,100,000.
                            Project 95-D-200, laboratory systems and
                        hot cell upgrades, various locations,
                        $1,100,000.
                            Project 90-N-102, expended core facility
                        dry cell project, Naval Reactors Facility,
                        Idaho, $3,100,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the Department of
Energy for fiscal year 1998 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.

                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 $2,000,000.
    (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 $2,000,000, 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; Limitations.--(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.
    (3) The authority provided by this section to transfer
authorizations--
            (A) may only be used to provide funds for items relating to
        weapons activities necessary for national security programs
        that have a higher priority than the items from which the funds
        are transferred; and
            (B) may not be used to provide authority for an item that
        has been denied funds by Congress.
    (c) 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. The Secretary shall submit to Congress a report on each
conceptual design completed under this paragraph.
    (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 $2,000,000; 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. AUTHORITY RELATING TO 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. Any
such transfer may be made only once in a fiscal year to or from a
program or project, and the amount transferred to or from a program or
project may not exceed $5,000,000 in a fiscal year.
    (b) Determination.--A transfer may not be carried out by a manager
of a field office pursuant to the authority provided under subsection
(a) unless the manager determines that such 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 that
field office.
    (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 of Energy, 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 a transfer occurs.
    (e) Limitation.--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.
    (f) 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 project listed in subsection (b) or (e) of
                section 3102 being carried out by the office.
                    (B) A program referred to in subsection (a), (b),
                (c), (e), or (g) of section 3102 being carried out by
                the office.
                    (C) A project or program not described in
                subparagraph (A) or (B) that is for environmental
                restoration or waste management activities necessary
                for national security programs of the Department of
                Energy, that is being carried out by the office, and
                for which defense environmental management funds have
                been authorized and appropriated before the date of the
                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.
    (g) Duration of Authority.--The authority provided under subsection
(a) to a manager of a field office shall be in effect for the period
beginning on October 1, 1997, and ending on September 30, 1998.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. BALLISTIC MISSILE DEFENSE NATIONAL LABORATORY PROGRAM.

    (a) Program.--The Secretary of Energy shall establish a program for
purposes of making available to the Secretary of Defense the expertise
of the national laboratories for the ballistic missile defense programs
of the Department of Defense.
    (b) Task Force.--The Secretary of Energy shall conduct the program
through a task force consisting of the directors of the Los Alamos
National Laboratory, the Sandia National Laboratories, and the Lawrence
Livermore National Laboratory. The chairmanship of the task force shall
rotate each year among the directors of the laboratories. The director
of the Lawrence Livermore National Laboratory shall serve as the first
chairman.
    (c) Activities.--Under the program, the national laboratories shall
carry out those activities necessary to respond to requests for
assistance from the Secretary of Defense with respect to the ballistic
missile defense programs of the Department of Defense. Such activities
may include the identification of technical modifications and test
techniques, the analysis of physics problems, the consolidation of
range and test activities, and the analysis and simulation of theater
missile defense deployment problems.
    (d) Funding.--Of the amounts authorized to be appropriated by
section 3101(a)(1), $50,000,000 shall be available only for the program
authorized by this section.

                       Subtitle D--Other Matters

SEC. 3141. PLAN FOR STEWARDSHIP, MANAGEMENT, AND CERTIFICATION OF
              WARHEADS IN THE NUCLEAR WEAPONS STOCKPILE.

    (a) Plan Requirement.--The Secretary of Energy shall develop and
annually update a plan for maintaining the nuclear weapons stockpile.
The plan shall cover, at a minimum, stockpile stewardship, stockpile
management, and program direction and shall be consistent with the
programmatic and technical requirements of the most recent annual
Nuclear Weapons Stockpile Memorandum.
    (b) Plan Elements.--The plan and each update of the plan shall set
forth the following:
            (1) The number of warheads (including active and inactive
        warheads) for each type of warhead in the nuclear weapons
        stockpile.
            (2) The current age of each warhead type, and any plans for
        stockpile lifetime extensions and modifications or replacement
        of each warhead type.
            (3) The process by which the Secretary of Energy is
        assessing the lifetime, and requirements for lifetime extension
        or replacement, of the nuclear and nonnuclear components of the
        warheads (including active and inactive warheads) in the
        nuclear weapons stockpile.
            (4) The process used in recertifying the safety, security,
        and reliability of each warhead type in the nuclear weapons
        stockpile.
            (5) Any concerns which would affect the ability of the
        Secretary of Energy to recertify the safety, security, or
        reliability of warheads in the nuclear weapons stockpile
        (including active and inactive warheads).
    (c) Annual Submission of Plan to Congress.--The Secretary of Energy
shall submit to Congress the plan developed under subsection (a) not
later than March 15, 1998, and shall submit an updated version of the
plan not later than March 15 of each year thereafter. The plan shall be
submitted in both classified and unclassified form.
    (d) Repeal of Superseded Requirements.--The following provisions of
law are repealed:
            (1) Subsection (d) of section 3138 of the National Defense
        Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107
        Stat. 1947; 42 U.S.C. 2121 note).
            (2) Section 3153 of the National Defense Authorization Act
        for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 624; 42
        U.S.C. 2121 note).
            (3) Section 3159 of the National Defense Authorization Act
        for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 626; 42
        U.S.C. 7271b note).
            (4) Section 3156 of the National Defense Authorization Act
        for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2841; 42
        U.S.C. 7271c).

SEC. 3142. REPEAL OF OBSOLETE REPORTING REQUIREMENTS.

    The following provisions of law are repealed:
            (1) Subsection (e) of section 1436 of the National Defense
        Authorization Act, Fiscal Year 1989 (Public Law 100-456; 102
        Stat. 2075; 42 U.S.C. 2121 note).
            (2) Section 3143 of the National Defense Authorization Act
        for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat.
        1681; 42 U.S.C. 7271a).
            (3) Section 3134 of the National Defense Authorization Act
        for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2639).

SEC. 3143. STUDY AND FUNDING RELATING TO IMPLEMENTATION OF WORKFORCE
              RESTRUCTURING PLANS.

    (a) Study Requirement.--The Secretary of Energy 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).
    (b) 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:
            (1) An analysis of the number of jobs created under
        workforce restructuring plans developed pursuant to section
        3161 of the National Defense Authorization Act for Fiscal Year
        1993 (42 U.S.C. 7274h).
            (2) An analysis of other benefits provided pursuant to such
        plans and through community reuse organizations.
            (3) A description of the funds expended, and the funds
        obligated but not expended, pursuant to such plans as of the
        date of the report.
            (4) A description of the criteria used since October 23,
        1992, in providing assistance pursuant to such plans.
            (5) A comparison of the benefits provided pursuant to such
        plans--
                    (A) to employees whose employment at facilities
                covered by such plans is terminated; and
                    (B) to employees whose employment at facilities
                where more than 50 percent of the revenues are derived
                from contracts with the Department of Defense is
                terminated.
    (c) Conduct of Study.--(1) The study shall be conducted through a
contract with a private auditing firm with which the Department of
Energy has no other auditing contracts.
    (2)(A) The Secretary of Energy may not enter into the contract for
the conduct of the study until--
            (i) the Secretary submits a notification of the proposed
        contract award to the congressional defense committees; and
            (ii) a period of 30 days of continuous session of Congress
        has expired following the date on which the notification is
        submitted.
    (B) For purposes of subparagraph (A)(ii), the continuity of a
session of Congress is broken only by an adjournment of the Congress
sine die, and the days on which either House is not in session because
of an adjournment of more than three days to a day certain are excluded
in the computation of such 30-day period.
    (3) The Secretary of Energy shall ensure that the firm conducting
the study is provided access to all documents in the possession of the
Department of Energy that are relevant to the study, including
documents in the possession of the Inspector General of the Department
of Energy.
    (d) Report on Study.--The Secretary of Energy shall submit a report
to Congress on the results of the study not later than January 30,
1998.
    (e) Funding.--In addition to amounts available pursuant to the
authorization of appropriations in section 3103(6), the Secretary of
Energy may use an amount not exceeding $44,000,000 for implementation
of the workforce restructuring plans for contractor employees, to be
derived from excess unobligated and available funds.
    (f) Revisions to Defense Nuclear Facilities Workforce Restructuring
Plan Requirements.--
            (1) Revision of period for notification of changes in
        workforce.--Section 3161(c)(1)(B) of the National Defense
        Authorization Act for Fiscal Year 1993 (42 U.S.C.
        7274h(c)(1)(B)) is amended by striking out ``120'' and
        inserting in lieu thereof ``90''.
            (2) Repeal of requirement for submission to congress.--
        Subsection (f) of section 3161 of such Act is repealed.
            (3) Prohibition on use of funds for local impact
        assistance.--None of the funds authorized to be appropriated to
        the Department of Energy pursuant to section 3103(6) may be
        used for local impact assistance from the Department of Energy
        under section 3161(c)(6) of such Act (42 U.S.C. 7274h(c)(6))
        until--
                    (A) with respect to assistance referred to in
                section 3161(c)(6)(A) of such Act, the Secretary of
                Energy coordinates with and obtains approval of the
                Secretary of Labor; and
                    (B) with respect to assistance referred to in
                section 3161(c)(6)(C) of such Act, the Secretary of
                Energy coordinates with and obtains approval of the
                Secretary of Commerce.
            (4) Semiannual report to congress of local impact
        assistance.--Every six months the Secretary of Energy shall
        submit to Congress a report setting forth a description of, and
        the value of, all local impact assistance provided under
        section 3161(c)(6) of such Act.
    (g) Effect on USEC Privatization Act.--Nothing in this section
shall be construed as diminishing the obligations of the Secretary of
Energy under section 3110(a)(5) of the USEC Privatization Act (Public
Law 104-134; 110 Stat. 1321-341; 42 U.S.C. 2297h-8(a)(5)).
    (h) Definitions.--In this section:
            (1) 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).
            (2) The term ``contractor employee'' means an employee of a
        contractor or subcontractor of the Department of Energy at a
        defense nuclear facility.

