A bill to achieve greater cooperation from allies of the United States and international organizations for the payment of the costs involved in the development and production of Theater Missile Defense systems; and to amend title 10, United States Code, to establish a Theater Missile Defense Cooperation Account.

SECTION 1. REPORT ON ACTIONS TO ACHIEVE INTERNATIONAL COOPERATION IN 
              DEVELOPMENT OF THEATER MISSILE DEFENSES.

    Not later than June 1, 1994, the Secretary of Defense shall submit 
to Congress a report on steps that can be taken by the United States to 
achieve greater cooperation from allies of the United States and 
international organizations for the payment of the costs involved in 
the development and production of Theater Missile Defense systems.

SEC. 2. FUNDING THEATER MISSILE DEFENSE PROGRAMS.

    (a) Requirement for Annual Authorization of New Obligational 
Authority for TMD Programs.--The Congress shall establish by law for 
each fiscal year (beginning with fiscal year 1995) the level of new 
obligational authority (stated as a single dollar amount) for research, 
development, test, and evaluation and for procurement for Theater 
Missile Defense programs of the Department of Defense for that fiscal 
year.
    (b) Limitation on United States Contribution for TMD Programs.--(1) 
Not more than 80 percent of the amount established pursuant to 
subsection (a) for any fiscal year may be provided from amounts 
appropriated to the Department of Defense from the general fund of the 
Treasury, and no appropriation may be made to the Department of Defense 
for any fiscal year which would cause the total amount appropriated for 
that fiscal year for research, development, test, and evaluation and 
for procurement for Theater Missile Defense programs of the Department 
of Defense to exceed 80 percent of such amount.
    (2) Any additional funds for research, development, test, and 
evaluation and for procurement for Theater Missile Defense programs for 
any fiscal year for which an amount has been established pursuant to 
subsection (a) shall be derived from the Theater Missile Defense 
Cooperation Account under section 2610 of title 10, United States Code, 
as added by section 3.
    (3) The President may waive the limitation in paragraph (1) and the 
requirement in paragraph (2) to the extent that the President 
determines appropriate in the national security interest of the United 
States.
    (c) Policy Regarding Incremental Increases in Foreign Contributions 
for TMD Programs.--It is the intent of Congress that, except as 
provided in subsection (d), the percentage of the cost of the 
development and production of Theater Missile Defense systems that is 
borne by the United States should decrease incrementally, and the 
percentage that is borne by allied nations and international 
organizations should increase incrementally, over the fiscal years 
after fiscal year 1995 so that the percentage actually borne by the 
United States in later fiscal years is significantly less than the 
maximum of 80 percent provided for under subsection (b).
    (d) Exemption.--The financial contribution requirements established 
for allied nations in the administration of this section shall not 
apply to any foreign nation that, as of the date of the enactment of 
this Act, is paying at least 20 percent of the total cost of the 
contracts in existence under a theater missile defense interceptor 
system program being carried out on such date in cooperation between 
that foreign nation and the United States.

SEC. 3. THEATER MISSILE DEFENSE COOPERATION ACCOUNT.

    (a) Establishment.--(1) Chapter 155 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 2610. Theater Missile Defense: acceptance of contributions from 
              allies; Theater Missile Defense Cooperation Account
    ``(a) Acceptance Authority.--The Secretary of Defense may accept 
from any allied foreign government or any international organization 
any contribution of money made by such foreign government or 
international organization for use by the Department of Defense for 
Theater Missile Defense programs.
    ``(b) Establishment of Theater Missile Defense Cooperation 
Account.--(1) There is established in the Treasury a special account to 
be known as the `Theater Missile Defense Cooperation Account'.
    ``(2) Contributions accepted by the Secretary of Defense under 
subsection (a) shall be credited to the Account.
    ``(c) Use of the Account.--Funds in the Account are hereby made 
available for obligation for research, development, test, and 
evaluation, and for procurement, for Theater Missile Defense programs 
of the Department of Defense, subject to annual limitations provided by 
law in total obligations for such purpose.
    ``(d) Investment of Money.--(1) Upon request by the Secretary of 
Defense, the Secretary of the Treasury may invest money in the Account 
in securities of the United States or in securities guaranteed as to 
principal and interest by the United States.
    ``(2) Any interest or other income that accrues from investment in 
securities referred to in paragraph (1) shall be deposited to the 
credit of the Account.
    ``(e) Notification of Conditions.--The Secretary of Defense shall 
notify Congress of any condition imposed by the donor on the use of any 
contribution accepted by the Secretary under the authority of this 
section.
    ``(f) Reporting Requirement.--Not later than 30 days after the end 
of each quarter of each fiscal year, the Secretary of Defense shall 
submit to Congress a report on the contributions accepted by the 
Secretary under this section during the preceding quarter.
    ``(g) Annual Audit by GAO.--The Comptroller General of the United 
States shall conduct an annual audit of money accepted by the Secretary 
of Defense under this section and shall submit a copy of the results of 
each such audit to Congress.
    ``(h) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2610. Theater Missile Defense: acceptance of contributions from 
                            allies; Theater Missile Defense Cooperation 
                            Account.''.
    (b) Effective Date.--Section 2610 of title 10, United States Code, 
as added by subsection (a), shall take effect on October 1, 1994.

Summary: Directs the Secretary of Defense, by June 1, 1994, to report to the Congress on steps that can be taken by the United States to achieve greater cooperation from US allies and international organizations for the payment of the costs involved in the development and production of theater missile defense (TMD) systems. Establishes the annual fiscal year obligational authority, beginning with FY 1995, for research, development, test, and evaluation and for procurement for TMD programs. Limits the annual US contribution for TMD programs, with a waiver by the President for national security purposes. States that the percentage of development and production costs of TMD systems borne by the United States should decrease incrementally for fiscal years after 1995. Authorizes the Secretary to accept from such allies and organizations contributions for such costs. Establishes in the Treasury the Theater Missile Defense Cooperation Account. Requires: (1) the Secretary to report quarterly on any such contributions. And (2) the Comptroller General to conduct and report to the Congress on annual audits of money accepted.