SEC. 3144. EXTENSION OF AUTHORITY FOR APPOINTMENT OF CERTAIN
              SCIENTIFIC, ENGINEERING, AND TECHNICAL PERSONNEL.

    Section 3161 of the National Defense Authorization Act for Fiscal
Year 1995 (Public Law 103-337; 108 Stat. 3095; 42 U.S.C. 7231 note) is
amended--
            (1) by striking out subsection (c); and
            (2) in subsection (d)(1), by striking out ``1997'' and
        inserting in lieu thereof ``1999''.

SEC. 3145. REPORT ON PROPOSED CONTRACT FOR HANFORD TANK WASTE
              VITRIFICATION PROJECT.

    (a) Prior Notice to Congressional Defense Committees Before
Entering Into Contract.--(1) The Secretary of Energy may not enter into
a contract for the Hanford Tank Waste Vitrification project until--
            (A) the Secretary submits a report on the proposed contract
        to the congressional defense committees; and
            (B) a period of 30 days of continuous session of Congress
        has expired following the date on which the report is
        submitted.
    (2) For purposes of paragraph (1)(B), the continuity of a session
of Congress is broken only by an adjournment of the Congress sine die,
and the days on which either House is not in session because of an
adjournment of more than three days to a day certain are excluded in
the computation of such 30-day period.
    (b) Report.--A report under subsection (a)(1) shall include the
following:
            (A) A description of the activities to be carried out under
        the contract.
            (B) A description of the funds expended, and the funds
        obligated but not expended, as of the date of the report on
        remediation of Hanford tank waste since 1989.
            (C) A description of the contractual and financial aspects
        of the contract, including any provisions relating to the risk
        of nonperformance and risk assumption by the United States and
        the contractor or contractors.
            (D) An analysis of the cost to the United States of the
        proposed contract, including a detailed analysis of the annual
        budget authority and outlay requirements for the life of the
        project.
            (E) If the proposed contract contemplates construction of
        two projects, an analysis of the basis for the selection of the
        two projects, and a detailed analysis of the costs to the
        United States of two projects compared to the costs to the
        United States of one project.
            (F) If the proposed contract provides for financing of the
        project (or projects) by an entity or entities other than the
        United States, a detailed analysis of the costs of such
        financing compared to the costs of financing the project (or
        projects) by the United States.

SEC. 3146. LIMITATION ON CONDUCT OF SUBCRITICAL NUCLEAR WEAPONS TESTS.

    The Secretary of Energy may not conduct any subcritical nuclear
weapons tests using funds available to the Secretary for fiscal year
1998 until 30 days after the Secretary submits to the Committee on
Armed Services of the Senate and the Committee on National Security of
the House of Representatives a detailed report on the manner in which
funds available to the Secretary for fiscal years 1996 and 1997 to
conduct such tests were used.

SEC. 3147. LIMITATION ON USE OF CERTAIN FUNDS UNTIL FUTURE USE PLANS
              ARE SUBMITTED.

    (a) Limitation.--The Secretary of Energy may not use more than 80
percent of the funds available to the Secretary pursuant to the
authorization of appropriations in section 3102(f) (relating to policy
and management) until the Secretary submits the plans described in
subsection (b).
    (b) Plans.--The plans referred to in subsection (a) are the draft
future use plan and the final future use plan required under section
3153(f) of the National Defense Authorization Act for Fiscal Year 1997
(Public Law 104-201; 110 Stat. 2840; 42 U.S.C. 7274k).

SEC. 3148. PLAN FOR EXTERNAL OVERSIGHT OF NATIONAL LABORATORIES.

    (a) Plan Requirement.--The Secretary of Energy, acting through the
Assistant Secretary for Defense Programs, shall develop a plan for the
external oversight of the national laboratories.
    (b) Plan Elements.--The plan shall--
            (1) provide for the establishment of an external oversight
        committee comprised of representatives of industry and academia
        for the purpose of making recommendations to the Secretary of
        Energy and the congressional defense committees on the
        productivity of the laboratories and on the excellence,
        relevance, and appropriateness of the research conducted by the
        laboratories; and
            (2) provide for the establishment of a competitive peer
        review process for funding basic research at the laboratories.
    (c) Submission to Congress.--The Secretary of Energy shall submit
the plan to the congressional defense committees not later than 120
days after the date of the enactment of this Act.
    (d) National Laboratories Covered.--For purposes of this section,
the national laboratories are--
            (1) the Lawrence Livermore National Laboratory, Livermore,
        California;
            (2) the Los Alamos National Laboratory, Los Alamos, New
        Mexico;
            (3) the Sandia National Laboratories, Albuquerque, New
        Mexico; and
            (4) the Nevada Test Site.

SEC. 3149. UNIVERSITY-BASED RESEARCH CENTER.

    (a) Findings.--The Congress finds the following:
            (1) The maintenance of scientific and engineering
        competence in the United States is vital to long-term national
        security and the defense and national security missions of the
        Department of Energy.
            (2) Engaging the universities and colleges of the Nation in
        research on long-range problems of vital national security
        interest will be critical to solving the technology challenges
        faced within the defense and national programs of the
        Department of Energy in the next century.
            (3) Enhancing collaboration among the national
        laboratories, universities and colleges, and industry will
        contribute significantly to the performance of these Department
        of Energy missions.
    (b) Center.--The Secretary of Energy shall establish a university-
based research center at a location that can develop the most effective
collaboration among national laboratories, universities and colleges,
and industry in support of scientific and engineering advancement in
key Department of Energy defense program areas.
    (c) Funding.--Of the funds authorized to be appropriated to the
Department of Energy in fiscal year 1998, the Secretary shall make
$5,000,000 available for the establishment and operation of the Center.

SEC. 3150. STOCKPILE STEWARDSHIP PROGRAM.

    (a) Findings.--Congress finds the following:
            (1) Eliminating the threat posed by nuclear weapons to the
        United States is an important national security goal.
            (2) As long as nuclear threats remain, the nuclear
        deterrent of the United States must be effective and reliable.
            (3) A safe, secure, effective, and reliable United States
        nuclear stockpile is central to the current nuclear deterrence
        strategy of the United States.
            (4) The Secretary of Energy has undertaken a stockpile
        stewardship and management program to ensure the safety,
        security, effectiveness, and reliability of the nuclear weapons
        stockpile of the United States, consistent with all United
        States treaty requirements and the requirements of the nuclear
        deterrence strategy of the United States.
            (5) It is the policy of the current administration that new
        nuclear weapon designs are not required to effectively
        implement the nuclear deterrence strategy of the United States.
    (b) Policy.--It is the policy of the United States that--
            (1) activities of the stockpile stewardship program shall
        be directed toward ensuring that the United States possesses a
        safe, secure, effective, and reliable nuclear stockpile,
        consistent with the national security requirements of the
        United States; and
            (2) stockpile stewardship activities of the United States
        shall be conducted in conformity with the terms of the Treaty
        on the Non-Proliferation of Nuclear Weapons (TIAS 6839) and the
        Comprehensive Test Ban Treaty signed by the President on
        September 24, 1996, when and if that treaty enters into force.

SEC. 3151. REPORTS ON ADVANCED SUPERCOMPUTER SALES TO CERTAIN FOREIGN
              NATIONS.

    (a) Reports.--The Secretary of Energy shall require that any
company that is a participant in the Accelerated Strategic Computing
Initiative (ASCI) program of the Department of Energy report to the
Secretary and to the Secretary of Defense each sale by that company to
a country designated as a Tier III country of a computer capable of
operating at a speed in excess of 2,000 millions theoretical operations
per second (MTOPS). The report shall include a description of the
following with respect to each such sale:
            (1) The anticipated end-use of the computer sold.
            (2) The software included with the computer.
            (3) Any arrangement under the terms of the sale regarding--
                    (A) upgrading the computer;
                    (B) servicing of the computer; or
                    (C) the furnishing of spare parts for the computer.
    (b) Covered Countries.--For purposes of this section, the countries
designated as Tier III countries are the countries listed as ``computer
tier 3'' eligible countries in part 740.7 of title 15 of the Code of
Federal Regulations, as in effect on June 10, 1997 (or any successor
list).
    (c) Quarterly Submission of Reports.--The Secretary of Energy shall
require that reports under subsection (a) be submitted quarterly.
    (d) Annual Report.--The Secretary of Energy shall submit to
Congress an annual report containing all information received under
subsection (a) during the preceding year. The first annual report shall
be submitted not later than July 1, 1998.

SEC. 3152. TRANSFERS OF REAL AND PERSONAL PROPERTY AT CERTAIN
              DEPARTMENT OF ENERGY FACILITIES.

    (a) Transfer Guidelines.--(1) The Secretary of Energy shall issue
guidelines for the transfer by sale or lease of real and personal
property at Department of Energy defense nuclear facilities in
consultation with the community reuse organizations associated with the
facilities and the local governments within whose jurisdiction the
facilities are located. The Secretary shall issue the guidelines not
later than 90 days after the date of the enactment of this Act.
    (2)(A) The Secretary of Energy may not transfer real or personal
property under the guidelines issued under paragraph (1) until--
            (i) the Secretary submits a notification of the proposed
        transfer to the congressional defense committees; and
            (ii) a period of 30 days of continuous session of Congress
        has expired following the date on which the notification is
        submitted.
    (B) For purposes of subparagraph (A)(ii), the continuity of a
session of Congress is broken only by an adjournment of the Congress
sine die, and the days on which either House is not in session because
of an adjournment of more than three days to a day certain are excluded
in the computation of such 30-day period.
    (b) Indemnification.--(1) In the sale or lease of real or personal
property pursuant to the guidelines issued under subsection (a), the
Secretary of Energy may indemnify a transferee against an action for
injury to person or property resulting from the release or threatened
release of a hazardous substance or pollutant or contaminant as a
result of Department of Energy activities. Before such a sale or lease,
the Secretary shall notify the transferee that the Secretary has
authority to provide indemnification to the transferee under this
subsection. The Secretary shall include in an agreement for such a sale
or lease a provision addressing indemnification for such an action.
    (2) Nothing in this section shall be construed as affecting or
modifying in any way section 120(h) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)).
    (c) Definitions.--In this section:
            (1) The term ``Department of Energy defense nuclear
        facility'' has the meaning provided by section 318 of the
        Atomic Energy Act of 1954 (42 U.S.C. 2286g).
            (2) The term ``transferee'' means a person to which real
        property is transferred pursuant to the guidelines issued under
        subsection (a).
            (3) The terms ``hazardous substance'', ``release'', and
        ``pollutant or contaminant'' have the meanings provided by
        section 101 of the Comprehensive Environmental Response,
        Compensation, and Liability Act of 1980 (42 U.S.C. 9601).

SEC. 3153. REQUIREMENT TO DELEGATE CERTAIN AUTHORITIES TO SITE MANAGER
              OF HANFORD RESERVATION.

    Section 3173(b) of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2848; 42 U.S.C. 7274k)
is amended--
            (1) in paragraph (1), by striking out ``In addition'' and
        inserting in lieu thereof ``Except as provided in paragraph
        (5), in addition''; and
            (2) by adding at the end the following new paragraph:
    ``(5) In the case of the Hanford Reservation, Richland, Washington,
the Secretary shall delegate to the Site Manager the authority
described in paragraph (1). The Secretary may withdraw the delegated
authority if the Secretary--
            ``(A) determines that the Site Manager of the Hanford
        Reservation has misused or misapplied that authority; and
            ``(B) the Secretary submits to Congress a notification of
        the Secretary's intent to withdraw the authority.''.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 1998,
$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.).

SEC. 3202. PLAN FOR TRANSFER OF FACILITIES FROM JURISDICTION OF DEFENSE
              NUCLEAR FACILITIES SAFETY BOARD TO JURISDICTION OF
              NUCLEAR REGULATORY COMMISSION.

    (a) Plan Requirement.--(1) The Defense Nuclear Facilities Safety
Board (in this section referred to as the ``Board'') shall develop, in
consultation with the Secretary of Energy and the Nuclear Regulatory
Commission, a plan for--
            (A) increasing the authority of the Nuclear Regulatory
        Commission to include the regulation of Department of Energy
        defense nuclear facilities; and
            (B) decreasing or eliminating the functions of the Board
        with respect to such facilities under chapter 21 of the Atomic
        Energy Act of 1954 (42 U.S.C. 2286 et seq.).
    (2) The plan shall be submitted to Congress not later than six
months after the date of the enactment of this Act.
    (b) Plan Elements.--The plan shall include the following:
            (1) A list of facilities as described in subsection (c).
            (2) A schedule for the orderly transfer of such facilities
        from the jurisdiction of the Board to the jurisdiction of the
        Nuclear Regulatory Commission.
            (3) Recommendations on the order in which the facilities
        should be transferred, including such recommendations as the
        Board considers appropriate with respect to the suitability of
        the various facilities for transfer and the appropriateness for
        the various facilities of the schedule for conducting the
        transfer.
            (4) Such other provisions as the Board considers necessary
        to carry out an orderly transfer under paragraph (2).
    (c) List of Facilities.--The plan shall contain a list of all
Department of Energy defense nuclear facilities, grouped according to
the following criteria:
            (1) Facilities that are similar to facilities regulated by
        the Nuclear Regulatory Commission on the date of the enactment
        of this Act.
            (2) Facilities that are in compliance with Department of
        Energy nuclear safety requirements and Board recommendations in
        existence on the date of the enactment of this Act.
            (3) Facilities the regulation of which would involve the
        Nuclear Regulatory Commission in unique national security
        interests, including the classified design and configuration of
        a nuclear weapon or explosive device.
    (d) Facility Defined.--In this section, the term ``Department of
Energy defense nuclear facility'' has the meaning provided by section
318 of the Atomic Energy Act of 1954 (42 U.S.C. 2286g), except that the
term includes such a facility that is under construction or is planned
by the Secretary of Energy to be constructed.
    (e) Repeal of Prohibition on Use of Funds.--Section 210 of the
Department of Energy National Security and Military Applications of
Nuclear Energy Authorization Act of 1981 (42 U.S.C. 7272) is repealed.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

SEC. 3301. AUTHORIZED USES OF STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 1998, the
National Defense Stockpile Manager may obligate up to $73,000,000 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)).
    (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 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. 3302. DISPOSAL OF BERYLLIUM COPPER MASTER ALLOY IN NATIONAL
              DEFENSE STOCKPILE.

    (a) Disposal Authorization.--Pursuant to section 5(b) of the
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98d(b)),
the National Defense Stockpile Manager may dispose of all beryllium
copper master alloy from the National Defense Stockpile provided for in
section 4 of such Act (50 U.S.C. 98c) as part of continued efforts to
modernize the Stockpile.
    (b) Precondition for Disposal.--Before beginning the disposal of
beryllium copper master alloy under subsection (a), the National
Defense Stockpile Manager shall certify to Congress that the disposal
of beryllium copper master alloy will not adversely affect the
capability of the National Defense Stockpile to supply the strategic
and critical material needs of the United States.
    (c) Consultation With Market Impact Committee.--In disposing of
beryllium copper master alloy under subsection (a), the National
Defense Stockpile Manager shall consult with the Market Impact
Committee established under section 10(c) of the Strategic and Critical
Materials Stock Piling Act (50 U.S.C. 98h-1(c)) to ensure that the
disposal of beryllium copper master alloy does not disrupt the domestic
beryllium industry.
    (d) Extended Sales Contracts.--The National Defense Stockpile
Manager shall provide for the use of long-term sales contracts for the
disposal of beryllium copper master alloy under subsection (a) so that
the domestic beryllium industry can re-absorb this material into the
market in a gradual and nondisruptive manner. However, no such contract
shall provide for the disposal of beryllium copper master alloy over a
period longer than eight years, beginning on the date of the
commencement of the first contract under this section.
    (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 beryllium copper master alloy.
    (f) Beryllium Copper Master Alloy Defined.--For purposes of this
section, the term ``beryllium copper master alloy'' means an alloy of
nominally four percent beryllium in copper.

SEC. 3303. DISPOSAL OF TITANIUM SPONGE IN NATIONAL DEFENSE STOCKPILE.

    (a) Disposal Required.--Subject to subsection (b), the National
Defense Stockpile Manager shall dispose of 34,800 short tons of
titanium sponge contained in the National Defense Stockpile provided
for in section 4 of the Strategic and Critical Materials Stock Piling
Act (50 U.S.C. 98c) and excess to stockpile requirements.
    (b) Consultation With Market Impact Committee.--In disposing of
titanium sponge under subsection (a), the National Defense Stockpile
Manager shall consult with the Market Impact Committee established
under section 10(c) of the Strategic and Critical Materials Stock
Piling Act (50 U.S.C. 98h-1(c)) to ensure that the disposal of titanium
sponge does not disrupt the domestic titanium industry.
    (c) 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 titanium sponge.

SEC. 3304. CONDITIONS ON TRANSFER OF STOCKPILED PLATINUM RESERVES FOR
              TREASURY USE.

    (a) Imposition of Conditions.--Any transfer of platinum contained
in the National Defense Stockpile provided for in section 4 of the
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c) to
the Secretary of the Treasury for use to mint and issue bullion and
proof platinum coins or for any other purpose shall be subject to the
conditions contained in this section.
    (b) Yearly Limitation.--The quantity of platinum transferred from
the stockpile to the Secretary of the Treasury may not exceed 200,000
troy ounces during any fiscal year, of which not more than 81,600 troy
ounces per year may be platinum of the highest quality specification.
    (c) Replacement Upon Notice.--The Secretary of the Treasury shall
replace platinum received from the stockpile within one year after
receiving notice from the Secretary of Defense specifying the quantity
and quality of transferred platinum to be replaced and the need for
replacement.
    (d) Costs.--Any transfer of platinum from the stockpile to the
Secretary of the Treasury shall be made without the expenditure of any
funds available to the Department of Defense. The Secretary of the
Treasury shall be responsible for all costs incurred in connection with
the transfer, subsequent to the transfer, or in connection with the
replacement of the transferred platinum, such as transportation,
storage, testing, refining, or casting costs.

SEC. 3305. RESTRICTIONS ON DISPOSAL OF CERTAIN MANGANESE FERRO.

    (a) Requirement for Remelting by Domestic Ferroalloy Producers.--
High carbon manganese ferro in the National Defense Stockpile that does
not meet the National Defense Stockpile classification of Grade One,
Specification 30(a), as revised May 22, 1992, may be sold only for
remelting by a domestic ferroalloy producer unless the President
determines that a domestic ferroalloy producer is not available to
acquire the material. After the date of the enactment of this Act, the
President may not reclassify high carbon manganese ferro stored in the
National Defense Stockpile as of that date.
    (b) Domestic Ferroalloy Producer Defined.--For purposes of this
section, the term ``domestic ferroalloy producer'' means a company or
other business entity that, as determined by the President--
            (1) is engaged in operations to upgrade manganese ores of
        metallurgical grade or manganese ferro; and
            (2) conducts a significant level of its research,
        development, engineering, and upgrading operations in the
        United States.
    (c) Consultation With Market Impact Committee.--In disposing of
high carbon manganese ferro in the National Defense Stockpile, the
National Defense Stockpile Manager shall consult with the Market Impact
Committee established under section 10(c) of the Strategic and Critical
Materials Stock Piling Act (50 U.S.C. 98h-1(c)) to ensure that the
disposal of high carbon manganese ferro does not disrupt the domestic
manganese ferro industry.
    (d) Conforming Repeal.--Section 3304 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat.
629) is repealed.

SEC. 3306. REQUIRED PROCEDURES FOR DISPOSAL OF STRATEGIC AND CRITICAL
              MATERIALS.

    Section 6(b) of the Strategic and Critical Materials Stock Piling
Act (50 U.S.C. 98e(b)) is amended in the first sentence by striking out
``materials from the stockpile shall be made by formal advertising or
competitive negotiation procedures.'' and inserting in lieu thereof
``strategic and critical materials from the stockpile shall be made in
accordance with the next sentence.''.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

    There is hereby authorized to be appropriated to the Secretary of
Energy $117,000,000 for fiscal year 1998 for the purpose of carrying
out activities under chapter 641 of title 10, United States Code,
relating to the naval petroleum reserves (as defined in section 7420(2)
of such title). Funds appropriated pursuant to such authorization shall
remain available until expended.

SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM DURING FISCAL
              YEAR 1998.

    Notwithstanding section 7430(b)(2) of title 10, United States Code,
during fiscal year 1998, any sale of any part of the United States
share of petroleum produced from Naval Petroleum Reserves Numbered 1,
2, and 3 shall be made at a price not less than 90 percent of the
current sales price, as estimated by the Secretary of Energy, of
comparable petroleum in the same area.

SEC. 3403. TERMINATION OF ASSIGNMENT OF NAVY OFFICERS TO OFFICE OF
              NAVAL PETROLEUM AND OIL SHALE RESERVES.

    (a) Termination of Assignment Requirement.--Section 2 of Public Law
96-137 (42 U.S.C. 7156a) is repealed.
    (b) Effect on Existing Assignments.--In the case of an officer of
the Navy assigned, as of the date of the enactment of this Act, to a
management position within the Office of Naval Petroleum and Oil Shale
Reserves, the Secretary of the Navy may continue such assignment
notwithstanding the repeal of section 2 of Public Law 96-137 (42 U.S.C.
7156a), except that such assignment may not extend beyond the date of
the sale of Naval Petroleum Reserve Numbered 1 (Elk Hills) pursuant to
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).

SEC. 3404. TRANSFER OF JURISDICTION, NAVAL OIL SHALE RESERVES NUMBERED
              1 AND 3.

    (a) Transfer Required.--Chapter 641 of title 10, United States
Code, is amended by adding at the end the following new section:
``Sec. 7439. Certain oil shale reserves: transfer of jurisdiction and
              petroleum exploration, development, and production
    ``(a) Transfer Required.--(1) Upon the enactment of this section,
the Secretary of Energy shall transfer to the Secretary of the Interior
administrative jurisdiction over all public domain lands included
within Oil Shale Reserve Numbered 1 and those public domain lands
included within the undeveloped tracts of Oil Shale Reserve Numbered 3.
    ``(2) Not later than one year after the date of the enactment of
this section, the Secretary of Energy shall transfer to the Secretary
of the Interior administrative jurisdiction over those public domain
lands included within the developed tract of Oil Shale Reserve Numbered
3, which consists of approximately 6,000 acres and 24 natural gas
wells, together with pipelines and associated facilities.
    ``(3) Notwithstanding the transfer of jurisdiction, the Secretary
of Energy shall continue to be responsible for all environmental
restoration, waste management, and environmental compliance activities
that are required under Federal and State laws with respect to
conditions existing on the lands at the time of the transfer.
    ``(4) Upon the transfer to the Secretary of the Interior of
jurisdiction over public domain lands under this subsection, the other
provisions of this chapter shall cease to apply with respect to the
transferred lands.
    ``(b) Authority To Lease.--(1) Beginning on the date of the
enactment of this section, or as soon thereafter as practicable, the
Secretary of the Interior shall enter into leases with one or more
private entities for the purpose of exploration for, and development
and production of, petroleum (other than in the form of oil shale)
located on or in public domain lands in Oil Shale Reserves Numbered 1
and 3 (including the developed tract of Oil Shale Reserve Numbered 3).
Any such lease shall be made in accordance with the requirements of the
Mineral Leasing Act (30 U.S.C. 181 et seq.) regarding the lease of oil
and gas lands and shall be subject to valid existing rights.
    ``(2) Notwithstanding the delayed transfer of the developed tract
of Oil Shale Reserve Numbered 3 under subsection (a)(2), the Secretary
of the Interior shall enter into a lease under paragraph (1) with
respect to the developed tract before the end of the one-year period
beginning on the date of the enactment of this section.
    ``(c) Management.--The Secretary of the Interior, acting through
the Director of the Bureau of Land Management, shall manage the lands
transferred under subsection (a) in accordance with the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.) and other
laws applicable to the public lands.
    ``(d) Transfer of Existing Equipment.--The lease of lands by the
Secretary of the Interior under this section may include the transfer,
at fair market value, of any well, gathering line, or related equipment
owned by the United States on the lands transferred under subsection
(a) and suitable for use in the exploration, development, or production
of petroleum on the lands.
    ``(e) Cost Minimization.--The cost of any environmental assessment
required pursuant to the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) in connection with a proposed lease under this
section shall be paid out of unobligated amounts available for
administrative expenses of the Bureau of Land Management.
    ``(f) Distribution of Receipts.--Notwithstanding any other
provision of law, all moneys received from a lease under this section
(including sales, bonuses, royalties (including interest charges
collected under the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1701 et seq.)), and rentals) shall be paid and distributed
under section 35 of the Mineral Leasing Act (30 U.S.C. 191) in the same
manner as moneys derived from other oil and gas leases involving public
domain lands other than naval petroleum reserves.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``7439. Certain oil shale reserves: transfer of jurisdiction and
                            petroleum exploration, development, and
                            production.''.

                  TITLE XXXV--PANAMA CANAL COMMISSION

     Subtitle A--Authorization of Expenditures From Revolving Fund

SEC. 3501. SHORT TITLE.

    This subtitle may be cited as the ``Panama Canal Commission
Authorization Act for Fiscal Year 1998''.

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
1998.
    (b) Limitations.--For fiscal year 1998, the Panama Canal Commission
may expend from funds in the Panama Canal Revolving Fund not more than
$85,000 for official reception and representation expenses, of which--
            (1) not more than $23,000 may be used for official
        reception and representation expenses of the Supervisory Board
        of the Commission;
            (2) not more than $12,000 may be used for official
        reception and representation expenses of the Secretary of the
        Commission; and
            (3) not more than $50,000 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 built in the
United States, the purchase price of which shall not exceed $22,000 per
vehicle.

SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

    Expenditures authorized under this subtitle may be made only in
accordance with the Panama Canal Treaties of 1977 and any law of the
United States implementing those treaties.

          Subtitle B--Facilitation of Panama Canal Transition

SEC. 3511. SHORT TITLE; REFERENCES.

    (a) Short Title.--This subtitle may be cited as the ``Panama Canal
Transition Facilitation Act of 1997''.
    (b) References.--Except as otherwise expressly provided, whenever
in this subtitle 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. 3512. DEFINITIONS RELATING TO CANAL TRANSITION.

    Section 3 (22 U.S.C. 3602) is amended by adding at the end the
following new subsection:
    ``(d) For purposes of this Act:
            ``(1) The term `Canal Transfer Date' means December 31,
        1999, such date being the date specified in the Panama Canal
        Treaty of 1977 for the transfer of the Panama Canal from the
        United States of America to the Republic of Panama.
            ``(2) The term `Panama Canal Authority' means the entity
        created by the Republic of Panama to succeed the Panama Canal
        Commission as of the Canal Transfer Date.''.

    PART I--TRANSITION MATTERS RELATING TO COMMISSION OFFICERS AND
                               EMPLOYEES

SEC. 3521. AUTHORITY FOR THE ADMINISTRATOR OF THE COMMISSION TO ACCEPT
              APPOINTMENT AS THE ADMINISTRATOR OF THE PANAMA CANAL
              AUTHORITY.

    (a) Authority for Dual Role.--Section 1103 (22 U.S.C. 3613) is
amended by adding at the end the following new subsection:
    ``(c) The Congress consents, for purposes of the 8th clause of
article I, section 9 of the Constitution of the United States, to the
acceptance by the individual serving as Administrator of the Commission
of appointment by the Republic of Panama to the position of
Administrator of the Panama Canal Authority. Such consent is effective
only if that individual, while serving in both such positions, serves
as Administrator of the Panama Canal Authority without compensation,
except for payments by the Republic of Panama of travel and
entertainment expenses, including per diem payments.''.
    (b) Waiver of Certain Conflict-of-Interest Statutes.--Such section
is further amended by adding at the end the following new subsections:
    ``(d) The Administrator, with respect to participation in any
matter as Administrator of the Panama Canal Commission (whether such
participation is before, on, or after the date of the enactment of the
Panama Canal Transition Facilitation Act of 1997), shall not be subject
to section 208 of title 18, United States Code, insofar as the matter
relates to prospective employment as Administrator of the Panama Canal
Authority.
    ``(e) If the Republic of Panama appoints as the Administrator of
the Panama Canal Authority the individual serving as the Administrator
of the Commission and if that individual accepts the appointment--
            ``(1) the Foreign Agents Registration Act of 1938, as
        amended (22 U.S.C. 611 et seq.), shall not apply to that
        individual with respect to service as the Administrator of the
        Panama Canal Authority;
            ``(2) that individual, with respect to participation in any
        matter as the Administrator of the Panama Canal Commission, is
        not subject to section 208 of title 18, United States Code,
        insofar as the matter relates to service as, or performance of
        the duties of, the Administrator of the Panama Canal Authority;
        and
            ``(3) that individual, with respect to official acts
        performed as the Administrator of the Panama Canal Authority,
        is not subject to the following:
                    ``(A) Sections 203 and 205 of title 18, United
                States Code.
                    ``(B) Effective upon termination of the
                individual's appointment as Administrator of the Panama
                Canal Commission at noon on the Canal Transfer Date,
                section 207 of title 18, United States Code.
                    ``(C) Sections 501(a) and 502(a)(4) of the Ethics
                in Government Act of 1978 (5 U.S.C. App.), with respect
                to compensation received for, and service in, the
                position of Administrator of the Panama Canal
                Authority.''.

SEC. 3522. POST-CANAL TRANSFER PERSONNEL AUTHORITIES.

    (a) Waiver of Certain Post-employment Restrictions for Commission
Personnel Becoming Employees of the Panama Canal Authority.--Section
1112 (22 U.S.C. 3622) is amended by adding at the end the following new
subsection:
    ``(e) Effective as of the Canal Transfer Date, section 207 of title
18, United States Code, shall not apply to an individual who is an
officer or employee of the Panama Canal Authority, but only with
respect to official acts of that individual as an officer or employee
of the Authority and only in the case of an individual who was an
officer or employee of the Commission and whose employment with the
Commission was terminated at noon on the Canal Transfer Date.''.
    (b) Consent of Congress for Acceptance by Reserve and Retired
Members of the Armed Forces of Employment by Panama Canal Authority.--
Such section is further amended by adding after subsection (e), as
added by subsection (a), the following new subsection:
    ``(f)(1) The Congress consents to the following persons accepting
civil employment (and compensation for that employment) with the Panama
Canal Authority for which the consent of the Congress is required by
the last paragraph of section 9 of article I of the Constitution of the
United States, relating to acceptance of emoluments, offices, or titles
from a foreign government:
            ``(A) Retired members of the uniformed services.
            ``(B) Members of a reserve component of the armed forces.
            ``(C) Members of the Commisioned Reserve Corps of the
        Public Health Service.
    ``(2) The consent of the Congress under paragraph (1) is effective
without regard to subsection (b) of section 908 of title 37, United
States Code (relating to approval required for employment of Reserve
and retired members by foreign governments).''.

SEC. 3523. ENHANCED AUTHORITY OF COMMISSION TO ESTABLISH COMPENSATION
              OF COMMISSION OFFICERS AND EMPLOYEES.

    (a) Repeal of Limitations on Commission Authority.--The following
provisions are repealed:
            (1) Section 1215 (22 U.S.C. 3655), relating to basic pay.
            (2) Section 1219 (22 U.S.C. 3659), relating to salary
        protection upon conversion of pay rate.
            (3) Section 1225 (22 U.S.C. 3665), relating to minimum
        level of pay and minimum annual increases.
    (b) Savings Provision.--Section 1202 (22 U.S.C. 3642) is amended by
adding at the end the following new subsection:
    ``(c) In the case of an individual who is an officer or employee of
the Commission on the day before the date of the enactment of the
Panama Canal Transition Facilitation Act of 1997 and who has not had a
break in service with the Commission since that date, the rate of basic
pay for that officer or employee on or after that date may not be less
than the rate in effect for that officer or employee on the day before
that date of enactment except--
            ``(1) as provided in a collective bargaining agreement;
            ``(2) as a result of an adverse action against the officer
        or employee; or
            ``(3) pursuant to a voluntary demotion.''.
    (c) Cross-Reference Amendments.--(1) Section 1216 (22 U.S.C. 3656)
is amended by striking out ``1215'' and inserting in lieu thereof
``1202''.
    (2) Section 1218 (22 U.S.C. 3658) is amended by striking out
``1215'' and ``1217'' and inserting in lieu thereof ``1202'' and
``1217(a)'', respectively.

SEC. 3524. TRAVEL, TRANSPORTATION, AND SUBSISTENCE EXPENSES FOR
              COMMISSION PERSONNEL NO LONGER SUBJECT TO FEDERAL TRAVEL
              REGULATION.

    (a) Repeal of Applicability of Title 5 Provisions.--(1) Section
1210 (22 U.S.C. 3650) is amended by striking out subsections (a), (b),
and (c).
    (2) Section 1224 (22 U.S.C. 3664) is amended--
            (A) by striking out paragraph (10); and
            (B) by redesignating paragraphs (11) through (20) as
        paragraphs (10) through (19), respectively.
    (b) Conforming Amendments.--(1) Section 1210 is further amended--
            (A) by redesignating subsection (d)(1) as subsection (a)
        and in that subsection striking out ``paragraph (2)'' and
        inserting in lieu thereof ``subsection (b)''; and
            (B) by redesignating subsection (d)(2) as subsection (b)
        and in that subsection--
                    (i) striking out ``Notwithstanding paragraph (1),
                an'' and inserting in lieu thereof ``An''; and
                    (ii) striking out ''referred to in paragraph (1)''
                and inserting in lieu thereof ``who is a citizen of the
                Republic of Panama''.
    (2) The heading of such section is amended to read as follows:

                        ``air transportation''.

    (c) Effective Date.--The amendments made by this section shall take
effect on January 1, 1999.

SEC. 3525. ENHANCED RECRUITMENT AND RETENTION AUTHORITIES.

    (a) Recruitment, Relocation, and Retention Bonuses.--Section 1217
(22 U.S.C. 3657) is amended--
            (1) by redesignating subsection (c) as subsection (e);
            (2) in subsection (e) (as so redesignated), by striking out
        ``for the same or similar work performed in the United States
        by individuals employed by the Government of the United
        States'' and inserting in lieu thereof ``of the individual to
        whom the compensation is paid''; and
            (3) by inserting after subsection (b) the following new
        subsections:
    ``(c)(1) The Commission may pay a recruitment bonus to an
individual who is newly appointed to a position with the Commission, or
a relocation bonus to an employee of the Commission who must relocate
to accept a position, if the Commission determines that the Commission
would be likely, in the absence of such a bonus, to have difficulty in
filling the position.
    ``(2) A recruitment or relocation bonus may be paid to an employee
under this subsection only if the employee enters into an agreement
with the Commission to complete a period of employment with the
Commission established by the Commission. If the employee voluntarily
fails to complete such period of employment or is separated from
service in such employment as a result of an adverse action before the
completion of such period, the employee shall repay the entire amount
of the bonus.
    ``(3) A relocation bonus under this subsection may be paid as a
lump sum. A recruitment bonus under this subsection shall be paid on a
pro rata basis over the period of employment covered by the agreement
under paragraph (2). A bonus under this subsection may not be
considered to be part of the basic pay of an employee.
    ``(d)(1) The Commission may pay a retention bonus to an employee of
the Commission if the Commission determines that--
            ``(A) the employee has unusually high or unique
        qualifications and those qualifications make it essential for
        the Commission to retain the employee for a period specified by
        the Commission ending not later than the Canal Transfer Date,
        or the Commission otherwise has a special need for the services
        of the employee making it essential for the Commission to
        retain the employee for a period specified by the Commission
        ending not later than the Canal Transfer Date; and
            ``(B) the employee would be likely to leave employment with
        the Commission before the end of that period if the retention
        bonus is not paid.
    ``(2) A retention bonus under this subsection--
            ``(A) shall be in a fixed amount;
            ``(B) shall be paid on a pro rata basis (over the period
        specified by the Commission as essential for the retention of
        the employee), with such payments to be made at the same time
        and in the same manner as basic pay; and
            ``(C) may not be considered to be part of the basic pay of
        an employee.
    ``(3) A decision by the Commission to exercise or to not exercise
the authority to pay a bonus under this subsection shall not be subject
to review under any statutory procedure or any agency or negotiated
grievance procedure except under any of the laws referred to in section
2302(d) of title 5, United States Code.''.
    (b) Educational Services.--Section 1321(e)(2) (22 U.S.C.
3731(e)(2)) is amended by striking out ``and persons'' and inserting in
lieu thereof ``, to other Commission employees when determined by the
Commission to be necessary for their recruitment or retention, and to
other persons''.

SEC. 3526. TRANSITION SEPARATION INCENTIVE PAYMENTS.

    Chapter 2 of title I (22 U.S.C. 3641 et seq.) is amended by adding
at the end of subchapter III the following new section:

               ``transition separation incentive payments

    ``Sec. 1233. (a) In applying to the Commission and employees of the
Commission the provisions of section 663 of the Treasury, Postal
Service, and General Government Appropriations Act, 1997 (as contained
in section 101(f) of division A of Public Law 104-208; 110 Stat. 3009-
383), relating to voluntary separation incentives for employees of
certain Federal agencies (in this section referred to as `section
663')--
            ``(1) the term `employee' shall mean an employee of the
        Commission who has served in the Republic of Panama in a
        position with the Commission for a continuous period of at
        least three years immediately before the employee's separation
        under an appointment without time limitation and who is covered
        under the Civil Service Retirement System or the Federal
        Employees' Retirement System under subchapter III of chapter 83
        or chapter 84, respectively, of title 5, United States Code,
        other than--
                    ``(A) an employee described in any of subparagraphs
                (A) through (F) of subsection (a)(2) of section 663; or
                    ``(B) an employee of the Commission who, during the
                24-month period preceding the date of separation, has
                received a recruitment or relocation bonus under
                section 1217(c) of this Act or who, within the 12-month
                period preceding the date of separation, received a
                retention bonus under section 1217(d) of this Act;
            ``(2) the strategic plan under subsection (b) of section
        663 shall include (in lieu of the matter specified in
        subsection (b)(2) of that section)--
                    ``(A) the positions to be affected, identified by
                occupational category and grade level;
                    ``(B) the number and amounts of separation
                incentive payments to be offered; and
                    ``(C) a description of how such incentive payments
                will facilitate the successful transfer of the Panama
                Canal to the Republic of Panama;
            ``(3) a separation incentive payment under section 663 may
        be paid to a Commission employee only to the extent necessary
        to facilitate the successful transfer of the Panama Canal by
        the United States of America to the Republic of Panama as
        required by the Panama Canal Treaty of 1977;
            ``(4) such a payment--
                    ``(A) may be in an amount determined by the
                Commission not to exceed $25,000; and
                    ``(B) may be made (notwithstanding the limitation
                specified in subsection (c)(2)(D) of section 663) in
                the case of an eligible employee who voluntarily
                separates (whether by retirement or resignation) during
                the 90-day period beginning on the date of the
                enactment of this section or during the period
                beginning on October 1, 1998, and ending on December
                31, 1998;
            ``(5) in the case of not more than 15 employees who (as
        determined by the Commission) are unwilling to work for the
        Panama Canal Authority after the Canal Transfer Date and who
        occupy critical positions for which (as determined by the
        Commission) at least two years of experience is necessary to
        ensure that seasoned managers are in place on and after the
        Canal Transfer Date, such a payment (notwithstanding paragraph
        (4))--
                    ``(A) may be in an amount determined by the
                Commission not to exceed 50 percent of the basic pay of
                the employee; and
                    ``(B) may be made (notwithstanding the limitation
                specified in subsection (c)(2)(D) of section 663) in
                the case of such an employee who voluntarily separates
                (whether by retirement or resignation) during the 90-
                day period beginning on the date of the enactment of
                this section; and
            ``(6) the provisions of subsection (f) of section 663 shall
        not apply.
    ``(b) A decision by the Commission to exercise or to not exercise
the authority to pay a transition separation incentive under this
section shall not be subject to review under any statutory procedure or
any agency or negotiated grievance procedure except under any of the
laws referred to in section 2302(d) of title 5, United States Code.''.

SEC. 3527. LABOR-MANAGEMENT RELATIONS.

    Section 1271 (22 U.S.C. 3701) is amended by adding at the end the
following new subsection:
    ``(c)(1) This subsection applies to any matter that becomes the
subject of collective bargaining between the Commission and the
exclusive representative for any bargaining unit of employees of the
Commission during the period beginning on the date of the enactment of
this subsection and ending on the Canal Transfer Date.
    ``(2)(A) The resolution of impasses resulting from collective
bargaining between the Commission and any such exclusive representative
during that period shall be conducted in accordance with such
procedures as may be mutually agreed upon between the Commission and
the exclusive representative (without regard to any otherwise
applicable provisions of chapter 71 of title 5, United States Code).
Such mutually agreed upon procedures shall become effective upon
transmittal by the Chairman of the Commission to the Congress of notice
of the agreement to use those procedures and a description of those
procedures.
    ``(B) The Federal Services Impasses Panel shall not have
jurisdiction to resolve any impasse between the Commission and any such
exclusive representative in negotiations over a procedure for resolving
impasses.
    ``(3) If the Commission and such an exclusive representative do not
reach an agreement concerning a procedure for resolving impasses with
respect to a bargaining unit and transmit notice of the agreement under
paragraph (2) on or before July 1, 1998, the following shall be the
procedure by which collective bargaining impasses between the
Commission and the exclusive representative for that bargaining unit
shall be resolved:
            ``(A) If bargaining efforts do not result in an agreement,
        the parties shall request the Federal Mediation and
        Conciliation Service to assist in achieving an agreement.
            ``(B) If an agreement is not reached within 45 days after
        the date on which either party requests the assistance of the
        Federal Mediation and Conciliation Service in writing (or
        within such shorter period as may be mutually agreed upon by
        the parties), the parties shall be considered to be at an
        impasse and shall request the Federal Services Impasses Panel
        of the Federal Labor Relations Authority to decide the impasse.
            ``(C) If the Federal Services Impasses Panel fails to issue
        a decision within 90 days after the date on which its services
        are requested (or within such shorter period as may be mutually
        agreed upon by the parties), the efforts of the Panel shall be
        terminated.
            ``(D) In such a case, the Chairman of the Panel (or another
        member in the absence of the Chairman) shall immediately
        determine the matter by a drawing (conducted in such manner as
        the Chairman (or, in the absence of the Chairman, such other
        member) determines appropriate) between the last offer of the
        Commission and the last offer of the exclusive representative,
        with the offer chosen through such drawing becoming the binding
        resolution of the matter.
    ``(4) In the case of a notice of agreement described in paragraph
(2)(A) that is transmitted to the Congress as described in the second
sentence of that paragraph after July 1, 1998, the impasse resolution
procedures covered by that notice shall apply to any impasse between
the Commission and the other party to the agreeement that is unresolved
on the date on which that notice is transmitted to the Congress.''.

SEC. 3528. AVAILABILITY OF PANAMA CANAL REVOLVING FUND FOR SEVERANCE
              PAY FOR CERTAIN EMPLOYEES SEPARATED BY PANAMA CANAL
              AUTHORITY AFTER CANAL TRANSFER DATE.

    (a) Availability of Revolving Fund.--Section 1302(a) (22 U.S.C.
3712(a)) is amended by adding at the end the following new paragraph:
            ``(10) Payment to the Panama Canal Authority, not later
        than the Canal Transfer Date, of such amount as is computed by
        the Commission to be the future amount of severance pay to be
        paid by the Panama Canal Authority to employees whose
        employment with the Authority is terminated, to the extent that
        such severance pay is attributable to periods of service
        performed with the Commission before the Canal Transfer Date
        (and assuming for purposes of such computation that the Panama
        Canal Authority, in paying severance pay to terminated
        employees, will provide for crediting of periods of service
        with the Commission).''.
    (b) Stylistic Amendments.--Such section is further amended--
            (1) by striking out ``for--'' in the matter preceding
        paragraph (1) and inserting in lieu thereof ``for the following
        purposes:'';
            (2) by capitalizing the initial letter of the first word in
        each of paragraphs (1) through (9);
            (3) by striking out the semicolon at the end of each of
        paragraphs (1) through (7) and inserting in lieu thereof a
        period; and
            (4) by striking out ``; and'' at the end of paragraph (8)
        and inserting in lieu thereof a period.

PART II--TRANSITION MATTERS RELATING TO OPERATION AND ADMINISTRATION OF
                                 CANAL

SEC. 3541. ESTABLISHMENT OF PROCUREMENT SYSTEM AND BOARD OF CONTRACT
              APPEALS.

    Title III of the Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.)
is amended by inserting after the title heading the following new
chapter:

                        ``Chapter 1--Procurement

                          ``procurement system

    ``Sec. 3101. (a) Panama Canal Acquisition Regulation.--(1) The
Commission shall establish by regulation a comprehensive procurement
system. The regulation shall be known as the `Panama Canal Acquisition
Regulation' (in this section referred to as the `Regulation') and shall
provide for the procurement of goods and services by the Commission in
a manner that--
            ``(A) applies the fundamental operating principles and
        procedures in the Federal Acquisition Regulation;
            ``(B) uses efficient commercial standards of practice; and
            ``(C) is suitable for adoption and uninterrupted use by the
        Republic of Panama after the Canal Transfer Date.
    ``(2) The Regulation shall contain provisions regarding the
establishment of the Panama Canal Board of Contract Appeals described
in section 3102.
    ``(b) Supplement to Regulation.--The Commission shall develop a
Supplement to the Regulation (in this section referred to as the
`Supplement') that identifies both the provisions of Federal law
applicable to procurement of goods and services by the Commission and
the provisions of Federal law waived by the Commission under subsection
(c).
    ``(c) Waiver Authority.--(1) Subject to paragraph (2), the
Commission shall determine which provisions of Federal law should not
apply to procurement by the Commission and may waive those laws for
purposes of the Regulation and Supplement.
    ``(2) For purposes of paragraph (1), the Commission may not waive--
            ``(A) section 27 of the Office of Federal Procurement
        Policy Act (41 U.S.C. 423);
            ``(B) the Contract Disputes Act of 1978 (41 U.S.C. 601 et
        seq.), other than section 10(a) of such Act (41 U.S.C 609(a));
        or
            ``(C) civil rights, environmental, or labor laws.
    ``(d) Consultation With Administrator for Federal Procurement
Policy.--In establishing the Regulation and developing the Supplement,
the Commission shall consult with the Administrator for Federal
Procurement Policy.
    ``(e) Effective Date.--The Regulation and the Supplement shall take
effect on the date of publication in the Federal Register, or January
1, 1999, whichever is earlier.

                ``panama canal board of contract appeals

    ``Sec. 3102. (a) Establishment.--(1) The Secretary of Defense, in
consultation with the Commission, shall establish a board of contract
appeals, to be known as the Panama Canal Board of Contract Appeals, in
accordance with section 8 of the Contract Disputes Act of 1978 (41
U.S.C. 607). Except as otherwise provided by this section, the Panama
Canal Board of Contract Appeals (in this section referred to as the
`Board') shall be subject to the Contract Disputes Act of 1978 (41
U.S.C. 601 et seq.) in the same manner as any other agency board of
contract appeals established under that Act.
    ``(2) The Board shall consist of three members. At least one member
of the Board shall be licensed to practice law in the Republic of
Panama. Individuals appointed to the Board shall take an oath of
office, the form of which shall be prescribed by the Secretary of
Defense.
    ``(b) Exclusive Jurisdiction To Decide Appeals.--Notwithstanding
section 10(a)(1) of the Contract Disputes Act of 1978 (41 U.S.C.
609(a)(1)) or any other provision of law, the Board shall have
exclusive jurisdiction to decide an appeal from a decision of a
contracting officer under section 8(d) of such Act (41 U.S.C. 607(d)).
    ``(c) Exclusive Jurisdiction To Decide Protests.--The Board shall
decide protests submitted to it under this subsection by interested
parties in accordance with subchapter V of title 31, United States
Code. Notwithstanding section 3556 of that title, section 1491(b) of
title 28, United States Code, and any other provision of law, the Board
shall have exclusive jurisdiction to decide such protests. For purposes
of this subsection--
            ``(1) except as provided in paragraph (2), each reference
        to the Comptroller General in sections 3551 through 3555 of
        title 31, United States Code, is deemed to be a reference to
        the Board;
            ``(2) the reference to the Comptroller General in section
        3553(d)(3)(C)(ii) of such title is deemed to be a reference to
        both the Board and the Comptroller General;
            ``(3) the report required by paragraph (1) of section
        3554(e) of such title shall be submitted to the Comptroller
        General as well as the committees listed in such paragraph;
            ``(4) the report required by paragraph (2) of such section
        shall be submitted to the Comptroller General as well as
        Congress; and
            ``(5) section 3556 of such title shall not apply to the
        Board, but nothing in this subsection shall affect the right of
        an interested party to file a protest with the appropriate
        contracting officer.
    ``(d) Procedures.--The Board shall prescribe such procedures as may
be necessary for the expeditious decision of appeals and protests under
subsections (b) and (c).
    ``(e) Commencement.--The Board shall begin to function as soon as
it has been established and has prescribed procedures under subsection
(d), but not later than January 1, 1999.
    ``(f) Transition.--The Board shall have jurisdiction under
subsection (b) and (c) over any appeals and protests filed on or after
the date on which the Board begins to function. Any appeals and
protests filed before such date shall remain before the forum in which
they were filed.
    ``(g) Other Functions.--The Board may perform functions similar to
those described in this section for such other matters or activities of
the Commission as the Commission may determine and in accordance with
regulations prescribed by the Commission.''.

SEC. 3542. TRANSACTIONS WITH THE PANAMA CANAL AUTHORITY.

    Section 1342 (22 U.S.C. 3752) is amended--
            (1) by designating the text of the section as subsection
        (a); and
            (2) by adding at the end the following new subsections:
    ``(b) The Commission may provide office space, equipment, supplies,
personnel, and other in-kind services to the Panama Canal Authority on
a nonreimbursable basis.
    ``(c) Any executive department or agency of the United States may,
on a reimbursable basis, provide to the Panama Canal Authority
materials, supplies, equipment, work, or services requested by the
Panama Canal Authority, at such rates as may be agreed upon by that
department or agency and the Panama Canal Authority.''.

SEC. 3543. TIME LIMITATIONS ON FILING OF CLAIMS FOR DAMAGES.

    (a) Filing of Administrative Claims With Commission.--Sections
1411(a) (22 U.S.C. 3771(a)) and 1412 (22 U.S.C. 3772) are each amended
in the last sentence by striking out ``within 2 years after'' and all
that follows through ``of 1985,'' and inserting in lieu thereof
``within one year after the date of the injury or the date of the
enactment of the Panama Canal Transition Facilitation Act of 1997,''.
    (b) Filing of Judicial Actions.--The penultimate sentence of
section 1416 (22 U.S.C. 3776) is amended--
            (1) by striking out ``one year'' the first place it appears
        and inserting in lieu thereof ``180 days''; and
            (2) by striking out ``claim, or'' and all that follows
        through ``of 1985,'' and inserting in lieu thereof ``claim or
        the date of the enactment of the Panama Canal Transition
        Facilitation Act of 1997,''.

SEC. 3544. TOLLS FOR SMALL VESSELS.

    Section 1602(a) (22 U.S.C. 3792(a)) is amended--
            (1) in the first sentence, by striking out ``supply ships,
        and yachts'' and inserting in lieu thereof ``and supply
        ships''; and
            (2) by adding at the end the following new sentence:
        ``Tolls for small vessels (including yachts), as defined by the
        Commission, may be set at rates determined by the Commission
        without regard to the preceding provisions of this
        subsection.''.

SEC. 3545. DATE OF ACTUARIAL EVALUATION OF FECA LIABILITY.

    Section 5(a) of the Panama Canal Commission Compensation Fund Act
of 1988 (22 U.S.C. 3715c(a)) is amended by striking out ``Upon the
termination of the Panama Canal Commission'' and inserting in lieu
thereof ``By March 31, 1998''.

SEC. 3546. APPOINTMENT OF NOTARIES PUBLIC.

    Section 1102a (22 U.S.C. 3612a) is amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f) the following new
        subsection:
    ``(g)(1) The Commission may appoint any United States citizen to
have the general powers of a notary public to perform, on behalf of
Commission employees and their dependents outside the United States,
any notarial act that a notary public is required or authorized to
perform within the United States. Unless an earlier expiration is
provided by the terms of the appointment, any such appointment shall
expire three months after the Canal Transfer Date.
    ``(2) Every notarial act performed by a person acting as a notary
under paragraph (1) shall be as valid, and of like force and effect
within the United States, as if executed by or before a duly authorized
and competent notary public in the United States.
    ``(3) The signature of any person acting as a notary under
paragraph (1), when it appears with the title of that person's office,
is prima facie evidence that the signature is genuine, that the person
holds the designated title, and that the person is authorized to
perform a notarial act.''.

SEC. 3547. COMMERCIAL SERVICES.

    Section 1102b (22 U.S.C. 3612b) is amended by adding at the end the
following new subsection:
    ``(e) The Commission may conduct and promote commercial activities
related to the management, operation, or maintenance of the Panama
Canal. Any such commercial activity shall be carried out consistent
with the Panama Canal Treaty of 1977 and related agreements.''.

SEC. 3548. TRANSFER FROM PRESIDENT TO COMMISSION OF CERTAIN REGULATORY
              FUNCTIONS RELATING TO EMPLOYMENT CLASSIFICATION APPEALS.

    Sections 1221(a) and 1222(a) (22 U.S.C. 3661(a), 3662(a)) are
amended by striking out ``President'' and inserting in lieu thereof
``Commission''.

SEC. 3549. ENHANCED PRINTING AUTHORITY.

    Section 1306(a) (22 U.S.C. 3714b(a)) is amended by striking out
``Section 501'' and inserting in lieu thereof ``Sections 501 through
517 and 1101 through 1123''.

SEC. 3550. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Clerical Amendments.--The table of contents in section 1 is
amended--
            (1) by striking out the item relating to section 1210 and
        inserting in lieu thereof the following:

``Sec. 1210. Air transportation.'';
            (2) by striking out the items relating to sections 1215,
        1219, and 1225;
            (3) by inserting after the item relating to section 1232
        the following new item:

``Sec. 1233. Transition separation incentive payments.'';
        and
            (4) by inserting after the item relating to the heading of
        title III the following:

                        ``Chapter 1--Procurement

``Sec. 3101. Procurement system.
``Sec. 3102. Panama Canal Board of Contract Appeals.''.
    (b) Amendment To Reflect Prior Change in Compensation of
Administrator.--Section 5315 of title 5, United States Code, is amended
by striking out the following:
            ``Administrator of the Panama Canal Commission.''.
    (c) Amendments To Reflect Change in Travel and Transportation
Expenses Authority.--(1) Section 5724(a)(3) of title 5, United States
Code, is amended by striking out ``, the Commonwealth of Puerto Rico,''
and all that follows through ``Panama Canal Act of 1979'' and inserting
in lieu thereof ``or the Commonwealth of Puerto Rico''.
    (2) Section 5724a(j) of such title is amended--
            (A) by inserting ``and'' after ``Northern Mariana
        Islands,''; and
            (B) by striking out ``United States, and'' and all that
        follows through the period at the end and inserting in lieu
        thereof ``United States.''.
    (3) The amendments made by this subsection shall take effect on
January 1, 1999.
    (d) Miscellaneous Technical Amendments.--
            (1) Section 3(b) (22 U.S.C. 3602(b)) is amended by striking
        out ``the Canal Zone Code'' and all that follows through
        ``other laws'' the second place it appears and inserting in
        lieu thereof ``laws of the United States and regulations issued
        pursuant to such laws''.
            (2)(A) The following provisions are each amended by
        striking out ``the effective date of this Act'' and inserting
        in lieu thereof ``October 1, 1979'': sections 3(b), 3(c),
        1112(b), and 1321(c)(1).
            (B) Section 1321(c)(2) is amended by striking out ``such
        effective date'' and inserting in lieu thereof ``October 1,
        1979''.
            (C) Section 1231(c)(3)(A) (22 U.S.C. 3671(c)(3)(A)) is
        amended by striking out ``the day before the effective date of
        this Act'' and inserting in lieu thereof ``September 30,
        1979''.
            (3) Section 1102a(h), as redesignated by section 3546(1),
        is amended by striking out ``section 1102B'' and inserting in
        lieu thereof ``section 1102b''.
            (4) Section 1110(b)(2) (22 U.S.C. 3620(b)(2)) is amended by
        striking out ``section 16 of the Act of August 1, 1956 (22
        U.S.C. 2680a),'' and inserting in lieu thereof ``section 207 of
        the Foreign Service Act of 1980 (22 U.S.C. 3927)''.
            (5) Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by
        striking out ``as last in effect before the effective date of
        section 3530 of the Panama Canal Act Amendments of 1996'' and
        inserting in lieu thereof ``as in effect on September 22,
        1996''.
            (6) Section 1243(c)(2) (22 U.S.C. 3681(c)(2)) is amended by
        striking out ``retroactivity'' and inserting in lieu thereof
        ``retroactively''.
            (7) Section 1341(f) (22 U.S.C. 3751(f)) is amended by
        striking out ``sections 1302(c)'' and inserting in lieu thereof
        ``sections 1302(b)''.

                  TITLE XXXVI--MARITIME ADMINISTRATION

SEC. 3601. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 1998.

    Funds are hereby authorized to be appropriated for fiscal year
1998, 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, $70,000,000.
            (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.), $39,000,000 of which--
                    (A) $35,000,000 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. REPEAL OF OBSOLETE ANNUAL REPORT REQUIREMENT CONCERNING
              RELATIVE COST OF SHIPBUILDING IN THE VARIOUS COASTAL
              DISTRICTS OF THE UNITED STATES.

    (a) Repeal.--Section 213 of the Merchant Marine Act, 1936 (46
U.S.C. App. 1123), is amended by striking out paragraph (c).
    (b) Conforming Amendments.--Such section is further amended--
            (1) by striking out ``on--'' in the matter preceding
        paragraph (a) and inserting in lieu thereof ``on the
        following:'';
            (2) by redesignating paragraphs (a) and (b) as paragraphs
        (1) and (2), respectively;
            (3) by striking out the semicolon at the end of each of
        those paragraphs and inserting in lieu thereof a period; and
            (4) by realigning those paragraphs so as to be indented 2
        ems from the left margin.

SEC. 3603. PROVISIONS RELATING TO MARITIME SECURITY FLEET PROGRAM.

    (a) Authority of Contractors To Operate Self-Propelled Tank Vessels
in Noncontiguous Domestic Trades.--Section 656(b) of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1187e(b)) is amended by inserting
``(1)'' after ``(b)'', and by adding at the end the following new
paragraph:
    ``(2) Subsection (a) shall not apply to operation by a contractor
of a self-propelled tank vessel in a noncontiguous domestic trade, or
to ownership by a contractor of an interest in a self-propelled tank
vessel that operates in a noncontiguous domestic trade.''.
    (b) Relief from Delay in Certain Operations Following
Documentation.--Section 652(c) of the Merchant Marine Act, 1936 (46
U.S.C. 1187a(c)) is amended by adding at the end the following: ``The
third sentence of section 901(b)(1) shall not apply to a vessel
included in an operating agreement under this subtitle.''.

SEC. 3604. AUTHORITY TO UTILIZE REPLACEMENT VESSELS AND CAPACITY.

    Section 653(d)(1) of the Merchant Marine Act, 1936 (46 U.S.C. App.
1187c(d)(1)) is amended to read as follows:
            ``(1) a contractor or other person that commits to make
        available a vessel or vessel capacity under the Emergency
        Preparedness Program or another primary sealift readiness
        program approved by the Secretary of Defense may, during the
        activation of that vessel or capacity under that program,
        operate or employ in foreign commerce a foreign-flag vessel or
        foreign-flag vessel capacity as a temporary replacement for the
        activated vessel or capacity; and''.

SEC. 3605. 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 GOLDEN BEAR (United States official number 239932)
to the Artship Foundation, located in Oakland, California (in this
section referred to as the ``recipient''), for use as a multi-cultural
center for the arts.
    (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) 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.

SEC. 3606. DETERMINATION OF GROSS TONNAGE FOR PURPOSES OF TANK VESSEL
              DOUBLE HULL REQUIREMENTS.

    Section 3703a of title 46, United States Code, is amended by adding
at the end the following:
    ``(e) For purposes of this section, the gross tonnage of a vessel
for which a tonnage certificate was issued or accepted by the Secretary
under this title before July 1, 1997, shall be the gross tonnage of the
vessel stated on the most recent such certificate.''.

            Passed the House of Representatives June 25, 1997.

            Attest:

                                                                 Clerk.